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| Chi Linh Star Golf Club |
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According to prime ministerial Decision I 946/QD- TTg dated November 26, 2009 on golf course strategy towards 2020, reserved areas for accommodation for leasing will not exceed 10 percent of a golf course projects land. Golf course developers are also not allowed to build apartments or villas for sale on their project land.
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The governmental move followed public criticism at rapid golf development, leading to some environmental and social impacts in Vietnam in last few years. Many delegates at recent National Assembly gatherings raised concerns over accommodation-orientated golf course projects eating up prime chunks of rice fields.
Doan Van An, general director of Chi Linh Star Golf Club, however, said the limits would reduce the attractiveness of golf course projects to developers. An unnamed golf course developer agreed with An, adding that the government should let developers decide the proportion of land for building accommodation upon their project requirements.
He said the proportion was not limited in other countries because it was part of a golf course project which helped shorten time for investors financial returns.
According to Ministry of Planning and Investment statistics, there are now 19 golf courses operating in the country, with accommodation taking up large slices of golf courses. For example, Tam Dao Golf Resort, an IS-hole course in northern Vinh Phuc province, covered 136 hectares, with 96ha reserved for villas, said Nguyen Ngoc Chu, general secretary of the Vietnam Golf Association. The developer of the Dam Vac Golf Course, also in Vinh Phuc province, reserved 20 percent of l26ha for accommodation.
Frank Chueng, general director of New City Vietnam Co., Ltd, said to a certain extent, a limit was essential because it allowed golf courses to remain genuine and not mixed with residential or semi-residential areas. His company is developing a $4.3 billion high-grade tourism complex in central Phu Yen province, which includes a 36-hole golf course.
"But, developing and running a golf course not only involves big investment, but also takes a long time for returns. If the developers are allowed to build residential houses or villas for sale, it certainly helps alleviate the initial financial burden," Chueng said.
VNRealestateMarket