Korean investors keen on Vietnam golf market

After many divestments from golf course projects in Vietnam due to the 1997-1998 regional economic crisis, foreign investors, especially South Koreans, are eager to return.

Foreign investor divestments

After a lengthy period of being hampered by the regional crisis, a boost in foreign investment inflows pushed up the implementation of golf course projects in Vietnam in the years 2006-2007.

However, business difficulties partly due to the lingering effects of the crisis forced many foreign investors to entirely divest or give up their majority stake in golf projects. Back then, Vietnamese investors emerged to acquire these projects.

Kings Island Golf Resort in Son Tay town, Hanoi was the first golf course in northern Vietnam and initially a joint venture between a Thai investor and Vietnamese company. Due to the regional crisis, the Thai investor sold the course to Nguyen Thi Nga, chairwoman of BRG Group, which later became a Vietnamese pioneer in the country's golf and tourism development.

A Singaporean investor in 2013 sold a 75% stake in the Song Be Golf Resort in Binh Duong province to Protrade Corporation.

The Phan Thiet golf course in Binh Thuan province was invested by Regent International Overseas Corp in 1993. After the billionaire owner passed away, the project was sold twice to other foreign investors before finally Vietnamese company Rang Dong JSC scooped it up.

The foreign-invested Montgomerie Links in Quang Nam province is now in the hands of Vietnam's TBS Group, which currently holds a 93% stake in Indochina Hoi An Golf Course JSC, owner of Montgomerie Links.

MIK Group and associated shareholders hold 53.898% of DK ENC Vietnam Ltd., which owns Sky Lake Golf & Resort Club in Hanoi, while the Korean group of shareholders DK ENC and Jang Chin Hyuk hold about 1.84% and 44.26%, respectively.

According to The Investor data, there are currently 11 foreign-owned golf course projects across the country, with 18 to 54 holes. Of these, The Bluffs Ho Tram Ship is owned by Canadian-backed Asian Coast Development Ltd, four are owned by South Koreans, three by Taiwanese, one by a Hong Konger, and two by Singaporeans.

Of the 11, two including the 311.7-hectare Phoenix Golf and Resorts with 54 holes and the 300-hectare Bo Chang Dong Nai Golf Resort with 27 holes in Hoa Binh and Dong Nai provinces, respectively, are among Vietnam's largest golf courses.

The rise of Korean investors

Foreign investors have been returning to golf course projects in recent years, with Korean investors being the most active. According the Vietnam National Administration of Tourism, Vietnam's major golf tourism market is South Korea.

In November 2021, Panko E&D Co., Ltd., a member of Panko Corporation, a global clothing manufacturer based in South Korea, asked Quang Nam authorities to allocate a 350-hectare plot to develop a smart urban, resort, and golf course complex in the central province.

Shin Chang Vina Co., Ltd. has also asked Quang Nam for permission to build a golf course project in Dai Loc district.

Previously in August, during a meeting with Hai Duong authorities, Park Noh-wan, Korean ambassador to Vietnam, and Pham Xuan Thang, Party chief of the northern province discussed the fulfilment of procedures for a smart urban complex with a golf course in Tu Ky district.

In early 2022, MDA E&C Ltd., a 100% Korean-owned corporation specializing in civil engineering and construction, proposed the green light for a golf course and eco-resort project named Glory in Pho Yen town, the nothern province of Thai Nguyen.

D&N Group in March disclosed its intention to invest around VND6,000 billion ($258 million) in a 600-hectare urban resort and golf course complex project in Ha Tinh province, central Vietnam.

South Korea is one of Vietnam's biggest investors, trading partners and tourism markets.