Hanoi approves $22.1 mln golf course venture

05:25 a.m. Dec 08, 1997 Eastern
HANOI, Dec 8 (Reuters) - Vietnam's government has approved a $22.1-million joint venture between Gateway Development Ltd and a local firm to build an 18-hole golf course in the northern province of Hai Hung, a venture executive said on Monday.

Hoang Van Bao, vice-general director of the venture said the foreign partner, which is registered in the British Virgin Islands, would contribute 70 percent of the total investment capital.

The Hai Duong Tourism and Hotels Company would contribute the remainder in the form of land-use rights.

Bao said the golf course will be located on a 130-hectare (321-acre) hill site in Hai Hung province, some 80 km (50 miles) east of Hanoi. Construction is expected to start in April, 1998. An opening date has not been fixed.

Work on a number of golf courses in Vietnam is already under way, but some have hit problems because of sensitivities in the country associated with acquiring land for construction from farmers.

The Thanh Nien newspaper on Monday quoted Planning and Investment Minister Tran Xuan Gia as telling National Assembly delegates that Vietnam has licensed some 18 to 20 golf course projects, which he described as high-profit businesses.