Decree No. 52/2020/ND-CP investment in building and commercial operation of golf courses

DECREE

On investment in building and commercial operation of golf courses^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the November 26, 2014 Law on Investment;

At the proposal of the Minister of Planning and Investment;

The Government promulgates the Decree on investment in building and commercial operation of golf courses.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation and subjects of application

1. This Decree prescribes conditions for investment in building and commercial operation of golf courses; and state management of investment in building and commercial operation of golf courses.

2. This Decree applies to investors implementing investment projects on building and commercial operation of golf courses; and agencies, organizations and individuals involved in investment in building and commercial operation of golf courses.

Article 2.Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Golf course means a construction work consisting of fairways and other auxiliary facilities designed according to an appropriate scale and technical standards to serve golf players.

2. Commercial operation of golf courses means provision of golf playing, practice and tournament services and related services to golf players.

3. Conditions for investment in building and commercial operation of golf courses means conditions that investors must satisfy in order to invest in building and commercial operation of golf courses as prescribed in this Decree and relevant laws.

4. Investment project on building and commercial operation of a golf course (below referred to as golf course project) means a set of proposals related to the use of investment capital to build a new golf course or to expand an existing golf course and its auxiliary facilities to serve its commercial operation.

5. Auxiliary facilities serving commercial operation of a golf course means works and work items built to serve the management, operation, use and commercial operation of such golf course and accommodations and service facilities for golf players.

Article 3.Principles of investment in building and commercial operation of golf courses

1. Investment in building and commercial operation of golf courses aims to promote socio-economic development, services, tourism and sports; and to meet the demand for diverse forms of leisure, entertainment, physical development and community well-being.

2. Implementation of golf course projects must not affect national defense, security, social order, safety and ethics, community well-being, the environment, natural resources, historical and cultural relics, and scenic places recognized and protected by competent state agencies in accordance with law; and must guarantee lawful rights and interests and social security of people whose land is recovered for building of golf courses.

3. Land areas used for building golf courses must conform to relevant land use master plans and plans; be used for proper purposes and in an economical and efficient manner; and satisfy the conditions and procedures prescribed in this Decree and the investment, planning, land, construction, and environmental laws and relevant laws.

Article 4.Prohibited acts in investment in building and commercial operation of golf courses

1. Building and commercially operating golf courses without satisfying the conditions and completing the procedures prescribed in this Decree and relevant laws.

2. Taking advantage of commercial operation of golf courses to illegally organize betting or gambling activities.

3. Obstructing or failing to submit to examination or inspection by competent state management agencies in accordance with law.

4. Refusing to provide information or failing to report upon request of competent state management agencies in accordance with law.

Chapter II

CONDITIONS FOR INVESTMENT IN BUILDING AND COMMERCIAL OPERATION OF GOLF COURSES

Article 5.Identification of locations and selection of investors for implementation of golf course projects

1. A golf course may be built at a location that satisfies the following conditions:

a/ Conforming to the principles prescribed in Article 3 and satisfying the conditions for land use prescribed in Article 6 of this Decree;

b/ Conforming to orientations for development of, and spatial arrangement and distribution of resources for, socio-economic, national defense, security and environmental protection activities under provincial master plans, district-level land use master plans and relevant master plans;

c/ Satisfying conditions for building landscape works and technical infrastructure facilities connected to areas inside and outside the golf course;

d/ Meeting requirements on establishing a corridor to protect water sources, prevent pollution, depletion and exhaustion of water sources in accordance with the law on water resources, and other requirements prescribed by the laws on dikes, prevention and control of natural disasters, and marine and island resources and environment.

2. Competent state agencies in charge of management of master plans and land shall publicly announce and provide information about land use master plans and plans in accordance with the planning and land laws to serve as a basis for identification of locations for building of golf courses.

3. Selection of investors to implement golf course projects must comply with the bidding and land laws and relevant laws.

Article 6.Conditions for land use to implement golf course projects

1. Land categories that may not be used for building golf courses and auxiliary facilities to serve commercial operation of golf courses:

a/ Land for use for national defense or security purposes;

b/ Forest land and paddy land, except the cases specified in Clauses 2 and 3 of this Article;

c/ Land in areas with original elements constituting ranked historical and cultural relics and scenic places and relics on lists of inventoried relics of provincial-level People’s Committees, except the case specified in Clause 4 of this Article;

d/ Land for building of industrial parks or clusters, information technology parks or hi-tech parks;

dd/ Land within dike protection and coast protection corridors in accordance with the Law on Dikes and the Law on Marine and Island Resources and Environment.

2. A golf course project in a midland or mountainous locality may use up to 5 hectares of one-crop paddy land with scattered plots in its location and must satisfy conditions on protection and development of paddy land and conditions for land rent and land use purpose change prescribed in the land law.

3. Golf course projects using land under production forests other than natural forests must satisfy conditions for land lease, land and forest use purpose change, and planting of replacement forests in accordance with the land and forestry laws.

4. The use of land in surrounding or adjacent areas of areas with original elements constituting relics for building golf courses must not affect such original elements as well as the natural landscape and eco-environment of relics and must satisfy conditions prescribed in the law on cultural heritages.

Article 7.Conditions for building of new golf courses or expansion of existing golf courses and their auxiliary facilities to serve commercial operation of golf courses

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

2. Aggregate building density of the land area for building of a golf course and its auxiliary facilities to serve commercial operation of such golf course must comply with the national technical regulation on construction planning promulgated by the Ministry of Construction.

3. Investors shall complete the building of a golf course within 36 months (for 18-hole golf courses) or 48 months (for other golf courses) from the date they obtain the land lease decision.

4. Expansion of a golf course project for which the investment policy has been decided may only be considered when such project has been completely built and put into operation and satisfy the conditions prescribed in Articles 5 and 6 of this Decree.

5. In case an investor proposes different golf course projects to be implemented in the administrative boundaries of a province or centrally run city, its/his/her next golf course project proposal may only be considered after the golf course project for which the investment policy has been previously decided is completed and put into operation.

Article 8.Conditions on investors implementing golf course projects

1. Satisfying conditions on financial capacity and conditions for land lease and land use purpose change for implementation of golf course projects in accordance with the land law; and making deposits as security for project implementation (in case deposits are required) in accordance with the investment law.

2. Having solutions and plans and making commitments on providing resettlement support, training and employment of laborers who are currently using land areas expected to be used for implementation of golf course projects and other local laborers.

3. Satisfying necessary requirements and conditions on transport infrastructure facilities, power and water supply, wastewater treatment and environmental protection.

Article 9.Conditions for commercial operation of golf courses

The provision of golf playing, practice and tournament services and related services must satisfy conditions on physical foundations, equipment, financial sources, and human resources prescribed in the law on physical training and sports.

Chapter III

IMPLEMENTATION OF GOLF COURSE PROJECTS

Article 10.Procedures for deciding on investment policy and grant of investment registration certificates for golf course projects

1. The competence, dossiers, order and procedures for deciding on investment policy and grant of investment registration certificates for golf course projects must comply with the investment law and are specified in Clauses 2 and 3 of this Article.

2. A golf course project proposal must have the contents specified in the investment law, including explanation about satisfaction of the principles and conditions prescribed in Articles 3, 5, 6, 7 and 8 of this Decree. For tourist resort or leisure and entertainment service projects having golf courses, golf course project proposals shall be developed into independent projects.

3. The order and procedures for deciding on investment policy for a golf course project are specified as follows:

a/ The investor(s) shall submit a dossier of golf course project made under Clauses 1 and 2 of this Article to the investment registry office of the locality where the golf course project is to be implemented;

b/ Within 3 working days after receiving a complete dossier of golf course project specified at Point a of this Clause, the investment registry office shall send it to related ministries and agencies for opinions on contents of the project;

c/ Within 15 days after receiving the dossier of golf course project sent for their opinions, ministries and agencies shall send their written opinions on contents of the project within the ambit of their functions and tasks to the investment registry office;

d/ Within 25 days after receiving the dossier of golf course project, the investment registry office shall sum up and report it to the provincial-level People’s Committee for consideration and sending of dossier-appraising opinions to the Ministry of Planning and Investment;

dd/ Within 15 days after receiving opinions of the provincial-level People’s Committee, the Ministry of Planning and Investment shall appraise the project and send a report thereon, which must have the contents specified in the investment law, to the Prime Minister for decision on investment policy.

e/ Within 5 days after receiving a complete dossier submitted according to procedures by the Ministry of Planning and Investment, the Government Office shall verify the dossier and propose the Prime Minister to make decision on investment policy for the golf course project. The Prime Minister shall consider and make decision on investment policy for the project while the Government Office shall distribute and publicize the decision under the Working Regulation of the Government.

Article 11.Implementation of golf course projects

1. An investor may only implement a golf course project after obtaining an investment policy decision or being granted an investment registration certificate (for projects for which procedures for grant of investment registration certificate are required under the investment law); and completing land- and construction-related procedures and procedures for approval of environmental impact assessment reports in accordance with law.

2. In the course of implementation of a golf course project, an investor shall observe the investment reporting, monitoring and evaluation regime in accordance with the investment law.

3. An investor that wishes to transfer a golf course project associated with transfer of land use rights must satisfy the conditions and complete the procedures prescribed in the investment, land and real estate business laws and relevant laws.

4. Conditions and procedures for adjustment or termination of operation of golf course projects must comply with the investment law, relevant laws and this Decree.

Article 12.Monitoring and evaluation of investment in, and inspection and examination of implementation of, golf course projects

1. Provincial-level People’s Committees, investment registry offices and related agencies shall monitor and evaluate the implementation of golf course projects in accordance with the investment law and relevant laws.

2. Examination and inspection of golf course projects must comply with the inspection law.

Chapter IV

RESPONSIBILITY FOR STATE MANAGEMENT OF INVESTMENT IN BUILDING AND COMMERCIAL OPERATION OF GOLF COURSES

Article 13.Responsibilities of the Prime Minister

1. To promulgate legal documents and devise measures according to his/her competence to manage investment in building and commercial operation of golf courses.

2. To decide on investment policy for golf course projects under his/her competence in accordance with the investment law.

3. To decide on other contents related to investment in building and commercial operation of golf courses according to the competence provided in this Decree and relevant laws.

Article 14.Responsibilities of the Ministry of Planning and Investment

1. To formulate and submit to competent authorities for promulgation, or promulgate according to its competence, regulations on investment in building and commercial operation of golf courses.

2. To examine the implementation of this Decree according to its functions and competence.

3. To assume the prime responsibility for appraising golf course projects and submitting them to the Prime Minister for investment policy decision in accordance with the investment law and this Decree.

4. To assume the prime responsibility for, and coordinate with ministries, ministerial-level agencies and provincial-level People’s Committees in, summing up the implementation of golf course projects nationwide.

5. To perform other tasks prescribed in this Decree and as assigned by the Prime Minister.

Article 15.Responsibilities of ministries and sectors

1. Within the ambit of their functions and competence, to perform the state management of investment in building and commercial operation of golf courses in accordance with law; to coordinate with the Ministry of Planning and Investment in performing the tasks specified in Article 14 of this Decree and assume the prime responsibility for performing the tasks specified in Clauses 2, 3, 4, 5 and 6 of this Article.

2. The Ministry of Culture, Sports and Tourism shall give its opinions and guide and examine according to its competence the implementation of regulations on protection and promotion of values of historical and cultural relics and scenic places, and management of golf sport activities.

3. The Ministry of Construction shall give its opinions and guide and examine according to its competence the application of standards and technical regulations on building of golf courses and construction activities of golf course projects.

4. The Ministry of Natural Resources and Environment shall give its opinions and guide and examine according to its competence the change of use purposes of forest and agricultural land of golf course projects; and appraise and approve according to its competence environmental impact assessment reports of golf course projects in accordance with the environmental protection law.

5. The Ministry of Agriculture and Rural Development shall coordinate with the Ministry of Natural Resources and Environment in examining the change of use purposes of forest and agricultural land of golf course projects.

6. Other ministries and sectors shall perform the state management of investment in building and commercial operation of golf courses in the fields under their management in accordance with law.

Article 16.Responsibilities of provincial-level People’s Committees

1. To formulate, and publicize and provide information on, land use master plans and plans for use as a basis for making golf course project proposals.

2. To carry out procedures for changing land use purposes and leasing land and related procedures according to their competence for implementation of golf course projects in accordance with the land law, relevant laws, investment policy decisions and investment registration certificates.

3. To manage, supervise and examine according to their competence land use and construction activities and performance of the environmental protection obligation by investors implementing golf course projects in order to ensure their conformity with land use master plans and plans, investment policy decisions, investment registration certificates and relevant laws.

4. To annually review and assess the implementation of golf course projects in their localities.

5. To perform other tasks and exercise other powers in accordance with law.

Chapter V

IMPLEMENTATION PROVISIONS

Article 17.Transitional provisions

1. Golf course projects for which investment policy is decided or investment certificates or investment registration certificates are granted before the effective date of this Decree may continue to be implemented under their investment policy decisions, investment certificates or investment registration certificates.

2. Investors that submit dossiers of golf course projects before the effective date of this Decree but have not yet obtained investment policy decisions or investment registration certificates (for golf course projects for which procedures for grant of investment registration certificates are required) shall modify their dossiers according to conditions and procedures prescribed in this Decree.

Article 18.Implementation provisions

1. This Decree takes effect on June 15, 2020.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC