A golfer tees off in a competition last month at the Do Son Golf Course in the northern city of Hai Phong.

Minister of Planning and Investment Vo Hong Phuc Friday proposed that the National Assembly (NA) instructs provincial localities to abort nearly a third of approved golf course projects nationwide.

A total of 52,700 hectares of land, 10,500 hectares of which are farmland have been allotted to 145 golf course projects.

Farmland being cleared for golf courses accounted for a remarkably high ratio, he said.

His ministry has also proposed more regulations on golf course construction, under which an 18-hole golf course can only be licensed if it covers less than 100 hectares of land. An additional 10 hectares can be allowed for projects in mountainous and swamp areas.

Besides, each golf course should be allowed to use a maximum of 10 hectares of infertile rice fields, while farmland, land for perennial cash crops and perennial fruit trees should not be used to build golf courses, Phuc said.

Answering questions posed by deputy Nguyen Van Tuyet on the responsibility of provincial localities violating regulations in licensing golf courses, Phuc said the prime minister has asked that such projects are stopped.

Minister of Natural Resources and Environment Pham Khoi Nguyen said golf-course projects that have been licensed to be built on farmland, especially rice fields, should be relocated. “Rice fields must be retained to ensure the nation’s cooking security.”

In addition, investors who make use of land for golf courses to develop other projects will have to pay land rent in accordance with regulations that deal with those kinds of projects or the land earmarked will be revoked.

Land rent for golf courses is much lower than those for other property projects such as villas, houses and trade centers, so many investors have exploited this to recoup their capital more quickly.

Deputy Nguyen Minh Ha of Hanoi said only 30 percent of land in golf course projects was actually used for the intended purpose, while the rest were used to build hotels and villas.

Minister Nguyen blamed the drastic increase in the number of golf course projects nationwide on a 2006 decision authorizing provincial authorities to approve them.

The current number of golf courses has tripled the figure of 38 in 2006, he added.

Nguyen has proposed the government to temporarily stop licensing new golf courses, and complete an overall golf course development plan through 2020.

Inflation recurrence concerns

Delegate Nguyen Ngoc Minh expressed concern about the unexpected aftermath of the government stimulus package which may reach nearly US$9 billion, or some 10 percent of the country’s gross domestic product (GDP).

He said the rate is high compared with that of other countries, including 4.8 percent of the GDP in the United States, 4.4 percent in China, 2.2 percent in Japan.

With the great amount of money in circulation, he wondered if “the government had considered the possibility of inflation recurring.”

Minister Phuc said in response that the government’s stimulus package was necessary and aims to support firms, contributing to fighting economic slowdown and ensuring social welfare.

Ministries have closely monitored possible side-effects of the stimulus package, Phuc said, noting that it was necessary to have flexible measures to cope with the situation.

Finance Minister Vu Van Ninh said all financial measures have been conducted on the principle of not increasing the amount of money in circulation, and not printing more currency for a larger state budget.

Nguyen Van Giau, governor of the State Bank of Vietnam, said many countries have loosened monetary policies but none have seen inflation recur so far.

Rice export flaws

Deputy Mai Thi Anh Tuyet said rice prices have plummeted and many shortcomings have been exposed in rice export management.

Minister of Industry and Trade Vu Huy Hoang admitted that “rice exports have showed many shortcomings” adding his ministry will do its utmost to improve the situation for the benefit of the country and its residents.

With a bumper rice crop expected this year, the government has discussed the possibility of purchasing rice from farmers as temporary reserves, he said.

However, it is not an easy issue due to limited storage space available, and huge national reserves already existing, he said, adding that the prime minister has asked ministries and sectors to come up with concrete measures to deal with the situation.

Minister Hoang also fielded many questions on the role of the Vietnam Food Association in rice export management. The association has been accused of making inaccurate forecasts and offering unsound advice on exports and shipment contracts.

Deputy Danh Ut noted the association’s chairman was also general director of a food company, so there was a conflict of interest that would prevent the benefits of farmers and firms being balanced.

He reinforced his argument by stressing that the association was also managing rice exports and allotting shipment quotas to various localities.

Minister Hoang said member firms voted for the association chairperson, and the state does not interfere in this process.

Also Friday, Minister of Education and Training Nguyen Thien Nhan took the floor, saying the ministry would reinforce management of preschool and private education institutions and initiate measures to improve the quality of textbooks and examination structures.

Reported by Ngan Anh