Decree No. 52/2020/ND-CP on Investment in Construction and Operation of Golf Courses

DECREE

On investment in construction and operation of golf courses

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

On the basis of the Investment Law dated November 26, 2014;

At the proposal of the Minister of Planning and Investment;

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

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. This Decree stipulates conditions for investment in construction and operation of golf courses; state management over activities of investment in construction and operation of golf courses.

2. This Decree applies to investors implementing Investment Projects for construction and operation of golf courses; agencies, organizations, and individuals related to activities of investment in construction and operation of golf courses.

Article 2. Interpretation of Terms

In this Decree, the following terms shall be understood as follows:

1. A golf course is a construction project comprising golf fairways and auxiliary facilities designed according to appropriate scale and technical standards to serve golf players.

2. Operation of a golf course is the provision of services for playing, practicing, and competing in golf, as well as related services to serve golf players.

3. Conditions for investment in operation of golf courses are the requirements that investors must meet to invest in construction and operation of golf courses as prescribed in this Decree and relevant laws..

4. An Investment Project for construction and operation of a golf course (hereinafter referred to as Golf Course Investment Project) is a set of proposals related to the use of investment capital for constructing new, expanding golf courses and auxiliary facilities serving golf course operations.

5. Auxiliary facilities serving golf course operations are works or parts of works serving the management, operation, exploitation, use, and business of golf courses and accommodation and service facilities for golf players.

Article 3. Principles of investment in construction and operation of golf courses

1. Activities of investment in construction and operation of golf courses aim to promote economic and social development, services, tourism, sports; to meet diverse forms of entertainment, physical fitness, and community health development.

2. Implementation of Golf Course Investment Projects shall not affect national defense, security, public order, social safety, social morality, community health, environment, natural resources, historical and cultural relics, scenic spots and historic sites recognized and protected by competent state authorities in accordance with the law; ensuring the rights and legitimate interests, social welfare of people whose land is expropriated for golf course construction.

3. Land used for golf course construction must be consistent with land planning and utilization plans; ensuring proper, economical, and effective use; meeting the conditions and procedures prescribed in this Decree, laws on investment, planning, land, construction, environment, and relevant laws.

Article 4. Prohibited acts in activities of investment in construction and operation of golf courses

1. Constructing and operating golf courses without meeting the conditions and procedures prescribed in this Decree and relevant laws.

2. Exploiting golf course operations to organize illegal gambling, betting, and gaming activities.

3. Obstructing or failing to comply with inspection and audit work of competent state management authorities as prescribed by law.

4. Failing to provide information or report when requested by competent state management authorities as prescribed by law.

Chapter II
CONDITIONS FOR INVESTMENT IN CONSTRUCTION AND OPERATION OF GOLF COURSES

Article 5. Determination of Location and Selection of Investor for the Golf Course Project

1. The golf course shall be constructed at a location that meets the following conditions:

a) In accordance with the principles stipulated in Article 3 and satisfying the land use conditions as prescribed in Clause 6 of this Decree;

b) Consistent with the development orientation, spatial arrangement, and resource allocation for economic and social activities, national defense, security, environmental protection according to provincial planning, district-level land use planning, and related planning;

c) Meeting the construction conditions for landscape works and technical infrastructure connecting within and outside the golf course area;

d) Complying with the requirements for establishing water source protection zones, preventing and controlling water pollution, degradation, and depletion as prescribed by laws on water resources, and other requirements under laws on dyke management, disaster prevention, marine and island resources.

2. State agencies authorized to manage planning and land have the responsibility to publicly announce and provide information on planning and land use plans as prescribed by laws on planning and land to serve as the basis for determining the location for constructing the golf course.

3. The selection of investors to implement the Golf Course Project shall be carried out in accordance with laws on bidding, land, and related laws.

Article 6. Conditions for Land Use to Implement the Golf Course Project

1. Types of land not to be used for constructing golf courses and auxiliary facilities serving golf business operations include:

a) Land used for national defense and security purposes;

b) Forest land and rice paddy land, except as provided for in Clauses 2 and 3 of this Article;

c) Land located in areas containing components of historical-cultural relics and scenic spots that have been classified, or sites listed in the inventory of the provincial People's Committee, except as provided for in Clause 4 of this Article;

d) Land for industrial parks, clusters of industrial zones, concentrated information technology zones, and high-tech zones;

đ) Land within the protected areas of dykes and coastal protection zones as prescribed by the Law on Dykes, the Law on Natural Resources, Environment, and Islands.

2. For golf course projects in midland and mountainous regions, up to a maximum of 5 hectares of single-crop rice paddy land may be used, scattered across the construction site, and must meet the conditions for protecting and developing rice paddy land, leasing land, and changing land use purposes as prescribed by laws on land.

3. Golf course projects using production forest land that is not natural forest must comply with the conditions for leasing land, changing land use purposes, changing forest use purposes, and replanting forests as prescribed by laws on land and forestry.

4. The use of land surrounding or adjacent to areas containing components of historical sites for constructing golf courses must not affect the components of historical sites, natural scenery, and the environment-ecosystem of the sites, and must meet the conditions prescribed by laws on cultural heritage.

Article 7. Conditions for Construction and Expansion of Golf Courses and Auxiliary Facilities Serving Golf Business Operations

1. The standard area of a golf course (18 holes) shall not exceed 90 hectares (an average of no more than 5 hectares per hole); the initial construction project area of a golf course shall not exceed 270 hectares (54 holes).

2. The combined building density of the land for constructing the golf course and auxiliary facilities serving golf business operations shall be implemented in accordance with the National Technical Regulations on Planning issued by the Ministry of Construction.

3. Investors must complete the construction of the golf course within a period not exceeding 36 months (for a 18-hole golf course) or not exceeding 48 months (for other golf courses) from the date of decision to lease the land.

4. The expansion of a golf course project that has already been approved for investment can only be considered after the project has been completed, put into operation, and met the conditions stipulated in Articles 5 and 6 of this Decree.

5. If an investor proposes different golf course projects within the administrative boundaries of the same province or centrally governed city, the proposal for the next golf course project by that investor can only be considered after the previous golf course project that has been approved for investment has been completed and put into operation.

Article 8. Conditions for investors implementing Golf Course Projects

1. Meeting financial capacity requirements and land lease conditions, land use purpose change conditions to implement Golf Course Projects as prescribed by laws on land; depositing a guarantee fund for project implementation (in cases where such deposits are required) in accordance with laws on investment.

2. Having solutions, plans, and commitments to support resettlement, training, and appropriate employment for individuals currently using the proposed project site and local workers.

3. Ensuring necessary infrastructure requirements for transportation, electricity, water supply; wastewater treatment and environmental protection.

Article 9. Business Conditions for Golf Courses

The provision of golf playing services, business operations related to golf practice, competition, and associated services must meet material and equipment, financial resources, and human resource requirements as prescribed by laws on physical education and sports.

Chapter III
IMPLEMENTATION OF GOLF COURSE PROJECTS

1. Authority, documents, procedures, and processes for making investment policy decisions and issuing Investment Registration Certificates for Golf Course Projects shall be carried out according to laws on investment and specifically stipulated in Clauses 2 and 3 of this Article.

2. Proposals for Golf Course Projects must include contents as prescribed by laws on investment, including explanations on compliance with principles and conditions stipulated in Articles 3, 5, 6, 7, and 8 of this Decree. For integrated tourism and entertainment projects with golf courses, the golf course proposal should be established as an independent project.

3. The procedures and processes for making investment policy decisions for Golf Course Projects are specifically defined as follows:

a) Investors submit Golf Course Project documents in accordance with Clauses 1 and 2 of this Article to the Investment Registration Agency at the project location.

b) Within three working days from the date of receiving complete Golf Course Project documents as stipulated in point a of this Clause, the Investment Registration Agency sends the documents to relevant ministries and agencies for their opinions on the project's contents.

c) Within fifteen days from the date of receiving the opinion solicitation documents, relevant ministries and agencies provide written opinions on the project's contents within their functional scope and send them to the Investment Registration Agency.

d) Within twenty-five days from the date of receiving the Golf Course Project documents, the Investment Registration Agency compiles and reports to the provincial People's Committee for examination, and sends the project document review opinions to the Ministry of Planning and Investment.

e) Within fifteen days from the date of receiving the provincial People's Committee's opinions, the Ministry of Planning and Investment conducts reviews, prepares a report, and submits it to the Prime Minister for an investment policy decision including contents as prescribed by investment laws.

e) Within five days from receiving the complete and properly submitted dossier from the Ministry of Planning and Investment, the Government Office conducts a review, submits it to the Prime Minister for consideration and decision on the investment policy for the golf course project. The Prime Minister considers and decides, and the Government Office implements the issuance and public announcement of the document in accordance with the Government's operational regulations.

Article 11. Implementation of Golf Course Projects

1. The investor shall only implement the golf course project after obtaining an investment orientation decision or being granted an investment registration certificate (for projects required to obtain an investment registration certificate under investment laws); completing procedures related to land, construction, and approval of environmental impact assessment reports as prescribed by law.

2. During the implementation of the golf course project, the investor shall be responsible for implementing reporting, supervision, and evaluation systems for investment activities as prescribed by investment laws.

3. When transferring the golf course project together with the transfer of land use rights, the investor must meet the conditions and procedures stipulated by investment laws, land laws, real estate business laws, and relevant laws.

4. Conditions and procedures for adjusting or terminating the operation of golf course projects shall be carried out in accordance with investment laws, relevant laws, and this Decree.

Article 12. Supervision, Evaluation, Inspection, and Examination of Golf Course Project Implementation

1. Provincial People's Committees, Investment Registration Authorities, and related agencies shall be responsible for implementing supervision and evaluation systems for the implementation of golf course projects as prescribed by investment laws and relevant laws.

2. Inspections and audits of golf course projects shall be conducted according to the provisions of inspection laws.

Chapter IV
STATE MANAGEMENT RESPONSIBILITIES FOR INVESTMENT CONSTRUCTION AND GOLF COURSE BUSINESS ACTIVITIES

INVESTMENT IN CONSTRUCTION AND OPERATION OF GOLF COURSES

Article 13. Responsibilities of the Prime Minister

1. Issuing regulatory legal documents and measures within his authority to manage investment construction and golf course business activities.

3. Deciding on other matters related to investment construction and golf course business activities as prescribed by this Decree and relevant laws.

Article 14. Responsibilities of the Ministry of Planning and Investment

1. Organizing the drafting, submitting to competent authorities for issuance, or issuing regulations on investment construction and golf course business activities.

2. Inspecting the implementation of the provisions of this Decree according to his functions and authority.

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

Article 15. Responsibilities of Ministries and Sectors

1. Within their functions and authority, ministries and sectors shall carry out state management over investment construction and golf course business activities as prescribed by law; coordinating with the Ministry of Planning and Investment to perform tasks prescribed in Article 14 of this Decree and leading the performance of tasks prescribed in Clauses 2, 3, 4, 5, and 6 of this Article.

2. The Ministry of Culture, Sports and Tourism shall participate in providing opinions and guiding and inspecting, within its authority, the implementation of laws on the protection and promotion of historical-cultural relics and scenic spots and the management of golf sports activities.

3. The Ministry of Construction shall participate in providing opinions and guiding and inspecting, within its authority, the implementation of technical standards and regulations for golf course construction and construction activities of golf course projects.

4. The Ministry of Natural Resources and Environment shall participate in providing opinions and guiding and inspecting, within its authority, the change of land use purposes from forest land and agricultural land for golf course projects; reviewing and approving, within its authority, environmental impact assessment reports of golf course projects as prescribed by environmental protection laws.

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

6. Other ministries and sectors shall perform state management functions over investment construction and golf course business activities in areas under their jurisdiction as prescribed by law.

Article 16. Responsibilities of Provincial People's Committees

1. Organizing the drafting, publication, and provision of information on land planning and utilization plans as a basis for proposing golf course projects.

2. Implementing procedures for changing land use purposes, leasing land, and related procedures within their authority to implement golf course projects as prescribed by land laws, relevant laws, and investment orientation decisions and investment registration certificates.

3. Managing, supervising, and inspecting, within their authority, the use of land, construction activities, and compliance with environmental protection obligations of investors implementing golf course projects to ensure consistency with land planning and utilization plans, investment orientation decisions, investment registration certificates, and relevant laws.

5. Perform other duties and authorities as prescribed by law.

Chapter V
IMPLEMENTING PROVISIONS

Article 17. Transitional Provisions

1. Golf course projects that have been decided on investment orientation, granted investment certificates, or investment registration certificates before this Decree takes effect shall continue to be implemented according to the provisions of investment orientation decisions, investment certificates, and investment registration certificates.

2. Investors who have submitted project files before this Decree takes effect but have not yet received investment orientation decisions or investment registration certificates (for golf course projects required to go through the procedure of obtaining an investment registration certificate) must adjust their project files according to the conditions and procedures stipulated in this Decree.

Article 18. Effective Date

1. This Decree shall take effect from June 15, 2020.

2. Ministers, heads of ministerial-level agencies, heads of government agencies, Chairpersons of provincial people's committees, centrally-administered city people's committees, and related organizations and individuals shall be responsible for enforcing this Decree./.