Conditions for investment in construction and trade of golf courses

07/07/2020

The Government has just issued Decree No. 52/2020/NĐ-CP on investment in construction and trade of golf courses. In particular, the Decree specifies conditions for investment in construction and trade of golf course.

Specifically, a golf course is built at a location that meets the following conditions: In accordance with the prescribed principles and meets the conditions of land use as prescribed; in line with development orientation, spatial arrangement and allocation of resources for socio-economic activities, national defence, security, environmental protection according to provincial planning, district-level land use planning and relevant planning; meeting conditions for building landscape works and technical infrastructures connected inside and outside the golf course area; in accordance with requirements of establishing corridors for protection of water sources, prevention of pollution, degradation and depletion of water sources according to the provisions of law on water resources and requirements under the law on dykes, prevention of natural disasters, marine and island environmental resources.

State agencies competent to manage land and planning shall publicize and provide information on land use planning and plans according to the provisions of law on planning and land as the basis for determining the location of a golf course.

The selection of investor for the implementation of a golf course project shall comply with the law on bidding, the land law and relevant laws.

Conditions of land use for the implementation of the golf course project

The Decree stipulating land use conditions to implement golf course projects includes:

1. Types of land not used for construction of golf courses and auxiliary works in service of golf course business: Land used for national defence and security purposes; forest land, rice cultivation land, unless otherwise specified; land belonging to areas where elements of historical and cultural relics and landscapes have been classified and relics on the list of inventories of the provincial People's Committees, unless otherwise specified; land for construction of industrial parks, industrial clusters, concentrated information technology parks and hi-tech parks; land under the dike protection scope and coastal protection corridor according to the Dike Law, Natural Resources, Environment and Islands Law.

2. A golf course project in a midland and mountainous region may use no more than 5 hectares of rice crop land per crop, scattered at the construction site and must meet the conditions for protection and development of rice cultivation land, conditions for land lease, change of land use purpose in accordance with the land law.

3. Golf course projects using production forests other than natural forests must meet the conditions for land lease, change of land use purpose, change of forest use purpose and replacement afforestation according to the provisions of land and forestry.

4. The use of land in the area surrounding or adjacent to an area of the original element that constitutes a monument must not affect the original element that constitutes the monument, natural landscape and environment - ecology of relics and must meet the conditions prescribed by the cultural heritage law.

Conditions for building and expanding golf courses and auxiliary works

The Decree also specifies conditions for building and expanding golf courses and auxiliary facilities in service of golf course business:

1- The area of a standard golf course (18 holes) must not exceed 90 hectares (on average, not more than 5 hectares per hole); The area of a golf course project being built for the first time must not exceed 270 ha (54 holes).

2. The combined construction density of the land lot for construction of golf courses and auxiliary works in service of golf course business shall comply with the National Technical Regulation on Construction Planning promulgated by the Ministry of Construction.

3. The investor must complete the construction of the golf course within 36 months (for an 18-hole golf course) or within 48 months (for another golf course) from the date the land lease decision is made.

4. The expansion of a golf course project which has been decided on the investment policy shall be considered only after it has been completed, put into operation and met the prescribed conditions.

5. In cases where an investor proposes various golf course projects on the same administrative boundary of a province or city directly under the Central Government, the investor's next golf course proposal may be considered only. After the golf course project has been decided on the previous investment policy, the construction and putting into operation.

Investors implementing a golf course project must meet three conditions

In addition, the Decree stipulates that investors implementing golf course projects must meet three conditions:

1. Satisfying the condition of financial capacity and conditions for land lease, change of land use purpose to implement the golf course project according to the provisions of the land legislation; deposit to ensure project implementation (in case of deposit) in accordance with investment law.

2- Appropriate solutions, plans and commitments to support resettlement, training and employment of people who are currently using the land expected to implement the golf course project and local laborers.

3. Self-assurance of the necessary requirements and conditions on the transport, electricity and water infrastructure; waste water treatment and environmental protection.

The provision of golf services, business activities, golf competitions and related services must meet the conditions of facilities, equipment, financial and human resources as prescribed of the law on physical training and sports.

The Decree takes effect from June 15, 2020.

Prohibited acts in golf course construction and trade: Building and trading golf courses without meeting the conditions and procedures prescribed in this Decree and relevant laws; taking advantage of golf course trade to organize illegal betting, gambling; obstructing or failing to comply with the inspection and examination work of competent state management agencies according to law provisions; failing to provide information or failing to report at the request of competent state agencies according to law provisions.

Source: chinhphu.vn

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