Vietnam Golf Economy: When Golf Courses Become Investment Assets

Early morning at Tan Son Nhat Golf Course, a group of amateur golfers are queuing for their tee time. The green fee of 1.2 million VND for an 18-hole round has increased 15% compared to last year, yet the number of players remains steady. Behind this familiar scene lies a much larger economic story than the beautiful swings. The Vietnamese golf industry is transitioning from a luxury sport into a business with clear scale and cash flow. According to the Vietnam Golf Association (VGA), the country now has 92 operational golf courses with total investment exceeding 3 billion USD. This number is expected to grow to 120 courses by 2030 as projects in Phu Quoc, Quang Ninh, and Binh Thuan come online. But the story is not simply about building courses. Each standard 18-hole golf course requires 70-90 hectares of land, with initial investment costs ranging from 30-50 million USD. With an average green fee of 1.5 million VND and about 300 golfers playing per week, a golf course can generate 23 billion VND in annual revenue. However, operating costs – including labor, turf maintenance, irrigation systems, and management – typically account for 60-70% of revenue. This means net profit is only about 7-9 billion VND per year, equivalent to a return rate of 2-3% on initial investment. Cash flow never lies, but balance sheets can. Many golf course investors in Vietnam are shifting toward developing real estate around golf courses. Selling land plots and resort villas with golf course views can generate profits 3-4 times higher than operating the golf course itself. This is why conglomerates like Vingroup, Sun Group, and FLC all build golf courses as part of larger resort complexes. However, this dependence on real estate creates a strategic weakness. When the real estate market slowed down during 2026-2026, golf course projects stalled, and cash flow from golf operations was insufficient to cover capital costs. Crises do not create problems; they just send overdue bills. Looking at South Korea – where I currently live – the golf market has gone through a similar cycle. South Korea has over 500 golf courses, but the average occupancy rate is only 60%. Many rural golf courses are going bankrupt because there aren't enough golfers. The lesson from South Korea is: golf courses are not sustainable income-generating assets if they rely solely on green fees. The real value lies in the surrounding ecosystem. In Vietnam, the number of golfers is growing rapidly. According to VGA surveys, the country has about 80,000 regular golfers, growing 25% annually. However, compared to a population of 100 million, the golfer ratio is still very low – only 0.08%. This indicates huge growth potential, but also raises questions about sustainability as new golf courses are continuously built. Value by opportunity cost, not brand fame. A golf course in Da Lat with year-round cool weather can operate more efficiently than a similar-sized course in Da Nang. I have followed matches at Da Lat Palace Golf Course and noticed that international visitors account for 40%, bringing stable foreign currency revenue. Meanwhile, golf courses in southern industrial zones rely mainly on domestic golfers, making them vulnerable to economic downturns. A notable trend is the development of youth golf. Golf academies for children are springing up in Hanoi and Ho Chi Minh City with monthly tuition of 5-8 million VND. Nguyen Thao My, a 15-year-old golfer, won the 2026 Asian Junior Championship thanks to systematic training programs. However, the cost of training a professional golfer can reach 2-3 billion VND before they can support themselves. This is a high-risk investment, and not every family can afford it. Vietnam's youth training system still lacks government support. Compared to South Korea, where the government sponsors scholarships and builds public golf infrastructure, Vietnam still relies on the private sector. This creates inequality in access to golf – only children from wealthy families have the opportunity to pursue this sport. Fans don't come to the stadium because of results, but because of the promise – which lies on the payroll. Sponsors are looking at Vietnamese golf as a channel to reach high-end customers. The 2026 VGA Tour has a total prize fund of 10 billion VND, double that of 2026. Watch, automobile, and real estate brands are spending tens of billions of VND to associate their names with tournaments. But is this interest sustainable when the global golf market is stagnating? A contrarian view: the value of Vietnamese golf lies not in producing professional golfers, but in building a golf economy serving tourism. South Korea has 8 million golfers, but they are seeking golf courses abroad because domestic costs are too high. Vietnam could become a budget golf destination for Korean and Japanese visitors – those willing to pay 3-5 million VND for a golf round including hotel fees. There are already positive signals. KN Golf Links in Quang Ninh welcomes 60% international visitors, mainly from Korea and China. This model resembles Thailand, where golf contributes 1.5 billion USD annually to GDP. Vietnam has advantages in labor and land costs, but still lacks transportation connectivity and support services. Football is played on the pitch, but decided in the boardroom. Similarly, the development of Vietnamese golf will be decided by investment decisions, not by beautiful putts. Investors need to look beyond building golf courses to focus on building an ecosystem: training schools, professional tournaments, tourism services, and infrastructure. A good model doesn't predict the future; it reveals what we choose not to see. I built a financial model for a golf course in Phu Quoc with assumptions of 70% occupancy and 15% annual golfer growth. The result showed a payback period of 12 years, too long compared to the 7-8 year standard in the region. But when adding resort real estate revenue, the payback period dropped to 5 years. This explains why real estate developers continue investing in golf courses. However, real estate market risks cannot be ignored. If interest rates remain high and the market stays sluggish, golf course projects will stall. There is already a lesson from FLC – a conglomerate that announced numerous golf course projects but later had to sell off assets due to financial crisis. The biggest question is not whether Vietnamese golf will develop, but who will benefit from that development. If only large corporations and foreign investors benefit, golf cannot become a national sport. Policies are needed to bring golf closer to the people, such as building affordable public golf courses, sponsoring young talents, and developing school golf. I write a blog to understand why clubs go bankrupt. Now I write to prevent it. For Vietnamese golf, the same lesson applies: if we only chase short-term profits while ignoring sustainable development, the golf industry will pay the price. But if we know how to combine business with community development, golf can become a key economic sector for the country. The future of Vietnamese golf lies not in luxurious golf courses but in the ability to create a comprehensive ecosystem – where a child from the countryside can dream of becoming a professional golfer, where a Korean tourist can fly to Da Nang for a weekend golf trip, and where investors see long-term value instead of immediate profits. That is the real economic challenge of Vietnamese golf.