Nghị định 52/2020/ND-CP

DECREE

ON GOLF COURSE INVESTMENT AND BUSINESS

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

Pursuant to the Law on Investment dated November 26, 2014;

At the request of the Minister of Planning and Investment;

The Government hereby promulgates a Decree on golf course investment and business.

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

1. This Decree provides for conditions for golf course investment and business; and state management of golf course investment and business.

2. This Decree is applicable to investors of golf course investment and business projects; and regulatory bodies, organizations and individuals involved in golf course investment and business.

Article 2. Definitions

For the purposes of this Decree, the terms below shall be construed as follows:

1. “golf course” means a structure that consists of a series of holes and ancillary structures suitably sized and designed following technical standards in order to serve golf players.

2. “golf course business” refers to the provision of golf games, golf practice, golf competitions and relevant services to golf players.

3. “condition for golf course investment and business” means a condition that an investor must satisfy to invest in the construction of a golf course and operate the golf course commercially according to the regulations of this Decree and relevant regulations of laws.

4. “golf course investment and business project” (hereinafter referred to as “golf course project”) means a collection of proposals concerning use of investment capital for construction or expansion of a golf course and ancillary structures thereof for golf course business.

5. “ancillary structure supporting golf course business" (hereinafter referred to as “ancillary structure”) means a structure or work item of service to the management, operation and commercial use of a golf course and provision of accommodations and services for golf players.

Article 3. Rules of golf course investment and business

1. Golf course investment and business shall aim to promote socio-economic growth and sports, tourism and service sector development; and meet the demand for diverse recreational activities and improvement of physical health and the community’s health.

2. Golf course projects shall not affect national defense and security, public order, social safety and security, the community’s health, the environment, natural resources, historical - cultural relics and famous landscapes and beauty spots recognized by competent authorities and protected according to regulations of law; and shall ensure legitimate rights and interest of persons whose land is expropriated for such projects.

3. Land on which golf courses are built must be used in a manner that is appropriate to land use planning and plans and the intended purpose; ensures thriftiness and efficiency; fulfills the conditions and procedures provided for by this Decree, laws on investment, planning, land, construction and the environment and other relevant laws.

Article 4. Prohibited acts

1. Construction and commercial use of a golf course without satisfying the conditions and completing the procedures stipulated in this Decree and relevant regulations of laws.

2. Operation of a golf course business for the purpose of illegal gambling or betting.

3. Obstruction of or non-compliance with inspections from competent authorities per the law.

4. Refusal to provide information or to report at the request of competent authorities per the law.

Chapter II

CONDITIONS FOR GOLF COURSE INVESTMENT AND BUSINESS

Article 5. Golf course project location and investor selection

1. Requirements for golf course locations:

a) The location is selected in accordance with the rules stated in Article 3 and the land use requirements stated in Article 6 of this Decree;

b) The location suits spatial development and arrangement orientations and resource distribution for socio-economic activities, national defense and security and environmental protection according to provincial planning, district-level land use planning and relevant planning;

c) The location fulfills the conditions for construction of structures, landscape and technical infrastructure inside and outside the golf course;

d) The location satisfies the requirements for establishment of buffer zones for water protection and for prevention and control of water pollution and shortage in compliance with regulations of laws on water resources and requirements provided for by regulations of laws on flood control systems, natural disaster prevention and control, and natural resources and environment of sea and islands.

2. Planning and land authorities shall publish and provide information on land use planning and plans according to regulations of laws on planning and land to provide the basis for selection of golf course locations.

3. Investors of golf course projects shall be selected in accordance with regulations of bidding laws, land laws and other relevant laws.

Article 6. Conditions for use of land for golf course projects

1. Types of land not permitted to be used for construction of golf courses and ancillary structures include:

a) Land for national defense and security purpose;

b) Forest land and paddy land, excluding the cases provided for in Clauses 2 and 3 herein;

c) Land located in areas containing original constituents of ranked famous landscapes and beauty spots, historical - cultural relics and relics included in relic lists of provincial People’s Committees, excluding the cases provided for in Clause 4 herein;

d) Land for construction of industrial parks, industry clusters, technology parks and hi-tech parks;

dd) Land used for protection of flood control systems and coastal setbacks according to regulations of the Law on Dikes and Law on Natural Resources and Environment of Sea and Islands.

2. Golf course projects located in midland and mountainous areas may use a maximum of 5 ha of paddy land yielding one crop each year and/or land on which shade trees are planted and must satisfy the requirements for paddy land protection and development and conditions for land lease and land repurposing according to regulations of laws on land.

3. Golf course projects using land of planted production forests must satisfy the requirements for land lease, land repurposing, forest repurposing and forest replacement according to regulations of land laws and forestry laws.

4. Use of land surrounding or adjacent to an area containing an original constituent of a relic for a golf course shall not affect such constituent or the relic’s natural landscape and environment and must satisfy the requirements prescribed by regulations of laws on cultural heritage.

Article 7. Conditions for expansion of golf courses and ancillary structures

1. The area of a standard golf course (18 holes) shall not exceed 90 ha (an average of 5 ha for each hole); the area of a newly built golf course project shall not exceed 270 ha (54 holes).

2. The floor area ratio of the golf course and ancillary structures is provided for in the national technical regulation on construction planning promulgated by the Ministry of Construction.

3. Investors must finish building their golf courses within 36 months (for 18-hole courses) or within 48 months (for other types of courses) starting from the date of issuance of the land lease decision.

4. Expansion of a golf course project whose investment guidelines have been decided shall only be considered after the project is completed and put into operation and if the requirements stated in Articles 5 and 6 of this Decree are satisfied.

5. In case an investor proposes different golf course projects located within one province or central-affiliated city, the next golf course project shall only be considered after the previous project whose investment guidelines have been decided is completed and put into operation.

Article 8. Conditions for investors of golf course projects

1. The investor must satisfy all requirements concerning financial capacity, land lease and land repurposing for execution of the golf course project according to regulations of laws on land; and pay a deposit for assurance of project execution (for cases requiring such deposit) according to regulations of laws on investment.

2. The investor shall provide solutions and plans for assistance for relocation, training and employment for persons using the land to be allocated for the golf course project and local workers and make a commitment on such assistance.

3. The investor shall self-fulfill all requirements for traffic, power and water infrastructure; waste water treatment and environmental protection.

Article 9. Conditions for golf course business

Provision of golf games, golf practice, golf competitions and relevant services must satisfy all requirements for facilities, equipment, financial sources and manpower prescribed by laws on sports.

Chapter III

EXECUTION OF GOLF COURSE PROJECTS

Article 10. Procedures for investment guidelines decision and issuance of investment registration certificates for golf course projects

1. Competence in and applications and procedures for investment guidelines decision and issuance of investment registration certificates for golf course projects are provided for by regulations of laws on investment and the regulations in Clauses 2 and 3 of this Article.

2. A golf course project proposal shall consist of the contents required by regulations of laws on investment, including an explanation for fulfillment of the rules and requirements stated in Articles 3, 5, 6,7 and 8 of this Decree. For projects on recreational-tourism areas with golf courses, the golf course project proposal shall be drawn up separately.

3. Procedure for decision of the investment guidelines of a golf course project:

a) The investor shall submit a golf course project dossier prepared in compliance with regulations in Clauses 1 and 2 herein to the investment registration authority of the location where the project is located;

b) Within 03 working days from the date of receipt of an adequate golf course project dossier mentioned in Point 1 of this Clause, the investment registration authority shall request relevant ministries to give their opinions on the project’s contents;

c) Within 15 working days from the date of receipt of the request for their opinions, ministries shall send intra vires opinions on the contents of the golf course project to the investment registration authority in writing;

d) Within 25 days from the date of receipt of the golf course project dossier, the investment registration authority shall submit a consolidated report to the provincial People's Committee for consideration, appraisal and proposal of the golf course project dossier to the Ministry of Planning and Investment;

dd) Within 15 days from the date of receipt of the opinion of the provincial People's Committee, the Ministry of Planning and Investment shall appraise the golf course project dossier and submit a proposal to the Prime Minister for decision of the investment guidelines, which shall include the contents required by investment laws;

e) Within 05 days from the date of receipt of the adequate and valid proposal from the Ministry of Planning and Investment, the Office of the Government shall inspect and submit the proposal to the Prime Minister for consideration and decision of the investment guidelines. The Prime Minister shall consider and decide the investment guidelines and the Office of the Government shall issue and publish the documents in compliance with the regulation of operations of the Government.

Article 11. Execution of golf course projects

1. Investors may execute their golf course projects after the investment guidelines are decided or they are issued with an investment registration certificate (for cases requiring investment registration certificates per regulations of laws on investment); and they have completed all mandatory procedures regarding land and construction; and the environmental impact assessment report is approved as prescribed by law.

2. During execution of their golf course projects, investors shall comply with regulations on reporting, supervision and assessment of investment according to regulations of laws on investment.

3. An investor who transfers their golf course project together with land use rights must fulfill the conditions and carry out the procedures required by regulations of laws on investment, land and real estate business and other relevant laws.

4. Conditions and procedures for modification and termination of golf course projects are provided for by regulations of laws on investment, other relevant laws and this Decree.

Article 12. Supervision, assessment and inspection of execution of golf course projects

1. Provincial People's Committees, investment registration authorities and relevant authorities shall supervise and assess execution of golf course projects according to regulations of laws on investment and other relevant laws.

2. Golf course projects shall be inspected as prescribed by regulations of laws on inspection.

Chapter IV

RESPONSBILITIES FOR STATE MANAGEMENT OF GOLF COURSE INVESTMENT AND BUSINESS

Article 13. Responsibilities of Prime Minister

1. Promulgate legislative documents and solutions concerning management of golf course investment and business intra vires.

2. Decide investment guidelines of golf course projects within his competence according to regulations of laws on investment.

3. Decide other matters related to golf course investment and business intra vires as prescribed by this Decree and relevant laws.

Article 14. Responsibilities of Ministry of Planning and Investment

1. Formulate and promulgate or propose documents providing for golf course investment and business to competent authorities for promulgation. 

2. Inspect compliance with the regulations of this Decree intra vires.

3. Take charge in appraising and proposing investment guidelines of golf course projects to the Prime Minister for decision in accordance with regulations of laws on investment and this Decree.

4. Take charge and cooperate with other ministries, ministerial-level agencies and People’s Committees of provinces and central-affiliated cities in summarizing execution of golf course projects across the country.

5. Perform other tasks assigned in this Decree and by the Prime Minister.

Article 15. Responsibilities of ministries

1. Carry out state management of golf course investment and business intra vires according to regulations of law; cooperate with the Ministry of Planning and Investment in performing the tasks assigned in Article 14 of this Decree and take charge in fulfilling the tasks assigned in Clauses 2, 3, 4, 5 and 6 of this Article.

2. Ministry of Culture, Sports and Tourism shall give its opinions, and provide guidelines for and inspect compliance with regulations of laws on protection and enhancement of historical - cultural relics and famous landscapes and beauty spots and on golf game management intra vires.

3. Ministry of Construction shall give its opinions, and provide guidelines for and inspect fulfillment of technical regulations and standards for golf course construction and construction activities of golf course projects.

4. Ministry of Natural Resources and Environment shall give its opinions, and provide guidelines for and inspect repurposing of forest land and agricultural land of golf course projects; appraise and approve environmental impact assessment reports of golf course projects intra vires in compliance with environmental protection laws.

5. Ministry of Agriculture and Rural Development shall cooperate with the Ministry of Natural Resources and Environment in inspecting repurposing of forest land and agricultural land of golf course projects.

6. Other ministries shall carry out state management of golf course investment and business intra vires and in accordance with regulations of law.

Article 16. Responsibilities of provincial People’s Committees

1. Organize development, announcement and provision of information on land use planning and plans to provide the basis for formulation of golf course project proposals.

2. Handle procedures for land repurposing and land lease and relevant procedures intra vires to facilitate golf course projects in accordance with regulations of laws on land, other relevant laws, investment guidelines decisions and investment registration certificates. 

3. Manage, supervise and inspect land use, construction activities and fulfillment of environmental protection obligations by investors intra vires to ensure compliance with land use planning and plans, regulations of investment guidelines decisions, investment registration certificates and relevant laws. 

4. Prepare annual assessments and summaries of execution of golf course projects in their provinces.

5. Perform other tasks and exercise other powers as prescribed by law.

Chapter V

IMPLEMENTATION CLAUSE

Article 17. Transitional clauses

1. Golf course projects the investment guidelines of which are decided or which are issued with investment certificates or investment registration certificates prior to the effective date of this Decree may continue to be executed according to the regulations in their investment guidelines, investment certificates or investment registration certificates.

2. If an investor has submitted their golf course project dossier before the effective date of this Decree but the investment guidelines are not yet decided or the investment registration certificate is not yet issued (for projects requiring investment registration certificates), the investor must modify the dossier based on the conditions and procedures provided for by this Decree.

Article 18. Implementation clause

1. This Decree comes into force from June 15, 2020.

2. Ministers, heads of ministerial-level agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities and relevant organizations and individuals shall implement this Decree./.