Ocean Dune golf course controversy continues

Rang Dong Group’s plan to transform its golf course into a new urban township is facing criticism from all sides Photo: Le Toan

In a document sent to the Ministry of Planning and Investment (MPI) and Rang Dong Group – the developer of the Ocean Dune - the Ministry of Construction (MoC) requested clarifications on how to harmonise the interests of the state, the community, the developer and golf club members.

The MPI previously sent a memo to related bodies, to collect suggestions on Rang Dong Group’s proposal to transform the existing and largely underused golf course into an urban township. The company cited huge losses incurred in the operation of the course as reasoning for its decision.

However on its return submission, the MoC claimed that the proposal from the MPI only referred to removing the Ocean Dune from the national golf course development plan, but not transforming it to an urban township.

“The MoC requested the MPI add the information on how to actually implement the proposed change,” the MoC said.

The debate on the move of the Ocean Dune into an urban township has gone on for many years. Located in the central province of Binh Thuan’s Phan Thiet city, the course was built in 1993 by a Hong Kong-based investor, with famous golf billionaire Larry Hillblom recruited as a consultant. At the time, the local authorities gave them an investment certificate with the hope of developing the local site of Phan Thiet into an attractive tourist destination. However, continuous losses have forced Rang Dong Group, which bought the golf course in 2013, to convert it to a new urban township. According to a report from the Binh Thuan Taxation Department, over the last 10 years, total losses sustained by the golf course have reached VND115 billion ($5.4 million), and it has not contributed anything towards the local state budget.

Rang Dong Group’s chairman Nguyen Van Dong, said that changing the function of the golf course would also free up much needed space for local housing. With an estimated investment capital of around VND3 trillion ($142.8 million), a third of the investment will be put into infrastructure such as roads, power and water, drainage and parks.

Dong said that changing the function would massively increase the efficiency of the land use and bring an estimated VND1 trillion ($47.6 million) in land taxes to the provincial budget.

The group chairman added that apart from commercial housing, the investor would develop the Blue Sea Street urban township into a modern, environmentally-friendly part of the city.

However the existing members at the Ocean Dune golf course have opposed the move, claiming that Rang Dong’s unilateral decision to close the course infringed upon the legal interests and property rights of the members.

According to Dong, of the 180 members in the Ocean Dune golf course database, 70 have been unavailable for contact for the last five to 10 years, while 80 other members had agreed to move to the Sea Links golf course, a nearby golf course also owned by Rang Dong Group. Twenty other members agreed to accept financial compensation.