Golf Plays Important Role in Vietnam’s Socio-Economic Development

Twenty nine golf courses in operation so far across Vietnam have been recognized as a drive for socio-economic development of localities, especially in creating jobs for local residents, partly attracting more foreign investment and supporting the tourism industry.

 

These ideas were affirmed by golf experts at the talk on golf course planning and golf-related economic issues held on May 11 by Investment Newspaper and the Development Strategy Institute under the Ministry of Planning and Investment (MPI).

 

Despite the positive impacts of golf development on the national economy in recent years, according to many people, golf courses have been blamed for using large areas of agricultural land, polluting the environment and partly increasing social imbalances. However, the experts noted that only a few golf courses were involved in the problems which have created a negative image around the country’s general golf planning.

 

“According to the golf course planning by 2020 approved by Prime Minister in Decision 1946 QD/TTg dated November 26, 2009, the number of 90 golf courses which have become operational and will be built until 2020 in Vietnam is not too many. Almost all of them have met the planning requirements, and did not take land from agricultural and forestry use,” affirmed Mr Hoang Ngoc Phong, Deputy Director of MPI’s Development Strategy Institute. He pointed out that Thailand and Malaysia have the same land areas as Vietnam, but they have more than 300 golf courses each.

 

Mr Phong noted that the operational golf courses have actively created more jobs for labourers in localities, contributed high value taxes to the State budget and attracted more foreign investment. “A golf course survey in 2010 led by the Ministry Natural Resources and Environment in cooperation with relevant state agencies showed that current golf courses had US$224.1 million in investment capital disbursed already, and contributed VND505 billion (US$24.27 million) to the State budget in 2010. Many golf courses have obtained good business achievements such as Chi Linh Star Golf & Country Club, Kings’ Island Golf, and Phoenix, and each golf course created 336 jobs on average with income of around VND2.5 – 3 million (US$150),” he added.

 

Mr Nguyen Van Hao, General Secretary of Vietnam Golf Association, remarked: “Golf courses have created stable jobs for local people, created favourable conditions for foreign investors, and helped increase GDP growth of localities. Social benefits from golf are very important. For example, GDP per capita of communes around Montgomerie Links golf course in central Danang City, such as Hoang Hai commune, increased from US$400 to US$1,200 after the golf course became operational. Golf activities and events have also raised total charity funds of around US$400 billion so far.” 

 

I am surprised that the Ministry of Natural Resources and Environment has not released positive conclusions of the survey on golf courses in 2010 to make sure the public will not have misunderstandings about golf in Vietnam. The survey results should be publicized in the media.

 

Almost all golf courses have been developed on terraces of abundant hills, mountains or forests, and created beautiful landscapes and fresh environment. According to Vietnam Golf Association’s estimations, golf course developers have not reached the break-even point due to a limited number of golfers, therefore, the Government should allow them to combine real estate development together.    

We propose the Government should reduce high taxes imposed on golf business, including 10 percent VAT, 20 percent luxury tax, and 6 percent environmental tax. The average fee for playing golf in Thailand is only 40 percent of the fee in Vietnam. Tax reduction will lead to lower fees for golfers, attracting more players from both Vietnam and foreign countries, and developing tourism services together.

 

In my opinion, golf is found not guilty and golf is a beautiful girl. We need to join hands to find solutions for further development of Vietnam’s golf industry. 

 

There have been too many complaints about golf development since southern Long An province submitted more than 10 golf course projects. We should not use the Long An case as an example for the whole country’s golf planning. Golf is a world-recognized sport, so Vietnam should regard golf as a sport of international integration. When Vietnam is trying to improve the investment environment and call for more foreign investors, golf is one of important factors in protecting and improving the country’s investment environment.

 

Many people are afraid of big competition between many golf courses in Vietnam. But I confirm that we (owners and directors of golf courses in Vietnam) have joined hands and tried our best, with a common vision, for the further development of golf in Vietnam, also promoting Vietnam’s tourism and economy. We have always applied strict environmental regulations and operated without bad impacts to the environment.