Foreign investors give up “golf course dream” in Vietnam
VietNamNet Bridge – Some years ago, foreign investors flocked to southern provinces to seek the opportunities to develop golf course projects. And now they hurry to quit the projects.
Daewoon says goodbye to Da Phuoc project?
The Da Nang City People’s Committee has decided to remove the plan to develop the 18-hole golf course on a 66 hectare land plot in the Da Phuoc International Urban Area.
The project’s South Korean investor Daewon Cantavil, reasoning the economic difficulties, has got the permission from the city’s authorities to focus on developing the urban area instead of the golf course. The city’s authorities have asked the investor to retain a certain area for a golf course, while it would take back 10 hectares to develop a software park.
The Da Phuoc Urban Area, covering an area of 204 hectares, planned to comprise a 18-hole golf course, 8500 apartments, resorts, five star hotels and office buildings, is expected to become the biggest sea-encroached urban area project so far. The construction of the project capitalized at 300 million dollars was kicked off in February 2008.
Park Hee Hong, Business Development Director of Daewon Cantavil, has denied the fact that the investor has withdrawn from the golf course project. “We will stay to develop the project here,” he said.
He also said that the Da Nang City’s authorities have asked the investor to give back the 10 hectare land plot outside the land area reserved for golf course project. The investor has agreed in principle to the proposal, while considering adjusting the Da Phuoc urban area programming.
To date, Daewon Cantavil has disbursed 30 million dollars for developing infrastructure items.
In 2010, Daewon, in cooperation with a local partner, obtained an investment license to set up a joint venture to build villas and houses on an area of 28 hectares.
Mr Park Hee Hong said that Daewon and other partners have transferred their stakes in THT Development Company, the investor of the west-West Lake project in Hanoi (207 hectares) to Daewon Construction Company.
Daewon Cantavil has also transferred the whole Cantavil Da Nang project in Hai Chau district to another partner. All that moves have been explained by the fact that Daewon Cantavil wants to gather its strength on the Da Phuoc International Urban Area project.
Giving up golf course dream
Some other South Korean investors, who have been pursuing huge golf course projects, have decided to quit the projects.
GS Cu Chi Development Company, a subsidiary of South Korean GS E&C, for example, transferred 95 of its stakes in the Cu Chi golf course project in HCM City to Vietnamese CT Group in the first quarter of 2012 for 24 million dollars.
The money to be gotten from the stake transfer would be used by GS for its other investment items in Vietnam, including the Tan Son Nhat – Binh Loi – Vanh Dai Ngoai road.
In 2007, South Korean investors flocked to Long An province to develop golf courses and urban areas. However, many of them have left the projects while others have asked for the permission to change the purposes of the projects.
In April 2012, the provincial authorities released the decision to annul the new urban area and the golf course project registered by the Vietnam-ROK Joint Stock Company, which was planned to be set up in Can Giuoc District.
Le Cong Dinh, Deputy Director of the Long An provincial planning and investment department, has confirmed that the investor has withdrawn due to financial difficulties.
Long An province has also annulled the 280 hectare golf course in Thu Thua district, registered by Vietnamese Tan Thanh Long An Company and South Korean Genuwin D&C.
Long An initially planned to have eight golf courses, but only one of them has been existing.
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