May 16, 2012

Vietnam - Golf course projects continue to tee up


Though the Ministry of Planning and Investment has yet to receive the Government's green light for its proposal to enlarge the master plan for development of golf courses from 87 to 115 by 2020, the door has not been shut on new golf courses, according to the deputy head of a ministry think tank.

Hoang Ngoc Phong of the Institute for Development Strategies said: "New projects must comply with land-use rules, not encroach on rice fields or protective forests, not be diverted for urban development, and must come up in regions which tourism potential."

Getting a licence to build a new golf course now depends on provincial authorities' preparations for the project and fulfilling some basic criteria set by the Government.

In the past few years, provinces and cities have kept up efforts to add new projects to the master plan. At a seminar in Ha Noi last Friday, Phong said they were seeking to add 30 to 40 new courses.

The Thai Nguyen Province People's Committee recently proposed licensing four new courses instead of the two (in Yen Binh and Long Son) planned last year.

Quang Ninh has unveiled plans for a course in Mong Cai while Khanh Hoa, Long An and some other provinces have all sought to increase the number.

Not surprisingly, people wonder if Viet Nam would be among the countries with the largest number of golf courses if all these projects are added to the master plan, though Phong has denied it. He said the number of courses in Vietnam would not match the 256 in Thailand, 230 in Malaysia and 152 in Indonesia.

Jeff Puchalski, CEO of golf course management and consulting firm Fore Golf Asia, was quoted by Vietnam Investment Review as saying that if there were fewer golfers than expected, investors would stop developing courses in the country.

The plans to develop golf courses had attracted growing criticism from all segments of society for encroaching on rice fields and creating social and environmental problems.

On an online Government forum on Mach 22, Minister of Agriculture and Rural Development Cao Duc Phat admitted that agricultural lands had been lost to golf courses and industrial parks.

According to official figures, 29 golf courses are operational, 22 are under construction and 13 others have received licences.

Another 23 have been approved in principle. They are in 34 provinces and cities, and more than half belong to foreign investors.

The MPI said golf was contributing to the country's economy. In 2010, developers of the country's 29 courses paid an estimated 25.4 billion dong (US$1.2 million) in tax and created 9,744 jobs.

VNA



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