While it is evidently not simple to operate golf courses with a gain, Vietnam should have a more open view and attitude towards this kind of business, Le Kien Thanh, deputy standing chairman of the Vietnam Golf Association, has said.

Thanh has a strong argument to back his assertion, as he used to operate an 18-hole golf course in Vinh Phu, and ended up transferring the facility to another investor in 2009 because he “found it very difficult to recoup investment.”

In order to break even, Thanh had to sell 1,000 memberships worth US$30,000 each, he said.

“However, the best I could do before selling the course was to sell 150 membership cards worth only $6,000 each,” he said.

The monthly operational cost for the golf course is some VND3 – 4 billion, which means daily revenue should be around VND140 million, which equates to at least 300 customers.

“By this calculation, it is impossible for me to break even with only 150 memberships,” Thanh said.

Thanh said a typical golfer has to spend some $300 a month for admission, and around $5,000 a year to buy equipment and accessories.

“This is not to mention the enormous $40,000 - $60,000 membership fee,” he said, adding that the sum is not a big deal for well-off people when the economy is running smoothly.

More open-minded about golf business

Vietnam will have some 90 golf courses, up from the current 32 active facilities, by 2020, according to a plan approved by the government.

The plan, however, has recently been questioned as reality shows that most courses are suffering losses or struggling to break even.

“Golf is an expensive game, but it is necessary to attract foreign investment to the localities that have golf courses,” Thanh said.

“The venues will serve foreign investors who are operating projects in Vietnam, as well as for local officials to play with their international counterparts,” he elaborated.

As for a specific number concerning how many golf courses Vietnam should have, Thanh said it is unreasonable to use other countries as reference due to a number of differences in eco-social development.

“For a long time, there was only one 31-hole golf course in Ho Chi Minh City, a city with 10 million people which received nearly 60 percent of the country’s total international arrivals,” he said.

“Customers had to queue in a long line in order to play at the facility as it is the nearest venue for the city’s residents and tourists, until only a year ago when the city got a new golf course.’

‘So is it a large number?” he asked.

Thanh concluded that the economic and tourism hubs such as HCMC, Da Nang, Hanoi, Nha Trang, or Da Lat should have more golf courses, while other localities should have fewer facilities.

Thanh said it’s worth ‘sacrificing’ the agricultural land to give place to the golf courses, as the latter can bring in other benefits such as tourism and investment competitiveness.

“We will not have to destroy any agricultural land when building a golf course in mountainous areas like Hoa Binh, but who will go there just to play golf?” he said.