Golf courses deemed tool to lure in more foreign investment inflows

The People’s Committee of Thanh Ha district in Hai Duong province is finalising land use procedures for a golf course to submit to the provincial People’s Committee for approval. This is a key step towards approving the investment planning for a comprehensive tourism, resort, and golf complex in the district.

The complex, to be developed by Orgel Vietnam Co., Ltd., located in Dai An Industrial Park, will feature a 36-hole international standard golf course, alongside practice fields and a clubhouse. The project also includes a 62.2-hectare subproject with high-end resorts, water parks, and entertainment facilities. The total investment for the complex is estimated at $241.6 million.

Golf courses deemed tool to lure in more foreign investment inflows, Source: freepik.com

According to Hai Duong’s provincial planning for 2030, with a vision to 2050, the province aims to become a modern city directly under the central government by 2050. By 2030, it plans to add 10 more golf courses.

Vu Dinh Tien, deputy director of Hai Duong’s Department of Culture, Sports, and Tourism, explained, “When we proposed adding 10 golf courses by 2030, there were concerns about redundancy given the province’s relatively modest economic growth compared to others in the Red River Delta. However, our proposal reflects a long-term vision to create a comprehensive system aligned with industrial infrastructure, aiming to draw in more foreign investors.”

Golf serves as a form of soft diplomacy, Tien added. “Golf course development is a way to pull in domestic and foreign investment, as they often consider amenities for relaxation and recreation when choosing locations for their projects.”

Ninh Binh province shares a similar approach, including golf courses in its master plan. “Ninh Binh is known as a tourism destination, but overseas funding attraction remains limited. In recent years, the province has sought to boost foreign investment, particularly from South Korea and Japan. Developing additional golf courses is part of this strategy,” said Nguyen Manh Cuong, director of Ninh Binh’s Department of Culture and Sports. “Many foreign investors who surveyed Ninh Binh highlighted golf course infrastructure as a criterion in their decisions.”

Other provinces are pursuing similar strategies. In May, Bac Giang province approved a plan for an urban resort, entertainment complex, and golf course in the Yen The area. Around the same time, Ia Grai district in Gia Lai introduced plans for two golf projects.

Hoa Binh province aims to develop nearly 40 golf courses by 2050, concentrated in Hoa Binh city and surrounding districts. Vinh Phuc plans to establish 40 resort projects with golf courses in Vinh Yen, Tam Dao, and Vinh Tuong districts by the same year.

Thai Nguyen province also intends to add more than a dozen golf courses in Pho Yen, Thai Nguyen city, and other districts. Currently, Hoa Binh has two golf courses, while Vinh Phuc has four.

Despite these ambitions, foreign investment inflows into these localities remain modest. According to the Foreign Investment Agency under the Ministry of Planning and Investment, in the first 10 months of 2024, Hai Duong attracted $534.74 million in foreign direct investment, ranking 15th nationwide. Ninh Binh ranked 29th with $87.89 million, Hoa Binh 39th with $13.4 million, and Vinh Phuc 25th with $204.18 million.

Pham Thanh Tri, standing vice chairman of the Vietnam Tourism Golf Association said, “Adding golf courses to master plans is important, but we need more open mechanisms to pull in golfers. For example, South Korean and Japanese golfers used to visit Vietnam, but many now prefer Thailand due to its tax incentives.”

“Unlike Vietnam, Thailand does not impose a 20 per cent special consumption tax and 10 per cent VAT on golf services. If we don’t amend tax policies for this sport, we risk losing significant potential investors,” Tri added.

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