VietNamNet Bridge – The debate over how many golf courses Vietnam really needs continues to bubble. Some 166 golf courses covering 52,000 hectares are open or under development to serve around 5000 golfers.

There’s been a boom in golf course development in Vietnam, particularly since 2005, when provinces were delegated the power to approve investment projects. In recent weeks, some political leaders have decried uncontrolled development of golf courses as a distortion of social and economic policies.

Deputy Nguyen Dang Vang, vice-chairman of the National Assembly’s Committee for Science, Technology and Environment, has been leading an investigation of the social and economic implications of Vietnam’s boom in golf course developments. Below, talking with Tuoi Tre daily newspaper, Vang suggests a number of solutions, including collecting tax arrears.

The laws of supply and demand for products and services ought to result in just enough golf courses to serve golfers’ needs and make a profit. In Vietnam, however, “the market for golf in our country is absurd,” Vang says. “There are around 5000 golfers but there are 166 golf courses operating or under development. The average number of golf courses in 192 other countries and territories, worldwide, is 14.”

Tuoi Tre: Most golf course projects are real estate developments. Is this a problem?

Deputy Vang: Most golf courses incur losses, even the long-established Da Lat golf course. That golf course is located in a very nice area near the highlands resort city, which has many tourists, but last year it still lost money.

People flock to invest in golf courses. Minister (of Planning and Investment) Vo Hong Phuc has said that this is a charade. We can see it if we look at the land area of golf courses. It is estimated that a golf course needs around 100 hectares of land but golf courses in Vietnam have an average area of over 300 hectares.

Therefore, golf developers use two-thirds of the land for real estate business. In my opinion, golf courses must be considered real estate projects. It is very regrettable that a golf course which asks for 300 hectares of agricultural land is licenced.

Vietnam’s deltas and plains are favourable for transport and agriculture so they ought to be used for production. Golf courses create only a small number of jobs on a hectare of land, so I think some golf courses in the Red River Delta should not be licenced.

TT: You mean that golf course projects in agricultural areas should be revoked?

Vang: It depends on local governments. Investors were licenced and they invested their money in these projects. If local governments revoke golf projects, they must compensate them.

But I think that if there are more effective projects than golf courses, local government should compensate golf developers and revoke the land use permit in order to implement other projects.

TT: How should we solve overdevelopment of golf courses? Should we ban the construction of houses and apartments for sale on golf courses?

Vang: That’s right! I think the Ministry of Planning and Investment has considered this. When the ministry stipulates that a golf course must be less than 110 hectares, investors cannot build villas for sale. We can also ban golf developers from selling real estate projects on golf courses.

In my opinion, we should reconsider how these develoments are taxed. Land for building golf courses is sold at 90,000 dong per square metre because it is agricultural land. If houses are built on that land, the price will be millions of dong per square metre. The government should collect arrears of taxes and land fees from golf courses that have houses for sale.

TT: The Ministry of Planning and Investment plans to revoke permits for 50 golf course projects. Is that number small?

Vang: It is small but it shows the ministry’s intentions. It would be very difficult to withdraw licences of projects that have completed formalities. But I emphasise that we can use taxation as an effective method to deter speculation. Golf courses are for rich people, account for vast areas of land, cause pollution and affect cooking security, so taxes should be appropriately high.

If taxes are suitable to the situation, these disguised golf courses will disappear.

VietNamNet/TT