Localities Need a More Responsible Approach in Attracting Investment for Golf Course Development
While golf courses can serve as a driving force for economic, cultural, and tourism growth, it is equally crucial to ensure a balanced and sustainable development strategy.
Golf Courses – A Driver of Local Socio-Economic Development
With beautiful landscapes and affordable service costs, golf courses in Vietnam are gradually becoming a favorite destination for golfers worldwide, particularly tourists from South Korea and Japan. In both 2019 and 2021, Vietnam was named the world’s best golf destination by the Golf World Award, and for five consecutive years (since 2017), it has been recognized as Asia’s best golf destination.
According to the Vietnam Golf Tourism Association, in the first seven months of 2023, approximately one million golf tourists visited Vietnam out of a total of 6.6 million international visitors. Before the severe impact of the COVID-19 pandemic, Vietnam’s golf tourism industry generated nearly 5 trillion VND in annual revenue.
Recognizing this growing trend, many provinces and cities have incorporated golf course projects into their ongoing development plans under the new Planning Law No. 21/2017/QH14, considering them as key drivers of local economic growth.
Among the 53 provinces with approved plans and 10 provinces currently undergoing planning assessment, approximately 283 golf courses and 11 golf course clusters have been identified in approved plans, along with 46 golf courses included in provincial plans awaiting evaluation.
By 2050, Vietnam is projected to have around 400 newly planned golf courses in addition to the 102 existing ones. Comparing this number to Vietnam’s projected population of 108.5 million in 2049 (according to estimates from the General Statistics Office and the United Nations Population Fund), the total number of golf courses remains relatively low compared to countries like Japan and South Korea.
However, considering potential issues such as environmental impact, land and water resource consumption, local leaders aiming to expand golf course development must carefully assess the quantity, location, and scale of new golf courses to ensure responsible and sustainable growth.
Vietnam’s Potential for Golf Industry Development – Illustrative Image
Emerging Challenges
Over a decade ago, when golf was still in its early stages in Vietnam, several studies highlighted key concerns related to land use, the environment, natural resources, and social impacts. In the coming years, with a significant number of golf courses expected to be constructed and put into operation, it is crucial to conduct thorough evaluations of their economic and social implications.
Land Use for Golf Course Development
According to the American Society of Golf Course Architects, an 18-hole standard golf course typically requires between 48 and 80 hectares of land, excluding additional areas designated for supporting infrastructure, real estate development, and commercial services. In Vietnam, many planned golf courses are expected to occupy between 100 and 200 hectares, integrating luxury resorts, hotels, and restaurants.
Currently, Decree No. 52/2020/ND-CP on “Investment, Construction, and Operation of Golf Courses” provides specific regulations on site selection and land use requirements. Article 5 and Article 6 of the decree stipulate that a standard 18-hole golf course should not exceed 90 hectares (with an average of 5 hectares per hole), and the total land area for newly developed golf projects should not exceed 270 hectares (for 54-hole courses).
However, the allocation of hundreds of hectares of land must be carefully assessed from economic, social, and environmental perspectives. There is a risk that investors may use golf course projects as a pretext for integrating commercial real estate developments such as luxury villas, restaurants, and hotels. This could facilitate land-use conversions in the future, making strict local government oversight essential.
Water Resources and Environmental Concerns
Water consumption and environmental impact should be key considerations in the planning and construction of golf courses.
According to estimates by the United States Golf Association (USGA), a standard golf course in arid and hot climates requires approximately 8,000 cubic meters of water daily—equivalent to the daily consumption of 8,000 to 13,000 households. Developing golf courses in areas with limited water resources may compete with local agricultural and domestic water needs. Without proper water management, excessive golf course irrigation could lead to unauthorized water extraction, depletion of national resources, and environmental hazards such as ground subsidence or structural collapses, posing risks to nearby communities.
Additionally, the environmental impact of golf courses is a growing concern, given the significant use of chemicals for turf maintenance. Therefore, it is essential to conduct comprehensive environmental impact assessments, particularly when developing golf courses near water sources, agricultural zones, or residential areas.
Solutions for Sustainable Development
Economic development goes hand in hand with an increasing demand for communication, entertainment, leisure, exercise, and health care. The development of golf courses is considered one of the suitable solutions, as evidenced by the experiences of many developed countries around the world.
However, determining the number and scale of golf courses in a way that both drives local economic growth and ensures balanced and sustainable environmental development requires thorough research and evaluation from the planning stage. This includes assessing the location, number, and scale of golf courses to be developed.
Several specific solutions can be considered:
First, strict management of land use for golf courses must be enforced in accordance with Article 5 of Decree No. 52/2020/ND-CP on “Investment in Construction and Business of Golf Courses,” particularly regarding the types of land that cannot be used for golf course construction, the conditions for developing golf courses in midland and mountainous areas, and the use of land adjacent to or surrounding historical sites.
Second, during the planning stage, the number of golf courses should be determined based on the demand of players in the area, projected future player numbers, service radius, travel distances, and transportation infrastructure connectivity to evaluate the feasibility of golf course development. A high density of golf courses in a single area can have significant environmental impacts, which may not be fully assessed in the short term.
Third, strict control is needed over projects proposing golf courses but incorporating real estate, tourism, or hotel business activities. Regulations should be in place requiring investors to commit not to convert golf course projects into real estate businesses or other purposes, or to change the purpose of use if the golf course business proves unsuccessful.
Fourth, in addition to complying with legal regulations on land management, it is essential to accurately assess the water resource demands for golf course development. A comprehensive evaluation should be conducted on the total water demand for golf courses versus the water needs for household and industrial use in the region, considering existing water reserves and the impact of climate change and future economic development on water resource depletion.
Fifth, the use of fertilizers and chemicals in the operation of golf courses must be strictly controlled. Regular assessments and monitoring of environmental conditions, including soil, water, air, and light pollution, at active golf courses should be conducted to develop measures to prevent and mitigate environmental pollution.
The rapid growth of golf in recent years is clear evidence of economic growth and Vietnam’s increasing integration into the global tourism market. With advantages in natural landscapes and an open investment policy, more investors will be interested in developing golf courses, driving local economic growth and contributing to national development.
However, local authorities must adopt a more responsible approach when attracting investment in golf course development. This responsibility must be reflected in the planning of golf course systems. By doing so, golf development can serve as a driving force for economic, cultural, and tourism growth while simultaneously ensuring balanced and sustainable development objectives.
Article by Dr. Hán Minh Cường, Chairman of the Board of Directors, S-Group Vietnam, published in Đầu tư Newspaper.
