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Phan Thiet golf course removed
09:53, 2014/10/31
The Prime Minister has approved removing Phan Thiet golf course, better known as Ocean Dunes, from the national zoning plan for golf courses until 2020.
The national zoning plan for golf courses was approved by the Prime Minister in 2009 and adjusted in May 2014.
 
As reported by the Government portal, the government of Binh Thuan Province is required to settle all issues related to the project following regulations and ensure efficient land use, environmental protection and sustainable development.
The Government has told the Ministry of Planning and Investment to revise the list of golf courses nationwide in line with the socio-economic development of localities and report the result to the Prime Minister.
In November last year, Rang Dong Joint Stock Company acquired the 62-hectare golf course for US$20 million. In March this year, the Phan Thiet-based company informed member golfers that the golf course would be closed, so its members would be transferred to Sealinks, which is some 10 kilometers from Phan Thiet golf course.
But members of the golf course still criticized the company over the shutdown and demanded proper compensation. The company explained that the golf course in the central area of Phan Thiet City had incurred losses over the past 20 years since it was put into service while the investment, maintenance and operation costs of the golf course were high.
Therefore, in December last year, Rang Dong asked for the provincial government’s permission to change the land of Phan Thiet golf course into a residential area. The province approved in principle what the company proposed and then forwarded the proposal to the provincial Party Committee for consideration in March 2014.
Despite strong outcries from member golfers and unsettled compensation with them, Rang Dong still closed the golf course to players in April. One month later, the province requested the Government to remove the golf course from the national zoning plan for golf courses, but on May 25 the Prime Minister issued Decision 795 allowing the golf course in the national zoning plan.
More than four months later, the Prime Minister agreed to take the golf course out of the zoning plan.
Rang Dong calculated that if the golf course is converted into a residential project and the State budget will collect more than VND1 trillion. The company plans to spend VND4 trillion developing the residential area comprising of villas, garden houses, townhouses, a kindergarten and greenery.
Nguyen Manh Hung, deputy secretary of the province’s Party Committee, once said as the business efficiency of Phan Thiet golf course was low, its tax contribution to the State was small, so the land use conversion would help reduce losses for the company.
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