Government okays two new multimillion dollar golf courses

The first, Vinpearl Quang Nam, will be built by Vinpearl JSC, the resort arm of Vingroup, Vietnam’s largest private conglomerate, in central Quang Nam province over an area of 70.35 hectares.

The project, planned to operate for 50 years, will cost VND500 billion ($21.51 million), and is expected to complete construction within 12 months.

The second golf course will be built in the northern province of Lao Cai over an area of 80 hectares, by the Fansipan Sapa Cable Car Co., Ltd., which operates aerial cable cars on Fansipan mountain, the highest peak in Indochina.

The project will cost VND550 billion ($23.66 million), of which around three-fourth, or VND400 billion ($17.21 million), will be borrowed, and the builder will contribute at least VND110 billion ($4.73 million), according to the project’s approval license.

This golf course is expected to operate for 70 years, and come into operation within two years.

Both golf courses have been added to the government’s Golf Development Plan for 2020.

According to a government decision in 2009, Vietnam planned to have 89 golf courses by 2020. But so far, based on Ministry of Planning and Investment statistics, only 30 have been constructed and put into operation, and many of these are reportedly not as profitable as expected.