Golf course land use sparks row

The redefinition of the land used by the Ocean Dunes golf course for residential development has sparked controversy

In early March, Rang Dong Group, headquartered in the south-central coastal province of Binh Thuan and also the new owner of Ocean Dunes Golf Club, received the Binh Thuan Provincial  People’s Committee’s permission to change the 18-hole golf course - one of the first in Vietnam - into a residential township development.

Le Tien Phuong, Chairman of the Binh Thuan Provincial People’s Committee said there was consensus on the decision, “it proposed that the provincial party committee consider the case. We’ll undertake the necessary procedures, including seeking approval from the prime minister.”

The provincial authorities said the ineffectiveness of the Ocean Dunes course was a key reason behind the move, citing the fact that in ten years of operation during 2004-2014 it had incurred cumulative losses amounting to VND115 billion ($5.5 million), according to the Binh Thuan Provincial Tax Department.

Nguyen Van Dong, chairman of Rang Dong Group said that if the proposal was finally approved, the group would invest in a multi-function urban area consisting of multi-storey buildings, villas and garden houses.

Dong said the changing function of the project would make more efficient use of the land and provide an estimated VND1 trillion ($47.6 million) in land taxes for the provincial budget.

With the estimated investment capital of around VND3 trillion ($142.8 million), a third of the investment capital will be put into roads, power and water, drainage and landscaping.

The proposal however, has encountered opposition from some that still claim the golf course promotes tourism or that instead it should be converted into a park to improve Phan Thiet city’s environment.

Former Deputy Chairman of the Binh Thuan Provincial People’s Committee Nguyen Van Thu was quoted as saying by local media “in the long run, retaining the golf course land and turning it into a park would be much more beneficial to Phan Thiet tourism then collecting VND1 trillion in taxes from developing it into an urban development.”

“Phan Thiet is a tourism city but it doesn’t have a decent park. Local people mainly entertain themselves in coffee shops or food shops, I don’t see why we’re focusing on developing a new urban area when there are plenty of houses still available to buy,” Thu stressed.

According to former provincial Party Secretary Dinh Trung, there would be further discussion on the proposed change.

Ocean Dunes was established by US billionaire Larry Hilblom - one of the founders of global DHL Group - in 1993. The billionaire built a 62 hectare golf course and upgraded a state-owned hotel into the 4-star Novotel resort.

However, after the billionaire died in an aircraft accident, the golf course and the resort   were sold twice to foreign partners before falling into the hands of Rang Dong Group in November 2013 at the cost of about $20 million.

Although the proposal has far from being agreed, golfers at Ocean Dunes Golf Club were told by Rang Dong Group to move to play at the Sea Links golf course (also managed by the group) as the Ocean Dunes course would close from early April.