The golf course business in Vietnam will become more effective and better managed as the government is planning to replace the current planning with a decree providing conditions for investing and doing business in this sector from 2019.
MPI’s mechanisms to manage investment and doing business in golf courses to be approved in 2019 are expected to greatly improve golf course planning opening opportunities to add more golf courses to the planning by 2020.
On March 27, Minister of Planning and Investment Nguyen Chi Dung on behalf of the Prime Minister signed several documents to approve adding a series of golf course projects to the golf course planning by 2020. This decision has aroused investors’ interest.
These projects include Kenh Ga-Van Trinh Golf Course (Ninh Binh), FLC Quang Binh Golf Links (Quang Binh), Phu Vang International Golf Course and Resort (Thua Thien-Hue), and Vinpearl My Lam Golf Course (Tuyen Quang).
In addition, MPI is collecting suggestions on adding several other golf course projects to the planning, including the 176-ha Bao Ninh Truong Thinh golf course (Quang Binh), Viet Yen golf course (Bac Giang), and the 215-ha Eakao golf course and villa area (Dak Lak).
Speaking at the latest government regular meeting, Deputy Minister of Planning and Investment Le Quang Manh explained that adding these golf courses to the planning will facilitate investors and local authorities to implement the next investment procedures.
Golf course business to become more effective
The draft decree on conditions for investing and doing business in golf courses is expected to be approved in 2019, completely replacing the current planning. This change will make golf course business more effective and better, more strictly managed.
Accordingly, the government will issue many conditions and specific standards for investment in golf courses to avoid encroachment on forest and agricultural land and environment issues.
Manh also said: “The draft decree will provide market mechanisms and ensure state management tools to avoid the misuse of land as well as environmental and social issues.”
In fact, the current planning was issued to limit investment in this segment because golf courses need large land funds, which could easily go at the expense of forest and agricultural land and lead to ecological imbalance.
Aiming to meet the increasing demand to play golf, a series of projects have been popping up from large developers, including VinGroup’s Vinpearl Quang Nam Golf Course and Eakao golf course and villa area, and FLC Group’s FLC Quang Binh Golf Links.
According to Decision No.795/QD-TTg on adjusting the golf course planning by 2020, there are 96 golf courses in the planning.
However, over the past few years, a number of golf courses in many provinces encroached on agricultural land and violated regulations on forest and land management. In addition, many golf course projects were made up by investors to acquire land and use it to develop resorts.
MPI said that many golf courses had to be cut out of the planning due to long delays and misuse of land, as 50 per cent of the land in these projects was used to develop eco-tourism areas and trade centres.
The article "Conditions to replace state planning in golf course development" was originally published on http://english.vietnamnet.vn/fms/business/200399/conditions-to-replace-state-planning-in-golf-course-development.html