Why is the billion-dollar horse racing project in Lam Dong behind schedule?

Land clearance took 9 years.

As VietNamNet mentioned in the article “Owner of a billion-dollar horse racing track project requests to open more betting on illegal land”, after 12 years of being approved for investment, the more than 1,000 billion VND horse racing track project in Da Huoai district, Lam Dong province has not yet completed the legal procedures for construction.

This is the Thien Ma - Madagui Horse Racing Course - Polo and Horse Performance Club (Thien Ma - Madagui Horse Racing Course) project with a scale of 70 hectares, invested by Thien Ma - Madagui Horse Racing Joint Stock Company (Thien Ma Company).

Current status of Thien Ma - Madagui Horse Racing Course project. (Photo: Anh Phuong)

Thien Ma Company has cooperated with Phu Tho Sports Club (District 11, Ho Chi Minh City) to upgrade infrastructure and manage horse racing activities at Phu Tho Racecourse since 2004.

In 2007, Lam Dong Provincial People's Committee granted an investment certificate to Hong Lam - Madagui Company Limited (Hong Lam Company) to invest in the project of the Da Huoai Horse Racing and Tourism Center with a scale of 335.86 hectares in Da Huoai district. The project's objectives are to breed and train racehorses, invest in a golf course, hotel and resort villas.

After Phu Tho Racecourse closed in 2011, Thien Ma Company entered into a joint venture with Hong Lam Company, splitting the above 335.86ha project into 3 component projects.

In which, Thien Ma Company is the investor of Thien Ma – Madagui Horse Racing Course project. Hong Lam Company is the investor of Da Huoai Horse Racing and Tourism Center project (152ha) and Hong Lam – Madagui Golf Course project (60ha). These are two projects that complement the Thien Ma – Madagui Horse Racing Course project.

The investor is leveling the ground of the main racetrack area. (Photo: Anh Phuong)

Regarding the Thien Ma – Madagui Horse Racing Course, according to the report of the Ministry of Planning and Investment (MPI) in March 2023, this project has not been implemented on schedule. The delay in project implementation is due to both objective and subjective reasons of the investor.

Speaking to VietNamNet reporter, Mr. Nguyen Linh Hoat, Vice Chairman of Da Huoai District People's Committee, said that the Thien Ma - Madagui Horse Racing Project was behind schedule because the investor spent a lot of time clearing the land and adjusting the planning. The compensation process was prolonged because the investor encountered problems with civil relations within each household. The District People's Committee only played a lobbying role.

“This is a large project and there is no clean land, the investor had to negotiate compensation with more than 200 households. Up to now, the investor has basically compensated and cleared 100% of the clean land. This is a great effort by the investor,” said Mr. Hoat.

According to Mr. Hoat, the Thien Ma - Madagui Horse Racing Course project was approved by the People's Committee of Da Huoai district to adjust the detailed planning at a scale of 1/500 in March 2023.

Up to now, the investor has basically cleared 100% of the land. (Photo: Anh Phuong)

A representative of Thien Ma Company said that initially, the Thien Ma – Madagui Horse Racing Course project had a scale of 69.976 hectares. The company had compensated and cleared 59 hectares, and the remaining 10 hectares had not been compensated with households for many reasons.

Although the company had compensated for 59 hectares before 2011, it had not yet completed the land lease procedures because the remaining 10 hectares had not been compensated. This area was interspersed and belonged to the core of the project, so the company could not build the project according to the 1/500 plan but only built a temporary 1,200m racetrack.

“After completing the compensation work in October 2020, the company will carry out the land lease procedures. In May 2022, Lam Dong Provincial People's Committee decided to adjust the project area to 67.15 hectares. Next, the company will be leased this land area to continue the procedures to change the land use purpose according to regulations,” said a representative of Thien Ma Company.

Stuck in procedures for betting business activities

According to VietNamNet reporters, the reason why the horse racing track project of Thien Ma Company is behind schedule is also due to regulations on procedures for applying for a license to operate horse racing with betting business.

In 2011, Lam Dong Provincial People's Committee approved Thien Ma Company to build a temporary 1,200m racetrack. After building this racetrack, in 2017, the investor was allowed by the Provincial People's Committee to organize a pilot horse racing and horse show.

In 2017, Thien Ma Company organized a pilot horse racing betting with a total of 9 races. Because the project did not add a horse racing betting target and the investor did not meet the conditions for betting business, in 2018, the Ministry of Planning and Investment requested the investor to stop this activity.

Some temporary structures have been built by the investor since 2017 to serve the pilot horse racing organization. (Photo: Anh Phuong)

After Decree 06/2017 was issued and Circular 16/2018 of the Ministry of Culture, Sports and Tourism regulating the facilities and equipment of enterprises organizing horse racing activities for betting business took effect, from 2019, Thien Ma Company completed procedures to add horse racing and dog racing betting targets to the project.

In addition, Thien Ma Company also adjusted the shape of the 2,000m closed horse racing track according to the regulations of Circular 16/2018 and in accordance with the standards of the Asian Equestrian Federation.

To operate horse and dog racing betting business, the company must supplement a series of project legal procedures to comply with national planning, Central Highlands regional planning and Lam Dong province's overall socio-economic development planning.

Meanwhile, in 2022, when the land lease is completed, the project will have to adjust the shape of the horse racing track according to Circular 16/2018, causing the detailed planning of 1/500 to have to be adjusted. Previously, the project had been approved by the Lam Dong Provincial People's Committee for a detailed planning of 1/500 in 2014.

Close-up of temporary works at the project. (Photo: Anh Phuong)

Regarding the information that Thien Ma Company built a number of works at the Thien Ma - Madagui Horse Racing Course project without completing land procedures, the Vice Chairman of the People's Committee of Da Huoai district said that after being allowed to conduct a pilot horse racing in 2017, the investor built a number of works.

Covered structures have been built such as: Horse stables, horse training houses, veterinary houses, temporary stands and some structures serving the temporary racetrack. In addition, there are uncovered items such as: 1,200m temporary racetrack, drainage ditches and some internal dirt roads serving the leveling of the ground.

According to Mr. Hoat, most of these structures are temporary, built with light materials and prefabricated iron frames and were completed in 2017 to serve the pilot horse racing activities. The investor committed to dismantling these structures when the main racetrack is completed and put into operation.

The owner of a billion-dollar horse racing track project in Lam Dong has proposed to add dog racing and betting on the land in violation. The land use purpose has not been changed, progress is behind schedule, and construction violations have occurred. However, the investor of a billion-dollar horse racing track project in Lam Dong has proposed to add dog racing and betting.

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