VietNamNet Bridge – As golf has become an increasingly attractive sport here, as well as a lucrative component within the country's tourism industry, many foreign and domestic investors are rushing to build costly golf courses throughout Vietnam.

Attraction of golf courses

The Bluffs Ho Tram Strip in Ba Ria - Vung Tau province currently hosts around 1,500 rounds of golf a month, general manager Ben Styles told VIR.

“This is a higher-than-expected result for The Bluffs Ho Tram Strip,” Styles said, adding that part of the course's phenomenal popularity was due to the fact that it was designed by golfing legend Greg Norman.

The country is seeing a golf course development boom

The Bluffs, which opened its greens six months ago, has announced that it will host the Ho Tram open golf tournament with a total prize fund of $1.5 million. This will be a major boost to developing Vietnam as an attractive destination for golf players.

Meanwhile, after its initial launch in Thua Thien-Hue province two years ago, Laguna Lang Co has built up a reputation as a “must-see” course in the central region.

Darren Robson, club manager and golf pro at Laguna Lang Co, said that the club welcomed 13,000 players last year, up 30 per cent from a year earlier. “The number is expected to increase further in the coming years as golf tourism further develops within the region,” Robson said.

“In 2014, nearly 2,000 players were also visitors at our resorts,” said Robson, adding that together with the Angsana and Banyan Tree Lang Co hotels, the Laguna Lang Co Golf Club was a vital part of the 280-hectare development.

Vingroup, the investor behind the Vinpearl Phu Quoc Golf Course, is also planning to build a number of golf courses in resorts being developed by the group.

Bui Tat Thang, director of the Development Strategy Institute under the Ministry of Planning and Investment (MPI), said that he has received a series of proposals from developers, asking to be added to the national golf course development plan by 2020.

Golf courses in Vietnam: More or less?

Vietnam is now home to 30 operational golf courses, with the majority located in the north and south and only four in the central region. Together with foreign investors, many domestic firms are joining the race to develop golf courses.

Adding to its portfolio, which already includes a 27-hole course in Hanoi and a 36-hole course in Ho Chi Minh City, Truong An Investment Development General Company Limited is planning to build a 199-hectare golf course in the Tam Chuc tourism area of Ha Nam northern province with a total investment of $75 million.

Duy Dau, Truong An director, said that the two golf courses are operating effectively, while the new project will require some time to take shape.

Including Truong An, there are 19 developers with golf course projects seeking permission to be included within the national plan.

In April, an inter-agency working group visited the northern port city of Haiphong to work with Haiphong Municipal People’s Committee on the proposed VND900 billion ($42.85 million) 36-hole golf course backed by Vingroup on a 160-hectare site on Vu Yen island. The working group is also considering an 18-hole golf course to be developed by T&K and Japan Real Estate Service Company on a 98-hectare site in Voi Mountain, An Lao district.

The working group will continue to study the 17 other golf courses before making their final decision. If all the 19 golf course projects are approved, Vietnam will have 114 golf courses under the national plan.

Vietnam’s rampant development of golf courses was met with public disapproval in recent years. In response, the government cancelled 76 proposed facilities, which amounted to a total area of 15,600 hectares combined. Under Decision No.795/QD-TTg, issued last year, Vietnam approved 95 golf courses under its national plan.

“It goes without saying that the golf course market here has become saturated. Even so, it isn’t easy to book a round in the country’s high-end facilities. This proves that the demand still surpasses supply,” Styles said.

Echoing this view, Robson pointed out that the current number of golf courses in Vietnam is less than that in Thailand, where there are 50 golf courses.

Removing planning is necessary

The MPI's Thang warned that farmland should not be used as development sites for golf courses. He also stated that investors in golf course projects would have their land revoked and would lose all investment costs if they failed to develop them in two to three years.

Vu Duy Thanh, general director of the Dam Vac Golf Course in the northern province of Vinh Phuc, supports the removal of current planning requirements, but added that the conditions placed upon developers must be logical and fair.

Robson noted that the removal of existing planning regulations would create better opportunities for investors, thus helping to make the country a leading golf destination in the region.

VIR