Permit Bottlenecks Leave 175 Sand Mines Unexploited, Fueling Supply Shortages
The city of Da Nang, home to 86 active mineral extraction permits as of March 2026, is grappling with a stark mismatch between approved mines and operational capacity. While 11 sand mines in the former Quang Nam province have been granted extraction rights, the total number of approved sites—186 in the regional plan—remains largely untapped. This gap has led to a critical shortage of raw materials, with 16 approved sand mines delayed due to procedural hurdles.
The lack of immediate supply has pushed construction costs to unsustainable levels, as highlighted by local officials and residents. The city’s mineral management department reported that 59 permits were issued by the former Quang Nam province, while 21 were granted directly by Da Nang. Despite these approvals, only 11 sand mines have been operational, leaving a vast majority of approved sites idle.
This stagnation has exacerbated the supply crisis, forcing builders to face rising material prices and project delays. The situation has sparked urgent calls for faster permit processing, as officials warn that the current pace threatens to derail the city’s economic growth targets. With construction demand outstripping supply, the need to resolve these bottlenecks has become a top priority for local leaders.
Construction Costs Skyrocket as Builders Struggle to Secure Sand Supplies
Rising sand prices have become a major headache for developers and homeowners in Da Nang. According to local reports, the cost of sand has surged nearly 50% since early 2026, forcing many construction projects to halt. Anh Tran Van Hoa, a resident planning to build a house this year, noted that his family had to abandon their project after the price of sand nearly doubled.
“Cement and sand account for half the construction budget,” he said, emphasizing the financial strain on households. The shortage has also impacted large-scale infrastructure projects, as officials stress the need to maintain growth momentum. During a recent meeting, Da Nang’s leaders reiterated that construction costs must not derail the city’s goal of achieving double-digit economic growth.
However, the current supply crisis has made this objective increasingly difficult to achieve. With sand prices at record highs, developers are facing mounting pressure to either pause projects or absorb higher costs. Local builders have expressed frustration over the lack of immediate solutions.
Officials Push for Accelerated Permit Processing to Revive Sand Supply Chain
Da Nang’s leadership has vowed to fast-track the approval process for remaining sand mines to alleviate the crisis. At a recent meeting, Deputy Mayor Tran Nam Hung emphasized that 2026 must be the year the city’s mineral extraction capacity surges. “We cannot allow the shortage of raw materials to stall our growth targets,” he stated, urging the immediate auction of all approved sand sites.
The city’s plan includes streamlining bureaucratic procedures and even involving law enforcement to prevent delays after auctions. Officials argue that the current backlog is a failure in administrative efficiency, noting that many mines have completed their legal requirements but remain unused. “If we don’t act now, we risk losing the opportunity to boost GDP through mineral exports,” Hung warned.
Meanwhile, the city is also considering expanding its authority to issue permits directly for sand extraction, bypassing the former Quang Nam province’s oversight. This move aims to expedite the process and ensure that approved mines are operational as soon as possible. However, critics warn that rapid expansion without proper oversight could lead to environmental risks, highlighting the delicate balance between economic growth and resource management.
Conclusion
The crisis in Da Nang underscores the urgent need to resolve the disconnect between approved mineral sites and actual extraction. As officials push to accelerate permits and auctions, the city faces a critical test: whether it can balance economic growth with sustainable resource management. The success of these efforts will determine whether the city can stabilize construction costs and meet its ambitious growth targets.
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