It is quite a surprise that many investors are flocking to the southern province of Long An to build golf courses.
So many, so fast
Between September 2004 and March 2007 Long An approved 13 golf course projects and was considering five others; the People’s Council was then informed that provincial authorities had okayed the projects.
These numbers seem odd because there are only 16 operational golf courses nationwide.
The approval of so many golf course projects was facing such strong public opposition that the provincial people’s committee cancelled seven of the 13.
On December 4, 2007, the Long An Provincial Party Committee finally concluded that only three would be approved; other investors will have to choose different projects in which to inject their money. The decision has investors dazed as some of the projects have already broken ground. Hundreds of billions of VND have been paid for site clearance.
When asked to explain why the Long An initially approved so many golf course projects, the committee cited the benefits, including economic development and job creation.
There are currently 16 operational golf courses nationwide; one golf course for every four provinces or cities. Most golfers are foreigners which is the likely reason that courses, even in big cities like HCM City, remain quiet.
An Tay Company Ltd was the first to come up with the idea of constructing a 300ha golf course in Long An. Thai Son Company Ltd followed with a 275ha golf course project.
Next, both Phu Quang and Viet Han Companies began procedures for 420ha and 560ha courses, respectively. In Long Hau commune alone, four golf course projects expected to cover an area of 1,555ha were accepted.
If the ‘golf course movement’ had not been put to a stop, Long An’s farmers would have lost 9,500ha of land, crippling the economy and further impoverishing the people.
Solutions?
It is not easy or wholly ethical to ask investors to cancel already promised projects; Long An’s authorities are at fault in this case.
Only three investors maintained the right to develop golf courses in Thu Thua, Can Giuoc and Duc Hoa districts.
Other investors, according to experts, may sue the Long An People’s Committee, demanding compensation for losses incurred, unless provincial authorities give them alternative investment advantages.
It is difficult to say why Long An decided to approve so many golf course projects. Some think investors were simply trying to get the rights to large pieces of land that they would then sell for profit. What is clear is that golf is fast becoming a popular market in Vietnam thanks to tremendously increasing domestic wealth and ever growing foreign interest in both business and leisure activities; meaning the golf trend is far from over.
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