Sep 4, 2011

Vietnam - Fields fallow due to golf course projects

Golf course and villa projects worth dozens of millions of USD, which have been idle for many years have pushed farmers into misery. 


The 250-hectare Bao Loc golf course resort project is the one that uses the largest area of land in the Central Highland province of Lam Dong. This project has taken 180 hectares already, affecting 450 families. Two thirds of these families have lost all of their land. 

Bao Loc is a well-known tea area in Vietnam, with famous tea brands of Tam Chau, Quoc Thai and Thien Huong. Tea trees have helped many people escape poverty. However, since the 54-hole golf course project--the biggest in the Central Highlands (which is scheduled to expand to 500 hectares), was approved. The lives of many tea growers have been threatened.

“With new tea varieties, we earn around VND120 million ($6,000) from one hectare of tea per year. If we sell our land, we will receive VND800 million ($40,000) for a hectare. It is a great loss for devoting tea-growing land for building a golf course,” said Nguyen Van Trung, Chairman of the Hiep Phat Tea Cooperative.

According to Trung, this project has not been implemented for years, so local farmers have petitioned the local government to grant the land use certificates for them to stabilize tea production. The local government has agreed but it still noted in the land use certificates: “land in the golf course project”.

“This project has been idle for several years and the investor has not paid a penny to farmers, but our land use certificates are noted like this. We cannot mortgage our land to borrow capital from banks,” Trung complained.

He told VietNamNet that many tea gardens have been left fallow for years, because farmers are afraid that their investment in tea gardens will be in vain once their land is revoked for the golf project.

Though the golf course project was “kicked off” in 2008, there is no golf course built. The investor also advertised to build 200 villas, a 300-room hotel, restaurants and other facilities around the golf course and the project will regain investment after 13 years and annual profits will be $4.5 million/year. However, this project is still idle.

Tan Lap 1 commune in Tan Phuoc district, the southern province of Tien Giang is known for a famous pineapple variety, which is considered a specialty of the southwestern region. However, this pineapple area has become fallow.

In July 2009, Tien Giang authorities announced to revoke land in Hamlet 5, Tan Lap commune to allocate to a 36-hole golf course and resort project, owned by the Genuwin D&C Tien Giang Company, with total investment of VND1.28 trillion ($61 million). Yet this project is still on paper after three years.

Mr. Tran Van Thanh’s family has 1.5 hectares of pineapple field, but the field has been fallowed for two years because of the golf project. This is the same situation of hundreds of families there. They do not plant pineapple to wait for land compensation.

Many families see it is a great waste for a vast area of land left fallow and they want to grow pineapple again. However, like those in Lam Dong, they are afraid to lose their investment and efforts if the land is suddenly revoked for the golf course project. Some families were “brave” to grow pineapple on fallowed fields, but they are not provided with water for irrigation because “the land is designated for the golf course project”.

“Previously, my family harvested around 55 tons of pineapple a year, earning more than VND160 million (over $8,000) a year but now we have no source of income,” Thanh said.

Many farmers have left their home to work in the nearby Long Giang industrial zone or go to HCM City to work as hired workers.

Mr. Sau said: “From a farmer, I become a building worker, but this job is unstable. I’m jobless for sometimes.”

Sau’s wife has not had a stable job for over a year. She was occasionally hired to peel cashew nuts. This family is in extreme difficulty.

Cao Minh Tam, vice chief of the Office of Tien Giang Province People’s Committee, the investor has just finalized the detailed design of the golf course-resort project and is awaiting to be approved by the Tien Giang authorities.

Tam was surprised that farmers have left land fallow. “Local people were informed clearly to continue farming work until their land is revoked, but I do not know why they stopped farming.”

Not only 270 hectares of land projected for the golf course-resort project, most of the 540 hectares of agricultural land in Tan Lap 1 commune has been left fallowed, after Tien Giang authorities made public of the golf course-resort project, which is invested by the Long Giang Industrial Zone Development Co., Ltd.

However, since May 2008, this project has not been implemented.

This is a paradox and a waste of resources.


Thai Thien



Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.

No comments:

Post a Comment