Contruction of infrastructure in the Mekong Delta requires a sand mining framework

Preventing the avoidance of responsibilities

As the last Governmental member to report to the National Assembly, Deputy Prime Minister Le Minh Khai opened with an update report on the socio-economic situation in May 2023.

According to the Deputy Prime Minister, Vietnam's macro-economy has remained relatively stable during May 2023. Most notably, inflation is managed; CPI continues its downtrend with a 5-month average of 3.55%. The index of industrial production (IIP) in May increased by 2.2% compared to April and by 0.1% compared to May 2022. Moreover, the agricultural sector develops steadily; trade and services continued its rapid recovery.

Disbursement of public investment during the first five months reached 22.2% of the plan, which is equal to the same period in 2022, but the absolute figure is 41 trillion VND higher. Attraction of FDI in May reached nearly 2 billion USD, which is 2.2 times higher compared to the same period in 2022. Additionally, 95,000 new businesses were established. 

However, Vietnam's economy suffers from several limitations including low credit growth; limited access to capital for businesses; disruption in supply chains, labor market, corporate bonds, real estate, etc.; declining purchasing managers index (PMI); reduced purchasing power of numerous traditional and major markets.

On the other hand, approximately 88,000 businesses withdrew from the market. Several total blackouts have occured in northern provinces and cities. The implementation of various policies under the socio-economic recovery and development program, and three national target programs is stagnant. Numerous local people' lives have been negatively impacted.

"Some governmental officials are prone to avoiding responsibility. They are afraid of being wrong", the Deputy Prime Minister remarked.

Regarding macroeconomic management, the Government is determined to stabilize the macro-economy, control inflation, promote growth, and ensure major balances in the economy. Furthermore, the Government will focus on social security policies; implement a firm and flexible monetary policy; establish a reasonable and focused fiscal policy.

Regarding social security, labor and employment, the Government has implemented various solutions to overcome supply chain disruptions, promote production, maintain and create additional employment opportunities. Additionally, the Government is planning to submit a draft amended Law on Social Insurance to the 6th Session of the National Assembly , ensuring and improving the interests of social insurance participants, raising awareness to limit the situation. one-time social insurance withdrawal.

Regarding social labor productivity, the Government focuses on developing especially high-quality human resources; developing soft skills, foreign languages, digital skills in response to the rapid development trend of technology, digital economy, green economy, and circular economy. In addition, the Government aims to enhance its policies and regulations, creating a legal framework for pilot,  experimental and unique mechanisms.

In response to the issue of responsibility avoidance, the Government has strengthened decentralization in combination with personalization of responsibilities, Moreover, inspection and examination of public service activities have been strengthened.

The need to develop a framework for sand mining in the Mekong Delta

In response to a question from Ms. Nguyen Thi Hong Hanh, a delegation from Ho Chi Minh City, regarding the suspended Ben Luc - Long Thanh expressway project, the Deputy Prime Minister explained that the project was interrupted due to a lack of ODA capital. 

The project reached 80% of its work volume in 2019. However, issues regarding procedures forced contractors to halt construction. In order to restart the entire project, the Ministry of Transport requested the Government to approve the adjustment of investment policies, and delay the completion time to September 2025. Accordingly, the Vietnam Expressway Corporation (VEC) is authorized to utilize accumulated capital and legal sources to complete the project.

Mr. Sung A Lenh, a delegation of Lao Cai province's National Assembly, inquired the Deputy Prime Minister about the solution to resolving difficulties regarding the real estate market and corporate bonds.

According to the Deputy Prime Minister, the real estate market and corporate bonds are facing multiple challenges that affect the macroeconomic management. Namely, the management and utilization of cash flow in financial leverage are inappropriate; the product structure is outdated, and the capacity of investors is limited.

The Prime Minister recently established two working groups led by two Deputy Prime Ministers, to assess the shortcomings and its causes in the field of real estate. Based on the reports of these working groups, the Government will enhance the legal framework and resolve difficulties for the real estate and bond markets, with an emphasis on publicity and transparency.

Despite apparent difficulties, the issuance, payment, extension and maturity of bonds have been relatively stable. However, the Government will continue to promote commitments and obligations as well as strictly handle violations to protect the rights and interests of investors.

Mr. Pham Van Hoa, a delegation of Dong Thap province's National Assembly mentioned the plan to construct a local viaduct. He believes that the viaduct can offer a variety of benefits without obstructing agricultural production and affecting the environment.

Deputy Prime Minister Le Minh Khai emphasized the importance of thorough calculations and practical solutions due to the lack of sand, stone and construction materials in the Mekong Delta. A comprehensive assessment is required to compare the long-term benefits between viaducts and highways.

The Deputy Prime Minister requested the Ministry of Transport to conduct thorough research and analysis on this issue before submission to the Government.

Sea sand has been suggested as an alternative to regular construction material at various construction projects in the Mekong Delta. According to the Deputy Prime Minister the construction of local highways requires a large amount of construction materials, including sand. As a result, the Mekong Delta requires a special framework for sand mining. 

"We must promote efficiency in addition to protecting the environment and ensuring safety in sand mines. We must also be transparent and prevent group interest in the implementation of these special frameworks", emphasized Mr. Le Minh Khai.