Vietnam

Fisheries and Aquaculture

Sector Study
Final Report

Ministry of Fisheries
and
The World Bank
February 16, 2005

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ACKNOWLEDGEMENTS

This study was initiated following a request from Vietnams Ministry of Fisheries (MOFi) to the
World Bank Group. It was co-financed under the Japanese Global Trust Fund Programme for Sustainable
Fisheries that was established with the World Bank to foster studies with governments to identify possible
interventions in the fisheries and aquaculture sector to improve management and to optimize the benefits
through the sustainable use of aquatic resources for fisheries production and aquaculture development.
That funding was aslso complemented with World Bank budget support. From MOFi, Minister Ta Quang
Ngoc, Vice Minister Nguyen Viet Thang, Vu Van Trieu and Pham Trong Yen (International Cooperation
Department) were particularly instrumental in initiating, conducting and providing guidance for the study.
Mr. Hoang Viet Khang of the Ministry of Planning and Investments External Economic Relationship
Department also provided important direction for the study with regard to national invetment priorities.
There were also inputs provided from provinces visited in the north, central and southern regions of the
country as well as other ministries, government agencies and donors based in Hanoi many of whom
attended workshops in August and October 2004 in Hanoi to provide comment and feedback on the
studys findings. (See lists in Appendix M and Appendix L to this report.) The study team was comprised
of Ronald Zweig (World Bank Team Leader), Ha Xuan Thong, Le Thanh Luu, Jon Cook, Michael
Phillips, Nguyen Van Nguyen, and Nguyen Quang Huy (Consultants). The study and report also
benefited significantly from comments from Macpherson (Bank); William Lane (Bank); Gert van Santen
(consultant); and John Virdin (Bank) who were on the technical review panel for the study. In addition
from the World Bank, support for the study was provided by Klaus Rohland (Country Director) and
Martin Rama (Lead Economist) of the Vietnam Country Office and from Mark Wilson (Sector), Hoonae
Kim (Sector Manager), Stephen Mink, Laurent Msellati, Robin Mearns, Dzung The Nguyen, Binh Thang
Cao, Thu Thi Le Nguyen, Minhnguyet Le Khorami and Dung Thi Thuy Dao of the East Asia and Pacific
Rural Development and Natural Resources Sector Unit.

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CONTENTS

Executive Summary
I. Fisheries Sector Trends and Current Status

Page
i
1

A.
B.
C.
D.
E.
F.

1
2
5
6
10
11

Resources
Capture Fisheries
Aquaculture
Socio-Economic Aspects
Environment and Natural Resources
Development/Sustainable Management Opportunities and Constraints

II. Policies and Legal Framework

16

A.
B.
C.
D.
E.

16
18
19
19
20

Fisheries Law, Policies and Decrees

International
Comanagement
Coastal Zone Planning and Management
Possible New Policy Directions

III. National and Local Institutions

21

A.
B.
C.
D.
E.

21
22
24
27
28

Private Sector and SFEs

National and Provincial Institutions
Research and Education
Mass Organizations
Donor Programs, Projects and Cooperation

IV. Public and Private Sector Cooperation and Stakeholders

29

A.
B.
C.

29
30
30

Public Commercial and Service Activities

Joint Public and Private Sector Activities
Non-government Organizations

V. Support Services Constraints and Opportunities

31

A.
B.
C.
D.
E.

31
31
32
34
35

Services to Capture Fisheries

Port Facilities
Aquaculture
Extension and Information
Fisheries Sector Credit

VI. Markets and Processing

36

A.
B.
C.
D.
E.

36
37
37
39
39

Market Channels
Processing
Export Market Challenges
Future Demand and Price
Market Development Needs

VII. Development Priorities and Next Steps

39

A.
B.
C.

40
41
46

Poverty and the Environment

Suggested Program Areas
Implementation, Coordination and Follow Up

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LIST OF TABLES
Table 1 Biomass and estimated MSY
Table 2 Fishing gear usage
Table 3 Sources of fisher household income 2001
Table 4 State and non-state fisheries enterprises

1
2
6
22

LIST OF FIGURES
Figure 1
Figure 2
Figure 3
Figure 4
Figure 5
Figure 6
Figure 7
Figure 8

Mechanized fishing fleet 1991-2003

Proportion of fleet by engine size, 1992 and 2001
Marine capture fishery landings 1990-2002
Marine fish catch by region 1993-2003
Aquaculture area by region
Fishing labor
Volume and value of fishery product exports
Fish export prices

APPENDICES

Appendix A: Decree 106 on Coastal Communes facing Special Difficulties

Appendix B: Fisheries Sector Statistics
Appendix C: Persons and Institutions Consulted
Appendix D: Fisheries Law and Policy Framework
Appendix E: Marine Protected Areas Current Status
Appendix F: Fisheries Sector and ICZM Projects
Appendix G: Main Fishing Grounds
Appendix H: Aquaculture Policies
Appendix I: Aquaculture Trends, Sectoral Analysis and Environmental Issues
Appendix J: Markets and Processing
Appendix K: Development Priorities and Follow-up Recommendations
Appendix L: Recommendations from MOFi Study Review Workshop -- August 31, 2004
Appendix M: Recommendations from the MOFi Workshop on
10-Year Investment Priorities -- October 28, 2004
ABBREVIATIONS

ADB
AIT
BSP
CBD
CIB
CITES
DANIDA
DARD
DFID
DOFI
DOLISA
DONRE
DOST

Asian Development Bank

Asian Institute of Technology
Bank for Social Policy
Convention on Biodiversity
Commercial and Industrial Bank
Commission on International Trade of Exotic Species
Danish International Development Agency
Provincial Department of Agriculture and Rural Development
United Kingdom Department for International Development
Department of Fisheries (provincial)
Department of Labor, Invalids and Social Affairs (provincial)
Department of Natural Resources and Environment (provincial)
Department of Science and Technology (provincial)

2
2
3
3
5
10
36
37

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DPI
EEZ
EIA
EU
FA
FAO
FICEN
FIIP
FSPS
GSO
GEF
FINIDA
hp
ICZM
IUCN
IFEP
ITC
JICA
MARD
MOET
MOFi
MOLISA
MONRE
MOST
MPA
MPI
MRC
MSY
NACA
NAFIQAVED
NGO
NOAA
NORAD
OIE
OSH
PC
PL
PPC
PDFRP
PMU
PUA
RIA
RIMF
SAPA
SEAFDEC
SFE
SPS
TAC
UNEP
VAC
VASEP
VBARD

Department of Planning and Investment (provincial)

Exclusive Economic Zone
Environment Impact Assessment
European Union
Farmers Association
Food and Agriculture Organization of the United Nations
Fisheries Informatics Center
Fisheries Infrastructure Improvement Project (ADB)
Fisheries Sector Program Support (DANIDA/MOFi)
Government Statistics Office
Global Environment Facility
Finish International Development Agency
horsepower of engine (= 0.75 kW)
integrated coastal zone planning and management
International Conservation Union
Institute of Fisheries Economics and Planning
International Trade Commission
Japan International Cooperation Agency
Ministry of Agriculture and Rural Development
Ministry of Education and Training
Ministry of Fisheries
Ministry of Labor, Invalids and Social Affairs
Ministry of Natural Resources and Environment
Ministry of Science and Technology
marine protected area
Ministry of Planning and Investment
Mekong River Commission
Maximun Sustainable Yield
Network of Aquaculture Centers for Asia Pacific
National Fisheries Quality Assurance and Veterinary Directorate
Non-government organization
United Stated National Oceanic and Atmospheric Administration
Norwegian Dvelopment Agency
Office International des Epizooties
Occupational Health and Safety
Peoples Council
post-larvae (e.g., of shrimp)
Provincial People's Committee
Provincial Departments of Fishery Resources Protection
Project Management Unit
Port User Associations
Research Institute for Aquaculture
Research Institute for Marine Fisheries
Sustainable aquaculture for poverty alleviation
Southeast Asia Fisheries Development and Economic Commission
State fishery enterprise
Sanitary and Phyto-sanitary
Total allowable catch
United Nations Environment Programme
Integrated pond fish culture with agriculture and animal husbandry
Vietnam Association of Seafood Exporters and Processors
Vietnam Bank for Agriculture and Rural Development

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VINAFIS
VNICZM
VSP
WU
WSSV
WTO

Vietnam National Association of Fisheries

Vietnam Netherlands Integrated Coastal Zone Management project
Bank for Social Policy
Women's Union
White spot shrimp virus
World Trade Organization

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EXECUTIVE SUMMARY
1. Study Objectives
1.
The study has two main objectives: (i) to review the status and needs of the fisheries, aquaculture
and aquatic resource management in Vietnam; and (ii) to identify key areas of intervention that can reduce
poverty, increase production and improve environmental management of the sectors on a sustainable
basis.
2. Background and Status
2.
The fisheries and aquaculture sectors are significant contributors to the economy of Vietnam.
Direct production value (at the farm gate or on the wharf) in 2003 was approximately 25 trillion ($1.7
billion) or approaching 4% of GDP. Available data show that the relative contribution from aquaculture
represented about 60% of the revenue generated while yielding under 40% of the total catch from capture
fisheries and aquaculture. Export earnings from fish, shrimp and other seafood products totaled about
$2.2 billion in 2003 of which 52% was shrimp. Both sectors have expanded rapidly over the past decade,
with marine fisheries production rising from 800,000 to 1.5 million tons over the period 1990 to 2003.
Aquaculture production has increased rapidly to around one million tons, while inland fisheries contribute
in excess of 200,000 tons.
3.
Inshore fisheries are considered by fishers and the government to be over-exploited, causing
hardship for many coastal communities. Intervention is required to improve management and
performance with regard to productivity and biodiversity conservation, and find alternative livelihoods for
those unable to make a living from fishing.
4.
Offshore fisheries have been strongly promoted by the Government since 1997. While the north
(Tonkin Gulf) and west (Gulf of Thailand) fisheries appear to be over-exploited, the grounds in the east
and south are becoming increasingly exploited and could have some scope to support additional fishing
effort. However, few data are available on the resource or optimal sustainable yield. Until further research
is completed, it is considered that inshore fishing effort should be reduced and offshore limited to
approximately its present level. The rationale of containing expanded exploitation of those resources from
the vagaries of continued unrestricted exploitation is by itself sufficient reason to give high priority to
improving the currently rather ineffective sector governance and that the benefits of such a strategy would
exceed the risks. Enforcement of the recently adopted Fisheries Law, particularly the decentralization of
fisheries management and regulation, is a step specifically available to the government to take more
effective action.
5.
Inland capture fisheries landings are estimated at about 200,000 tons in official statistics almost certainly an underestimate. Inland fisheries, particularly in floodplains and rice fields in the
Mekong and Red river deltas, provide an important source of aquatic products for rural peoples nutrition
and seasonal income. Although there is a dearth of statistical data, several studies indicate that inland
fisheries are of considerable importance for poor people in many parts of Vietnam, not only full-time
fishers but also households that combine fishing as a component of wider livelihood strategies.
Accordingly, a study by the Tropical Biology Institute of Ho Chi Min City documented annual yields in
2001 as high as 430 kg/ha from a 45,000 ha area in Can Tho and Kein Giang Provinces in the Mekong
Delta. Considering that the Mekong Delta has a flooded area of about 1 million ha during the rainy season
each year, the contribution from floodplain fisheries in that part of the country would far exceed the
current estimate of inland fisheries in Vietnam.
6.
Aquaculture has grown significantly in recent years, averaging over 12% annual growth since
1990. Aquaculture contributes more than 40% to total fishery production with a farm gate value in 2003 of

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15.4 trillion in 2003. In terms of production, the freshwater sub-sector remains dominant with
approximately 65-70%. Brackish water aquaculture - mainly shrimp contributes around 220,000 tons
and more than 40% to the overall value of production. Crab farming and limited farming of marine fish
and mollusks, in particular, provide the remainder.
3. Key Issues
7.
Coastal Management. A number of innovations in coastal management have been initiated in
the past few years including: (i) mangrove protection in the Mekong Delta, (ii) marine protected area
development in Quang Nam, Khanh Hoa and Ba Ria-Vung Tao Provinces; and (iii) integrated coastal
zone planning and management (ICZM) in Quang Ninh, Nam Dinh, TT Hue, Da Nang and Ba Ria-Vung
Tau. However, most coastal areas have not addressed issues over zoning and conflicts over resource use.
Without a planning framework, coastal protection, conservation and allocation of areas for various uses
(e.g., aquaculture, fisheries, tourism, transport, biodiversity conservation, industry, urban development and
energy) can be significantly impaired. Wild and cultured living marine resources can be placed at high
risk. Comprehensive coastal zone planning and management should increase economic performance and
improve resource conservation. Under the new Fisheries Law, responsibility for allocation of sea areas for
marine aquaculture and fisheries has been delegated to the provinces. Establishment of a coastal planning
foundation by the provinces is required for this action to be effective.
8.
Fisheries. The natural resource base, particularly in inshore fisheries, has been severely
overexploited. Many high value fish resources have declined to a low level. Catches of lower value
species have increased and these are also being depleted. Many fishers have abandoned inshore fishing or
have resorted to catching small species with fine-mesh nets, mainly for fish sauce production. Offshore
fisheries are fairing somewhat better, though generally declining nationwide. Some areas at present are
still reporting reasonably high returns according to recent surveys. Nevertheless, some vessels are
performing poorly and limit their fishing effort to peak catching seasons. Vessels financed under the
Governments offshore fishing vessel subsidized credit scheme have performed poorly, with only around
10% meeting their repayment schedules. Repossession and reallocation of the poorly performing vessels is
currently under way. The offshore fishery has the potential to develop into a sustainable fishery, but runs
the risk of overcapitalization and over-fishing. Improved management is urgently required. Inland
fisheries production is more limited and could benefit from the establishment of sanctuaries to protect
critical natural habits, appropriate gear, and closed fishing seasons during the main spawning periods in
selected areas as can offshore fisheries.
9.
Aquaculture. Aquaculture is essential to meet future demand for aquatic products. While
aquaculture has expanded to supply domestic and export markets, issues concern the available limited
capacity in the country to promote and guide its sustainable development, in fresh, brackish, and marine
environments. The main concerns are related to quality and sufficiency of seed and feed supply, disease
control, and management of environmental impacts, including understanding of carrying capacity of sea
and inland water areas, extension services, and marketing channels and quality control systems. More
emphasis can also be placed on applying aquaculture for poverty reduction. Quality of the product has
been a concern in some export markets and anti-dumping cases have revealed the vulnerability of the
sector to external factors related to international trade.
10.
The marketing system for fish and other products is generally competitive and efficient for the
high-value products. Marketing relies on a large number of agents or product assemblers who provide fish
to retail outlets, wholesale markets or processors. Market intelligence is limited and requires urgent
improvement to assist producers in their investment and marketing decisions. Threats to the seafood
market include anti-dumping tariffs on catfish and imminent tariff on shrimp designed to protect some
external producers and processors. Processors have done well in achieving certification for a range of
products in the US, European and Japanese markets and seem set to expand their market share quite

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rapidly if permitted to do so. Traceability (e.g., for shrimp) is an issue which requires urgent attention if
the European market is to be maintained or developed. The domestic market is less developed than the
export market with inefficient and limited direct access to and knowledge of markets. Wholesale
marketing capacity is highly limited with only two wholesale markets in Ho Chi Minh City, Long Bien
and Phap Van markets in Hanoi. An analysis of the overall fish-marketing situation is warranted,
including as assessment over whether the wholesale sector needs to be strengthened to promote
competition and increase demand for fish, particularly from more remote inland areas.
4. Poverty and the Fishery Sector
11.
Many millions of people throughout Vietnam depend in full or part on the countrys aquatic
resources. The Government 135 program for supporting the particular poor communes identifies 2369
communes in mountainous and remote areas and islands, from this, 2240 have received support from
central Government and 129 support from provincial Governments. The extension of Program 106 to
coastal communities has identified 157 communes special difficulties communes. (For a list, see Appendix
A.) Despite the problems experienced by the inshore fishery, coastal areas are not impoverished to the
same degree as many inland or mountain communities. Nonetheless there are poor communities in many
coastal provinces, particularly in North-Central Coast and the sand zones of many coastal provinces.
Within regions that are considered better off, there are pockets of poverty, e.g., in the Red River delta and
Mekong regions, which, because of their very high population density, have the highest total numbers of
poor of all of Vietnams regions. Inland fisheries and aquaculture thus have clear potential to contribute
to poverty reduction in the inland and mountain areas. Overall the fisheries sector has been inadequately
represented in the nations poverty reduction strategies, and stronger lobbying by fisheries sector
institutions is desirable. Moreover, Government programs in the fisheries sector would greatly foster the
Government priority of eradicating poverty through supporting programs that would generate
employment, particularly for low-income households, while at the same time allowing market forces to
guide the investments.
5. Policy and Legislation
12.
Government policy and the new Fisheries Law enacted in November 2003 provide a good basic
framework for inshore and offshore fisheries management, environmentally sustainable aquaculture
development and poverty reduction in the fisheries sector. The Law is closely linked to MOFis master
planning activities. The immediate need now is to build capacity and enabling regulations and policies for
effective implementation of the overall national policies and legislation. One aspect that has proven
inefficient in many instances is the development of directed and subsidized credit programs that are thus
not governed by market forces that tend to stabilize as well as direct investment to cost effective activities.
13.
Vietnams WTO membership, expected during 2005, will have important implications for the
fishery and aquaculture sectors and the livelihoods of the people involved. The Sanitary and PhytoSanitary (SPS) Agreement will be a particular challenge. Progress made in adopting international sanitary
standards in processing and exporting businesses is impressive. However, difficulties in complying with
international standards are anticipated for the many small-scale farmers, fishers and processors involved in
the sector. Further analysis of the WTO membership on the fisheries sector should be conducted to
develop policy and practical measures to reduce risks for the small-scale sector.
6. Improving Fisheries and Coastal Management
14.
In the final chapter of the report, four key areas for possible intervention and support by
multilateral and bilateral agencies are defined: (i) Integrated Coastal Zone Management; (ii) Fisheries
Management in Inland, Offshore and Inshore Areas; (iii) Diversified Aquaculture Development in
Brackish, Marine, and Freshwater Areas; and (iv) Marketing. It is intended that the program elements

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will be discussed and developed by MOFI in consultation other key stakeholders such as the provinces,
fishers and aquaculturists (through the Vietnam National Association of Fisheries - VINAFIS) and
processors (through the Vietnam Association of Seafood Exporters and Processors - VASEP). The central
themes of the proposed fisheries sector interventions are poverty alleviation and environmental
management. The two aspects are closely linked, since environmental sustainability is a key determinant
of success in natural resources management. The governments program to support the poor coastal and
inland communes should be a central feature of any intervention. Thus provinces selected for focus will
ideally contain a significant number of these communes. Moreover, the recent Fisheries Law will also
assist in sustainable management and development of the aquaculture and fisheries sectors; and, for
which, assistance will be required for its implementation, particularly with regard to the allocated
responsibilities from the central to the provincial level.
Integrated Coastal Zone Management
15.
Many of the aspects of development of the coastal aquaculture and inshore fisheries sectors
should be carefully planned and implemented to protect the interests of all stakeholders in coastal
development. This implies a need for integrated coastal zone planning and management (ICZM). Under
any fisheries sector project involving coastal zone development, it will be desirable to work within an
existing or develop a new ICZM framework for provinces currently without ICZM. A program would
include such aspects as: (i) awareness raising and capacity building; (ii) provincial/regional ICZM strategy
development; (iii) integrated development planning and zoning; and (iv) livelihood support. It is suggested
that a program commence with a small number of pilot provinces, gradually expanding to cover all
interested coastal provinces.
Fisheries Management
16.
Inshore Fisheries. The Government has been responsible for Fisheries management in Vietnam.
However, agencies such as the provincial Departments of Fisheries (DOFis) have lacked the resources of
staff or budget to provide the required management, monitoring, surveillance or regulation enforcement in
Vietnams inshore (or offshore) waters. With increasing population pressure and the development of more
effective (and/or destructive) fishing gears, inshore resources have been increasingly over-exploited. In
this situation, almost the only option for improved resource management is co-management, the sharing of
responsibility for resources management between local communities and government agencies. The new
Fisheries Law provides the potential for this. Some provinces have already initiated establishment of such
systems, both through the national MPA program and on a smaller scale in mainland inshore waters in
several provinces. Full co-management programs could be commenced in selected provinces, involving:
(i) identification of stakeholders; (ii) research into current and traditional resources; (iii) boundary
identification; (iv) development of community fishery management plans; (v) demarcation of comanagement and MPA zones; (vi) support to communities, e.g., for livelihood development.
17.
Offshore Fisheries. Vietnam has recognized the need to manage its offshore fisheries. To date,
the offshore sector has been considered under-exploited, and therefore has not required intensive
management. It seems that the offshore fishery is becoming increasingly over-exploited in most of the
countrys EEZ. The rapid growth in offshore fishing from less than 1,000 vessels over 90 horsepower in
1997 to nearly 7,000 in 2004 means that careful management is essential. As fishing techniques become
more sophisticated, the increased level of fishing effort may lead to further collapse of most of the fishery
within 10 years, even if fleet size remains unchanged. It is therefore highly desirable to introduce
necessary management measures before the collapse in those areas still reasonably productive, rather than
attempt to rehabilitate a fishery after its collapse. For areas such as the Tonkin Gulf, a radical fisheries
control and management program will be required for its rehabilitation. A recent Vietnam-China fisheries
agreement over the Tonkin Gulf is an important step in that direction. Definition of a detailed offshore
fishery management program will require substantial research and analysis and, particularly, in depth

(v)
consultation with the fishing industry. Steps required for effective offshore fishery management in
Vietnamese waters might include: (i) definition and demarcation of fisheries in consultation with industry
and research institutions; (ii) establishment of strategic, closed fishing seasons; (iii) introduction of a
logbook scheme; (iv) introducing a license limitation program, at least until the fisheries and their status
are better understood; (v) defining necessary fishing gear restrictions, including potentially restrictions
specific to individual fisheries; (vii) assessing the potential for improved gear design; (viii) supporting
development of VINAFIS; (ix) supporting the research needed for fishing ground and optimal gear
definition; (x) implementing with China, the recent management plan for the Tonkin Gulf fishery; (xi)
formulating plans for all of Vietnams fisheries with emphasis on co-management; and (xii) assess
methods for allocating rights based access to fisheries, including transferable licensing and individual
transferable quotas.
18.
Inland Fisheries are threatened by pollution including the use of agrochemicals and flood control
projects that close off breeding habitats and nurturing grounds for resident and migrating fish and other
aquatic species. These threats are particularly significant for poor households that depend on the fishery.
Actions to assure the sustainability of inland fisheries include (i) further assessment of its importance to
the national economy and local farmers and poor inland fishers in relation to trade-offs, such as flood
control for agriculture; (ii) identification of appropriate management measures such as appropriate gear
and closed-fishing seasons in selected areas; and (iii) establishment of sanctuaries to protect key breeding
and nurturing habitats and sustain or improve productivity and biodiversity conservation.
Aquaculture
19.
Aquaculture development is essential to meet anticipated future demand for aquatic products. It
has potential to contribute significantly to rural poverty reduction in coastal and inland areas and is one of
the few alternative livelihood options for many poor coastal communes. Key actions include: (i)
supporting aquaculture as a livelihood option in agriculture diversification programs in inland areas,
building on past experience, including ongoing World Bank and other rural poverty reduction projects; (ii)
support a new initiative for diversified and integrated marine aquaculture as an alternative livelihood
option for poverty alleviation, particularly for poor inshore fishers; (iii) improve environmental
performance and adopt environmental guidelines for of aquaculture through wide-spread extension of
better planning and farming practices, investment in infrastructure, improved service delivery and
environmental rehabilitation and market incentives that reward better practice; (iv) diversify brackish
water aquaculture as a lower risk option to coastal shrimp farming; (v) develop capacity and services to
assist local farmers to improve aquaculture management ; (vi) develop systems and improve coordination
of environment and disease surveillance and monitoring in coastal and inland areas in response to
environmental and disease risks; (vii) define investment needs for quality seed production; (viii)
strengthen communications and extension within the sector to share better practice experiences and
coordination; and (ix) ensure greater stakeholder participation in policy making and planning, with special
attention to participation of poor fishers and farmers.
Marketing
20.
All fisheries and aquaculture under the market economy needs to be market driven. Marketing in
Vietnam is reasonably efficient and low cost, particularly for export products though is generally
considered weaker for domestically consumed products. A number of actions are desirable to improve fish
product marketing. Some are discussed under the aquaculture component, such as establishing traceability
and quality control systems for aquaculture export products as well as price monitoring and dissemination
of market information to farmers and other stakeholders for effective decision-making. There is also need
to explore whether support to the wholesale marketing sector could improve competition and prices for
producers and consumers, improve hygiene, and foster increased production and benefits to poor
communities.

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7. Implementation, Coordination and Next Steps
21.
The above outlined program addresses a number of the management, environmental and poverty
issues facing the fisheries sector. It needs to be reviewed, revised and endorsed by key stakeholders. It
will then need to be formulated into a program that can be effectively implemented. Assuming that the
program contains several of the elements discussed above, it is evident that it will involve a range of
agencies and other stakeholders. Coordination in the design and implementation of the program will need
to be of a high order, for example between several ministries, other stakeholders, including the private
sector and mass organizations directly involved in the sectors and, at the provincial level via the Provincial
Peoples Committees.
22.
Given the complexity of the program, it will be desirable to implement it in a phased manner.
Initially some of the concepts (for example of co-management and establishment of closed seasons and
new protected areas) should be initially trialed in a few communes in each target province. This would
allow the necessary research and development to be completed before attempting wider implementation.
Priority in ICZM, aquaculture and inshore co-management would be given to poor communes. However,
it is important that pilot areas chosen that have strong local commitment and ownership, as well as the
technical capacity that are necessary for success.
23.
As recommended by the study team, the Ministry of Fisheries should take the lead in formulating
a program of support to the sectors development. As the sector has strong linkages to other Ministries and
agencies working in agriculture, rural development, poverty alleviation and the environment, the study
team proposed the establishment of a fisheries sector steering group to assist in formulating the program
and its coordinated implementation. This fisheries sector steering group may be organized as a branch of
the ISGE under the Ministry of Natural Resources and Environment (MONRE), since this is already
established and operates effectively. The ISGE already has an ICZM group. I. It will also be essential to
link the program closely with donors working in fisheries and related sectors, including the DANIDA
Fisheries Sector Program Support Phase 2 in particular, which is currently under design.

(1)

I. FISHERIES SECTOR TRENDS AND CURRENT STATUS

A. Resources
24.
Vietnam has a land area of 329,200 km and an
exclusive economic zone of about 1 million km. Its sea
areas are divided into a number of regions as shown in
Table 1. Current fish stock estimates total almost 4.2
million tons and Maximun Sustainable Yield (MSY)
1.67 million tons. Biomass has recently been reestimated. Although the data have yet to be made
official by MOFI, it is likely that biomass estimates will
be reduced to around 3 million tons and MSY to 1.4
million tons. The official estimates of marine fisheries
resources are included in Appendix B.

Table 1. Biomass and estimated MSY

Tonkin Gulf
Central Region
South Eastern
South Western
Sea mounts
Total sea area
Small pelagic
Demersal <50m
Demersal >50m
Deep sea pelagic
Total

Fish stock
TAC
000 tons 000 tons
681.2
272.5
606.4
242.6
2075.9
830.5
506.7
202.3
10.0
2.5
300.0
120.0
4180.2 1670.4
1730.0
694.1
597.6
239.2
1542.6
617.1
300.0
120.0
4180.2 1670.4

25.
The sea area of Vietnam can be divided into four
main regions namely northern, central, southeast and
southwest. Fishing activities are classified as in-shore or
offshore based on the depth of the sea in each region. A MSY = maximum sustainable yield,
TAC = total allowable catch
depth of 50m and 30m is used for the central sea region Source: Fistenet based on RIMF 1997 estimates
and the other regions, respectively. There are two main
fishing seasons the south season (from May to October in the north and July to December in the
south) and the north season (from November to April in the north and January to May in the south)
corresponding to the SW and NE monsoons respectively (FICEN). The central coast region and
particularly the north central coast from about Thanh Hoa to Quang Ngai, is subject to typhoons
originating in the western Pacific during the southwest monsoon period. Other parts of the country
also experience typhoons, but rarely. Typhoon Lynda that killed 3,000 fishers off Ca Mau in 1997
was one of the only typhoons to hit the south in living memory.
26.
Vietnam has a dense river network, including 2,360 rivers with a length over 10km. Eight
have large basins with catchments of more than 10,000km. This river network includes many
international rivers that originate in other countries. About two thirds of Vietnams water resources
originate outside the country, making Vietnam susceptible to water resources decisions made in
upstream countries. The total area in- and outside Vietnam of all international catchments is close to
1.2 million km, which is approximately three times Vietnams land area. Total annual runoff is 835
billion m3 but water shortage is aggravated in the 6-7 month dry season when the runoff is only 15 to
30% of this total. (MONRE 2003)
27.
The total water surface potentially available for aquaculture, freshwater capture, or culturebased capture fisheries has been estimated at 1.7 million ha (FICEN). Of this total, around 120,000 ha
are small ponds, lakes, canals, gardens; 340,000 ha are large water surface reservoirs; 580,000 ha are
paddy fields which can be used for aquaculture purpose, and 660,000 ha are tidal areas. These figures
do not include the water surface of rivers and about 300,000 - 400,000 ha of straits, bays and lagoons
along the coast.
28.
Mangroves are central to the sustainability of many of Vietnams fisheries, though the
provision of habitat to coastal and marine fish and crustacea. It is therefore of concern that Vietnams
mangrove forests have been significantly degraded. According to the Ministry of Agriculture and
Rural Development (MARD 2004), since 1943 the national area of mangrove forests has declined
from 409,000 to about 155,000ha. However, mangrove clearing is now being more strictly controlled.
This combined with replanting programs in all regions appears to have arrested the decline over the
past two years. The issue of the Government decree on the Conservation and Development of
Wetland Areas by the Prime Minister, and the "Strategic Action Plan on the Conservation and
Sustainable Exploitation of Wetlands to 2010" from the Ministry of Natural Resources and

(2)
Environment (MONRE) should provide impetus and guidance for policy makers, managers and
researchers for conservation and sustainable use of mangrove wetlands. The ongoing World Bankfunded Coastal Wetlands project is protecting and developing mangrove forests in the four Mekong
Delta provinces of Ca Mau, Bac Lieu, Soc Trang and Tra Vinh.

B. Capture Fisheries
1. Fishing Fleet
Figure 1. Mechanized fishing fleet 1991-2003
90
80
Number of vessels '000

28.
The number of mechanized
vessels has increased rapidly from
44,000 in 1991 to 77,000 in 2002 (by an
average of 4.6% per year). The average
power of the vessels has increased by
12%/year to reach 48 horsepower (hp)
by 2002. The engine power of southern
vessels averaged over 90hp, compared
to 30hp for the rest of the country. Of
the mechanized vessels, almost 7,000
are classed as offshore with engines of
over 90hp. Notable has been the decline
in the number of vessels owned by the
state enterprises to 44 by 2002.

70
60
50

State Ent
Northern
N Central

40

S Central

30
20

Mekong

10
0
91 92 93 94 95 96 97 98 99 00 01 02

Ent = enterprises
Source: MOFI

29.
The average size of mechanized vessels has
increased rapidly as shown in Figure 2. In 1991, only
10% of mechanized vessels exceeded 45hp, increasing to
27% in 2001 and more than 30% in 2004. The main
increase in size class has been in the over 75hp and 4675hp classes. Vessels with engines less than 20hp
declined from almost 60% of the fleet to 40% in 2001.
The offshore fleet is generally classified as including
vessels with engines exceeding 90hp of which there are
now around 6,000. Expansion of the offshore fleet has
been government policy for several years, promoted
since 1997 by a government subsidized-interest scheme.
This has financed construction of 1,300 offshore vessels.
However, many have been experiencing problems as
discussed on page 17.
30.
There is little information on the number of
vessels using different fishing gears. Data from the 2000
census for all vessels are listed in Table 2, together with
team estimates for 2004. Among the main gears,
trawling (both pair and single) predominates in the south
with around 40% of vessels. Drift gillnetting is more
important in the north, while fixed nets are concentrated
in provinces with substantial estuaries e.g., Tra Vinh
and TT Hue. It is notable that in Tam Giang lagoon in
TT Hue, DOFI and the provincial government are
making strong efforts to reduce both set netting and
trapping, both of which are environmentally damaging.

Figure 2. Proportion of fleet by engine

size, 1992 and 2001
60%
50%
40%

1992
2001

30%
20%
10%
0%
<20hp

20-45hp 46-75hp
Engine size

>75hp

Source: Fisheries Master Plan

Table 2. Fishing gear usage

Gear

2000

Drift gillnet
Trawl
Hand/long-line
Purse seine
Lift net
Fixed net
Other

24.5
22.5
19.7
7.7
7.8
7.5
10.3
100.0

2004
estimated
25
18
25
10
7
7
9
100

Source: Fisheries Master Plan & team estimates

(3)
2. Marine Fisheries Production
General production trends
Figure 3. Marine capture fishery landings 1990-2002
1600

Landings '000t

31.
The marine fisheries sector in
Vietnam has developed rapidly over
recent years, as shown in Figure 1 and
detailed in Table 1-1, Appendix B.
Total landings increased from around
0.5 million tons in 1980 to 800,000 tons
in 1990 and 1.5 million tons in 2002.
Fish landings have increased at 5%/year,
crustaceans at 10%/year and mollusks
by an average of 16%/year from a low
base.

1400

Crustacea

1200

Molluscs
Fish

1000
800
600
400
200

Inshore Fisheries

32.
There is an ancient tradition for
90 91 92 93 94 95 96 97 98 99 00 01 02
both collecting and capturing fish direct
Source: FAO FishStat (MOFI data)
from the beach or in shallow mangroves,
estuaries, lagoons and river deltas, helped by the influence of tidal water. A variety of simple, as well
as sophisticated, fishing gear is used for capture of all kinds of fish and shellfish species. This
provides a substantial amount of protein to the coastal population. Due to the increase in human
population, there is great pressure on these resources. Exact data are not available, but estimates can
be drawn from behavioral analysis. According to these estimates, in addition to the 8 million people
whose livelihood depends on these fisheries as the household primary income source, there are an
additional 12 million who get part of their income or subsistence from fisheries.
33.
The inshore fishery (often up to 4-5 miles from the coast) depends on a fleet of about 28,000
non-mechanized canoes and boats, and approximately 45,000 smaller mechanized boats with long-tail
or one-cylinder diesel engines up to approximately 20hp. Almost all of these vessels operate directly
from the beach or estuaries and do harbor facilities. The most popular fishing gears are gill net, longline, lift-net, push net (illegal) and traps. Statistics covering these gears are approximate since
landings can take place nearly anywhere along the coast. Most landings are consumed locally or sold
in local town and village markets, but high-value species such as crab are often sold to professional
dealers and factories.
(000t fresh weight)
1600

0.8

1400

0.7
CPUE

1200

0.6

1000

0.5

800

0.4

600
400
200

0.3
North
N Central
S Central
South
CPUE

CPUE t/HP hour

34.
Marine capture fisheries production by region since 1993 is summarized in
Figure 4. Of total marine capture landings
in 2003, the south contributed 55%, south
central 28% and north central 11%.
Overall, production has increased at an
average rate of about 6%, though growth
in north central and north have been
fastest.

Figure 4. Marine fish catch by region 1993-2003

Landings 'ooot

Regional Trends

0.2
0.1

0
0.0
35.
There is no single accurate
93
94
95
96
97
98
99
00
01
02
03
measure for assessing the productivity of
Source: MOFI
the marine fishing fleet in Vietnam. The
measure most commonly used is catch per horsepower for the mechanized vessels which is not
accurate particularly during a period of rapid mechanization and increase in power. Nonetheless,

(4)
catch per unit effort has declined from 0.7 t/hp/y in 1993 to about 0.4 t/hp/y in 2003, indicative of
quite a rapid decline in productivity in relation to unit effort.
Trash Fish Landings
36.
A number of the fishing gears used in Vietnam result in high catches of trash fish. Trawlers
(single and pair) typically land between 50 and 70 percent of non-table species of fish, which are used
(i) for direct feeding to fish or livestock; (ii) in the manufacture of fish sauce or fish meal or (iii) for
conversion into fish sauce. Edwards (2004) estimated trash fish landings at 33 percent of total marine
fish landings. Southeast region accounted for two thirds of production. Southern fisheries had the
highest proportion of trash fish (averaging around 60% of the catch), compared to 5% in central, and
14% in northern regions. Quality is often poor, since salt is usually used for preservation as opposed
to ice. However, as demand for trash fish has increased and price has risen, often to 2,500/kg or
more, trash fish landings have become a significant source of income for many fishers. Trash fish
landings are likely to increase in the future, unless trawl net designs are modified to reduce catches of
small fish.
Live Reef Fish
37.
Live reef fishing is a significant sector, but few data are available on production, either of
aquarium fish or of live reef fish for the China market. According to IMA (2001), the main species
targeted include groupers, snappers and lobster, either wild caught, or wild caught and grown in cages.
Main production areas include northern and central region (Khanh Hoa and Phu Yen). In the North,
the main collection and trade areas are located in Quang Ninh and Hai Phong. In Quang Ninh
Province, four areas, Coto Island, Thuong Mai Island, Ha Mai Island and Halong City are deeply
involved in the trade. In Hai Phong province, Cat Ba Island and Bach Long Vi, both proposed marine
protected areas, are the major collection centers. Most reef fish are exported live, often unofficially
through transfer to Chinese vessels at sea, at Co To Island, Cat Ba port and other locations.
Leasing of marine fishing rights to foreign fleets
38.
In principle, Vietnam permits joint ventures for fishing activities within its Exclusive
Economic Zone (EEZ). However, there are no current agreements for fishing, though there are
agreements with Chinese and Korean companies for purchasing of fish and other products.
3. Inland Fisheries
Figure 5. Inland capture fisheries production
300

production '000t

39.
In the past, freshwater capture fisheries
were important for the economy in many
regions. During the 1970s there were more than
70 fishing cooperatives with annual production
of several thousand tons.
However,
overexploitation led to a reduction in the
resource and the end of operation for most
cooperatives with fishers converting to other
activities.

Red river delta

250

Northeast

200

Northwest

150

N central
S central

100

C plateau

50

Southeast

Mekong delta
40.
Inland (river, lake, dam and rice field)
0
fisheries remain important for rural dwellers in
96
00
01
02
03
many inland areas. The main data source for
inland data are the Government Statistics Office Source: GSO
(GSO) statistics that suggest a peak of 244,000 tons in 2001, declining to 209,000 tons in 2003,
probably due to drought. Inland capture fishery landings include culture-based-capture, through the
stocking of lakes, dams and other inland waters, mainly with carp and tilapia. However, the FAO fish
consumption survey (Lem 2002) identified freshwater fish consumption averaging 14 kg/person or 1.1

(5)
million tons. The difference is likely to be due inclusion of aquaculture products in the FAO survey
and likely underestimation by the GSO, a feature common to most inland fisheries statistics of the
Mekong region (FAO/MRC 2003).
41.
Vietnams rivers are generally quite productive. The Mekong River for example provides
more than 30,000 tons of fish annually, landed by around 48,000 fishers in 250 communes (MOFI
Master Plan)1. However, the Red River delta in the north, which was once highly productive, is now
almost devoid of fish, due to extensive flood control and the closure of flood plain fish breeding and
nursery areas.

C. Aquaculture

'000ha

42.
Aquaculture production according
Figure 6. Aquaculture area by region
to FAO statistics (provided by MOFI) has
grown at 12%/year since 1990 with
1000
freshwater and marine production showing
Red river delta
the highest growth rates (of 13 and 17%
800
Northeast
respectively).
Total
aquaculture
Northwest
production in 2003 is estimated as
600
N central
966,100 tons2, contributing more than
S central
400
40% by weight to total fishery production,
C plateau
with a farm gate value in 2003 estimated
200
Southeast
as 15.4 trillion. The freshwater subMekong delta
sector remains dominant, contributing 650
70% of total production. Brackish water
91
96
00
01
02
03
aquaculture, mainly shrimp, contributes
around 220,000 tons of production and Source: GSO
more than 40% to value, with the
remainder coming from crab and lobster farming and limited fish and mollusk aquaculture in marine
areas. Total aquaculture area according to GSO is 865,500 ha (Figure 5). Growth since 1991 has
averaged 9% compound. The Mekong delta dominates area and production, although, aquaculture is
expanding in all regions.
1. Regional trends
43.
North coast, with the five coastal provinces of Quang Ninh, Hai Phong, Thai Binh, Nam Dinh
and Ninh Binh, has well developed freshwater, brackish water and marine aquaculture, with potential
for further development. Cage culture of marine fish is developing quite rapidly in Bai Tu Long and
Ha Long bays, two areas of outstanding natural beauty. The region also produces mollusks, crabs,
seaweeds and shrimp (Penaeus monodon and recently the exotic P vannamei). The region has 52
small freshwater hatcheries, about 30 shrimp hatcheries and several marine fish hatcheries.
44.
Northern inland and Red River areas comprise 14 northern mountain provinces and 6
inland provinces in the Red river delta, including in the mountain areas some of the poorest and
remote regions in the country. Aquaculture in the Red river delta provinces in particular has expanded
in recent years, from 13,300 tons in 1990 to 76,400 tons in 2003. The traditional polyculture and
integrated farming system (garden-fish pond-livestock pen termed VAC) is common in the region.
Fish cage culture has been widely practiced in many mountain provinces, mainly involving grass carp,
but disease outbreaks have seriously constrained this type of aquaculture. Small-scale pond farming
has shown considerable promise for poverty reduction in northern mountain areas, including among
1

The Tropical Biology Institute has documented fish production levels as high as 430 kg/ha/year for large seasonally
flooded areas in the Mekong Delta. However other estimates from Vietnam and the region indicate landings generally
between about 50 and 80 kg/ha per flood season.
Aquaculture statistics are from GSO, 2004. There are discrepancies in the statistics from GSO and MOFI.

(6)
ethnic groups. The Red River delta provinces have a strong fish hatchery and nursery network with
more than 100 hatcheries of all sizes.
45.
North Central coast has 6 provinces covering 600 km of coastline, from Thanh Hoa to Thua
Thien Hue Province. The region is characterized by long sandy beaches and a narrow coastal plain
(mainly rice fields), with mountains to the west. Aquaculture has been expanding, to 46,000 tons in
2003, double the level of 1999. There are 25 small-scale hatcheries that meet 50% of the demand,
limiting freshwater aquaculture in remote western mountain areas. P monodon production in the
region is increasing, reaching 9,300 tons in 2003. Shrimp hatcheries in this region can meet only 2530% of demand, the rest met by import from other provinces.
46.
South Central coast: also has a coastline of about 600 km and considerable climatic and
geographic advantage for brackish water and marine aquaculture. Shrimp farming is dominant with a
production of 15,500 tons in 2003, or 78% of total aquaculture production of the area. Freshwater fish
farming plays only a minor role. Marine mollusks are also of limited production, although pearls,
mussels, abalone, scallops and Babylonia are cultured. Marine cage culture of groupers, and recently
Cobia, is found in this region, and there has been recent foreign investment in marine fish cage culture
and hatcheries in Khanh Hoa. The region is the largest lobster producer in Vietnam, with a reported
17,000 cages producing about 1,500 tons of lobster in 2003. This region is also the largest producer of
shrimp seed in Vietnam with 2,700 shrimp hatcheries/nurseries, contributing about 35% of national
shrimp seed production.
47.
Southeastern region: Aquaculture development in this region is very diverse, and expanding.
The production has grown very quickly from 6,400 tons in 1990 to 48,000 tons in 2003. Mollusk
farming, shrimp culture, lobster and marine fish farming are important aquaculture activities here.
Shrimp makes the largest contribution with 14,800 tons in 2003. Cage culture is also growing. There
are 1,600 shrimp hatcheries producing about eight billion P monodon post larvae for local use and
export to provinces in the North and Mekong delta.
48.
Mekong delta: The Mekong delta provinces from Long An to Ca Mau and along the west
coast to Kien Giang contribute the largest volume and value to Vietnams aquaculture production.
Aquaculture in the Mekong Basin is a diverse activity. It encompasses breeding, rearing and sale of
shrimp, freshwater prawn, mollusk and fish fry and fingerlings, and growing of wild or hatcheryreared fry and fingerlings in enclosed or semi-enclosed water bodies, such as ponds, rice fields, mud
flats and cages, in inland and brackish water areas. According to GSO data, total aquaculture
production in 2003 was 324,400 tons, from a culture area of 616,600 ha. More information on
aquaculture in the Mekong delta and other regions of Vietnam is provided in Appendix I.

D. Socio-Economic Aspects
1. The Household and Household Groups
49.
The household remains dominant in both capture fishing and aquaculture. In 2001, fisheries
represented the main business of 4.3% of households and the primary employment of 5.1% of the
national labor force (GSO 2001). Levels were highest in South Central Coast (9.9% and 11.3%,
respectively) and Mekong Delta (9.1% and 9.8%). Most fishers and aquaculturists are small-scale
producers 77% of households conducting aquaculture have under 0.1ha of pond area and another 7%
from 0.1-0.2ha.
Table 3. Sources of fisher household income 2001
Fishery
Aquaculture Capture Services Total
South Central Coast
35.7%
45.5%
0.3% 81.5%
Mekong River Delta
53.7%
21.2%
0.9% 75.7%
National
40.5%
34.9%
0.6% 76.0%

Agriculture

Forestry

3.3%
7.1%
6.4%

0.3%
0.7%
0.5%

Industry

Other

3.5% 11.3%
5.8% 10.6%
5.3% 11.8%

(7)
Source: GSO Rural, Agriculture and Fisheries Census 2001 (2003), tables 6.6 & 6.12

50.
As many households lack direct connections to markets, private collectors and small traders
play an important role in marketing and distributing raw fishery products, including supply to
processors and exporters. The collectors and traders often provide credit and supplies to households,
thereby supporting production in a quite efficient manner. However, the many stakeholders and
fragmented market chains may in future prove a constraint to traceability, and other increasingly
stringent international market requirements.
51.
Fishing and aquaculture contributes an average 75% of fisher household income. Those in the
South Central Coast are particularly dependent on marine fishing. Households commonly lack access
to formal credit and other fishery support services, such as high quality seed and fingerlings,
professional extension, disease control and market information. As opportunities of other sources of
income are quite limited, labor migration to other areas is common, including work on foreign fishing
fleets, including Korean, Japanese and Taiwanese. There are some initial forms of association among
households, e.g., credit group and cooperative groups, which associated about 21,000 fishers in 4,300
cooperative groups in 2000 and has subsequently grown significantly.
2. Marine Fisheries
52.
The completion report for the ADB-supported Fisheries Infrastructure Improvement Project
(FIIP) found quite strong positive socio-economic benefits associated with port development (ADB
2004). The crew on mainly offshore vessels of between 50 and 400 hp surveyed in Song Gianh
(Quang Binh), Phan Thiet (Binh Thuan) and Tac Cau (Kien Giang) were earning an average monthly
income of around 2 million or around three times as high as the official (MOLISA) poverty line.
The majority of fishing vessels were reported to have been fishing effectively and on average
demonstrated high returns to capital (averaging around 50%). All three ports but particularly Phan
Thiet and Tac Cau had vibrant support sectors, with substantial current or planned construction of
processing plants and other support services. Of the entire fleet of around 7,000 vessels of over 90 hp,
around 60% are estimated to be highly profitable, mainly in southern Vietnam, a further 20% make
small profits, while the balance breakeven or lose money. In practice, it is not possible for Vietnamese
fishing vessels to lose money for extended periods, as both owners and crew require money to live.
Thus a loss-making vessel is likely to be sold or scrapped relatively quickly.
53.
The FIIP results closely reflect the survey results of the Institute of Fisheries Economics and
Planning (IFEP) of MOFI. A survey of 353 vessels in October 2001 in the three northern provinces of
Hai Phong, Thai Binh and Nam Dinh defined household income levels for mechanized vessels in four
size classes from less than 20hp to over 90hp. Overall, the mechanized vessel owners were
generally relatively affluent, with 77% of households owning mechanized vessels reporting income of
more than 250,000/month per person in 2000. Households with vessels less than 20 hp were the
least well off, with 7% reporting incomes less than 100,000 per person per month. A survey of
fisher households in 2003 also by IFEP indicated that 72% of fishing households considered that they
were better off financially than five years earlier, while 13% reported no change and 15% considered
themselves worse off. Although the level of poverty is relatively low among boat-owning households,
it is expected that a higher proportion of crew, particularly from inshore boats, or boats working
seasonally will experience serious poverty at some times of the year. Overall the percentage of
households owning fishing vessels classified as poor on the MOLISA standard is around 2% compared
to the national average of 17%.
3. Inland fisheries
54.
Inland (and coastal) aquatic resources are important for the poor in Vietnam (DFID, 2001; Nhi
& Guttman, 1999a, 1999b). Historical evidence reviewed by DFID (2001) indicates that those most
dependent on aquatic resources are people who have been displaced from land-based agricultural
activities, and this is especially true in coastal areas. Aquatic resources including wild fisheries, both

(8)
inland and marine, provide a valuable source of income and nutrition for many poor people, and
constitute an important component of diverse and dynamic livelihood strategies in a variety of agroecological settings throughout Vietnam. Small-scale artisanal fisheries are important for particularly
poor and vulnerable groups; though an even larger but significantly less visible number of poor people
may depend on inland capture fisheries as a component of wider livelihood strategies (DFID, 2001).
The role of inland capture fisheries is clearly illustrated in Tay Ninh province and Long An province
in southern Vietnam (Nho and Guttman, 1999a and 1999b) through case studies on the role of aquatic
resources according to economic status. The studies indicated that most households were involved in
some form of capture fisheries, but that fishing is of greatest importance to poorer households. Within
the poorest groups (with very low income), 88% of households fished.
4. Aquaculture
55.
The spectrum of people involved in aquaculture is wide, and includes low-income poor
people, as well as the better off with more assets to invest. For the better off, aquaculture can offer a
lucrative return on investment, as can be seen, for example, in freshwater catfish cage farms and
shrimp farms. Small-scale rural households in Vietnam dominate aquaculture producers though, often
integrated within agriculture farms. A study of 1,261 farmers conducted by MARD in 2002 for
example showed that 21% of agriculture farmers in the Mekong Delta undertook aquaculture, and
13% in the Red River Delta (MARD/UNDP, 2003). Aquaculture was less common on farms on other
regions, but is expanding in all regions.
56.
Aquaculture can provide a wide diversity of livelihood activities. People may be involved in
the supply of inputs, such as fish seed, feed, and chemicals, extension, labor and other services and in
post-harvest activities, such as trading and processing. In the Mekong Delta, for example, factories
processing river catfish fillets for export provide employment for a many women, often from poor
rural areas (Tung &Phillips 2004). Even though some assets are needed to invest in aquaculture
production, poor and landless people can become involved and benefit from well-targeted aquaculture
interventions. Success stories from poor households are often reported. The Hmong family of Ms
Hoang Thi Mai, from the mountainous Lai Chau province is one well-known example of where
aquaculture lifted a household from poverty (Ms Thi was awarded a UN "Race Against Poverty"
award in 1997. Studies conducted for the World Bank Coastal Wetlands project show improved
income among poor people in Soc Trang, Bac Lieu and Ca Mau provinces (Can Tho University, 2004)
conducting small-scale brackish water farming, particularly of mangrove crabs.
57.
In Vietnam, there are few cultural constraints on womens participation in aquaculture; and
men, women and children are involved in various activities. Women are particularly active in routine
feeding, fertilization, and harvesting for consumption, trading and marketing. Moreover, experiences
with the Mekong River Commission (MRC) Rural Extension for Aquaculture Development (READ)
project in the Mekong Delta indicate that the role of women is greater in poorer households, where
men often have to work away from home on a seasonal or daily basis (Phillips 2002). In some areas,
the distance of the aquaculture operation from home may also become a constraint, as domestic chores
may conflict with the requirements for fish feeding and management.
58.
Although aquaculture does contribute to poverty eradication, a major impediment to poor
peoples entry to aquaculture is the lack of targeted service support (AusAID, 2004, Oxfam, 1999).
Studies in Tra Vinh (Oxfam 1999) show wealthier households engaging in shrimp production as they
have access to suitable land, but also because they have connections that allow them to gain easier
access to financial capital (World Bank/DFID 1999). In the longer term, this is likely to lead to
increasing inequality. As diversification generates greater wealth for some rural people, the gap
between those who are able to diversify their production and those who are not inevitably widens.
There is some indication that in the more intensive aquaculture production systems such as coastal
shrimp farming that inequality has intensified, with wealth from shrimp production being concentrated
in a few hands competing over finite coastal resources leading to some displacement of poor people
(Adger 1998, Oxfam 1999). In marine cage culture there are also reports of competition between

(9)
artisanal fishers and aquaculturalists claiming the same water areas (Aasen 2000). Such problems
should not detract from the considerable potential that aquaculture has for poverty reduction in
Vietnam, but do emphasize the need for a targeted approach.
59.
To date, the approach to aquaculture development has emphasized increasing aquaculture
productivity, but such production and technology-oriented approaches have not always focused on
poor people. In some cases, such an approach may even disadvantage the poor (Haylor 2001).
Projects in Vietnam over the past few years demonstrate that a focus on the participation of poor
groups in aquaculture can make significant contributions to improving rural livelihoods. Technologies
for small-scale aquaculture that seem to work best for poor rural households require low investment,
involve little risk and provide quick returns. They should be simple, easy to copy and extend and
contribute to local fish supply. These aquaculture technologies may include ponds, nursing of fish in
hapas (fine mesh net fish cages) in common water bodies, and raising of fish or crabs in rice fields
(DFID 2001).
5. Poverty Reduction Programs
60.
Vietnams Comprehensive Poverty Reduction and Growth Strategy (CPRGS) was published
in May 2002. The document provides a valuable framework for further reduction in Vietnams
poverty levels over the period to 2010 and beyond.3 Fisheries and aquaculture are seen as having a
major role to play in national poverty reduction programs. The strategy suggests that there is
significant growth potential in aquaculture and offshore seafood exploitation, and identifies intensive
aquaculture and fishing playing an important role in accelerating economic growth and poverty
reduction. The CPRGS includes reference to the following supporting activities:
planning and construction of dykes, water inlet sluices and channels; provides public goods such as
extension services, quarantine, quality control for breed and feed in order to help farmers increase
production efficiency and achieve sustainability;
investing to support fishery infrastructure, power transmission lines, roads etc in aquaculture areas that
are either newly established or converted from rice or salt production;
building six national breeding centers, and environment alert centers in specialized aquaculture areas
in the North, the Center and Mekong River Delta;
ensuring that by 2005, the area for aquaculture production is about 1.2 million hectare, with total
production volume of approximately 2.6 million tons, of which shrimp production amounts to about
300,000 tons;
ensuring the sustainability of the growth of aquaculture production; and
improving the access of poor fishery households to production inputs, information,
extension services, credit and markets
61.
The Government enacted Decision 106/QD-TTg dated in June 2004, approving the list of
communes facing special difficulties along the coast and on islands. (For a list, see Appendix A.)
Following this decision, 157 communes in 21 provinces have been included on the list and will be
supported from a special fund established under Decision 106QD-TTg of July 1998. The support for
each commune amounts to 500 million annually for upgrading infrastructure as proposed by the
Commune People Council and approved by the provincial government. For the coastal communities
program, the support fund can be used to improve the production infrastructure such as roads or the

Under Part IV: Major Policies and Measures for the Development of Sectors and Industries to Ensure Poverty
Reduction and Sustainable Growth Agriculture and rural development: objectives include to: ensure food security;
diversify agricultural production; attach importance to market research and ensure timely provision of information;
increase investments in agriculture; link the production of high value crops to developing storage and processing
facilities; promote research and efficient use of natural resources; expand agricultural, forestry, fishery activities and
extension activities in a manner that is suitable to production conditions in different areas and is responsive to the
demand of poor people; develop fisheries and diversify aquaculture; develop a disaster prevention strategy to minimize
losses and stabilize livelihoods and production in disaster-prone areas.

(10)
irrigation system in aquaculture areas. The wider 135 program has been extended to 2,369 communes,
mainly in mountain areas.
62.
Although the fishery and aquaculture sector is important in the livelihoods of poor people in
Vietnam, the involvement of MOFI in formulation of policy to implement poverty-oriented programs
in the fishery sector has been fairly limited. Only recently, was the Sustainable Aquaculture for
Poverty Alleviation (SAPA) prepared by Ministry of fisheries and approved by correspondence
321/CP-NN in 2001 and Decision 657/2001/Q-BTS. This policy provides the basis for
implementation of more targeted interventions for poverty reduction in the fishery and aquaculture
sector.
6. Fishing Labor
700
600
Fishing labor '000

63.
The fisheries sector is a major
employer, both directly through employment
on boats and farms, and indirectly in upstream
and downstream activities such as processing.
Direct employment in the sector is estimated
at 555,000, at present and has been growing at
around 26,000 per year (Table A-3 in
Appendix B). Total employment including
aquaculture and the services sector is likely to
exceed two million.

Figure 7. Fishing labor

500

SOEs
North
N Central
S Central
South

400
300
200
100
0
93

94

97

98

99

00

01

02

03

64.
Few women are involved in fishing
Note: 1995/96 data not available
operations. Dang & Ruckes (2003) found that Source: FICEN, MOFI
only 1.4% of fishing workers are women, and
these are all shore-based. However, women
often own fishing vessels or fleets and some of the larger private fleets based in Kien Giang for
example are owned and managed by women. Women are employed for the preparation of materials
for fishing trips, for gear repair, sorting fish landed and fish retailing in local markets. In the Mekong
delta, almost 90% of agents/traders are women.
65.
From interviews during the study, it was reported that processors employ an average of almost
300 people, of whom 80-85% are female. Processors interviewed during the sector study indicated
that women similarly dominated management positions. Employment in the export-processing sector
totals at least 65,000 people (VASEP). Processing jobs are valuable to communities (e.g., to the
Khmer community in Soc Trang, which experiences widespread poverty). A 1997 survey of 196 fish
processing establishments (Nguyen The Cong 1997) found, while the benefits of the increased
economic activity are substantial, fish processing work carries a number of potential long-term health
risks to its workers which are a characteristic of the industry worldwide. While the problems are
likely to be particularly severe in older plants, they also occur in modern plants such as the shrimp
processing facilities established in the Mekong Delta in the last decade, though improvements
continue to be made. Many workers remain employed for 10-15 years.

E. Environment and Natural Resources

66.
The fishery sector, including capture fisheries and aquaculture, is both affected by man-made
or natural environmental change, and may impact either positively or negatively on the environment.
1. Fisheries
67.
The geography and topography of Vietnam makes the country highly vulnerable to natural
hazards. Each year, natural disasters such as typhoons, storms, floods or drought have severe effects
on people, their livelihoods, agriculture land, livestock and infrastructure (Vietnam Environment

(11)
Monitor 2003). People engaged in the fishery sector are particularly vulnerable to such events,
including some of the poorest and most vulnerable people. Coastal and inland fisheries are also
vulnerable to man-made change, such as loss of important habitat and spawning in wetland areas or
changes in water movements caused by water resources developments. The marine capture fishery
can also significantly impact coastal fishery resources, and available evidence indicates that current
fishing operations, including destructive fishing practices, are causing significant adverse impacts on
aquatic biodiversity.
2. Aquaculture
68.
Aquaculture development in Vietnam also has significant environmental implications.
Aquaculture can cause environmental impacts, both positive and negative and is also sensitive to
changes in the environment. Natural and man-made environmental threats include typhoons and
floods, pesticide use in agricultural areas and decreasing water quality (Phuong 2002). Typhoons and
floods can severely damage infrastructure, such as ponds and cages as for example in the 2000
Mekong delta floods (van Anroy, 2000). Examples of positive environmental impacts from
aquaculture include the traditional agriculture, aquaculture, and animal husbandry integrated farms
that recycle waste and store water for multiple uses and integration of fishponds into water resource
schemes and irrigation networks. The sewage fed fish ponds and agriculture fields in Tranh Tri
district on the outskirts of Hanoi until recently provided a cost-effective and environmentally sound
way of producing food and treating domestic effluent.
69.

Environmental concerns relating to aquaculture development in Vietnam include:

localized water pollution from concentrations of freshwater and marine cage farms and
lack of consideration of carrying capacity;

the need for more care to be taken with introduction of new exotic species, due to risks of
disease and impacts on aquatic biodiversity;

the significant loss of mangroves and wetlands from conversion of coastal areas and
estuaries to shrimp farming;

aquatic animal disease outbreaks, water pollution and salinization caused by poorly
planned and managed shrimp farming in sandy and agricultural areas; and

the dramatic recent rise in the use of trash fish in marine and freshwater aquaculture.

Such environmental interactions need careful consideration in the promotion of aquaculture in

Vietnam, and should be addressed through better environmental planning and management practices
and capacity. More details are provided in Appendix I.

F. Development/Sustainable Management Opportunities and Constraints

70.
Based on the fieldwork of the study team and available data, the main conclusions that are
drawn are listed below:
Marine Sector

Almost all inshore areas are over-exploited, making life hard for coastal communities
relying on fishing. The fisheries master plan envisages a reduction of about 30,000 vessels
with engines under 45hp compared to the present fleet of about 64,000 by the year 2010.

Small fisher families experience difficulties in finding alternative livelihoods. However,

this problem has not yet received much attention from local authorities.

(12)

Offshore waters in the north (Tonkin Gulf) are over-exploited.

Increasing aquaculture and seasonal closure of Chinese waters may boost the exploitation
of fish (including trash fish) in Vietnams waters.

Central and southern offshore waters do not appear to be over-exploited some resources
under-exploited, e.g., deep water (>100 meters) demersal and meso-pelagics. Southern
provinces continue to support increasing offshore effort except Kien Giang that considers
offshore areas (particularly in the Gulf of Thailand) to be over-exploited. Ba Ria-Vung
Tau also has expressed concern over offshore resources.

Many of the larger vessels fish inshore waters and overall, numbers of larger vessels need
to be substantially reduced, with the master plan indicating that the fleet of vessels of over
75hp should not exceed about 6,000, compared to 10,500 at present.

Many of the 1,300 subsidized credit scheme boats have failed, particularly those bought by
State Enterprises. Private sector offshore boats were generally found to be profitable in
the survey conducted as part of the FIIP PCR and other MOFI surveys.

Effective resource monitoring and management has not been put in place.

All DOFis interviewed highlighted a need for improved technology for offshore fishing.

Crew skills are often low, especially on offshore vessels. Few captains have received any
formal training.

There is potential for rapid growth in fishing effort as boats begin to invest in fish finders,
and vessels become more powerful with larger gear. However, growth may be tempered
by limited access to formal credit.

Most trawlers in the south use small mesh cod-ends of 2-3 cm stretched mesh. Not all
trawlers use bobbins, leading to increased damage to the bottom environment.

Dynamite fishing is still widespread in some areas, but in others (e.g., where the resource
has been severely depleted) it has ended. Electric fishing is increasing, destructive and
difficult to prevent.

Push netting is highly destructive and continues to be used in some provinces although it is
banned.

The legal framework for marine resources protection appears to be comprehensive.

However it is not yet fully effective due to the lack of enforcement capacity.

Post-harvest management is not well developed. All vessels currently use ice for storage,
but for long trips (e.g., >1 month) the quality of early-caught product deteriorates. This
can be overcome by transshipping to support vessels at sea or offshore ports such as Con
Dao.

Limited ice storage capacity on some vessels means that there is insufficient ice for long
trips and particularly for low-value species. Salt is often used for the preservation of low
value fish.

(13)
Fishing Ports and Shelters

Port numbers and aggregate wharf length have increased rapidly. However, port planning
has been inadequate, both during FIIP and subsequently through provincial port
development programs.

Most ports are poorly designed. Key issues at Tran De include failure to allow for annual
flooding, leading to submergence of the wharf and damage to boats and structure. While
the ports were mainly designed for offshore vessels, all FIIP ports had facilities intended
for use by small vessels. However, the design has proved to be inconvenient in the
situation of the ports, and few small vessels use them.

Coastal erosion is severely affecting coastal/fishing communities in some coastal

provinces including Bac Lieu, Quang Nam, Quang Ngai and TT Hue.

Some estuaries are silting severely affecting the ability of vessels to enter with
implications for efficiency and safety and reducing their potential to provide typhoon
shelter.

A number of fishing ports have been developed by local authorities. Port management and
cleanliness can be poor.

Port maintenance will be a problem as fees collected by most ports do not cover operation
costs and users are not yet involved in port management.
There is a need for facilities to improve waste management (oil disposal, garbage,
processing waste) at several of he ports visited.

Information and Planning

Statistics are uniformly weak provinces have no ready access to data on vessels, gear or
landings. Few data are available on landings of species or species groups, reducing the
value of published data for fisheries management.

Information from different sources (e.g., MOFI, GSO and ALMRV) is not always
consistent. The plan to integrate MOFI and GSO statistics is a positive step.

Information from the small-scale inshore and inland fishery and its importance in poor
peoples livelihoods is particularly weak.

Lack of knowledge in all DOFis of marine resources, stock status and fishing grounds,
good practice and lessons learned.

Some provinces have limited fisheries and aquaculture planning capacity.

Aquaculture plans tend to focus on general land use planning, and less on capacity and
institutional support, resulting in weakness in implementation and environmental
problems.

ICZM and Co-management

Aquaculture plans tend to focus on general land use planning, and less on capacity and
institutional support, resulting in weakness in implementation and environmental
problems. All provinces with which integrated coastal zone management (ICZM) and co-

(14)
management were discussed were supportive and keen to become involved, though
opinion in Soc Trang was mixed.

Co-management of the offshore fishery was also discussed, e.g., with respect to license,
gear, and geographic or seasonal limits. In principle the few fishers with whom it was
discussed were reasonably supportive, but it is recognized that implementation in Vietnam
would be difficult, as in most countries, due to low levels of awareness of needs for
conservation.

MPAs were seen as valuable.

Freshwater Aquaculture

Freshwater aquaculture is environmentally sound with diverse culture systems that have
expanded widely throughout Vietnam without major problems.
Integrated polyculture systems in ponds or rice fields are widely practiced, dominated by
carps.
Freshwater aquaculture has contributed to diversification of agriculture farms.
Semi-intensive and intensive monoculture culture of catfish and tilapia has started in both
Mekong and Red river deltas, and there are trends towards intensification and
monoculture.
Fish seed production is well established. Fish seed quality, management of genetic
diversity, and species diversification need to be supported.
Fish seed and nursing networks needs to be extended to support aquaculture in remote
areas, including upland areas with poorer groups.
Feed is not a constraint for freshwater carp species in polyculture and integrated systems.
With trends towards intensive freshwater aquaculture, low cost plant-based feeds will
need to be developed.

Brackish Water Aquaculture

Shrimp farming is dominant in brackish water aquaculture.

Production of shrimp is increasing steadily mainly through expansion of farming area.

The main issue is sustainability.
Improvements in efficiency, disease control,
environmental planning and management and quality control/food safety assurance will be
essential.

Environmental problems have arisen from poor planning and operational management of
shrimp farming. Improvements in environmental management are urgently needed.

Shrimp seed quality and infection with viral pathogens are critical issues.
improvements in seed quality control are needed.

Poor farmers are most vulnerable to poor quality seed, and disease risks.

Poor water management infrastructure in many shrimp farming areas, compounded by

poor design and limited investment and lack of coordination between agencies with
responsibilities for irrigation management create additional risks to farmers.

Provinces consulted during the mission requested support in improving environmental

planning and management of shrimp farming.

Further

(15)

Shrimp processors and exporters are increasingly concerned with trace-ability, and
sourcing of uncontaminated product. Food safety assurance schemes and cooperation
between farmers and processing plants are required.

Species diversification in brackish water areas is an urgent priority. Lower risk farming
options for poorer households include mollusk (clam, blood cockle, blue mussel), crabs
and fish.

Marine Aquaculture

There is increasing investment interest in the marine farming sector, from government and
the private sector, including international investors.

Marine fish culture is prospering in Quang Ninh and Nha Trang (Khanh Hoa).
Environmental problems are being experienced once carrying capacity of the water body is
exceeded. Feeding of trash fish is particularly damaging to the environment due to fallthrough of substantial proportions of feed.

Mollusk farming in sandy long-beach areas in the north-central coastal region appears to
offer substantial low risk development opportunities.

Marine fish farming is heavily dependant on the wild fishery due to collection of seed
from the wild and use of trash fish feed. These practices are unsustainable and should
be replaced by investments in hatchery production, and better feeds and feeding practices.

The MOFI target of 200,000 tons of marine fish by 2010 would in theory require at least 2
million tons of trash fish based on current practices, which is unattainable without
investments in more efficient feeds and feeding practices.

Recent experiences with low cost cage and Norwegian-style cages for marine fish species
demonstrate the possibility of use of various cage types for grow-out of a number finfish
species.

Special engineering knowledge and practice for marine systems have not been adequately
accumulated to ensure safety and long cage life.

Environment and Resources

Natural and society-affected environmental change impact aquaculture. Pesticides and

water quality caused by domestic, agriculture, and industrial pollution are a particular
concern for future aquaculture and fishery development.

There are significant environmental problems to be resolved in the coastal aquaculture

sector, particularly loss of mangroves and water quality deterioration caused by shrimp
farming.

Strengthening of environmental management in planning and operational management of

brackish water and marine aquaculture is essential.

EIA is usually not been carried out as part of planning process, although the basic EIA
legal framework is sound.

High value marine species such as grouper, lobster and shrimp are contributing to use of
marine resources, including low value fish, fishmeal and fish oils.

(16)

Control of diseases in aquaculture is a priority in all Provinces visited by the mission.

Provincial aquaculture plans are difficult to implement. Provinces visited by the mission
request support to improve aquaculture-planning practices and integrated coastal zone
management.

Poverty and Social Development

The livelihoods of many people in inland and coastal areas are dependant on aquatic
resources.

Incomes of fishing households in the northern central provinces are low. The new GoV
program identifies 157 coastal communes where 30% of households have income per
person lower than 100,000/month (less than US$0.07/person/day).

Provincial authorities consulted during the mission support aquaculture for poverty
reduction in coastal areas. They recognize the need to improve capacity to implementation
poverty reduction programs.

Technologies for small-scale aquaculture that work best for poor rural households are
available. A major impediment to poor peoples entry into the aquaculture sector is in the
ability of service providers to effectively target support.

Freshwater mountain areas appear to have significant potential for expanding aquaculture
for poverty reduction.

Aquaculture offers scope for further diversification of income on agriculture farms.

Fisheries/Aquaculture Education

Fisheries University has made much progress in last decade. However, it needs further
upgrading. Other Universities offer aquaculture training in the north, central and southern
regions.

Education/training for marine fisheries operation and management is limited. However,

Nha Trang Fisheries University finds difficulty in filling available places.

Skills levels in the aquaculture industry are improving but remain quite low among
farmers and lower administrative levels of government.

Upgrading of skills through lower level vocational training requires more attention and
should be further supported.

Sustainable development of the aquaculture sector and poverty targeting will require
substantial upgrading in service support.

II. POLICIES AND LEGAL FRAMEWORK

A. Fisheries Law, Policies and Decrees
71.
In Vietnam, government policies are defined in laws, decrees, ordinances, circulars and
regulations, the last often at provincial level. Provinces are the lowest level at which regulations can
be drafted, consistent with national legislation. Since 1996, the Government has emphasized
development of the market economy under the Doi Moi (renovation) policy.

(17)
Fisheries Law
72.
A new Fisheries Law was drafted by MOFI with help from Norwegian Development Agency
(NORAD) and FAO, passed by the National Assembly in November 2003, and went into effect on
July 1, 2004. It appears to be well drafted and empowers resource managers, particularly at the
provincial level, to effectively manage their resources. The Laws articles are summarized in
Appendix D. It provides a much-improved basis for management of the capture fisheries and
aquaculture sectors, including the potential for the involvement of stakeholders. It is closely linked to
the Fisheries Master Plan and could do more to address fully issues relating to market-driven
development planning. As experience is gained with the implementation of the law, it may be
necessary to amend it, pass appropriate decrees that define the rights of government, fishers,
aquaculturists and other stakeholders. In principle, government intervention in the sector can best
focus on setting the framework for development, regulation (e.g., effort limitation), monitoring,
surveillance and enforcement, extension and information dissemination. Involvement in investment
decisions should be limited to ensuring environmental sustainability, social aspects such as
employment promotion or diversification and adherence to the prevailing laws and policies of the
government. At the same time, a consultative process with all key stakeholders should be employed
through an enabling framework and required support for it, when formulating management and
resource conservation plans.
Master Plan
73.
The development policies of the government are summarized in the fisheries sector Master
Plan (MOFI 2004b). MOFI remains responsible for sector planning, though much detailed planning is
now undertaken at provincial and lower administrative levels in line with government decentralization
policies. Basic planning takes place at the commune level, with plans aggregated at district, province
and ultimately national level. Plans include annual budgets and medium term (5-year) and long-term
(10-year) development goals. A new Master Plan was completed in 2003 and approved by MOFI in
2004. It is currently under review by the Government and when approved will provide useful
guidance in reference to the Fisheries Law and fisheries and aquaculture development.
License Limitation and Boat Construction Support
74.
State legislation was introduced in 1997 to limit the construction of vessels of less than 20hp.
After 1998, construction of new vessels was banned. This was intended to force inshore fishers to
build larger vessels and fish offshore. However, in practice, they have often continued to fish inshore
with the larger vessels, or have failed to register new small vessels. This policy may require review
and redefinition, perhaps including a mandatory license surrender policy.
75.
Similarly the number of vessels over 90 hp has increased, as regulated in the decision 393/TTg
of 1997 which supported the construction of vessels and their sale to fishers at subsidized interest
rates. This program has had some positive impacts, e.g., through pioneering the offshore fishery in
some ports such as Phan Thiet. However, the subsidized vessels have experienced a high failure rate,
and only about 10% of the 1300 vessels funded under the program are meeting their scheduled
repayment despite a reduction of the interest rate from 7% to 5.4% in 2003.4
Aquaculture

Various reasons were put forward by provinces for the programs lack of success, including: (i) lack of offshore
technology; (ii) lack of experience by skippers and crew; (iii) vessels of predefined and inappropriate specification,
costing 20 - 50% more than equivalent private vessels; (iv) lack of follow-up and support by financial and fisheries
institutions; (v) a belief that the loans did not need to be repaid, and withholding of payments by some of the more
successful boats. State enterprise boats have been particularly unsuccessful, and in Soc Trang for example, all 12 of the
state enterprise boats have been repossessed and allocated to other fishers.

(18)
76.
Aquaculture has received increasingly strong support in Government policy over the past 10
years, as the sector has become recognized as playing an important role in Vietnams economic
development and poverty alleviation. The policy environment for aquaculture is complex, influenced
by policies implemented within MOFI, and other Ministries. There are reported to be several hundred
decrees, resolutions and circulars affecting the fishery sector. Other decrees and policies relating to
Vietnams fisheries sector are listed in Appendix D.

B. International
77.
The member countries of the Food and Agriculture Organization of the United Nations (FAO),
including Vietnam, adopted the Code of Conduct for Responsible Fisheries (CCRF) in 1995. The
CCRF defines the principles of sustainable fisheries management; many countries including Vietnam
have adopted the code. FAO experience indicates that effectively managing fisheries is impossible
without removal of the key causes behind the excessive investment levels in fleets and infrastructure
of the past. Of these, overt and hidden subsidies have played a major role.
78.
Chapter 9 of the CCRF5 concerns aquaculture, providing a useful framework for analysis of
the status of aquaculture policy and development from the perspective of internationally recognized
standard practice. A workshop hosted by MOFI in cooperation with Food and Agriculture
Organization (FAO) and the Network of Aquaculture Centers for Asia Pacific (NACA) during 2003
reviewed the present status of implementation of the CCRF in coastal aquaculture in Vietnam. While
considerable progress has been made, with the newly formulated Fisheries Law providing a
comprehensive legal basis for future aquaculture development, the workshop pointed to a number of
areas where capacity building and improvements could be made including:

Strengthening of aquaculture planning processes and practices, at provincial, district and

commune levels, with more attention on environmental management and livelihood issues.

Strengthening of environmental impact assessment procedures.

Integration of aquaculture into coastal zone management.

Better management of genetic diversity in aquaculture, with the new policy on seed
production (Decision 112) as a good legal foundation for defining of practical programs.

Regulations and procedures for risk assessment in importing new (exotic) species,
covering ecological and aquatic animal disease risks, effective disease surveillance and
quarantine programs.

Strengthening of local farmer organizations and community-based management of

aquaculture, and participation of local farmers and fishers in planning and management of
coastal aquaculture.

Creating more cooperation among different stakeholders, including local farmer

organizations and investors, service suppliers, extension workers, seed producers and
research institutes.

Regulations and procedures for assuring quality of major aquaculture inputs, including
feed, seed and chemicals and waste management.

The summary here is largely derived from the Van Anrooy, R. Tran Van Nhuong; Phillips, M. (eds.) Report of the
National Workshop on the Code of Conduct for Responsible Fisheries and its practical application to coastal
aquaculture development in Vietnam, which was held in Hue, Vietnam on 3-4 October 2003. FAO/FishCode Review.
No. 8. Rome, FAO. 2003

(19)

Increasing awareness among government administrations and farmers on international

food safety regulations and understanding of trade barriers and the implications of
irresponsible chemical use.

C. Co-management
79.
In May 1995 MOFI held a workshop on Co-management of Living Coastal Resources in
ASEAN: Theory, Practice and Implications for Vietnam. At the conclusion of the workshop the Viceminister for Fisheries, enthusiastically endorsed the principles of co-management and stated that
MOFI would work toward the; selection of, formal recognition of, and funding for pilot test sites for
the establishment of co-management activities in coastal fisheries including marine protected areas
and aquaculture. (ADB 1996)
80.
Since then, co-management has made substantial progress. In particular, the rights to manage
inland waters have been passed to communes. In coastal areas, pilot marine co-management schemes
have commenced in at least four provinces (Quang Ninh, Khanh Hoa, Binh Thuan and Yen Bai). Comanagement principles are being applied under the World Bank/GEF/DANIDA financed Hon Mun
MPA project. In brackish water aquaculture, awareness of co-management principles is more
widespread, but there is a need to provide guidance to DOFis and farmers in implementation, for
example, in environmentally sound water and drainage management.
81.
Co-management is supported quite strongly under the new fisheries law. Co-management is
also provided with strong support under the governments grass-roots democratization policy, which
delegates substantial power to the communes in the planning, development and management of their
resources.6

D. Coastal Zone Planning and Management

82.
Traditionally, coastal zone planning in Vietnam has been largely ad hoc. Different agencies
with interests in the zone would propose plans to the provincial peoples committees and Departments
of Planning and Investment (DPIs), which then approve plans in relation to available budget, in many
cases ignoring boundary issues, negative environmental impacts or the interests of other stakeholders.
The PPCs and DPIs can exercise some control over the planning process, but in general provincial and
local level planning has not been fully effective. Other problems occur due to the autonomy of
provinces, which has resulted in development (e.g., of fishing ports) in provinces without sufficient
account being taken of other developments in the region.
83.
In an attempt to overcome these and other problems, the concept of integrated coastal zone
planning and management has developed rapidly in some countries in the Asia-Pacific Region.
Vietnam has itself embarked on an ICZM program, initially in Da Nang (supported by the
International Maritime Organization) and in Nam Dinh, TT Hue and Ba Ria Vung Tau, supported by
the Dutch government under the Vietnam Netherlands Integrated Coastal Zone Management project
(VNICZM) that is now commencing its second phase. ADB is expected to commence design of a
project covering at least 5 central region provinces between Quang Binh and Quang Nam in the near
future. NOAA is supporting ICZM in Quang Ninh. Over the next 10 years, it is expected that most of
Vietnams 29 coastal provinces will develop ICZM capacity, supported by the proposed national
ICZM center and the ICZM Division of MONRE. ICZM will be integral to the planning, development
and management of coastal and near-shore fisheries and aquaculture activities.

The 1998 Grassroots Democracy Decree established the legal framework for the participation of citizens in local
decision-making processes at the commune level and their right to monitor local government expenditure. Although
the capacity of citizens to participate actively remains constrained, especially by their lack of awareness of their rights,
the decree is enhancing the transparency of policy making and planning and increasing the accountability of local
government officials.

(20)

E. Possible New Policy Directions

1. Master Planning and Fisheries Legislation
84.
The fisheries master plan and the Fisheries Law are strong new additions to fisheries sector
planning, development and management. They represent a substantial step forward, particularly
through promoting the closer involvement of stakeholders in the decisions that affect them. However,
it is evident that the approach to development continues to apply many of the principles of central
planning. The master plan is referred to in 11 of the 62 articles of the fisheries law, and most development activities are subject to the master plan. However, master plans do have some flexibility in that
they are revised every three years and directly involve provinces in the decision making process.
85.
MOFI will need to continue to exercise and coordinate control over the fishery and to ensure
that exploitation is rational and sustainable. This means that it could benefit from consultation with
industry and research organizations toward the development of fisheries management tools such as
license, catch, seasonal and gear restrictions. Management plans for fisheries need to be developed on
a co-management basis, e.g., with shared responsibilities between the government and resource users.
It may also need to set the guidelines for fish processing (e.g., by reference to accepted international
standards), and to closely monitor plants to assist them to maintain export certification and hygiene
standards for local and export products. However, beyond these and a few other aspects, it is desirable
that fisheries development is left to the private sector. Under the market economy, it should not be
necessary for the government to prescribe the detailed development path to be adopted.
2. VINAFIS
86.
VINAFIS is the mass organization representing fishers and aquaculturists (see para 123.).
While it has the potential to be a powerful organization, at present, it is still finding its feet and has yet
to become an effective partner to the government in terms of policy development and planning. In the
future, it is considered that the organization should become fully private sector. Only in this way can
the fishing and aquaculture sectors develop an independent and constructive voice. While it is
appreciated that VINAFIS is a combination of the original Fisheries and Aquaculture Associations, it
is considered that the two sectors are different and have little in common apart from the products they
produce. It is, therefore, suggested that VINAFIS should develop strong marine fisheries and
aquaculture chapters, so that the interests of each sector can be represented. Effective involvement of
local aquaculture farmer associations in VINAFIS will also be a key to building a democratic
organization, and strengthening the representation and impact of VINAFIS.
3. State Ownership
87.
According to the master plan, MOFI has reduced its role in the management of state
enterprises to one of general oversight. However, in practice, in addition to the 51 enterprises owned
by the three general corporations, there are numerous provincial level enterprises. While data on their
performance are not available, many are experiencing substantial problems and for example, are
engaging in activities far removed from their original charter, such as the export of labor. Fisheries
and its related activities such as processing and marketing are not suitable for state management. They
have proved to be ineffective in all countries, and Vietnam is no exception. It is consequently
desirable that all state enterprises, both central and provincial, are privatized over the next few years
and that the state ceases all involvement in fisheries and processing company ownership and
management. The private sector is now well established and able to meet the sectors development
needs.
4. Co-management
88.
In the short run, to put co-management in place requires a critical analysis and redefining roles
of Government and civil institutions. Creating necessary conditions for the establishment of civil

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institutions, strengthening their capacities and ensuring access to necessary information, particularly
those concerning resources, are extremely important. In the long run, it is necessary to further develop
the legal framework for community-based management of fisheries resources. Although the new
Fisheries and Land Laws allow for allocating of water-space for aquaculture and granting land use
certificates for households and enterprises, this is still to be fully implemented. The rights of
communities over the fisheries resources they use for their livelihood also need to be clarified.
Decisions on implementation of these aspects will be required in the development of regulations to
implement the new Fisheries Law. A participatory process involving communities will be important
in ensuring that such concerns among local communities are properly considered in the development
of enabling regulations for the new Fisheries Law.
5. SPS Regulations
89.
In the short-term, synchronizing Vietnamese sanitary and phyto-sanitary (SPS) regulations
with relevant international standards is important for Vietnams accession to WTO as that pertains to
the fisheries and aquaculture sectors. In this connection, it is also necessary to assess the degree to
which, if any, Government subsidies are provided to the sector. It is necessary to continue to develop
the capacity to implement the requirements that influence Vietnams competitiveness in both
international and domestic markets. Given the importance of the small-scale aquaculture sector to the
countrys production base, special technical assistance may be necessary to assist smallholder
aquaculture farmers to address increasingly stringent SPS requirements.
6. Poverty Reduction Strategies
90.
Integration of poverty reduction into sectoral strategies and the sectors five-year socioeconomic development plan has many advantages. Results-based planning can further be developed
to supplement the existing focus on inputs and outputs to assist in prioritizing programs and allocating
resources as promoted by the Government. Effective application by MOFI would create a clear
integrated framework guiding both domestic and external efforts in the sector. In particular, MOFis
pro-active participation in reshaping poverty reduction programs would improve targeted and
coordinated support to both inland and poor coastal communes.
91.
Policy development needs support and close cooperation between MOFI and other
government agencies. If that can be achieved by the end of April 2005, subject to Government/MOFI
interest, it is proposed to include the above policy actions for discussion by the Government and
interested donors under the preparation of the forthcoming Poverty Reduction Support Credit IV to
start in September and is expected to be accomplished by no later than December 2005.

III.

NATIONAL AND LOCAL INSTITUTIONS

92.
Vietnams fisheries sector over the past decade has been marked by rapid change in
institutional structure and policy from a centrally planned economy to one with a more market-driven
orientation. The changes are far from complete, and there remain questions about their sustainability
and equitability.

A. Private Sector and SFEs

93.
The non-state sector, including the private, cooperative and joint-venture sectors, has been the
most dynamic, in terms of job creation, investment and turnover growth. Though those sectors
perform quite well in terms of investment and profitability, the number of non-state fishery enterprises
appears to have stabilized after 2001 (Table 4). The private sector also plays an increasing role in
provision of inputs, particularly fishing gear, feed and seed supply, boat repair and aquaculture
extension services.

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94.
In contrast, the role of the state fishery enterprises (SFEs) is weak and has declined in capture
fishing and aquaculture as production has moved into private hands. However, they continue to
dominate in processing, export-import, and the provision of other fishery services, e.g., boat building
and repair. In addition to their business functions, some SFEs, particularly those involved in offshore
fishing and fishery services, are assigned to conduct public service functions such as sea guards and
social service deliverers to remote islands.
Table 4. State and non-state fisheries enterprises
95.
The number of state-owned businesses
Unit
2000 2001 2002
in the sector has decreased steadily. Among Number of enterprises Number 2453 2563 2407
41 SFEs that existed in 2002, three are large
- SFEs
49
49
41
state-owned general corporations, managed
- non-SFEs
2392 2496 2345
centrally by MOFI; and the rest are much Number of employees persons 37253 40376 40746
smaller enterprises managed by PPCs.
- SFEs
4310 5926 4357
Despite the tendency of increasing labor and
- non-SFEs
31915 33008 34519
capital and government subsidies through Fixed assets & long bill
1595 1765 2051
access to cheap credit (via both the offshore term investments
- SFEs
216 266 227
fishing program and subsidized loans from the
- non-SFEs
1340 1403 1722
Governments Development Assistance Fund
bill
2237 2292 2230
(DAF), SFEs, including past flagships (e.g., Net turnover
SFEs
469 448 345
SEAPRODEX and Halong Fisco), are
non-SFEs
1745
1788 1830
characterized to have low efficiency. While
Profit
before
tax

bill
146
131 188
the SFEs had received the major portion of
SFEs
6
-4
28
scare public resources and thus reduced the
non-SFEs
167
170
174
capacity for investment in the private sector in
the
past,
their
long-term
financial Source: GSO (2004) Results of Enterprise Surveys in 2001-03
sustainability and competitiveness with the fast growing private sector are questionable. Equitization
the process of reforming a SOE by separating the public function from the business one, selling an
equity stake to its employees and outsiders and putting it under the registration of the Enterprise Law
instead of the State-owned Enterprise Law is being implemented by the Government as a measure to
address the problem. However, there has been slow progress and most equitized enterprises are small.
MOFi plans to reorganize its three corporations, though with the state retaining a major stake.
96.
Institutional structures to support the sector in the civil sphere are underdeveloped. After the
dismantling of the old style cooperatives in early 1990s, the reconstituted producer-controlled
cooperatives have mainly been performing well. The number of producer-controlled cooperatives has
consequently increased and by 2001, there were 525 of these cooperatives with about 20,000
members, including 463 capture fishing cooperatives with 16,000 members and 33 aquaculture
cooperatives with 3,200 members. However, the contribution of cooperatives to the sector remains
limited and many issues need to be addressed to make them attractive to small producers. Lack of
effective cooperation among small producers is a serious institutional constraint in the sector,
suggesting that further development of VINAFIS will be desirable to improve coordination and
sharing of knowledge.

B. National and Provincial Institutions

1. Role of the Government and Public Spending
97.
The government has been an integral and the most influential part of the sector development
for years, controlling the (i) development of fisheries-related institutions through its policy and
regulations, (ii) provision of various public services (e.g., master planning, infrastructure development
and targeted assistance to the poor) and (iii) direct interventions (both by administrative measures and
through SFEs). The sectors specific institutional structure includes MOFI the central focal point for
state management (with its subordinate public utility institutions and SFEs), provincial departments of
fisheries (in 25 mainly coastal provinces, out of 64 provinces, with provincial subordinate SFEs), and
fishery sections in some districts. There is no representation at the commune level. In most inland

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provinces and districts, state management of fisheries is integrated with that of agriculture (DARDs).
The structure also includes the involvement of other institutions under the Office of Government,
Ministry of Planning and Investment, Ministry of Finance, MARD, MONRE, state-owned commercial
banks (e.g., Vietnam Bank for Agriculture and Rural Development (VBARD), Bank for Investment
and Development of Vietnam, Vietnam Bank for Social Policy and PPCs at the same level, making
effective coordination and management complex and difficult.
98.
The most remarkable change to be noted is the tendency of steady decentralization from the
center to the provincial level in terms of policy implementation, planning and budgeting and budget
execution. The share of the spending conducted at the central level fell from 41% in 1997 to 22% in
2002, while local levels grew from 59% to 78%. With the new Budget Law from 2004, local peoples
councils are fully responsible for allocation of public resources at their levels, except those for
education and scientific research. The Governments recent decentralization decree has further
expanded local autonomy in resource allocation and budget execution. This, however, poses a
challenge to MOFi to ensure consistent implementation of sectoral policy and programs at the local
level, particularly when local interest does not necessarily coincide with the national one (e.g.,
protection of marine resources, sanitation and quality control or, in some instances, poverty reduction
strategies).
99.
Limited public infrastructure means that public resources continue to play an important role in
the sector. The share of spending on fisheries in the national budget and growth in spending were
consistently lower than the contribution of fisheries to the countrys GDP, exports and their growth
during 1997-2002. This is partly because of the increasing role of the non-state sector. Justification
for a substantial increase in public spending to the sector in future may include the need for
restructuring existing rice-culture-oriented irrigation systems to include aquaculture and other crops;
development of market infrastructure; and improvement, maintenance, and protection of fisheries
resources. However, any investment targeted for poverty reduction needs careful design to assure high
effectiveness under the Governments Hunger Eradication and Poverty Reduction Program and the
Program to Assist the Poorest Communes.
2. Ministry of Fisheries (MOFi)
100.
MOFi is the main Government body responsible for protecting and developing fishery resources. MOFi is responsible for defining (i) total allowable catch and fishing capacity, (ii) protection
measures relating to the marine environment and living resources; and (iii) zoning, monitoring and
research. MOFi also issues and withdraws fishing permits. It has 11 Departments, that assist the
Minister in exercising state management functions, and a system of institutes, training institutions, and
state-owned enterprises specializing in fishing and aquaculture. Total staffing is now 222 (excluding
drivers and watchmen, and its affiliated institutes) with a current annual operating budget of almost 9
billion. These levels are a significant increase over 2002/03 levels, though MOFI remains one of the
smaller ministries.
3. National Fisheries Quality Assurance and Veterinary Directorate
101.
National Fisheries Quality Assurance and Veterinary Directorate (NAFIQAVED has a head
office and six branches located in key fisheries areas of the country. It is the national competent
authority for fisheries food safety assurance and quality control. In August 2003, the responsibilities
of the centers were expanded to include veterinary matters, including fish and shrimp disease control.
4. Provincial Departments of Fisheries
102.
To assist provincial authorities to manage their fisheries and aquaculture sectors, most coastal
provinces have set up departments of fisheries (DOFis). However, in some inland provinces there is
no fisheries department and the fisheries sector is the responsibility of the Department of Agriculture
and Rural Development (DARD). DOFis are line agencies assisting the provincial peoples

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committees in the implementation of state management over fisheries at the provincial level. At the
same time, they report to and are guided technically by MOFi. DOFis typically have a staff of 15 to
25 permanent officers, depending on the role and value of fisheries and aquaculture of the province.
DOFis usually have a number of divisions: administrative, technical, financial and planning. DOFis
also manage fisheries extension centers and the sub-departments of fish resources protection. Some
DOFis operate fisheries vocational schools. Extension centers are responsible for implementation of
extension programs in both aquaculture and fisheries. The Provincial Departments of Fishery
Resources Protection (PDFRP) is responsible for registration of large and small fishing vessels and for
controlling overall fishing activities in the sea and other water bodies, following the government
regulations; provides fishing licenses; and grants permission to fish in particular areas. In many
provinces there are project management boards that are responsible for managing fisheries and
aquaculture development projects.
103.
The main problem faced by the DOFIs is lack of trained and limited numbers of staff, with no
full time representation below the district level. This combined with shortage of transport and
equipment makes it difficult for them to fulfill their mandate. The fisheries and aquaculture sector has
been developing rapidly, becoming the one of the main socio-economic, rural growth sectors in coastal
provinces. The lack of professional management at the district and commune level means that data
collection and monitoring activities are limited, resulting in poor data and reduced ability to assess
development potential and performance.
104.
Extension in fisheries and aquaculture now is a diversified activity. A number of agencies
contribute, including the fisheries extension centers, three fisheries colleges, the national/regional
research institutes (see below), the mass organizations (farmers association, the newly formed
fisheries association, the womens union) and shrimp feed and processing firms. DOFI is responsible
for encouraging and creating good extension activities. While some Government bodies and shrimp
feed and processing companies provide valuable technical service, it is important that the advice
provided is tailored to the long-term viability particularly of aquaculture.
5. Local institutions
105.
Key local institutions include:
Communist party at province, district and commune level and the peoples councils at each level;
Province, district and commune peoples committees; and
Local level VINAFIS branches, womens unions, and farmers and youth associations.

C. Research and Education

1. Institutions
106.

Fisheries sector research programs are conducted through several MOFI institutions, including
1.
2.
3.
4.
5.
6.

Institute of Fisheries Economics and Planning (Hanoi)

Research Institute for Marine Fisheries (Hai Phong)
Research Institute for Aquaculture Number 1 (Bac Ninh)
Research Institute for Aquaculture Number 2 (HCMC)
Centre for Aquaculture Research Number 3 (Nha Trang, Khanh Hoa)
Fisheries Informatics Center (FICEN)

The institutes provide support to MOFI in fisheries and aquaculture development, in such areas as
policy-making, planning, aquaculture technology development and others. Research Institutions under
other ministries include: (i) Institute of Oceanography (Nha Trang with a branch in Hai Phong, under
the Ministry of Science and Technology (MOST)); (ii) Fisheries University (Ministry of Education
and Training - MOET); and (iii) several other educational institutes (see below) which undertake
aquaculture research and education.

(25)
2. Current Research and Monitoring
107.
Aquaculture research is conducted through the Research Institutes and Universities. In MOFI,
research is coordinated by the Department of Science and Technology. Budgets for research come
from MOFI, the Ministry of Science and Technology and the Ministry of Education. Some
universities and research centers also receive research funds from provincial governments for
investigation of provincial problems. For example, Can Tho University has received funding support
from the Department of Science and Technology of Long An and An Giang provinces for catfish
research.
108.
International research funds have also supported aquaculture and fisheries research, bringing
useful collaboration and scientific skills to involved institutions. Larger private sector firms (e.g., feed
producers and chemical companies) are also starting to sponsor research, albeit mainly product testing
and development. The amount of government funds for research has significantly increased over the
past three years as the value of aquaculture and fisheries exports has increased.
109.
There is a wide range of ongoing aquaculture research. Much aquaculture research has
traditionally focused on technical issues, and less on formulating and implementing farmer-driven
research agendas. It is only more recently that more adaptive, farmer-needs-driven aquaculture has
been piloted, such as through RIA-1, the MRC READ, and AIMS projects in the Mekong Delta
(Phillips 2002). The impact of research on aquaculture development can be substantially improved
through addressing the following issues:

stimulating research quality through more competition for funding, for example through more
open bidding for research funds;
improving monitoring and evaluation of research;
developing more collaborative long-term research programs, bringing together institutes with
relevant skills to address constraints;
providing greater access of universities to MOFI research funds;
developing more farmer/demand led research by closer consultation and collaboration with
farmers in identification of research requirements, including closer cooperation between
researchers and ongoing extension/development projects;
paying more attention to dissemination of research findings to end users;
creating incentives for researchers based on development outcomes from research;
improving the poverty-orientation of aquaculture research; and
ensuring the right balance in research between technical aspects, and environmental and social
issues, and between aquaculture and inland and coastal fisheries.

110.
Capture fisheries research is mainly conducted through RIMF and the Fisheries University.
Overall research efforts are limited, compared to the size of the sector and value of production. In
future, increased funding and activity will be essential if the scientific basis for the fishery is to be
understood, and appropriate management measures are to be defined.
3. Environmental and Disease Monitoring
111.
Concern over the state of aquatic resources in Vietnam is leading to further investment by
government in environmental monitoring programs. MONRE has recently finalized national standards
for air and water quality and is working toward strengthening the environmental monitoring network.
Eighteen general environmental supervision units have been established, with nearly 150 monitoring
stations, focusing on water and atmospheric quality. Vietnam also needs to establish effective
surveillance and reporting systems for aquatic animal diseases if the negative economic and trade
impacts from future disease outbreaks are to be minimized, following the international standards
established by Office International des Epizooties (OIE).

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112.
The Ministry of Fisheries has recently approved a long-term project to develop an
environmental and disease-monitoring network, covering the three major regions of Vietnam. The
Research Institutes for Aquaculture in the northern, central and southern region have been given
responsibility for design and operation of the networks, but there has been limited progress to date.
Government funding is provided, and DANIDA is also supporting the development of the networks
through its Fisheries Sector Program Support (SPS).
113.
Environmental monitoring programs are being developed by several agencies. However, there
is some duplication and a lack of a coordinated approach. Training and better organization and
management of the system is required. Regulations are also needed on procedures and responsibilities
for operation of the system particularly at provincial levels. The aquatic animal disease surveillance
and reporting system will also require substantial technical support for capacity building and
institutional organization.
4. Links to Other Regional and International Organizations
114.
Vietnam is a member of several regional intergovernmental organizations involved in fisheries
and aquaculture development, including SEAFDEC, NACA, and the Mekong River Commission
(MRC). This collaboration provides good opportunities for sharing experience among countries of the
region and provides technical and financial assistance to Vietnam. Cooperation also provides
opportunities for Vietnam to work with other regional countries to develop solutions to common
problems. For example, recent cooperation with NACA, FAO and OIE has focused on developing
solutions to aquatic animal disease problems, which are common within the Asian region.
115.
Vietnam also collaborates with several international organizations involved in fisheries and
aquaculture development and economic cooperation, such as FAO and Asia Pacific Economic
Commission (APEC) and standard setting for international trade, such as OIE (standards setting in
animal health, including aquatic animals), CITES, and Codex Alimentarius. MOFI has little
experience in international standard setting, and in some cases (as in the case of OIE standard setting)
is not even the contact point (which is in MARD). More active future engagement will be essential to
keep up-to-date with international trading standards, and to voice Vietnams concerns to standard
setting bodies.
5. Education Institutions
116.
The Ministry of Education and Training provide funds for education and training in fisheries
sector and aquaculture sub-sector.
117.
Nha Trang Fisheries University is a substantial academic institution, with a total student body
of 10,000 and 400 permanent academic staff. About 1,700 undergraduate and 150 post-graduate
students receive degrees each year, including around 10 with PhDs. NORAD support has been
provided for capacity building at the University for four years beginning in 2003. In addition there is
a vocational school (for school years 13-14 that issues certificates) and a college for diploma training
with intakes of about 300 and 200 per year, respectively. The university offers a wide range of
courses including: fish technology; maritime safety; oceanography; marine engineering; food
technology (including seafood processing); fisheries economics; aquaculture; and environment and
fisheries resources management. Some difficulty has been experienced in attracting students for the
marine fisheries courses, despite a number of inducements. Aquaculture is more popular. The
University has substantial research capability, which again is strong in aquaculture, but weak in
fishing technology and resource assessment and management.
118.
Can Tho University was founded in 1966 and offers training programs leading to BSc, MSc
and PhD degrees, with an emphasis on the Mekong Delta. Its College of Aquaculture and Fisheries
provides training for about 50 BSc-level and 10-15 MSc-level students per year. The institute has 24
teaching staff, 59 research staff and 10 technicians. The College is well located for research in the

(27)
Mekong Delta and has good research facilities. The college staff have been involved in several
nationally and internationally-funded research and development projects including: (i) a Dutch-funded
project for institutional capacity building for freshwater aquaculture farming systems (the so-called
West-East-South program), (ii) a JIRCAS (Japan)-funded program on new farming technologies, (iii)
an ACIAR (Australia)-funded project on the sustainability of integrated rice-marine shrimp systems
and shrimp domestication, and (iv) locally-funded projects on the development of integrated prawnrice systems, seed production of freshwater prawns (Macrobrachium) and catfish (Pangasius sp.), on
the culture of mud crabs, and on the production of Artemia in salt ponds.
119.

A four additional universities conduct BSc courses in aquaculture:

Vinh University;
Hanoi Agriculture University in collaboration with Research Institute for Aquaculture 1;
University of Hue;
College of Agriculture and Forestry under the State University of Ho Chi Minh City; and
MSC aquaculture course of study at course at RIA-1 in collaboration with Hanoi Agricultural
University.

120.
Total annual output of graduates in aquaculture-related areas is about 500. There are three
colleges of central government and one provincial providing formal and non-formal education and
skill training for technicians. In addition, there are several provincial technical schools or colleges that
offer formal and informal training on technology in areas of agriculture and aquaculture. Some
provincial schools train in aquaculture, fishing boat mechanics, fisheries, navigation etc. Some
vocational schools conduct on-the-job training. Many graduates at all levels now work in the private
sector.
121.
Universities and schools face problems of poor facilities for practical work. Although they
collaborate with production farms, their laboratory facilities and equipment are inadequate. The
Universities and Colleges lack financial support for research. As a result, students are not able to
access new techniques and research developments. The University of Can Tho is also undertaking a
pilot project in aquaculture distance learning in collaboration with the University of Ghent.
Vocational training is a major limitation, a factor contributing to the lack of skilled local level workers
and poor quality of services to the aquaculture sector. There are two training institutes located in Hai
Phong -- one belongs to MOFi (Fishery School 4) and one is under the Hai Phong DOFi. However, in
the South where the fishing industry is concentrated, there is no training institution that owns a
fisheries training vessel, limiting the capacity to train fishers, including new entrants or those wishing
to crew for foreign vessels.

D. Mass Organizations
122.
Mass organizations are an official and integral part of the Vietnam government system,
forming a separate branch to the central ministry/provincial department structure. They are members
of the Fatherland Front and are strongly represented in the National Assembly. They have their own
budgets, staff and programs. The National Assembly defines their legal status and each has a
congress, the apex body of the organization. The mass organizations have central executive
committees and presidiums that manage their programs of activities.
123.
In relation to fisheries and coastal zone development, the Fisheries Association of Vietnam
(VINAFIS) is the key mass organization. The Farmers' Association, Women's Union and Youth
Association are also important stakeholders that were formed in the early 1930s and have a wellestablished structure and membership. VINAFIS was established in May 2000, through uniting the
former Aquaculture Association and the Fishers Association. VINAFIS is a mass organization
representing fishers, aquaculturists, fish processors and fisheries services. The main purpose of the
association is to create an environment for its members in business in order to increase the value of
production. It also seeks to reduce the impact of natural disasters and disease outbreaks, protect and

(28)
develop fish resources and protect the environment. The association represents its members and
protects their benefits. The main activities of the association include:

the extension and training of members;

creating the conditions for the members to collaborate and coordinate their activities;
collaboration with government extension organizations;
promoting technological progress and transfer new technology to members;
providing information on market price to members;
assisting them to organize the improve their business operations;
collaboration and coordination with other mass organizations and the Government in
fisheries development; and
establishing and developing international relationships with regional and international
fishers and fisheries organizations.

124.
In common with other mass organizations, the VINAFIS has a central board and provincial
level associations. At the district and commune levels, where there are more than five members, a
sub-association can be established. The association operates in most coastal provinces, but limited
development has occurred to date at the commune level and in inland provinces. Membership of the
association is expanding steadily and is currently around 20,000.
125.
The Vietnam Association of Seafood Exporters and Producers (VASEP) was established in
1998 and has a membership of mostly the larger seafood processors, though it is growing yearly with
added new members. VASEP has played an important role in providing advice to MOFI on trade
policies and decisions, and has been active in the two antidumping cases.

E. Donor Programs, Projects and Cooperation

126.
Overall, the fisheries sector has received relatively little bilateral or multilateral agency
support over the past decade compared to other natural resources sectors. Given the sectors urgent
need for improved management and its capacity to alleviate poverty and improve the coastal
environment, higher levels of support are needed in future. ODA resources in the sector are limited,
but play an important role, providing about 36% of public resources (Table A-8 in Appendix B).
There is high concentration of emphasis on investment and investment-related technical assistance that
comprises two-thirds of the ODA resources under 12 projects in 2003. This contributes to the
imbalance between investment and maintenance and operation funding in the sector. Fifty smaller
stand-alone technical assistance projects contributed just one-third of the total ODA. A list of selected
ODA projects relating to fisheries, aquaculture and ICZM is included in Appendix F.
127.
A number of agencies are presently supporting Vietnams fisheries sector. Significant
contributors include DANIDA, NORAD (in relation to fisheries legislation formulation and coming
implementation) and to a lesser extent AusAID through ACIAR and the EU which provides some
support to research. ADB has also been involved significantly in the past.
128.
The main program assisting the sector at present is the DANIDA-funded Fisheries Sector
Program Support (SPS) with five7 separate components covering marine fisheries, seafood processing,
state enterprise restructuring and aquaculture sectors. ADB conducted a Coastal Aquaculture
Development Study in 1996, combined with an investment project pre-feasibility study. While the
study was useful for developing MOFI aquaculture planning capability, the project did not proceed,
mainly due to ADBs prior investment in the Fishing Infrastructure Improvement Project. DANIDA
also provided support for the initial fisheries master planning study over the period 1995 to 1997.
laying a foundation for subsequent long-term planning activities. The program for MPA establishment
7

Support to Brackish water and Marine Aquaculture (SUMA), Support to Freshwater Aquaculture (SUFA),
Strengthening of Fisheries Administration (STOFA), Seafood Export and Quality Improvement Programme (SEAQIP),
Support to Industry Restructuring and Enterprise Development (SIRED) (http://www.dk-vn.dk/dev_fishery.htm).

(29)
(with a series of 15 MPAs planned mainly for island locations along Vietnams coast between the
Tonkin Gulf and the Cambodian border) was funded by ADB in about the late 1990s.
129.
UNDP has supported several projects targeting poverty alleviation through aquaculture,
including a mountain aquaculture project (VIE/98/009) and one related to livelihood development of
coastal communities through aquaculture and better environmental management of the coastal
environment. The experience gained under the UNDP projects has been instrumental in convincing
government and donors of the potential of aquaculture for poverty alleviation in Vietnam.
130.
Some support to aquaculture is provided through ongoing rural development projects, and for
example through the World Banks Coastal Wetlands Protection and Development Project, Water
Resources Assistance Project and Northern Mountains Poverty Reduction Project. Investments in
livelihoods development in these projects can include fresh or brackish water aquaculture
development.
131.
At present there is no overall consultative group for fisheries. In future, consideration could
be given to establishing such a group involving key donors to the sector, MOFI, other involved
ministries (MOF, MPI, MONRE, MOST) and other stakeholders (e.g., VINAFIS, VASEP, MONRE,
NGOs). A model for this may be the International Steering Group on the Environment (ISGE),
chaired by a vice-minister of MONRE. In practice, because many of the activities in the fisheries
sector have an environmental overlay, consideration could be given to establishing a sub-group for
fisheries within the ISGE. This could be similar to the sub-group on ICZM that was established in
2003. MARD also operates a steering group the International Support Group (ISGMard), which
runs an effective newsletter in English and Vietnamese, provides information on projects and sector
development and promotes coordination among projects and donors.

IV.

PUBLIC AND PRIVATE SECTOR COOPERATION AND

STAKEHOLDERS

A. Public Commercial and Service Activities

132.
Currently, the MOFI controls three large holding companies (East Sea Fisheries General
Corporation, Vietnam Fisheries General Corporation, and Ha Long Fisheries General Corporation).
The three corporations have 51 member enterprises, of which 10 have been equitized. Based on the
principles to separate economic management from state management, MOFI only manages in term of
overall organization, approving development plans, deciding the appointment or dismissal of staff for
key positions, including board membership, general directors and heads of inspection teams, making
decisions on the establishment, liquidation, equitization, leasing or bankruptcy of a company. In
general, state-owned companies are not highly effective. According to an assessment quoted in the
Fisheries Master Plan, 20% of enterprises operate at a loss, 40% of enterprises breakeven, and 40%
make small profits. Of the 51 member enterprises, six own fishing fleets; but three are operating at a
low level; and three have ceased operation. There are three public sector aquaculture enterprises, of
which one is entering bankruptcy. In processing and domestic trading, there are a few small
enterprises under the fisheries general corporation; three of them are located in Hanoi (Fisheries
Company No. 1, Central Fisheries Company, and the Phu Quoc Fish Sauce Company of which one is
located in the central (Fisheries Company No. 2) and one in the south (Fisheries Company No. 3 in
HCMC).
133.
Most coastal provinces own one or more state enterprises in the fisheries sector. These are
also often unprofitable. According to ADB (1995), most SFE operations are in the following sectors:
1.
2.
3.
4.

marine fishing;
aquaculture and aquaculture services;
fisheries processing;
shipbuilding, mechanical engineering, and refrigeration engineering;

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5.
6.
7.
8.

nets, gear, packaging, and materials supply;

fisheries import-export activities;
fisheries marketing and trading fisheries products for domestic consumption; and
construction for fisheries.

B. Joint Public and Private Sector Activities

134.
In Khanh Hoa and Binh Thuan, some industrial parks for aquaculture have been set up with
the Government providing the basic infrastructure. Decree 106 was partly implemented through
government investment in infrastructure, with water supply and drainage projects for shrimp farming
areas being built in most coastal provinces. Farmers are then responsible for investment in individual
farm plots within the infrastructure. In practice, the projects were marred by poor environmental
planning, limited financial resources and lack of effective local management arrangements. Most
DOFIs visited during sector study field trip have plans for further zoning of aquaculture areas, based
on a mix of government and private sector funds. In Khanh Hoa, for example, DOFI has an ambitious
project to relocate all shrimp hatcheries into designated hatchery zones, with government investment
in infrastructure and private sector investment in the hatcheries and necessary services.
135.
Under the FIIP, the fishing port authorities were intended to promote the establishment of port
user associations (PUAs). These would bring together all main stakeholders and provide input to the
management, operation and development of the port. In practice this has not yet happened, though a
government circular in early 2004 directed this. Although formal PUAs have not been established,
port managers are consulting widely with stakeholders such as fishers, ice plants, processing plants
and agents.
136.
Research Institutes provide consulting services. For example RIA1 has government budget
for 127 staff, but employs around 430 staff by earning revenue from commercial activities such as
consultancy activities, research contracts and the development of commercial extension activities.

C. Non-government Organizations
137.

A number of NGOs has been increasingly active in the aquaculture sector in Vietnam.
Action Aid has been actively involved in the two antidumping cases, soliciting farmers
opinion about the impacts and advocating against the US decision.
IUCN has been active in development of marine protected area (MPA) project in Nha Trang
(Hon Mun) and has included aquaculture as an alternative livelihood activity for fishers.
Worldwide Fund for Nature has been active in Con Dao marine park assessment, development
and monitoring.
Some NGOs such as Oxfam working in the field of poverty alleviation have started programs
in Vietnam to promote aquaculture as a means of income generation in rural areas.
Some international environmental NGOs also began operating in aquacultural production
fields to introduce issues regarding environmental development, including recently Oxfam and
the Environmental Justice Foundation. Investigations and campaigning are slowly raising the
profile of environmental and social issues in the shrimp-farming sector in Vietnam both
nationally and internationally.

138.
NGOs and mass organizations have played an important role in support services at the local
level and will be crucial in expanding aquaculture. Experience from the Mekong basin, for example,
indicates that aquaculture has proven risky in instances where it was promoted without effective
extension support and applied inappropriate, high-cost technology, without understanding the socioeconomic constraints of rural households (Phillips 2002). Because lack of people and resources are a
constraint to extension systems, Government needs to partner with both the private sector and NGOs.
Mass media can be used, along with other new approaches to spreading information. Womens
organizations, such as the Womens Union, have also been used. There is also a need for integrated

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approaches to extension and service provision at the local level. The decentralization processes now
being seen in Vietnam, combined with the possibility to develop local farmer groups provide excellent
entry points for better organization and management of the sector. Given the growing expertise with
NGOs, it is highly desirable that they become more engaged in the development of sectoral policies
and strategies.

V. SUPPORT SERVICES CONSTRAINTS AND OPPORTUNITIES

139.
The private sector is now responsible for most service provision in fisheries and aquaculture.
Boat building and ice, fuel and spare parts supply in fishing ports are almost all through the private
sector. Similarly, in aquaculture, seed and feed supply and marketing services are almost all provided
by private companies, traders and business people.

A. Services to Capture Fisheries

140.
Until the mid-1990s, Vietnams fisheries sector was poorly serviced. Most large-scale fishing
was conducted by national and provincial state enterprises, which were more or less self-sufficient in
terms of ice and fuel supply and boat and engine repairs. With the rapid expansion of the private
sector since then, service supply has developed rapidly. Ice supply is adequate at major ports,
provided from numerous block ice plants. At minor ports and beach landings and in inland areas, ice
can still be difficult to obtain.
141.
There are two national and five Thai, Taiwanese and Korean companies in Vietnam
manufacturing fishing nets and gear with a capacity of about 12,000 tons per year. Boat and engine
repair has not fully kept pace with the development of the needs of the offshore fishery. Modern
slipway facilities are also often not available.
142.
According to the Fisheries Master Plan, there are now 700 shipyards with a total production
capacity of around 4,000 vessels per year. Most vessels are constructed of wood by traditional
shipyards located in villages and towns along the coast. Only two yards currently build steel vessels
in Ha Long and Nha Be. Most inshore boats are made by local groups or companies.

B. Port Facilities
143.
Vietnams port infrastructure has expanded rapidly in the last decade. The ADB-financed
FIIP, which developed 10 ports between Cat Ba in Hai Phong province in the north and Ca Mau in the
south. The project was completed in early 2004 and a project completion report was prepared which
provides information on the project and its outcomes. The ports were intended to support and promote
the development of the offshore fishing industry, and this objective was largely achieved. However,
the project was overtaken by the rapid development of the fishery and the four successful ports Song
Gianh (Quang Bing), Thuan Phuoc (Da Nang), Phan Thiet (Binh Thuan) and Tac Cau (Kien Giang)
are already too small for the fleets they are trying to service. Other ports were improperly sited to
achieve their intended purpose, at least for the short-term, though some such as the island ports of Cat
Ba and Con Dao (Ba Ria-Vung Tau) serve other purposes such as transport terminals.
144.
Provinces are also developing other ports, though some may not be strategically located to
optimally serve the industry. Overall wharf length has increased from about 4,000 meters in 1997 to
10,000 meters in 2004. There are over 80 landing places for mechanized boats. However, few are
fully suitable for large-scale offshore fishery use. The Japan International Cooperation Agency
(JICA)-funded port at Vung Tau comes closest to this objective, followed by Tac Cau. The latter will
require at least doubling in size to accommodate the Rach Gia offshore fleet which is being required to
move out of the provincial capital. Overall, there is a need for a national port planning study,
particularly to define the needs for servicing modern fishing vessels in the offshore fishery. There is
also potential to integrate fisheries and tourism at some fishing ports, for example in Cat Ba, Da Nang
and other centers.

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145.
Some ports, such as those under the FIIP have basic facilities such as ice, water and fuel
supply. Most ports serve larger offshore vessels with smaller vessels continuing to use traditional
landing sites that generally have no support services. Ice supplies are now generally sufficient to meet
the industrys needs, though all plants produce blocks which are less effective at fish cooling than the
flake ice now used in more advanced fisheries. Processing plants have been established in several
ports. In most ports, small- and medium-scale businesses have been established within the port area,
providing a range of services supporting the fishing industry. None of the 10 FIIP ports included
slipways or significant repair facilities, requiring vessels to travel to nearby or more distant facilities.
Since vessel repair can be a significant income earner for ports and provides a valuable service to
fishers, future port developments should consider inclusion of slipways and repair facilities.

C. Aquaculture
146.
The supply of aquaculture inputs and services such as extension and credit play an important
role in its sustainability. For poorer farmers, access to relevant extension services and credit plays a
critical role in ensuring their participation and benefit from aquaculture development (DFID 2001).
1. Feeds and feed suppliers
147.
Growing demand for aquaculture feed has resulted in an increase in the number of formulated
feed suppliers, selling both domestic and imported brands. Feeds are available for freshwater fish and
shrimp, catfish and tilapias, with limited import of marine fish diets, mainly for experimental
purposes. Aquaculture in Vietnam is mainly practiced on extensive or semi-intensive so the amount of
manufactured feed used is still limited, although growing. Homemade feeds are also used; cage
farmers growing catfish in the Mekong River commonly use homemade feeds formulated from locally
available ingredients.
148.
Presently there are estimated to be 24 small feed enterprises producing about 50,000 tons of
shrimp feed annually, located in central and southern Vietnam. Foreign investment in feed companies
has also increased significantly in the past five years, including CP Group (Thailand), Uni-President of
Taiwan, Proconco, Cargill, Cataco and Tomboy of France. According to the Investment and Trade
Promotion Centre in Ho Chi Minh City8, the 13 largest companies are expected to produce over
400,000 tons of feed in 2004, with imports of 140,000-150,000 tons from Thailand, Hong Kong and
Taiwan. Feed companies in the shrimp and catfish sectors are also actively involved in extension
activities, providing training and extension materials. It is expected that private sector feed companies
will continue to expand as demand grows.
2. Fish and shrimp seed
149.
Freshwater fish hatcheries, nurseries and fry trading networks are now well established in
most fish farming areas in the country. During the 1950s and early 60s farmers caught fish seed from
rivers (mainly Red River) during the rainy season (June-July) with most concentrated fishing around
the central part of the Red River delta (Hanoi and Hung yen province). Annually an estimated 300 to
700 million larvae of silver carp were caught. Wild seed collection continued till the mid-1980s even
as hatchery seed became more easily available.
150.
Fish seed production started in the early 1960s, when artificial propagation of Chinese carps
succeeded, after which Chinese type hatcheries were constructed in most districts and provinces with
potential for aquaculture development. In the South, the system was established at the end of the
1970s. Before reformation in the agriculture sector (1986), fish seed was produced by aquaculture
cooperatives, but since this time the numbers of private hatcheries have expanded significantly.
Presently, there are over 350 freshwater hatcheries, both government and private sector, producing
more than 10 billion larvae and fry annually of common carp, silver carp, grass carp, silver barb, rohu,
8

http://itpc.hochiminhcity.gov.vn/English/business_news/business_day/Folder.2004-07-27.1307/News_Item.2004-07-27.1616

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mrigal, catfish, tilapia and other cultivated species. Most hatcheries are located in lowland provinces
especially in the Red and Mekong Deltas. In highland and coastal areas, there are few freshwater
hatcheries. Small-scale nurseries and decentralized seed production and trading systems have been
successful but could be further expanded, particularly in more remote mountain areas.
150.
There are now more than 5,000 shrimp hatcheries, mostly small-scale enterprises located in
Central Vietnam (65-70%) and the Mekong Delta. Most coastal provinces have small numbers of
local hatcheries, but local supply in northern and southern areas is insufficient to meet demand, and
Central Region remains the major supplier. Annual shrimp larvae production (mainly P monodon) is
over 25 billion PLs. There is a major trading network moving shrimp seed from central hatcheries to
coastal areas throughout the country. To exert some control over quality, a seed inspection and
certification scheme has been established, presently operated by NAFIQAVED. The system needs
substantial upgrading if it is to be an effective means of controlling quality control and disease
problems in shrimp trade.
151.
The bulk of marine fish fingerlings stocked in cages are wild caught, except the recent
development of Cobia culture based entirely on hatchery-reared fish. It is estimated that local
hatchery-produced fingerlings contribute less than 4% of total fingerling supply, imported seed
(mainly from Taiwan and China) contributes around 5% and wild caught seed contributes more than
90%. The considerable stress on coastal fisheries in Vietnam suggests that hatcheries or hatchery
imports will have to be the mainstay of future growth of marine fish culture. Marine fish hatcheries
are found in Ha Long Bay in the north and central and southern areas. Considerable expansion will be
needed if the MOFI target of 200,000 ton of marine fish production from aquaculture is to be achieved
by 2010.
3. Aquatic animal disease control
152.
Aquaculture in Vietnam faces significant risks from aquatic animal disease outbreaks, with the
most dramatic economic losses in shrimp farming, but also losses reported in marine fish, and
freshwater catfish and carp aquaculture. Services for disease control are improving but are still limited
and insufficient to manage risks.
153.
Aquatic animal disease surveillance systems are also starting to be developed. These will be
required to respond to future aquatic animal disease problems, and for trade purposes. Capacity
building for staff, improved management systems and investment in facilities are required to develop a
comprehensive environmental monitoring and disease surveillance program for the provinces of the
Deltas. Vietnam requires an effective aquatic animal disease control system for future trade purposes,
based on international standards. The following elements (from FAO/NACA 2000) need to be
considered in a national disease control strategy:

aquatic animal pathogens to be considered;

disease diagnostic capacity;
health certification and quarantine procedures;
disease zoning;
contingency planning for disease emergencies;
adopting import risk analysis; and
institutional development, capacity building and policy development.

154.
Subject to approval by the Minister of Fisheries, NAFIQAVED is developing a national
advisory committee for aquatic animal disease control, one objective being to provide advice and
coordinate implementation of aquatic animal disease control measures in .

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D. Extension and Information

1. Extension to Fisheries and Aquaculture
155.
The Ministry of Fisheries recently has set up a National Extension Center, renamed the former
Central Extension Center, which is responsible for extension planning, coordination of extension
activities throughout the country and implementation of some extension activities. Most extension has
focused on aquaculture, and there is little to capture fisheries.
156.
DOFis in coastal provinces operate Fishery Extension centers that are responsible for planning
and organization of the extension activities in the province. The extension center coordinates
activities between the districts where district units for fisheries exist. In addition, the center in many
cases has also the responsibility to implement extension activities through local authorities or district
agriculture extension units. Such complicated links require flexibility from both sides, the extension
center and the local government responsible authority. In inland provinces, aquaculture extension
activities are carried out or coordinated by the provincial DARD Extension Center. Implementation of
extension activities in these provinces requires a strong link and collaboration between provincial and
district field staff and key farmers/demonstrators.
157.
The Research Institutes are also involved in extension activities. The focus is on building
institutional capacity in the provinces, development of extension materials and consulting on
development projects.
158.
Despite considerable investment from responsible ministries and provincial agencies and
institutions, extension remains a weak point in the chain of information flow to farmers. Lack of
human resources at different extension levels to service large numbers of farmers is a major constraint.
With some exceptions, aquaculture extension has largely been prescriptive rather than farmer-needs
based. More adaptive, farmer-needs-driven aquaculture extension has been piloted recently with some
success, such as through RIA 1 and the MRC READ project. A major challenge is to develop the
support services and communications systems and networks needed to support small-scale aquaculture
development in the major aquaculture areas.
159.
Development of local support services is central to aquaculture expansion. Aquaculture has
failed, or the risks are very high, where it was promoted without effective extension support, or
focused too much on technology, without understanding the socio-economic constraints of rural
households as also discussed in paragraph 138. Because lack of trained people and resources are a
constraint to extension systems, government needs to partner with the private sector and NGOs. Mass
media could be used, along with other new approaches to spreading information. Womens
organizations, such as the Womens Union, have also been effectively involved in Vietnam.
Integrated approaches to extension and service provision are needed at the local level. The
decentralization processes now being promoted, combined with the potential to develop local farmer
groups provide excellent entry points.
160.
There are opportunities to build more effective partnerships among various development
agencies working in aquaculture and rural development. Cooperation and sharing of experiences
between stakeholders through effective extension and communication will be important if the
intellectual and capital resources available are to be used to the best advantage.
2. Information
161.
Information to the fisheries sector is mainly provided through MOFi. MOFi has an
Informatics Center (FICEN) responsible for collecting and exchanging information related to the
fishery sector. FICEN and the National Extension Centre publish regular newsletters. FICEN has built
relationships with the libraries of the research and education institutions in Vietnam. The Center also
has formal links with other international and regional agencies such as FAO, Infofish, the World Fish

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Center, AIT and NACA/STREAM aiming to build capacity, improve information flow and exchange
information. Nevertheless, the center is facing a number of issues. One of the serious issues is related
to weakness of institutional capacity and poor infrastructure that limit the scope and area of the
centers activities. Also, more than one institution in Vietnam collects fisheries production data, using
differing methodologies, thus often inconsistent reporting. Clearly, this duplication and the systems of
data collection need to be reviewed, reconsidered and standardized to assure consistency and accuracy
and to eliminate costly redundancy.

E. Fisheries Sector Credit

162.
Rural households, including those involved in fishing and agriculture, have access to credit or
other sources of funds via formal and informal channels. The current main formal channels mainly
include the Vietnam Bank for Agriculture and Rural Development (VBARD), Commercial and
Industrial Bank (CIB), and the Bank for Social Policy (BSP previously the Bank for the Poor,
established in 1996). The BSP mainly provides subsidized loans to poor households (up to 5
million) and individuals. VBARD and CIB make larger loans to enterprises, community groups and in
some instances households. The informal channels mainly involve loans and gifts from family
members and friends. Generally, available formal credit for rural development and fisheries, in
particular, is limited and cannot meet need for medium and long-term loans.
163.
VBARD was established by decree in 1988. It is wholly owned by government with a
statutory capital of 2,200 billion (equivalent to US$ 150 million) and is supervised by the State Bank
of Vietnam. Its total assets at the end of 1998 were valued at 36,000 billion, equivalent to $2.7
billion. VBARD dominates the formal rural banking sector in Vietnam and provides about 75%
percent of rural credit in the country. Its reported lending was to about a third of all 12 million rural
households in 1998. VBARD has changed its operations and earlier emphasis on lending to the
corporate sector in line with changes in the economy to become a competitive financial institution
meeting the needs of farm and fishing households and emerging private sector enterprises. VBARD
has improved the access of the poor and rural households to affordable financial credit and has been a
catalyst for economic development. As one of the four state-owned banks, the VBARD was entrusted
with a rural credit mandate in 1990; and it has expanded its network to the countrys largest branch
network covering all cities and rural areas. It has a staff of its 22,000 employees at a total of 1,291
branches made up of two regional banks, 61 provincial branches, 527 district branches (full coverage),
626 inter-commune banks and 75 mobile banks (ADB 2003). VBARD in the provinces reports
difficulties with a proportion of fishing boat and aquaculture loans, the latter often due to poor siting
and management of shrimp ponds.
164.
To foster investment in fisheries and aquaculture, VBARD entered into a Memorandum of
Understanding with MOFI in 2000 to provide credit to fisheries and aquaculture. MOFI agreed to
assist VBARD with: (i) the formulation of a plan to lend to the sectors; (ii) providing technical
extension assistance to borrowers; (iii) environmental review of proposed investments; and (iv)
provision of a list of qualified borrowers. VBARD has agreed to conduct appraisals of credit requests.
165.
For some of the poorer fishing households, access to credit is difficult due to lack of collateral.
Moreover, these households hesitate to borrow due to risk and most often rely on help from each other
with major financial needs such as the purchase of a boat or engine which are most often small,
requiring no more than about 10 million for a 5 meter boat and 12hp engine. VBARD is currently
wary of lending for offshore fishing, which is considered risky. Due to the overexploitation of nearand some areas of offshore fisheries, the general development focus is to reduce the fishing pressure to
allow the resource to recover and be fished within economically sustainable limits. This means that
many fishers would need to shift to other occupations. One option is to provide alternate occupation
in aquaculture production and support activities and services. Provision of credit to such households
would require capacity building and training in advance with a certificate of competence
accompanying a loan application.

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166.
An important constraint for poor peoples involvement in aquaculture is lack of savings and
lack of access to credit. VBARD provides loans for brackish water and freshwater fish culture,
provided farmers have a red book demonstrating ownership of the land as collateral. Credit
should be analyzed as part of the process to support farm households entering into aquaculture. The
special difficulties faced by poor households, who may have difficulty providing collateral, should be
recognized and addressed by supporting agencies.

VI.

MARKETS AND PROCESSING

167.
Under the market economy, product prices depend on the market the interaction between
supply and demand. Understanding of the market is thus critical to both long-term investment
planning and short-term production and marketing decisions. Market information systems are not yet
well developed, and will require attention in future if efficiency in the sector is to increase. Some
aspects of marketing in Vietnam are discussed in this chapter. More detail is provided in Appendix K.

A. Market Channels
168.
The marketing of fish, shrimp and other capture and culture products in Vietnam is complex.
There are numerous species, product forms, marketing channels and markets. Products may be
marketed live by farmers or sold to middlemen who collect product and sell to processing plants (or in
the case of shrimp fry or grouper fingerlings, to other producers).
169.
Marine fish are normally sold to agents at the port or jetty. Fishers often develop long-term
relationships with market traders or wholesalers who provide them with credit for fuel, ice and other
supplies, and can provide finance for off-season needs or even assist with vessel purchase. Offshore
vessels, fish may be sold at sea to buyers on transport vessels or collector vessels run by their agents.
Where marine product processing plants are present, vessels may contract to supply them with
product. Factories can seek product over a wide area. In the north, significant quantities of fish and
other products are purchased by Chinese agents using collector vessels. Aquaculture products follow
a similar path, though some producers contract directly with processing plants. Almost all processed
aquaculture production (96%) is destined for export. Fish from aquaculture are often sold live in local
or city markets.
170.
Few data are available on producer or retail prices. The most detailed data are for the
Mekong, which suggest that the price for large shrimp have increased over the past 12 months (from
about 120,000 to 130,000/kg for shrimp over 50 grams (<20/kg). Prices for smaller shrimp (4150/kg) have declined from around 85/kg in July to August 2003 to around 70/kg for the same
period in 2004. For carps in the Hanoi market in 2001, the retail price of 22,400 represented a
markup of 59% on the farm gate price (Dang & Ruckes 2003). For major carps, the markup was 62%.
Overall, distribution and marketing margins are low, suggesting an efficient marketing chain.
171.
Export volumes and values over the period 1995 to 2001 are given in Figure 8. Total export
value was $1.8 billion in 2001 and in 2003 reached $2.2 billion. Shrimp contributed $1.14 billion
(52%). In 2004, export values are somewhat lower, and are unlikely to exceed 2003 levels.
Figure 8. Volume and value of fishery product exports
Volume (000t)

Value ($ mil)

400
350
Value $ milt)

Volume ('000t)

300
250
200
150
100
50
0
95

Source: FICEN

96

97

98

99

00

01

2000
1800
1600
1400
1200
1000
800
600
400
200
0

Other products
Dried squid
Fish
Frozen squid
Frozen shrimp

95

96

97

98

99

00

01

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Figure 9. Fish export

prices
12
10
Average value $/kg

172.
Average export prices according
to VASEP over the period since 1999 are
summarized in Figure 1. Prices reached a
peak for several products in 2000/01,
particularly for frozen shrimp and dried
squid. Prices have subsequently trended
downwards. The price decline for shrimp
has been reflected at the farm gate.

Frozen shrimp
Dried squid
Other products

Frozen squid

Frozen fish
173.
There have been a number of
4
Tuna
studies of fish consumption in . FAO food
Frozen octopus
2
balance sheets indicated that average
consumption in Vietnam increased from
0
13.2 kg/person in 1990 to 18.7 kg in 2000
1999
2000
2001
2002
2003
(reported in Lem 2002). The same study Source: VASEP
suggested that fish consumption was
almost three times as high as from other animal protein sources. An annual nutrition survey in 2000
reported annual consumption of 24kg/person nationally, ranging from 12 kg per person in the north to
a high of 33 kg in the Mekong Delta.

B. Processing
174.
The processing sector has expanded rapidly over the past few years, particularly with the
development of large modern facilities particularly in the south in Khanh Hoa and most Mekong Delta
provinces. There are about 400 registered processing plants in Vietnam with around 0.8 million tons
input capacity. According to (Dang & Ruckes 2003), 74% of processors had Hazard Analysis at
Critical control Points (HACCP) certification, 54% were Good Management Practice certified, 24%
had EU certification while 16% were ISO certified. Of registered processing plants, 80% were in the
south, 12% in the central and 8% in the north regions of . By 2003, 100 enterprises and 8 mollusk
production areas were certified for the EU market. A majority of the plants process shrimp. Frozen
shrimp exports were 56,000 tons in 2000, and have subsequently increased. Other products include
particularly clam, swimming crab, snail, mud crab, oyster and scallop which in total contributed
77,200 tons to exports in 2000, or 26% by volume of total exports.
175.
A total of 43 companies and many thousands of small enterprises process fish products for
domestic markets with a total input capacity about 330,000t/year (Fisheries Master Plan). Products
include fish sauce, dried products, fishmeal and frozen and chilled products. Dried products are
popular with small businesses as they are simple to make and do not require complicated facilities and
technology. The main products are dried squid, fish, shrimp, seaweed (Gracilaria) and products dried
with spices.

C. Export Market Challenges

176.
As aquaculture products have made an increasingly important contribution to export value and
trade in fishery products, Vietnam has faced increasing problems with various international trade
measures. Vietnam has made substantial investment in upgrading the quality of its seafood processing
factories, and HACCP and EU and Japan health and hygiene standards are now being widely adopted.
Nevertheless, recent events and trends show that significant challenges remain for Vietnam to be
competitive in the international market for aquaculture products that go beyond processing plant
quality control and processing technology. Aquaculture is likely to be the main supply for higher
value exported aquatic products; therefore considerable investment in addressing trade-related
constraints is needed to remain internationally competitive. In part due to the great success in
penetrating export markets, there have been a number of recent developments that have resulted in
export bans or limits.

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177.
Catfish were subjected to US anti-dumping legislation in 2002. Vietnamese exporters have
been highly successful in identifying new markets for processed catfish, which are now exported to
more than 40 markets. Exports to Europe have increased by 250% since 2003 and to the Pacific
region by 350%. The number of processors exporting catfish has increased from 16 prior to the
introduction of tariffs to more than 30. The farm gate price of catfish in the Mekong Delta has reached
a record 15,000/kg.
178.
The proposed US shrimp anti-dumping tariffs (planned for imposition in China and five other
countries in addition to Vietnam), could cost exporters fines of between 12 and 93% of FOB value.
The impact of this would be significant in the short-term, but many exporters view shrimp as a
commodity and expect the markets to even out such pricing issues quite quickly. In addition to the
anti-dumping measure, the shrimp-farming sector in Vietnam is being influenced by several macrolevel, market-related trends, including:

increasingly stringent food safety and quality standards;

certification and trace-ability;
importing country awareness of social and environmental issues in shrimp farming;
vertical integration in the shrimp industry to control costs and risks; and
trends towards lower farm gate prices.

179.
Further information on the catfish and shrimp anti-dumping cases and other market
impediments is in Appendix K.
180.
Food safety represents a major challenge faced by Vietnamese fisheries in relation to market
access, especially to markets in the EU, followed by the United States and Japan. Internationally,
there is also an increasing trend towards trace-ability and application of HACCP at the farm level to
reduce risks of contamination in the production process, particularly antibiotic residues. This raises
significant challenges for all in the shrimp sector in Vietnam, but perhaps most to the many thousands
of small-scale producers involved, connected to markets only by fragmented market chains. While
implementation of effective sanitary and phyto-sanitary (SPS) measures in the shrimp sector will
enable the country to remain competitive on international markets, the implications for poorer farmers
could be significant. The implementation of HACCP and food safety management at the farm level
requires knowledge and skills and investment in infrastructure and extension. Poorest producers due
to limited human, social, financial assets are likely to find it most difficult. The need to assure the
quality of inputs and trace-ability and verification procedures may also make it difficult for anything
but the most organized input suppliers (feed and seed) to comply again putting at risk substantial
numbers of people, for example in the shrimp seed business.
181.
Certification of shrimp aquaculture products is slowly coming to the international scene,
partly in response to food safety concerns, but more generally in response to consumer and NGO
concerns over sustainability of shrimp farming. Certification represents a major challenge and will
require substantial investments in farmer organization, support to implementing certification standards
and a well-organized certification system. It is inevitable that poorer farmers will find it most difficult
to participate in such schemes, unless substantial focused support on the small-scale sector is provided.
182.
Environmental and social awareness in importing countries: Although food safety is
probably the most significant issue influencing shrimp imports at the present time, there is evidence of
increasing awareness of the environmental and social issues in importing countries and regions.
Following a major campaign by a UK based NGO, for example, UK supermarkets have been
exploring accessing shrimp produced and processed in socially responsible ways. In the US, NGOs
are increasingly targeting consumers with campaigns about the environmental and social implications
of seafood. This appears to be slowly driving the industry towards certification and industry assurance
systems that address social and environmental issues.

(39)
183.
All these trends point to increased vulnerability and difficulties for the small-scale coastal
shrimp farmer and point to the need for diversification of product away from the more risky shrimp
sector to other products, as well as diversification of markets. Finally, the growth of demand for
fishery products in China and potential for competition with China are likely to have a significant
influence on the demand and markets for Vietnams fishery and aquaculture products.

D. Future Demand and Price

184.
Local demand for fish and other seafood products is expected to increase rapidly over time
due to population growth, increasing real incomes and health factors. While little if any growth can be
expected in marine capture landings, and declines are possible, production from aquaculture has the
potential to expand rapidly to meet this demand, it is expected that average real prices will remain
reasonably stable. However, given the reported inelastic demand, substantial short-term fluctuations
are likely.
185.
Export prices are governed by a range of factors, many outside the control of Vietnam.
Processed shrimp are the dominant export from Vietnam, and its price prospects are critical for the
future viability of brackish water farms along much of the coastline. Shrimp price has been trending
downwards and there are few factors leading to optimism about future prices. However, Vietnam is a
low cost producer and should be able to weather market shocks better than some of its competitors
(such as Thailand or China). Future demand for shrimp products is likely to grow, and this could be
encouraged by improved brand-naming and promotion of Vietnamese product. It is becoming harder
to produce large shrimp from aquaculture, suggesting that in the medium term, price for larger shrimp
(<40/kg) will increase or at least remain at about their present level, while downward pressure is likely
to continue on smaller sized shrimp.
186.
Combined with the increased investment in food safety and quality control systems, noted
below, the price trend can be expected to have increasing implications for competitiveness of smallscale farmers. One option is to explore economies of scale and efficiencies in the small-scale farming
sector through working together, probably through more organized cooperation or self-help groups of
farmers. Without a concerted focus by government and industry on the small-scale sector, there may
be serious social implications in coastal farming communities.

E. Market Development Needs

187.

Major market development needs include:

improved market intelligence for fishers/farmers, with provision of price information on a
daily basis to assist them in making short-term and long-term marketing and investment
decisions;
further development of the national cold chain to promote more efficient and hygienic
preservation and marketing of fish
increased investment in wholesale marketing, possibly including major city auction
establishment; and
training for agents, wholesalers, retailers and processors.

188.
In future, consideration should be given to collecting and disseminating detailed price data on
a daily or weekly basis. Study of collection, analysis and dissemination systems is merited.

VII. DEVELOPMENT PRIORITIES AND NEXT STEPS

189.
The Vietnamese fisheries and aquaculture sectors are large and complex. They are socially
and economically important, supporting the livelihoods of several million people in coastal and inland
areas. The sectors have evolved rapidly and have made a major contribution to the countrys
economic and social development. However, it is apparent that several sectors are experiencing

(40)
problems of (for example) over-fishing, lack of adequate planning (e.g., for aquaculture) and limited
enforcement capacity/capability. Recent changes in the legislative environment, such as grass-roots
democratization and the new fisheries law have created a policy environment from which substantial
improvements in fisheries and aquaculture management can be introduced.
190.
Internationally, and in Vietnam, it has been recognized that the best approach to fisheries
management is through consultation with fishers and the development of shared management
responsibilities through partnership between fishers and government. This approach can greatly
facilitate introduction of measures required for sustainable fisheries development and management.
The staff and budgetary resources of national and provincial governments are too limited to manage
complex inshore fisheries effectively. They are unlikely to be able to enforce offshore fisheries
management measures without the support of the majority of fishers. Co-management the
development of a partnership between industry and government for the management of natural
resources is considered to be the optimal and perhaps the only way in which Vietnams fish stocks
can be conserved and effectively managed and harvested, and fisheries and aquaculture development
made more sustainable. Vietnams planners and policy makers have recognized this and are strongly
supportive of the types of interventions required for effective resource management.
191.
This chapter summarizes major development priorities and next steps for the sector to develop
based on principles of shared management, or co-management, in fisheries and aquaculture planning,
development and management. The chapter synthesizes the wide range of recommended actions
identified during the Sector Review (the detailed list is provided in Appendix K) organized around
four headings of:
1.
2.
3.
4.

Integrated Coastal Zone Management;

Fisheries Management;
Diversified Aquaculture Development in Brackish, Marine, and Freshwater Areas; and
Marketing

192.
The framework presented here provides the basis for a program potentially suitable for a joint
government-donor program of support to the sustainable development of the sector with special
reference to environmental management and poverty reduction. It is recognized that the framework is
preliminary, requiring further study and consultation necessary to develop the elements into a coherent
and viable program.

A. Poverty and the Environment

193.
The focus of proposed fisheries and aquaculture sector interventions should be on poverty
alleviation and environmental management. The two aspects are closely linked, since environmental
sustainability is the key determinant of success in natural resources management. All program areas
thus have environmental overlays and more-or-less direct links to poverty alleviation. Offshore
fisheries does have poverty impacts, since it generates high on-boat and downstream employment
(e.g., in processing) but a less direct impact on poverty reduction compared to coastal and inland
aquaculture and inshore coastal and inland fisheries management.
194.
Much of the overarching national policy is in place to support a more poverty-oriented
approach to development of the aquaculture and fisheries sector. The key priority now is
implementation. The governments program to support the 157 coastal communes classified as poor
should be a central feature of any intervention in coastal areas. Thus provinces selected for focus will
ideally contain a significant number of these communes, and/or have substantial need for improved
environmental management. Inland fisheries and aquaculture development, particularly in mountain
areas should also be included under the poverty focus, again with a central feature of support to poorer
communes.

(41)

B. Suggested Program Areas

1. Integrated Coastal Zone Management
195.
Development priorities: Many of the aspects of development of the coastal aquaculture and
inshore fisheries sectors should be carefully planned and implemented to protect the interests of all
stakeholders in coastal development. This implies a need for integrated coastal zone planning and
management, collectively referred to as ICZM. ICZM is expanding rapidly in Vietnam with an
evolving institutional structure (under MONRE) and projects underway or planned in eight provinces.
Under any fisheries sector project involving coastal zone development, it will be desirable to work
within an existing or develop a new ICZM framework.
196.

Next steps: For provinces currently without ICZM, the steps involved might include:
i.
ii.
iii.
iv.
v.
vi.

vii.
viii.

Review of existing coastal zone planning processes;

Capacity building and awareness-raising for provincial, district and commune planners;
Conduct a survey of present resources and area usage;
Develop a provincial coastal zone planning and management strategy (in consultation with
all stakeholders);
Develop a regional strategy in consultation with neighboring provinces;
Prepare development plans for key sectors and necessary zoning, covering such aspects as
aquaculture, agriculture, tourism and recreation, urban development, industrial
development, land and marine parks and protected areas, transport, waste management.
pollution control, biodiversity management and other aspects of environment protection
and enhancement and general coastal management;
Provide livelihood support, focusing on aquaculture, coastal fisheries and other economic
activities, mainly in poorer coastal communes, particularly those covered by the 157 poor
communes program; and
Consolidation and expansion of some fishing ports as described in paragraph 144 for Rach
Gia.

197.
While the process sounds straightforward, it is recognized that there are competing interests in
the coastal areas of many provinces that can be difficult to reconcile. In any zoning that assigns
development rights to different resource owners, the challenges will be to satisfy the interests of all
stakeholders. Taking account of these pressures, the main beneficiaries should be coastal poor
households and employment generation for them while concurrently assuring that others are not
adversely impacted or compensated for any losses. These are major challenges. However, despite the
difficulties, development of a transparent, consultative and integrated coastal zone planning process is
essential. Regional integrated planning can also be introduced to ensure that boundary effects (e.g.,
development in one province that precludes or damages development activities in a neighboring
province) are eliminated or at least reduced. Other advantages to regional planning should be more
rational regional development. For example, not every province needs the same infrastructure such as
an international airport, container port or sugar mill. Once the objectives have been defined, it should
be possible for provinces to plan their development and major investment projects within a coherent
regional framework with consideration of tradeoffs among competing interests. To achieve this, an
ICZM Committee needs to be established at the provincial level chaired by a Vice Chair of the PPC
with representation of all involved provincial departments and representatives from other key
stakeholder groups.
2. Fisheries Management
a) Inshore Fisheries
198.
Development priorities: Traditionally, fisheries management in has been the responsibility of
the government. However, agencies such as DOFI have lacked the resources of staff or budget to

(42)
provide the required management, monitoring, surveillance or enforcement of Vietnams inshore (or
offshore) waters. With increasing population pressure and the development of more effective (and/or
destructive) fishing gears, inshore resources have been increasingly over-exploited or destroyed. In
this situation, almost the only option for improved resource management is co-management, the
sharing of responsibility for resources management between local communities and government
agencies. Such an approach is easier when countries have a tradition of resource ownership by
communities, as in much of the Pacific. In a situation such as that in Vietnam where marine resources
have traditionally been open access, leading inevitably to a tragedy of the commons, it is more
difficult but not impossible.
199.
Vietnam also has some history of community resource management. Some inland resources
were managed by villages as were the forest resources by some ethnic minority groups. However,
even where inshore resources are shared, rights can be allocated if the national legislative framework
is adequate. The new fisheries law provides the potential for this under Clause 9, providing the basis
for provinces to develop co-management systems with local communities. Some provinces have
already started on such developments, both through the national MPA program (with island MPAs
involving co-management at Cu Lao Cham, Hon Mun and Con Dao under donor financing) and on a
smaller scale in mainland inshore waters in (at least) Quang Ninh, Khanh Hoa, Binh Thuan and Yen
Bai, though these activities are in the early stages for which considerable knowledge has been obtained
and major lessons learned.
200.
Next steps: It is proposed that a co-management program combined with alternative income
generation be started in selected provinces. It is proposed that a co-management program combined
with alternative income generation should be considered in selected provinces. In areas with potential
for co-management, this could involve the following steps:
i.
ii.
iii.
iv.

v.
vi.
vii.
viii.
ix.
x.

Identification of communities with interests in near-shore waters;

Research into current and traditional resources through both diving and recall surveys;
Boundary demarcation depending on population, resources and traditional use through a
series of meetings with communities and groups;
Development of a community fishery management plan, and gazetting it at the province,
following a period for public review and discussion. The management plan could include
such aspects as MPA establishment, fishing limitations (area or gear), mariculture and
shellfish management, and possibly, the development of artificial reefs, fish aggregating
devices and trawl/push net exclusion devices;
Demarcation of the co-management and MPA zones by stakes or buoys;
Provision of support to the community from technical and legal perspectives, especially
how the MPA could be adopted into the national network in order to receive official
recognition and support;
As part of a future project, such a program could be integrated with inshore fisheries
management, brackish water aquaculture where appropriate and more general livelihoods
development;
Organization of low-input/low-output/low-risk aquaculture for poor coastal households
while at the same time emphasizing the formation of marketing groups to better assure
effective market access and benefits;
Where appropriate, assist in providing storm shelter for inshore vessels in association with
estuaries or islands. Environmental factors should be taken into account; and
Continue support for the national MPA program, through developing the scientific basis
for MPA establishment and operation, and funding additional MPAs from the 12 not yet
established.
b) Offshore Fisheries

201.
Development priorities: Vietnam has recognized the need to manage its offshore fisheries.
Article 15 of the Fisheries Law states that the Government shall have responsibility to demarcate sea

(43)
areas and fishing routes, shall authorize powers to relevant Ministries and sectors and provinces to
ensure the close and integrated coordination between fisheries inspection forces at seas and fishing
routes. However, to date, the offshore sector has been considered to be under-exploited, and
therefore has not required intensive management. While there is evidence that the offshore fishery is
becoming increasingly over-exploited throughout the countrys EEZ, it is considered that the
explosive growth in offshore fishing from less than 1,000 vessels over 90 hp in 1997 to nearly 7,000 in
2004 mandates the need for careful management. While few vessels carry fish finders at the moment,
once fish become scarcer, there will be motivation to adopt modern and potentially destructive fish
finding techniques. The increase in effective fishing effort will likely lead to the collapse of the
fishery within 10 years as international experience suggests. Therefore, it is essential to introduce
necessary management measures before the collapse in those areas still reasonably productive, rather
than attempt to rehabilitate a fishery after the event. Nevertheless, for areas, such as the Tonkin Gulf,
where fish stocks have been seriously over-exploited, a radical fisheries control and management
program will be required for its rehabilitation. Definition of a detailed offshore fishery management
program will require substantial research and analysis and particularly, in depth consultation with the
fishing industry. However, discussion with boat owners during fieldwork for the Sector Review
indicate that fishers are prepared to consider management measures, providing they are not
disadvantaged relative to other fishers.
202.
Accordingly, the rationale of containing expanded exploitation of those resources from the
vagaries of continued unrestricted exploitation is by itself sufficient reason to give high priority to
improving the currently rather ineffective sector governance and that the benefits of such a strategy
would exceed the risks. Enforcement of the recently adopted Fisheries Law, particularly the
decentralization of fisheries management and regulation, is a step specifically available to the
government to take more effective action.
203.
Next steps: Steps required for effective offshore fishery management in Vietnamese waters
might include the following steps:
i.
ii.
iii.

iv.

v.

vi.

Define and demarcate fisheries in consultation with industry and research agencies.
Ideally this will include segregation of fisheries by species type, e.g., of fish, shrimp and
squid trawl fisheries as well as area definition;
Establish a monitoring program, and prepare annual assessments of marine resources and
fisheries to provide advice to industry and government for the sustainable management of
fisheries;
Establish in consultation with industry a compulsory logbook system for the offshore
fleet, with necessary supporting legislation, including sanctions for non-compliance. For
such a scheme to be effective, necessary logbook retrieval and analysis systems would
need to be in place;
Review and enforce license limitation program. Care will be required that owners cannot
work around the limits for example, if the offshore fleet is considered as vessels over
90hp, that there is not a rush to develop vessels with 89hp engines. Licenses will need to
include strict area limits;
Define necessary fishing gear restrictions. If fisheries can be differentiated, introduce gear
restrictions specific to individual fisheries. Thus fish and shrimp trawl nets could be
differentiated through foot rope length, wing characteristics, bobbin size and height of
opening. The key factor for fish trawls will be codend mesh size. The current range of 20
to 30mm stretched mesh lets few fish through. Definition of the desirable mesh size for
different fisheries is required, taking account of by-catch ratios, trash fish catch and speed
of trawling. In principle, a mesh size of between 50 and 100mm stretched might be
suitable for fish trawling. Only by full agreement with industry following a research
program could such a major change be instituted, effectively;
Assess potential for improved gear design, such as fish exclusion devices in shrimp trawl
nets and turtle exclusion devices in fish trawls. Possible introduction of net testing in
flume tanks established in the region;

(44)
vii.
viii.
ix.
x.
xi.

xii.
xiii.
xiv.

In order to develop effective consultation with industry, support the development of

VINAFIS as a democratic and powerful organization, representing fishers and fully or
largely independent of government;
Support the research needed for fishing ground and optimal gear definition;
Initially develop with China, a management plan for the Tonkin Gulf fishery;
Overtime, introduce in full consultation with industry, management plans for all fisheries,
including consideration of closed fishing seasons or seasonal gear restrictions in selected
areas;
Assess methods for allocating rights based access to fisheries, including transferable
licensing, individual transferable quotas (if required to limit catches) and (in the long
term) electronic/ remote fishing vessel monitoring. A trial vessel electronic monitoring
activity could be developed under the proposed Tonkin Gulf management plan, perhaps
with research shared between China and Vietnam;.
Review existing surveillance capacity and capability. Develop improved systems.
Consider introduction of incentive system for DOFis where fishers (including foreign
vessels) are caught breaking the law;
Provide incentives for fishers to move to other livelihoods and limit new entrants though a
licensing system; and
Review fishing port needs, including the potential need to consolidate and expand a port
as proposed for Rach Gia.
c) Inland Fisheries

204.
Development priorities: Inland fisheries are important sources of fish and other aquatic
products for rural people living in inland areas, including some of the poorest landless people. Some
forms of inland fisheries development, such as stocking in reservoirs or small-scale water storage
schemes within irrigated areas, may have potential for further development. Inland fisheries
production could likely benefit from the establishment of sanctuaries to protect critical natural habits,
appropriate gear, and closed fishing seasons during the main spawning periods in selected areas.
205.
Next steps: Steps to assure the sustainability and livelihoods of people dependant on inland
aquatic resources would include:
i.
ii.
iii.

Further assessment of the importance to the national economy and local farmers and poor
inland fishers in reference to the trade-offs, particularly of flood control for agriculture;
Identification of appropriate management measures such as appropriate gear and closedfishing seasons in selected areas; and
Establishment of sanctuaries to protect key breeding and nurturing habitats to sustain or
improve productivity and biodiversity conservation.

206.
As a starting point for future interventions, a review on inland fisheries should be prepared,
with specific emphasis on the importance to the national economy and local farmers and poor inland
fishers, biodiversity, and with special reference to the trade-offs, particularly of flood control for
agriculture, and implementation of the new Wetland Decree as applied to inland wetlands.
3. Aquaculture
207.
Development priorities: Aquaculture development is essential to meet anticipated future
demand for aquatic animal products, but interventions are needed to improve environmental
sustainability and poverty focus.
208.
Next steps: Priority steps to increase the contribution of the sector to food supply, poverty
reduction and improve environmental sustainability include:

(45)
i.

ii.
iii.

iv.
v.

vi.

vii.

viii.

ix.

Support to aquaculture (and where relevant small-scale inland fisheries) as a livelihood

option in rural poverty reduction and agriculture diversification programs, including
ongoing/planned World Bank rural poverty reduction projects (Northern Mountain
Project; Water Resources Assistance Project and proposed Agriculture Diversification
Project);
Support to a new initiative for diversified and integrated marine aquaculture as an
alternative coastal livelihood option, particularly for poor inshore fishers, closely oriented
to the new Government 157 poor coastal communes program;
In the shrimp farming sub-sector, supporting improvements in environmental and social
performance, through introduction of better management practices, investments in zoning
and locally-managed infrastructure, improved service delivery and market incentives that
reward better practice, reduce market risks for small-scale farmers and assure food safety.
Unsuitable shrimp farming areas should be identified and other aquaculture options
supported or environmental rehabilitation undertaken;
Development of diversification options in brackish water farming as a low risk option for
poor people living in coastal areas, or small-scale shrimp farmers exposed to excessive
market risks;
Support to formation of local farmer groups with responsibilities for local-management of
aquaculture and locally managed services centers (e.g., in disease control, water
management, environmental monitoring, and access to market/technology/better practice
information and perhaps credit). Using the local farmer groups and service centers as a
focus, gradually extend networking to Provincial and national services (research,
extension) and VINAFIS;
Strengthening of environment and disease surveillance systems in coastal and inland for
monitoring and response to environmental trends and aquatic animal disease outbreaks in
aquaculture areas. Effective coordination is needed with local farmer associations,
Provincial administrations, MOFI and MONRES;
Investment and technical support for quality seed production as prescribed under
Government Program 112 with emphasis on Government to maintaining aquatic genetic
resources, at least for the short-term and the private sector role for mass seed production.
The role and incentives for the private sector to invest in conservation of aquatic genetic
diversity (e.g., for maintaining genetic material for future aquaculture) also should be
explored;
Support the above with an expanded capacity building program oriented towards
vocational level training to strengthen the capacity of farmers, farmer groups, local
administrations and service providers to effectively deliver aquaculture services and better
approaches to local aquaculture planning and management; and
Generally support improved communications within the sector and with other
stakeholders for sharing of better practice and experiences, at all levels, and encourage
greater participation of the poor in policy making and planning.

209.
The above represents a major undertaking. A pilot project approach, involving a combination
of investment and technical assistance, would ideally be used to build and share experiences, gradually
expanding the program pending outcomes of pilots and social, environmental and market conditions.
210.
The program requires a combination of financial investment, such as infrastructure and
operations, and technical assistance for capacity building. Too often in government investments, such
as earlier 225 programs, there has been little attention given to building the skills and institutional
capacity for management, resulting in mixed success and environmental problems. The challenge then
will be to design a balanced program combining capacity building, institutional and policy
development, together with financial investment to ensure a sustainable outcome. As a follow up,
detailed strategies for the potential program elements should be prepared to identify the investment
and technical assistance to implement such a program.

(46)
211.
The vulnerability of small-scale farmers to market and price fluctuations and international
trading standards will become increasingly apparent after Vietnam joins the WTO. This vulnerability
of the sector needs to be managed, perhaps through focusing on local markets, building capacity
among farmer groups, collaboration between small-scale farmers and commercial aquaculture
investors, contract farming, provision of market information, creating links between farmers and
markets, and possibly other options. A special study is therefore recommended on WTO and
aquaculture in Vietnam to assist in developing policy on this critical subject area.
4. Marketing
212.
Development priorities: All fisheries and aquaculture under the market economy needs to be
market driven. Marketing in Vietnam is reasonably efficient and low cost, particularly for export
products though is generally considered weaker for domestically consumed products. A number of
actions are desirable to improve fish product marketing. Some are discussed under the aquaculture
component, such as establishing traceability to the farm for all products as well as price monitoring
and dissemination for effective decision-making. There is also need to explore whether support to the
wholesale marketing sector could improve competition and prices for producers and consumers,
improve hygiene, and foster increased production and benefits to poor communities.
213.
Next steps: A comprehensive marketing study should thus be conducted to evaluate the
efficiency of the marketing system, identify any gaps within it, and assess where unmet demand exists
for products that can be met through aquaculture in particular in Vietnam. Improved price monitoring
and reporting is required to promote effective decision making for investment, production and
marketing as well as broad communication of daily price fluctuations to producers, particularly during
harvest periods. Such a communication system via radio, television, and newspapers needs to be
developed. There is also need to explore whether additional development support to the wholesale
marketing sector to improve competition and prices for producers and consumers, can help foster
further production and benefits to poor communities. Moreover, a strategy needs to be developed to
(1) promote trade in the international and domestic markets; create and support trademark
development; promote diversification of species cultured through a market oriented approach to better
assure financial viability and sustainability; (2) establish a system by which the source of aquatic
products can be traced to the source, should a quality issue be detected along the market channels to
the consumer; and (3) seek assistance from related and qualified institutions involved in market
development of fish and other aquatic products. For more detail, see Appendix L, Section D for
detailed comments from the workshop on the marketing needs in Vietnam.

C. Implementation, Coordination and Follow Up

214.
The program elements outlined above address many of the management, environmental and
poverty issues facing the fisheries sector. Once it has been approved by key stakeholders following
necessary modification, it will need to be developed into a program for implementation. Assuming
that the program contains several of the elements discussed above, it is evident that it will involve a
range of agencies and other stakeholders. Coordination in the design and implementation of the
program will need to be of a high order, for example between MOFI, MARD and MONRE, and at the
provincial level through peoples committee.
215.
Given the complexity of the program, it will be desirable to implement it in a phased manner.
Initially some of the concepts (for example of co-management and micro-MPAs) should be implanted
at a pilot scale at a few communes in selected target provinces. This would allow the necessary
research and development to be completed before attempting wider implementation (e.g., of offshore
fisheries management plans). Priority in ICZM, aquaculture and near-shore co-management would be
given to poor communes. However, it is important that pilot areas chosen are those with the strong
interest and thus the highest or at least very high prospects for success.

(47)
216.
As recommended by the study team, the Ministry of Fisheries should take the lead in
formulating a program of support to the sectors development. As the sector has strong linkages to
other Ministries and agencies working in agriculture, rural development, poverty alleviation and the
environment, the study team proposed the establishment of a fisheries sector steering group to assist in
formulating the program and its coordinated implementation. This fisheries sector steering group may
be organized as a branch of the ISGE under the Ministry of Natural Resources and Environment
(MONRE), since this is already established and operates effectively. The ISGE already has an ICZM
group. I. It will also be essential to link the program closely with donors working in fisheries and
related sectors, including the DANIDA Fisheries Sector Program Support Phase 2 in particular, which
is currently under design.

(48)
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MOFI
MOFI
MOFI
MONRE
Nguyen The Cong

Fishery Sector and WTO Accession, World Bank

Fistenet ttp://www.fistenet.gov.vn [includes sustainable yield estimate]
Fisheries Sector Master Plan
Vietnam Environment Monitor Water
Improving OSH service for female workers, Formulation and
implementation of OSH action program for female workers in the fish
processing industry in Vietnam, National Institute of Labor Protection
Nguyen TT & M Phillips 2004
Policy Research Implications of Liberalisation of Fish Trade for
Developing Countries. A Case Study of . Draft document. Project PR
26109. June 2004. Strategy for International Fisheries Research (SIFAR,
Rome, Italy.
Nho, Pham Van & H Guttman 1999a Aquatic Resources Use Assessment in Tay Ninh
Nho, Pham Van & H Guttman 1999b Aquatic Resources Use Assessment in Long An Province, (results from
1997 survey) AIT AquaOutreach Working Paper No. SV-52
Oxfam GB
1999
Tra Vinh: A Participatory Poverty Assessment (in partnership with Tra
Vinh Province, World Bank and DFID Hanoi)
Phillips MJ
1998
Freshwater cage culture development in the reservoirs of the Central
Highlands of Vietnam. Report to the Mekong River Commission. Phnom
Penh. 124 pp.
Phillips MJ
2002
Fresh water aquaculture in the Lower Mekong Basin. MRC Technical
Paper No. 7, Mekong River Commission, Phnom Penh. 62 pp. ISSN:
1683-1489
Phuong, Dan Minh
2002
The impacts of pesticide use in rice production on aquaculture in the
Mekong delta: a dynamic model. EEPSEA Research Report. Available on
line at http://www.eepsea.org
Province, (results from 1997 survey) AIT Aqua Outreach Working Paper
No. SV-51
Rab M, MM Dey, A Mahfuzuddin
2002 Socioeconomics of Freshwater Fish Farming in Asia, Policy
Research and Impact Assessment Program WorldFish Center, Penang,
Malaysia
SAPA
2000
Proceedings of the Scoping Meeting for Development of the Sustainable
Aquaculture for Poverty Alleviation (SAPA), 23rd-25th May 2000.
Ministry of Fisheries, Hanoi, .
Smith P (Ed)
1999
Coastal Shrimp Aquaculture in Thailand:, Key Issues for Research
(ACIAR)
Tran Duc Luong
2001
An Alternative Design of Trawls for Offshore Fishing In , Nha Trang
University of Fisheries
Tran V N, Dinh V T, Bui TTH, Trinh QT, Le VK, Tuong PL 2004
The shrimp industry in : status,
opportunities and challenges. Unpublished report from the Department for
Fisheries Extension and Socio-economic Studies (DFESS), Research
Institute for Aquaculture No.1, Dinh Bang, Tu Son, Bac Ninh,
UNDP
2001
highland aquaculture.
UNEP/GEF
2002
Report on Economic Valuation of Mangrove Sites
van Anroy, R.
2000
Unpublished FAO report on impacts of 1999 flooding on fisheries and
aquaculture in the Mekong delta. FAO, Hanoi.
World Bank & DFID
1999
: Voices of the Poor (in partnership with Action Aid, Oxfam GB, Save the
Children UK, and -Sweden MRDP, Hanoi)
2004a
2004b
2003
1998

(2)

APPENDIX A. DECREE 106: COASTAL COMMUNES FACING

SPECIAL DIFFICULTIES
Danh sch cc x c bit kh khn
vng bi ngang ven bin v hi o
(Ban hnh km theo Quyt nh s 106/2004/Q-TTg
ngy 11 thng 6 nm 2004 ca Th tng Chnh ph)
_____
1. Tnh Qung Ninh

2. Tnh Ninh Bnh

3. Tnh Thanh Ha

4. Tnh H Tnh

Huyn Vn n
nt
nt
nt
Huyn Kim Sn
nt
nt
Huyn Tnh Gia
nt
nt
nt
nt
nt
Huyn Qung Xng
nt
nt
Huyn Hu Lc
nt
Hong Ha
nt
nt
Huyn Nga Sn
nt
nt
nt
Huyn Nghi Xun
nt
nt
nt
nt
nt
nt
nt
Huyn Cm Xuyn
nt
Huyn K Anh
nt
nt
nt
nt
nt
nt
nt
Huyn Can Lc
Huyn Thch H
nt
nt

01. X Bn Sen
02. X i Xuyn
03. X Vn Yn
04. X Thng Li
05. X Kim Hi
06. X Kim Trung
07. X Kim ng
08. X Ninh Hi
09. X Tnh Hi
10. X Hi Lnh
11. X Hi Ninh
12. X Hi An
13. X Hi Yn
14. X Qung Thch
15. X Qung Li
16. X Qung Thi
17. X Ng Lc
18. X a Lc
19. X Hong Thanh
20. X Hong Trng
21. X Hong Tin
22. X Nga Thin
23. X Nga Tn
24. X Nga in
25. X Nga Thi
26. X Xun Trng
27. X Xun Lin
28. X Xun Yn
29. X Xun Thnh
30. X Xun Hi
31. X Xun Ph
32. X Xun Hi
33. X Xun an
34. X Cm Lnh
35. X Cm Dng
36. X K Ninh
37. X K Nam
38. X K Phng
39. X K Li
40. X K Xun
41. X K H
42. X K Ph
43. X K Khang
44. X Thnh Lc
45. X Thch Lc
46. X Thch Bng
47. X Thch Bn

(3)

5. Tnh Ngh An

6. Tnh Qung Bnh

7. Tnh Qung Tr

8. Tnh Tha Thin Hu

9. Tnh Qung Nam

nt
nt
nt
nt
nt
Huyn Din Chu
nt
nt
Huyn Qunh Lu
nt
nt
Huyn Nghi Lc
Th x Ca L
Huyn L Thy
nt
nt
nt
Huyn Qung Trch
nt
nt
nt
Huyn Qung Ninh
Huyn B Trch
Huyn Hi Lng
nt
Huyn Vnh Linh
nt
Huyn Triu Phong
Huyn Phong in
nt
nt
Huyn Qung in
nt
nt
nt
Huyn Ph Vang
nt
nt
nt
nt
nt
nt
nt
Huyn Ph Lc
nt
nt
nt
nt
Huyn Hng Tr
nt
Th x Tam k
nt
nt
Huyn Thng Bnh
nt
nt
Huyn Ni Thnh
nt

48. X Thch Hi
49. X Thch Tr
50. X Thch Vn
51. X Thch Hi
52. X Thch nh
53. X Din Vn
54. X Din Trung
55. X Din Bch
56. X Qunh Lc
57. X Qunh Th
58. X Qunh Lin
59. X Nghi Tin
60. Phng Nghi Tn
61. X Ng Thy (Ng Thy Nam)
62. X Ng Ha (Ng Thy Bc)
63. X Hi Thy (Ng Thy Trung)
64. X Sen Thy
65. X Ph Ha
66. X Qung ng
67. X Qung Vn
68. X Qung Hi
69. X Hi Ninh
70. X M Trch
71. X Hi An
72. X Hi Kh
73. X Vnh Thi
74. X Vnh Thch
75. X Triu Lng
76. X Phong Chng
77. X in Hng
78. X in Hi
79. X Qung Li
80. X Qung Thi
81. X Qung Cng
82. X Qung Ngn
83. X Ph a
84 X Vinh Thi
85. X Vinh Ph
86. X Vinh H
87. X Ph Xun
88. X Ph Thanh
89. X Ph Din
90. X Vinh Xun
91. X Vinh Hi
92. X Lc Vnh
93. X Vnh M
94. X Vinh Hin
95. X Vinh Giang
96. X Hng Phong
97. X Hi Dng
98. X Tam Ph
99. X Tam Thng
100. X Tam Thanh
101. X Bnh Hi
102. X Bnh Dng
103. X Bnh Nam
104. X Tam Ha
105. X Tam Tin

(4)

10. Tnh Qung Ngi

11. Tnh Bnh nh

12. Tnh Ph Yn
13. Tnh Ninh Thun
14. Tnh Long An
15. Tnh Bn Tre

16. Tnh Tr Vinh

17. Tnh Sc Trng

18. Tnh Bc Liu

19. Tnh Tin Giang
20. Tnh C Mau
21. Tnh Bnh Thun

nt
nt
nt
Huyn Duy Xuyn
nt
Huyn Bnh Sn
Huyn L Sn
Huyn Quy Nhn
nt
nt
nt
Huyn Ph M
nt
nt
nt
Huyn Ph Ct
nt
nt
nt
nt
Huyn Tuy An
nt
Huyn Sng Cu
Huyn Ninh Phc
nt
Huyn Ninh Hi
Huyn Chu Thnh
Huyn Cn Giuc
nt
Huyn Thch Ph
nt
nt
Huyn Bnh i
Huyn Cu Ngang
Huyn K Sch
nt
nt
nt
Huyn C Lao Dung
nt
Huyn ng Hi
Huyn G Cng ng
Huyn Ph Tn
Huyn Tuy Phong
nt
nt
nt
nt
Huyn Hm Tn
Huyn Hm Thun Nam
nt
Thnh ph Phan Thit

106. X Tam Hi
107. X Tam Giang
108. X Tam Anh
109. X Duy Ngha
110. X Duy Hi
111. X Bnh Ph
112. X An Bnh
113. X Nhn Chu
114. X Nhn Hi
115. X Nhn L
116. X Nhn Hi (x o)
117. X M Th (ven m)
118. X M Thng (BN)
119. X M An (x BN)
120. X M Thnh (BN)
121. X Ct Thnh
122. X Ct Khnh
123. X Ct Minh
124. X Ct Tin
125. X Ct Chnh
126. X An Hi
127. X An Ph
128. X Xun Thnh
129. X Phc Dinh
130. X An Hi
131. X Vnh Hi
132. X Thnh Vinh ng
133. X Tn Lp
134. X Phc Vnh ng
135. X An Quy
136. X An Thun
137. X An Nhn
138. X Tha c
139. X M Long Nam
140. X Nhn M
141. X An Lc Thn
142. X An Lc Ty
143. X Phong Nm
144. X i n
145. X An Thnh
146. X An Phc
147. X Bnh Xun
148. X Tn Hi
149. X Ha Ph
150. X Lin Hng
151. X Phan R Ca
152. X Vnh Tn
153. X Phc Th
154. X Sn M
155. X Tn Thun
156. X Tn Thnh
157. X Tin Thnh

(5)

APPENDIX B: FISHERIES SECTOR STATISTICS

Table A-1 Marine fish landings (000t)

Total North
North Central
South Central
South

1993 1994 1995 1996

34.5 37.0 42.2 44.9
78.2 86.6 86.8 71.3
250.6 261.4 288.8 289.3
426.4 497.1 533.2 551.6

1997
45.9
95.4
336.8
596.6

1998
57.3
104.0
335.8
650.5

1999
63.3
115.6
350.6
680.3

2000
71.5
124.0
361.1
720.9

2001
79.6
124.3
391.3
799.0

2002
90.3
141.2
401.5
770.7

2003
95.1
156.4
411.0
805.7

Provinces total
Other

789.8 882.1 950.9 957.0 1074.8 1147.6 1209.8 1277.5 1394.2 1403.7 1468.2
8.3
7.9
3.8
4.0
3.9
3.8
3.0
3.1
1.5
2.5
2.0

Total

798.1 890.0 954.6 961.0 1078.6 1151.4 1212.8 1280.6 1395.8 1406.2 1470.2

Source: MOFi FICEN

Table A-2 National mechanized fishing fleet, 1991 to 2002

Mechanized vessels
Number of vessels
Northern
North Central
South Central
Mekong
Total
State Enterprises
Total
Total '000 hp
Northern
North Central
South Central
Mekong
Total
State Enterprises
Total
Average hp/vessel
Northern
North Central
South Central
Mekong
Total
State Enterprises
Total

1991

1992

1993

1994

1995

1997

1998

1999

2000

2001

2002

2149
9358
18935
13746
44188
159
44347

7229
11658
20864
13807
53558
148
53706

7403
13567
23588
15985
60543
108
60651

7155
14926
25289
16421
63791
68
63859

7158
16129
26150
18791
68228
68
68296

6326
16057
26039
19986
68408
44
68452

7026
17630
26384
20725
71765
36
71801

8974
16756
26243
21557
73530
32
73562

9118
16959
25845
21958
73880
38
73918

9127
16791
26208
22331
74457
38
74495

10671
17390
26671
21997
76729
44
76773

41
128
300
279
749
50
799

80
152
351
364
947
38
985

87
179
414
487
1166
31
1197

87
210
494
706
1498
29
1527

91
239
561
786
1678
29
1707

130
280
666
1031
2107
19
2126

151
325
710
1226
2413
15
2428

196
366
782
1469
2813
16
2829

217
398
829
1797
3241
19
3260

221
411
869
1977
3479
19
3497

261
443
928
2052
3683
19
3701

19
14
16
20
17
314
18

11
13
17
26
18
258
18

12
13
18
30
19
285
20

12
14
20
43
23
424
24

13
15
21
42
25
424
25

21
17
26
52
31
422
31

22
18
27
59
34
412
34

22
22
30
68
38
498
38

24
23
32
82
44
498
44

24
24
33
89
47
498
47

24
25
35
93
48
422
48

00
156.3
246.1
115.9
37.4
1.9
555.8

01
160.7
249.8
121.7
37.5
1.9
569.7

Source: MOFi Fisheries Informatics Division

Table A-3 Fisheries labor (000)

South
S Central
N Central
North
SOEs
Total

93
78.1
144.2
103.8
35.9
2.2
362.0

94
92.2
157.3
99.5
38.0
2.2
387.0

97
143.5
187.7
108.5
42.6
1.7
482.3

98
154.8
195.6
111.9
46.0
1.8
508.4

99
155.7
242.9
110.6
37.9
1.9
547.1

02
167.8
215.9
112.1
58.1
1.9
553.9

Source: FICEN

Table A-4 Estimated fish stocks and allowable catches

Fish stock

TAC

(6)
Depth

tons
390,000
39,200
252,000
681,200

%
57
6
37

tons
156,000
15,700
100,800
272,500

%
57
6
37

< 50m
> 50m

500,000
18,500
87,900
606,400

82
3
14

200,000
7,400
35,200
242,600

82
3
15

< 50m
> 50m

524,000
349,200
1,202,700
2,075,900

25
17
58

209,600
139,800
481,100
830,500

25
17
58

Small pelagic
Demersal < 50m

316,000
190,700
506,700

62
38

126,000
76,300
202,300

62
38

Floating knoll
Total sea area

Small pelagic
Deep sea pelagic a/

10,000
300,000

100

2,500
120,000

100

Total

Small pelagic
Demersal
Demersal
Deep sea pelagic a/

1,730,000
597,600
1,542,600
300,000
4,180,200

41
14
37
7
100

694,100
239,200
617,100
120,000
1,672,900

41
14
37
7
100

Tonkin Gulf

Central Region

South Eastern

Small pelagic
Demersal
Demersal
Total

< 50m
> 50m

Small pelagic
Demersal
Demersal
Total
Small pelagic
Demersal
Demersal

Total
South western
Total

< 50m
> 50m

Total

a/ Data presumed according to total catch of the countries in this area.

Source: MOFi FISTENET http://www.fistenet.gov.vn/index_En.asp

Table A-5 Budget expenditure on fisheries by type by central and local government 1997-2002

1997
1998
1999
2000
2001
2002
Share

1997
1998
1999
2000
2001
2002

( billion)
Total State
Capital Current
Current Current exp
State
Expenditure Expenditure
Exp Salaries &
O&M Expenditure:
**
Total
wages
Central
103
60
42
8
33
42
484
453
30
6
19
426
275
230
46
8
31
181
157
106
51
12
34
50
376
300
76
15
52
102
478
384
94
16
60
104
Share in
Share in
Share in Share in Share of Share in
total total O&M sector's total
total budget total cap
total
exp % public exp %
%
exp % recurrent salaries %
exp %
0.3
0.1
0.0
0.2
41.4
0.1
1.9
0.1
0.0
0.1
88.1
0.7
0.7
0.1
0.0
0.2
65.8
0.3
0.3
0.1
0.0
0.1
32.0
0.2
0.7
0.1
0.0
0.2
27.1
0.3
0.7
0.1
0.0
0.3
21.9
0.4

State
Expenditure:
Local
60
58
94
107
274
373
Share in
sector's total
public exp %
58.6
11.9
34.2
68.0
72.9
78.1

exp = expenditure, O&M = operation and maintenance

*
not including expenditure for social support, price subsidies, additional transfers to the lower levels, interest payment
and other current expenditure.
** Including expenditure on major repairs
Source: Ministry of Finance, 2004

(7)
Table A-6 ODA to fishery sector, 1997-2002 ($ million)
Total ODA
Disbursed

Investment TA
Projects

Other
projects

12.05
4.89
6.46
7.72
7.78
4.16
43.05

7.69
2.48
3.80
4.80
6.32
3.30
28.38

4.36
2.41
2.66
2.92
1.45
0.86
14.66

1997
1998
1999
2000
2001
2002
Total

% ODA in National Portion of IPA & IPT

Fisheries Budget
in total ODA
182%
16%
37%
77%
32%
14%
36%

64%
51%
59%
62%
81%
79%
66%

ODA = official development assistance,

Source: UNDP Vietnam Development Cooperation, 2003.

Figure A-1 Marine capture fish landings in Thailand, Malaysia and Viet Nam
3500

Marine landings '000t

3000

Thailand

2500

Malaysia

2000

Viet Nam

1500
1000
500

Source: FAO FishStat

2000

1995

1990

1985

1980

1975

1970

1965

1960

1955

1950

APPENDIX D
Page 1

APPENDIX C: PERSONS AND INSTITUTIONS CONSULTED

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Dr Nguyn Vit Thng

Mr Phm Trng Yn
Mr Dng Tin
Mr Sn
Dr Nam
Mr Oai
Ms Lan
Mr Lm
Mr Chiu
Mr Chung
Mr o Q Thu
Mr Nguyn Vn T
Mr Ngn
Mr Hong Vit Khang

15. Ms L Minh Ton

16.
17.
18.
19.

Mr Nguyn c Hng
Mr Phong
Mr David Brown
Mr Lars Joker

20. Mr Karl Johan Staehr

21.
22.
23.
24.
25.

Dr Nguyn Long
Mr Nguyn Vit Ngha
Mr Nguyn Khc Bt
Mr Phan Huu Dung
Mr Truong Trong Nghia

Position
Vice Minister
Deputy director
Senior expert
Specialist
Deputy head
Specialist
Deputy head
Head
Senior expert
Deputy head

Deputy Director
General
Expert
Expert

Chief Technical
Adviser
Chief Technical
Adviser
Deputy Director
Deputy head
Deputy head
Director
Vice-Dean

26. Le Xuan Sinh

27.
28.
29.
30.

Dr Thi Thanh Dng

Mr Dng Long Tr
Ms Phm Tuyt Nhung
Dr V Vn Xng

Department
International Cooperation Department
Dept of Fisheries
Dept Finance & Accounting
Dept of Sciences and Technology
Department for Fisheries Protection
NAFIQAVET
National Agriculture Extension Centre
International Cooperation Department
International Cooperation Department
Dept for Agriculture and Forestry
Dept for Agriculture and Forestry
Dept for Agriculture and Forestry
Foreign Economic Relation Department

Institution
MoFi
MoFi
MoFi
MoFi
MoFi
MoFi
MoFi
MARD
MARD
MARD
MPI
MPI
MPI
MPI

Department of Environment

MONRE

Department of Environment

MONRE
ADB

WB Coastal Wetlands Project

STOFA -Strengthening of the Fisheries
Administration
ALMRV

Department for Marine Resource Research

Department for Marine Resource Research
Saigon-Vietlong Fishery Company
College of Aquaculture and Fisheries
Dept Fishing & Fisheries Resource Mgmt
College of Aquaculture and Fisheries

Director
Vice Director
Vice Director
Vice Rector

FSPS
FSPS
RIMF
RIMF
RIMF
Can Tho
University
Can Tho
University
FICEN
FICEN
FICEN
University of
Fisheries
University of
Fisheries
Institute of
Oceanography
Institute of
Oceanography
RIA2
RIA3

31. Dr Hong Tng

Rectors Assistant

32. Dr Nguyn Tc An

Director

33. Dr V S Tun

Deputy director

34. Mr Trung
35. Mr Nguyn Hng in

Vice Director
Director

36. Mr Bernard OCallahan

Project Adviser

37. Mr H Vn Trung Thu

38. Mr Trng Knh

Project Coordinator
Director
Nha Trang Bay MPA Authority

Hn Mun MPA
Nha Trang
Hn Mun MPA
Hn Mun MPA

39. u Vn Cng
40. Nguyn Thanh Ngc
41. Mr inh Khc Nhn

Vice Director
Director
Chairman

Hai Phong City

Hai Phong City
Hai Phong City

42. Mr Nguyn Duy Hng

Vice Chairman

DOFi
Bc Hi collective Corporation
Lp L Fishing Cooperative, Thu Nguyn
District
Peoples Committee of Qung Ninh

Qung Ninh

APPENDIX D
Page 2

44. Mr Cao Tuy

Deputy head

DOFi

45. Mr Nguyn Phi Hng

Chairman

People Committee of Vn n District

46.
47.
48.
49.
50.
51.

Vice Chairman
Director
Vice Director
Director
Vice Director
Chief of
Agriculture Unit
Deputy
Administrator
Chief Unit
Deptuy Director
Deputy Head
Vice Chairman
Deputy
Chairman of
Council
Vice Chairman
Director

Peoples Committee Thanh Ho Province

DOFI
DARD
Dept of Science and Technology
Dept of Fisheries
Peoples Committee

prov
Qung Ninh
prov
Qung Ninh
prov
Qung Ninh
prov
Thanh Ho Prov
Thanh Ho Prov
Thanh Ho Prov
Thanh Ho Prov
Thanh Ho Prov
Thanh Ho Prov

Peoples Committee

Thanh Ho Prov

Dept of Planning and Investment

DOLISA
Policy Unit of DOLISA
Ninh Hai commune, Tinh Gia district
Social and Labour Unit

Thanh Ho Prov
Thanh Ho Prov
Thanh Ho Prov
Thanh Ho Prov
Thanh Ho Prov
Thanh Ho Prov

Peoples Committee
Dept of Fisheries
Dept of Fisheries
Dept of Science and Technology
Dept of Resources and Environment
Dept of Planning and Investment
Dept of Finance
Peoples Committee Office
Dept of Social and Labour Dept
Ky Anh district
Thach Ha district
Cam Xuyen district
Department of Agriculture and Rural
Development

H Tnh Prov
H Tnh Prov
H Tnh Prov
H Tnh Prov
H Tnh Prov
H Tnh Prov
H Tnh Prov
H Tnh Prov
H Tnh Prov
H Tnh Prov
H Tnh Prov
H Tnh Prov
H Tnh Prov

Peoples Committee Thach Bang village,

Thach Ha District
Xuan Pho fishing port
Nghe An Seaproduct Import-Export Joint
Stock Company
Vinh Rach Dong village
Department of Fisheries
Fishery Extension Centre
Dept of Fishery Management
Hoa Binh village
Peoples Committee
DOFI
DOFI
DOFI
MinhPhu seafood coorpearation
Camau sea food processing import and
export company (CAMIMEX)
Ca Mau Fishing port

H Tnh Prov

43. Mr Vit

Mr Mai Van Ninh

Mr Bao
Ms Sang
Mr Nam
Mr Dang Van Thong
Hanh

52. Le Kha Cat

53.
54.
55.
56.
57.
58.

Mr Trinh Ngoc Dong

Mr Mai Xuan Xinh
Mdm Nguyen Thi Ly
Mr Nguyen Xuyen Thuy
Mr Le The Ky
Mr Dau Van Lan

59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.

Le Van Chat
Bui Tung Phong
Le Duc Nhan
Nguyen Xuan Tinh
Vo Ta Dinh
Dung Viet Hung
Phan Cao Thanh
Nguyen Van Thanh
Dao Quang ??,
Nguyen Ba Song
Do Khoa Van
Nguyen Duc Quang
Tran Nghia

Aquaculture Enterprise

Director
Vice Director
Vice Director
Vice Director
Vice Chief
Vice Director
Vice Chairman
Vice Chairman
Vice Chairman
Team leader of
Irrigation

72. Mr Phann Dinh Cong

Chairman

73. Le Duc Nien

74. Ho Thi Hang

Vice-Director
Deputy Director

75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.

Villager
Vice Director
Director

Mr Tach Sao
Le Minh Chien
Huynh Quoc Khoi
Mr Truc
Mr Binh
Mr Bui Cong Chu
Mr Pham Van Duc
Mr Ha
Mr Hoang Quoc Viet
Mr Le Van Quang
Mr Pham Thanh Ky

86. Mr Bui Chien

shrimp farmer
Chairman
Director
Vice Director
Vice Director
General director
Vice director
Director

H Tnh Prov

Bac Lieu Prov

Bac Lieu Prov
Bac Lieu Prov
Bac Lieu Prov
Bac Lieu Prov
Ca Mau prov
Ca Mau prov
Ca Mau prov
Ca Mau prov
Ca Mau prov
Ca Mau prov
Ca Mau prov

APPENDIX D
Page 3
87. Mr Nguyen Van Nhieu, Mr
Nguyen Thanh Ut
Mr Bui Van Tam
Mr Vo Van Kiep
Mr Nguyen Van Be
88. Mrs Nguyen Ngoc Phuong
89. Mr Ho Van Chien
90. MrNgo Anh Kinh
91. Mr Ngo Thanh Tam
92. Mr Le Van Thieu
93. Mr Nguyen Lam Son
94. MrsVo Thi Van
95. Mrs Le Thi Nhut
96. Mr Phung Van Thanh
97. Mr Tran Vinh
98. Mr Buu
99. Mr Ong Van Khan
100Ho Xuan Quang
101Nguyn Th Hoa
102Mr Quch Thanh S n
103Ms Trn M Trang
104Ms Ng Th Thu Thanh
105Ms Hng
106Mr L Vn Tun
107Mr Nguyn Vn Chin

108Mr Nguyn Hong Thi

Vinh
109Mr Trn Hu c
110Mr Vn Nam

Farmers

Luong The Tran commune, Cai Nuoc district Ca Mau prov

Vice Dir
Vice Director
Vice Dir
Vice Dir
Specialist
Head
Vice Director
Head
Vice Dir
Deputy Head
Farmer
Farmer
Director

Fisheries Department
Extension Centre
Sea food export and import company
Training centre, DOLISA
DOFI
Administrative Depart, DOFI
DONRE
TECHNICAL DEPART, DOFI
DOSTE
Planing and investment Division, DOFI
Phong To Chau village, Ha Tien
Ha Tien
Kien Giang fishing port Management
Company, Tac Cau Fishing port
Aquaculture Division, DOFI of Khnh Ho
Division for Planning, DOFI of Khnh Ho
Trading Department

Deputy head
Head
Manager
Accountant
Director assistant
Deputy director
Head Department
for Economy and
technology
Head Division of
Marine resource
protection
Specialist

DOFI
DOFI

Khanh Hoa prov

Khanh Hoa prov
Nha Trang Fisco
Nha Trang Fisco
Nha Trang Fisco
Bnh Thun Prov
Bnh Thun
prov

DOFI of Bnh Thun

Bnh Thun
prov

DOFI of Bnh Thun

Bnh Thun
prov
Bnh Thun
prov
Bnh Thun
prov
Bnh Thun
prov

111Mr T Nghi L

Director Phan Thiet

Fishing Port
Director
Export-Import Company of Bnh Thun

112Ms H Th Xun

Deputy director

The management board for fisheries

infrastructure project of Bnh Thun

113Mr H Lm

Deputy head

DONRE of Bnh Thun

114Mr Nguyn Vn Cht

Specialist

DOSTE of Bnh Thun

115Mr Nguyn Thnh Hng

Kien Giang
Kien Giang
Kien Giang
Kien Giang
Kien Giang
Kien Giang
Kien Giang
Kien Giang
Kien Giang
Kien Giang
Kien Giang
Kien Giang
Kien Giang

DARD of Bnh Thun

Bnh Thun
prov
Bnh Thun
prov
Bnh Thun
prov
Bnh Thun
prov

Head Division of
Planning
116Mr L Dng Xng Hun Deputy head of
Division of
Economy
117Mr Trng Minh Chnh
Vice chair
118Mr Phm Minh Tin
Director
119Mr Trn Anh Xun
Vice Director
120Mr Pham Van Dang
Vice Director
121Mr Hunh Vn c
Vice Director

PPC of Sc Trng
DoFi of Sc Trng
DOLISAof Sc Trng
DONRE of Sc Trng
DOSTE of Sc Trng

Sc Trng prov
Sc Trng prov
Sc Trng prov
Sc Trng prov
Sc Trng prov

122Mr Mai Phc Hng

123Mr Nguyn i Lng
124Mr Tiu Cm Chu
125Mr Craig Perry

DPI of Sc Trng
Trn Fishing Port
Ut Xi Aquaproducts Processing Company
Phillips Seafood (Vietnam) Co Ltd

Sc Trng prov
Sc Trng prov
Sc Trng prov
Nha Trang

Vice Director
Director
General Manager
Country Manager

DPI of Binh Thuan

APPENDIX D
Page 4

APPENDIX D: FISHERIES LAW AND POLICY FRAMEWORK

D. Fisheries Law
The fisheries law that became effective in July 2004 contains 62 articles, summarized below:
1:
2:
3:

Application of the Law

Explanation of terms
Property over fisheries resources
Fisheries resources shall be subject to the ownership of the people and under the integrated
management of the State.
4: Principles in fisheries activities
Promotes economic effectiveness in accordance with the protection, rehabilitation and
development of fisheries resources and biodiversity and protection of the environment.
Development in accordance with national and provincial master plans. Prevent, avoid or mitigate
adverse impacts caused by natural disaster and fish diseases; promote the safety of humans,
fishing vessels and facilities
5: Sustainable fisheries development
Subject to master plan
6: Prohibited activities in fisheries activities
Subject to master plan
7: Habitat protection
8: Conservation, protection, rehabilitation and development of fisheries resources
Including fishing methods, types of fishery and fishing gear which are prohibited to be used or are
restricted to be used; species, size and seasonal limits and the issue by provinces of necessary
supporting regulations
9: Planning and management of inland protected areas and marine parks
10: Financial sources for rehabilitation of fisheries resources
11: Principles in fishing operations including issues of sustainability, seasonal, gear, species and size
limitations
12: Offshore fishing
13: Coastal fishing
14: Survey and research of fisheries resources
15: Management of fishing grounds
16: Fishing license
17: Conditions for granting fishing license
18: Withdrawal of fishing license
19: Fishing report and logbook
20: Rights of organizations and individuals engaged in fishing operations
21: Obligations of organizations and individual engaged in fishing operations
22: Prevention, control and mitigation of adverse impacts caused by natural disaster during fishing
operations
23: Master plan on aquaculture development
24: Aquaculture conditions
25: Rights of organizations and individuals engaged in aquaculture
26: Obligations of organizations and individuals engaged in aquaculture
27: Allocation, lease and revocation of aquaculture land
28: Allocation and lease of marine areas for aquaculture
Subject to master plan
29: Withdrawal of marine areas allocated and leased for aquaculture purposes
30: Rights of organizations and individuals to whom the marine areas are allocated and leased for
aquaculture
31: Obligations of organizations and individuals using marine areas for aquaculture
32: Concentrated aquaculture areas
33: Fish fry

APPENDIX D
Page 5
34:
35:
36:
37:
38:
39:
40:
41:
42:
43:
44:
45:
46:
47:
48:
49:
50:
51:
52:
53:
54:
55:
56:
57:
58:
59:
60:
61:
62:

Quality, trade, new species, monitoring

Import and export of fish fry
Aquaculture feed; drugs and chemicals used in aquaculture
Prevention and control of fish disease
Development of fishing vessels
Subject to master plan, promotion of offshore vessels; vessel import
Building and upgrade of fishing vessels
Inspection of fishing vessel
Registration of fishing vessel and its crew members
Fishing ports, fish landing sites, storm-resistant places of fishing vessels
Subject to master plan
Fish wholesale market
Subject to master plan, support for investment, management systems and technical standards
Processing of fish and fishery products
Plant development in accordance with master plan, standards, staffing, product quality
Preservation of fish materials and products
Fish quality, hygiene and safety
Import and export of fish and fishery products
Principles in international cooperation on fisheries activities
Development of international cooperation on fisheries activities
Fishing in sea waters beyond the jurisdiction of Vietnam
Foreign fishing in Vietnam sea waters
Content of State management of fisheries activities
State management duties on fisheries activities
Fisheries inspection force
Duties of fisheries inspection force
Competence of fisheries inspection force
Duties of organizations and individuals during fisheries inspection activities
Rewards [in relation to contribution to the enforcement of this Law]
Sanction
Complaints and denunciation
Transitional provisions
Entry into force [The Law came into force from July 1st 2004]
Executive guidelines

E. Policy Framework
(a) Marine Capture Fisheries
In 1997, under Decision 274 TTg of April 1997, established a committee to develop policy for
offshore fishing. This was supported by Decision 393 covering construction and financing of offshore
vessels. The decision was considered urgent and was introduced without feasibility study. Other
problems related to allocation of benefits under the scheme and lack of transparency and inflexibility.
SoEs were not required to provide any collateral. Households were required to provide 15%
collateral, but were permitted to use the boat itself as collateral. A financed vessel could also be used
as collateral for a second or other vessel. No new boats have been financed since 2001.
Decree 48CP of August 1996 and 91CP of August 1997 banned illegal fishing methods and promoted
resource protection. All types of fishing vessels were required to be registered. Ordinance
1/1998/CT-TTg strictly forbade dynamite, poison and electric fishing.
Circular 600/TTL between MOFI and Ministry of Transport defined the measures required fishing
vessel security (e.g., life jackets and flares).
Decision 358TTg of May 1997 defined the priority to be given to offshore fishing and established a
five-year tax holiday for all offshore vessels (e.g., the 3% natural resources tax).

APPENDIX D
Page 6
Responsibility for management of inland waters was passed to communities or individuals under
Decision 100 of (about) 1999.
A range of decisions between 1997 and 2001 established fisheries departments in all
coastal provinces.
(b) Aquaculture
Decision No. 224/TTg Aquaculture development 1999-2010, approved by the Prime Minister in
December 1999, that supports the expansion of aquaculture production, and laid a foundation for
further government investments in the sectors development.
Resolution 09/2000/NQ-CP issued by the government in June 2000 on policies for economic transition
and consumption of agro products. Together with Decision 224, this has stimulated rapid
development of the aquaculture sector.
Decision 103/2000/QD-TTg dated from August 2000 encouraged the development of fish seed.
Decision 173/2001/QD-TTg of November 2001 focused on the socio-economic development of the
Mekong Delta, and through allowing conversion of agriculture land, stimulated major expansion of
shrimp in rice farming areas.
Decision 112 Fish Seed Program, June 2004 which complements the 224 Decision with a focus on
fish, shrimp and mollusk seed for the aquaculture sectors development.
The Law on Environmental Protection that provides a basis for EIA, and supporting guidelines that
include reference to EIA for aquaculture projects and aquaculture plans.
The Decree on the conservation and development of wetlands approved in September 2003.
Policies concerning Land Administration included the 2004 revised Land Law that
influences the allocation and use of land for aquaculture.
(c) Processing and Export
Decision 13 of January 1997 defined the need to register certain types of production, which were
required to be quality controlled (relating to most products apart from dried products, fish meal and
fresh fish sold through markets)
Decision 18 of April 1998 banned the introduction of contaminants to increase sale weight (e.g., of
shrimp)
Decision 178 of September 1998 supported the provision of export credits to processors
Decision 251 of December 1998 approved the fisheries processing and export development program to
2005
Decision 425 of May 2001 defined quality standards for fisheries commodities
Decision 251/1998/Q-TTg, of December 1998, on approval of a program on Development of
Fisheries Exports to the year 2005

APPENDIX E
Page 1

APPENDIX E: MARINE PROTECTED AREAS CURRENT STATUS

As a way of preserving biodiversity of fish, corals and other organisms, a series of 15 marine protected
areas have been proposed, within a national MPA network managed by the Ministry of Fisheries.
Three of the 15 sites have already been funded and are under implementation, Hon Mun (Khanh Hoa
Province commencing in 2000 under WB/Danida/IUCN financing, Cu Lao Cham (from 2003 as part
of a DANIDA funded project) and Con Dao (commencing this year with support from
UNDP/GEF/WWF).
The 15 proposed MPAs are as follows:
Location
The Gulf of Tonkin
1. Tran island

Deepest (m) Type/ category

Province/ city Remarks

10 Unidentified

Quang Ninh

2. Co To island

20 MPA

Quang Ninh

3. Cat Ba island

35 MP

Hai Phong

4. Bach Long Vi island

30 Marine nature reserve

Hai Phong

5. Me Isle

20 MPA

Thanh Hoa

6. Con Co island

20 MPA

Quang Tri

7. Hai Van- Son Tra island

30 MPA & Fishery Cons.

Thua ThienHue

Central coastal seas

8. Cu Lao Cham

30 MPA

Quang Nam

9. Ly Son island

Unknown

Frontier island, lack of information &

data
An island district, not specifically
zoned
An island based NP was established by
the Govt's decision (1986) with 540 ha
of sea waters (the East Sea)
Frontier island district, with the highest
coral coverage & larger reefs
A broader coral range, but higher-level
threats. 11 new species of fish
discovered for VN.
Intact coral reef with high level
diversity, located within the base line
Including Son Tra isle, northern Hai
Van & Lang Co lagoon, highest
diversity of habitats
Intact coral reef with unique structures,
diversity of coral fish & valuable
genetic resources
Coral reef developed on a volcano,
multiple valuable & rare species
Highest diversity of coral biome, most
abundance of coral ichthyofauna, many
rare & valuable species
Intact coral reef, high biodiversity,
many rare & valuable species, breeding
grounds of fishes and sea turtles
Diverse fisheries resources, and highest
harvesting yield in VN, a logistic base
for fishery & eco-tourism sectors

MP

Quang Ngai

10. Hon Mun-Bich Lam

30 MP

Khanh Hoa

11. Hon Cau-Vinh Hao

27 Habitat/Species Cons.
area

Binh Thuan

12. Phu Qui island

42 Unidentified

Binh Thuan

East Southern coastal seas

13. Con Dao

50 MP

Ba Ria-Vung High biodiversity, characteristic coral

Tau
reef, 60 rare species listed in Red Data
Book of VN, a NP since 1993, with
9000 ha of sea waters. Regional level
PA recognized internationally.

West Southern coastal seas

14. Phu Quoc

10 MP

Kien Giang

Including An Thoi island cluster, high

biodiversity, hawksbill turtle and dugon
occur, multiple frontier islands

Khanh Hoa

International level biodiversity center,

coral islands, sovereign right in being
disputed.

Off-shore Paracel and Spratly seas

15. Spratly

3000 Marine nature reserve

MP = marine park, MPA = marine protected area

Hon Mun, was the first MPA to be established through a 4 year, $2 million project co-funded by
Global Environmental Facility (GEF), Danish International Development Agency (Danida), IUCN and

APPENDIX E
Page 2
the government. The project aims at protecting important examples of Vietnam's best remaining coral
reef, mangrove and seagrass ecosystems, and at the same time enabling local island communities to
improve their livelihoods and, in partnership with other stakeholders, effectively protecting and
sustainably managing the marine biodiversity at Hon Mun as a model for collaborative MPA
management
in
Vietnam.
The
GEF
project
document
(http://www.gefweb.org/COUNCIL/GEF_C14/vietnam/viethon.pdf) indicates that:
Fishing is a major activity in the area with about 15,000 fishermen based in the vicinity of Nha Trang
city. Most of these are employed on large (10 to 20m) boats that trawl in offshore waters and fish for
squid by night. Inshore bottom trawling is also common. One hundred fifty Nha Trang-based fishermen
gain their livelihood from licensed standing nets in the project site, mainly catching passing pelagic
species such as tuna and Pacific mackerel.
The islands in the proposed project site contain a population of approximately 5,300 people with 95%
gaining their main income from fishing activities. These island communities are home to many of the
poorest fisher families, who work with small boats that are limited to shallow and sheltered waters. These
poorest fishermen, numbering about 300, mostly subsist on a decreasing catch supplying the local and
international ornamental fish trade and from declining shellfish and oyster beds. They are responsible for
a large proportion of the unsustainable fishing activity near Hon Mun (e.g., use of cyanide and explosives,
coral and shellfish collection) and as such are a priority concern for this project. None of the island
communities benefit from tourism activities - which are dominated by mainlanders - and only a few gain
any income from rudimentary mariculture activities such as growing wild caught juvenile fish and
lobster.

To date Hon Mun has served well as a pilot project for the Support to the MPA Network Project being
financed by Danida (2003-2006). Discussion with Hon Mun MPA project management indicates that
the project also has the potential to provide substantial benefits to communities, but that MPA
development is difficult and complex, particularly in an area close to a major town (Nha Trang with a
population of around 300,000) that has been heavily exploited for many years.
Con Dao has recently been accepted for funding under UNDP/WB/GEF. It has substantial potential
for both biodiversity conservation and for tourism. The main risk is from the fishing port developed on
the island, which the provincial government believes has substantial potential for development as a
major international port and typhoon shelter. A recent PCR of the Fisheries Infrastructure
Improvement Project recommended no further development of the port or fisheries infrastructure
without the conduct of a full EIA. Con Dao is both a National Park and an MPA. It is a major site for
nesting green turtles and also has a significant dugong population. The national park has operated a
successful turtle conservation project supported by WWF since 1994.
Cu Lau Cham MPA implementation commenced in October 2003, aiming mainly at biodiversity
conservation, tourism and sustainable livelihood development for the 3,000 residents of this island
group.
It is expected that support to the MPA network will continue to be provided by Danida under a new
environmental sector program proposed for 2005-2010. Under this program, Danida will continue to
support Vietnams policy and legal framework for MPAs, and capacity development for MPA
management, but GoV and other donors will be expected to support the remaining undeveloped
MPAs.

APPENDIX F
Table F1 : Page 1

APPENDIX F: FISHERIES SECTOR AND ICZM PROJECTS

1.

Fisheries Sector Projects

Since November 1998 NORAD has sponsored an eight-year project through 2006 on building
advanced research and education capacity for RIA No.1 ($500,000 a year). The project is technology
and poverty focused on different aspects of development including genetic selection, health
management of aquatic animals and farming technologies, including seed production of some marine
species. In addition, that project supports MSc education in aquaculture.
The DANIDA-funded 5-year Fisheries Sector Support (SPS) Program, implemented by MOFi, is the
major current donor-funded intervention in the sector. The program is due to end in 2004 and is
expected to be followed by a further 5-year phase. Two components are targeting freshwater and
marine aquaculture, focusing on support to planning, technology development, extension, community
pilots, disease control, training and administrative support in selected provinces. In the marine
fisheries sub-sector, the program supports the Assessment of the Living Marine Resources of Viet
Nam. Phase II of this component has focused on: (i) providing a reliable information base to monitor
and assess the nations fisheries; (ii) increasing the advisory capacity of MOFi and RIMF; and (iii)
biological, economic and social research sub-components to evaluate and monitor the fisheries,
oriented towards research of relevance for fishery management. A fourth component, the Seafood
Export and Quality Improvement Program SEAQIP, with * objectives relating to (i) developing
VASEP, (ii) improving environmental management procedures and occupational safety; (iii)
improving procedures and building capacity in NAFIQAVET; (iv) training programs for processors;
and (v) monitoring quality standards at all stages in selected areas.
World Bank/DANIDA Coastal Wetlands Project covers reforestation of coastal mangroves in three
provinces Bac Lieu, Ben Tre, Tra Vinh. A component of the project focuses on aquaculture for
sustainable livelihoods of the poor.
The Mekong River Commission completed a project on rural extension in Mekong delta with focus on
aquaculture in 2001. This is a sub-regional project covering three counties Vietnam, Cambodia, and
Thailand. The project is implemented by RIA-2 in Mekong delta with the purpose to expand
aquaculture activities in Tien Giang province. Research on aquaculture of indigenous Mekong species
and management of the reservoirs of the central plateau are also being supported.
ACIAR is funding several research projects in Vietnam, including a research project on development
of reservoir fisheries through introduction of cage technology for nursing fingerlings in two provinces
Thai Nguyen and Yen Bai. The project is in the last stage with some on-farm trials being conducted.
ACIAR is also funding other research project on increase of fish production in integrated system
through optimal application of manure in ponds, and shrimp farming in the Mekong delta through Can
Tho University.
SIDA and DANIDA through AIT are funding RIA-1 to implement research on development of smallscale aquaculture and education in Vietnam. These funds are used by several institutions such as RIA1; University of Fisheries, Nha Trang; University of Agriculture and Forestry, Ho Chi Minh City;
Vocation School No 4, Bac Ninh for implementation of the research and education activities in the
selected areas with focus on poverty alleviation.
UNDP has supported several projects targeting poverty alleviation through aquaculture, including a
mountain aquaculture project (VIE/98/009) and one related to livelihood development of coastal
communities through aquaculture and better management of coastal environment. Experiences from
UNDP projects have been instrumental in convincing government and donors of the potential of
aquaculture for poverty alleviation in Vietnam. A continued close partnership among UNDP and the
MOFi is important and encouraged.

APPENDIX F
Table F1 : Page 2
Environmental Management of Coastal Aquaculture (UNDP/DANIDA 2003)
VIE/97/030
Project is designed to support improvements in planning, and local management, of coastal
aquaculture in three coastal provinces in north-central Vietnam. In support of the project, an STS
mission was organized to provide additional inputs on aquaculture planning. Objectives include: (i)
Review of existing coastal aquaculture plans and environmental management guidelines in the project
areas and assess the potential environmental consequences; (ii) Assessment of degree to which
environmental considerations and guidelines are taken into account in current coastal aquaculture
development plans to avoid possible environmental consequences of implementing such plans; (iii)
Preparation of a proposal to support the project to carry out coastal aquaculture plans in some pilot
districts or communes for demonstration of methodology for aquaculture planning at the
district/commune level; (iv) development of practical guidelines for aquaculture planning with a semiofficial/legal framework that can be adopted and implemented at the local level to support communitybased environmental management systems; and (v) comment on coastal aquaculture planning and
policies to benefit the poor for the UNDP/FAO Discussion Paper on aquaculture and poverty.

F. ICZM Related Projects9

1. VNICZM (Dutch Government 2000-2003)
Vietnam-Netherlands Integrated Coastal Zone Management Project (VNICZM)
Sponsor: Royal Netherlands Embassy
Executing Agency: MONRE/VEPA (former MOSTE/NEA)
Beneficiaries: MONRE; Nam Dinh; Thua Thien Hue; Ba Ria - Vung Tau
Contractor: NEDECO (Netherlands Consulting Engineers) through a VNICZM office in Hanoi and
Nam Dinh, Thua Thien Hue and Ba Ria - Vung Tau Pilot Project offices
Theme: Coastal zone management
Location: Nam Dinh; Thua Thien Hue; Ba Ria - Vung Tau
Objectives:
1. ICZM awareness raising with Authorities, Stakeholders and Users of a Sustainable Development of
the Vietnamese Coastal Zones;
2. Strengthen capacity of MONREs VEPA (Vietnam Environmental Protection Agency), (previously
MOSTE - National Environment Agency), and provincial departments (DONREs)
3. Assess needs and functions of a Coastal Zone Management Center;
4. Develop ICZM Strategies and Action Plans at provincial level;
5. Win - Win for Dutch and Vietnamese Integrated Coastal Zone Management Approach;
6. Improve Living Conditions Coastal Communities
Type: TA Grant
Summary: The Vietnam Netherlands Integrated Coastal Zone Management Project is a 3-year project
(Sept. 2000- Aug. 2003) is aiming at establishing a longer term Vietnam ICZM Program and
focused on the goal of advising the Vietnamese Government in the planning and development of the
Vietnamese coastal zone, its communities and its resources in a sustainable way. The project is
coordinated by MONRE via its Vietnam Environmental Protection Agency. Technical assistance is
provided through NEDECO, a Dutch consortium of engineering consultants.
NEDECO and MONRE are implementing the project with participation from various national relevant
ministries and agencies as well as Provincial People's Committees and Vietnamese consultants.

Data from ADB (2003) based on Viet Nam Netherlands Integrated Coastal Zone Management project records

APPENDIX F
Table F1 : Page 3
The Vietnam ICZM Program employs a Strategy and Action Plan for ICZM as the main tool to bring
about the transition from the project to the long-term program. The SAPICZM, will provide the forum
for interaction between ministries and provincial authorities via workshops, seminars, scientific
meetings and consultative sessions.
A central project office is located in Hanoi and three provincial focal points have been established via
Pilot Projects at Nam Dinh (Red River Delta, North Coast), Thua Thien Hue (Central Coast) and Ba
Ria - Vung Tau (South Coast). The project builds on the relationships established during baseline
vulnerability assessment and preparatory studies, which have been conducted as a lead-up to this
project between 1994-1996.
A reference center is being set-up, which information is being linked to the VNICZM Project website
(www.nea.gov.vn/projects/vniczm.htm).
Training is given in ICZM principles and tools, in Vietnam (Hanoi and in the pilot provinces), in
Manila and in The Netherlands.
Start Date: 1 September 2000 Completion date: 31 August 2003
A second phase was approved in principle, as announced by the Dutch Vice-ambassador on 7 May
2003.
VNICZM is supported by two projects - CCP2002 and CCP2003, financed by the Dutch Ministry of
Transport, Public Works and Water Management in association with the Royal Netherlands Embassy.
They support VNICZM by providing specific technical advice on among other issues: monitoring
programs, awareness raising among schoolchildren, remote sensing. The ultimate objective is to reach
a long-term commitment between MONRE and the Dutch MT, PW & WM (2004-2008) on technical
cooperation in the field of ICZM, not necessarily limited to Thua Thien Hue Province. The MOU
should be signed in late 2003. Linkage with the ADB PPTA, through the ICZM Division of VEPA,
will be essential.
2. ICM Program Development & Implementation in Da Nang (PEMSEA/IMO 2000-04)
National Demonstration Site for Integrated Coastal Management at Da Nang
Sponsor: PEMSEA
Executing Agency: PEMSEA
Beneficiareis: DOSTE Da Nang, PPC Da Nang
Theme: ICM
Location: Da Nang
Objectives:
Workshop on Integrated Coastal Management. PEMSEA's project design is based on two management
frameworks, namely: ICM and risk assessment/ risk management. Demonstration sites will be set up
throughout the region to implement these two mechanisms.
Type: grant
Start date: 2000
Completion date: 2004
The National ICM (Integrated Coastal Management) Demonstration Site Project in
Da Nang has been set up under the GEF/UNDP/IMO/Regional Program on the
Partnership for Environmental Management in the East Asian Seas.
At the central level, MOSTE is coordinating the project through NEA. At the local
level, the project is managed by the People's Committee of the City. Da Nang
DOSTE is the leading implementing agency.

APPENDIX F
Table F1 : Page 4
The core project area, on the land part, covers five coastal districts of Da Nang including Hai Chau,
Thanh Khe, Lien Chieu, Son Tra and Ngu Hanh Son and on the marine part, the Da Nang Bay and the
coastal water of Son Tra and Ngu Hanh Son districts up to 20m depth approximately.
The major objectives of the project are to develop the local capacity for Da Nang City in coastal
resources and environment in a sustainable way by using the ICM methodology and approaches, and
demonstrate the results of the project to other coastal zones of Vietnam and the East Asian Seas
region.
3. Building Capacity for Integrated Coastal Management (NOAA 2003-)
Building capacity for integrated coastal management in the Tonkin Gulf in Quanh Ninh Province
Implementing Institutions: National Oceanic and Atmospheric Administration (NOAA)
Brief Activity Description: The Vietnamese government is making a concerted effort to develop an
integrated coastal management region as it undergoes political and economic reform aimed at
economic development. As the country seeks to build societal capacity to design and implement
effective sustainable coastal development practices and policies and promote economic development,
it must preserve biological productivity of the coastal and marine environment while developing
poverty reducing opportunities for its people.
This proposal develops local and regional institutional, community, and technological capacity for
coastal and marine resource management in the Gulf of Tonkin Archipelago as a valuable anchor in
support of Vietnams national development policy goals. The project will allow Vietnam to access the
experience, knowledge, technical expertise, and technology of the United States in marine protected
area (MPA) management in partnership with international, governmental and nongovernmental
organizations. It creates a demonstration site of coastal management excellence in Vietnam based
upon national goals, regional planning, and local management needs. At the completion of the two
year work plan, Vietnam will have institutionalized consultative and multi-sectoral planning and
management mechanisms with proven results, incorporating tools such as GIS, marine boundary
zoning systems, environmental and sociological monitoring and assessment systems, community
education and outreach campaigns all of which are important elements in effective integrated coastal
management programs.
Resources will be leveraged with funding and in-kind contributions from the National Oceanic and
Atmospheric Administration, the Global Environmental Facility, the IUCN-World Conservation
Union, Reef Check and others to introduce conceptual frameworks for integrated coastal management,
develop Vietnamese language curricula and educational material for broad government and nongovernment audiences, and transfer and deploy technologies to support management to improve
marine and coastal management in an important part of Asia. Following this program, Vietnam will
have a stronger capacity to define issues and solutions, collect information to monitor and evaluate
environmental change, and develop effective, timely management responses over time.
4. Rural Development Programs in Quang Tri & TT Hue (FINIDA & NORAD 19992005)
FINIDA Thua Thien Hue and Quang Tri
Funded by: Finish Government
(d) Thua Thien Hue
Project started in Nov 1999 as a pilot project in one district (Phang Dien) and the first phase ends in
November 2003. Funded by a US$4.00 million grant from Finland with a matching Vietnam

APPENDIX F
Table F1 : Page 5
Government contribution of 14%, mostly for administration and infrastructure. The local communities
are also required to contribute a minimum of 10% for local infrastructure projects
The objective is Poverty Reduction and Empowerment and to establish conditions for economic
development. The project concentrates on one district Phang Dien 35 km north of Hue on the northern
border on the province.
Project components
1. Institutional development
a. Capacity building
b. Exchange of experiences
c. Community participation
2. Rural Income Expansion
a. Crop husbandry
b. Livestock
c. Aquaculture
d. Non-farm activities
3. Infrastructure
4. Environment protection
Quang Tri and Thua Thien Hue Rural Development Programs
The credit & saving project (microfinance project) is piloting in one commune (in the whole of Viet
Nam) - Vinh Tu commune, Vinh Linh district, Quang Tri province working through the Commune
Womens Union. At present, there are 145 borrowers in 28 sub-groups. This will increase to around
300 women in 3 target communes in Quang Tri province over the next 3 months. The credit limit is
3 million per household. Term is one year, only management fees are charged, not interest.
At the International level, Plan has a technical team for microfinance and this team is organized
meeting annually. Last year, the meeting was in Dacca, Bangladesh.
In Hue province, Plan International supports infrastructure and livelihoods development, but does not
provide credit. The first phase is in Hai Lang district (south coastal) 1997-2005 and expanded to Cam
Lo and Da Krong (mountain) in the second stage 2000-2005. Focus is on: (i) construction of
infrastructure, particularly irrigation, schools and rural roads and (ii) income generation for the rural
poor (business development, training and credit revolving funds administered by Womens Union).
Using local contractors and village/commune labor. PRA is conducted by PMU to define
infrastructure needs.
NORAD - Quang Tri Rural Development Program covering 7 coastal communes in Trieu Phong
district. Similar to the FINIDA above
5. Community Based Rural Infrastructure Project (World Bank 2001-2007)
Total cost: US$123.41 million, World Bank credit: US$102.78 million
Duration: 2001-2007
Implementing agency: Ministry of Planning and Investment, Department of Local and Regional
Planning
Project objective: To reduce rural poverty in the poorest communes in thirteen provinces of central
Vietnam by: a) increasing the capacity of these communes for decentralized and participatory planning
and management of development activities; b) providing essential small-scale public infrastructure;
and c) generating direct income for the poor through construction employment. The issue of grants to
communes is decided by the communes themselves.

APPENDIX F
Table F1 : Page 6
Project provinces and (number of poor communes): Thanh Hoa (57), Nghe An (101), Ha Tinh
(49), Thua Thien Hue 32), Quang Nam (72), Quang Ngai (82), Binh Dinh (21), Phu Yen (15), Khanh
Hoa (33), Binh Phuoc (24), Lam Dong 923), Ninh Thuan (16), Binh Thuan (15). 540 poor communes
are initially targeted. This number could be increased following the project's early mid-term review
scheduled for December 2003.
Eligible commune infrastructure: transport infrastructure (improvement to existing roads, tracks and
trails, bridges, ferry crossing points); drinking water systems; small irrigation schemes; public
buildings (schools, health stations, communal houses, sanitation facilities, markets); flood protection
works; and, electric power.
Eligible inter-commune works: improvements to existing transport infrastructure; improvements to
existing irrigation or flood control schemes; and, extension of the electricity grid.
6. Central Region Water Resources Sector (ADB 2003)
PPTA: VIE30292-02
Location: Central Region of Vietnam
Sector: Agriculture and Natural Resources /Irrigation and Rural Development
Executing Agency: Ministry of Agriculture and Rural Development (MARD)
Description
The central region of Vietnam currently suffers from water shortages and saltwater intrusion during
the dry season, flooding in the west season, and is frequently hit by natural disasters, which is a
constraint to economic growth. Much of the existing water resources infrastructure in the region is
performing below its potential and requires upgrading. The Government has placed high priority on
development of water resources infrastructure in the region to expand irrigation and flood control
systems and to mitigate the effects of natural disasters. The proposed Project will develop new and
existing infrastructure to provide more reliable water supplies in the rural areas, improve flood control
and management, and increase agriculture production.
Objectives and Scope
The TA will prepare a sector project to improve existing and develop new water resources systems,
and promote improved management practices to ensure they will increase and protect incomes and
livelihoods of people in the poorest provinces in central region of Vietnam. The specific objectives of
the TA are to assist MARD to (i) build further capacity to prepare a comprehensive investment
strategy for optimizing investments in the water resources sector - Part A, and (ii) to prepare an
investment project for water resources development and management for about six selected provinces
in the central region of Vietnam - Part B. Preparation of the project will take into account the results of
TA 3528, Subproject 2, which analyzed and ranked potential water resources investments in the
central region according to their poverty, environmental, and economic impact. Part A will further
develop this work to provide the basis for selection of subprojects for the project, including the
selection of at least five core subprojects that will be studied to feasibility level under Part B. The
scope of the proposed project will be limited to two main sub-sectors: irrigation and drainage, and
flood control and protection, with emphasis on contributing to long-term mitigation of natural disasters
in the region.
Benefits and Beneficiaries
The project is expected to provide increased security against natural disasters for both urban and rural
communities. It will also increase agricultural output in poor rural areas of the central region, resulting
in increased farmer incomes and localized economic growth.

APPENDIX F
Table F1 : Page 7
7. Central Region Livelihood Improvement Project (ADB 2003-07)
Objectives and Scope: The Project is intended to help the Government ensure that the poor in upland
communes of Kon Tum, Quang Binh, Quang Tri and Thua Thien Hue achieve sustainable livelihoods
with an improving quality of life resulting in a reduction in the incidence of poverty in the project
area. A critical feature of the proposed Project is its focus on developing innovative natural resource
management strategies linked to social development objectives. These objectives will be achieved
through (i) improving and sustaining household food security; (ii) generating of incremental household
income through improved on-farm productivity, infrastructure development, and off-farm income
generating opportunities; (iii) developing community capacity to utilize and manage scarce resources
to achieve equitable and sustainable socioeconomic development through planning and
implementation of an expanded social development plan; (iv) strengthening the capacity of support
services to respond to grassroots initiatives so that they can deliver improved services in upland
communities; and (v) providing technical and financial support for the efficient implementation of the
project. Approximately 65,000 households comprising about 348,000 people are expected to benefit
from the project through increases in incremental household incomes due to increased agricultural
production, improved rural infrastructure, and use of improved technology for on- and off-farm
production activities
Cost Estimates: $76.0 million equivalent
Implementation Arrangements: A project management unit (PMU) will be established in each
provincial department of planning and investment (DPI) and, will be responsible for overall
management of the project. Each PMU will be staffed with a project director and support staff. A team
of international and domestic consultants will provide advisory support to each PMU to ensure
effective implementation of the project. Various local government and quasi-governmental agencies
will provide technical support under the project. The district-based Department of Agriculture and
Rural Development will assist with implementation of the household food security and income
generation components by supporting farmer-managed demonstrations to improve agricultural
production, and by providing engineering design support for irrigation construction and upgrading.
The Viet Nam womens union will assist in implementation of the household food security component
and the microfinance services subproject-component. The district-based Department of Transport will
provide engineering design support for rural road construction and improvement. Nongovernment
organizations (NGOs) and local training institutions will support implementation of the community
development and institutional strengthening components under the project.
Executing Agencies The provincial peoples committees of Kon Tum, Quang Binh, Quang Tri and
Thua Thien Hue, and the Viet Nam Bank for Agriculture and Rural Development.
Procurement: Civil works, materials, and equipment will be procured in accordance with ADBs
Guidelines for Procurement. Contracts for large-scale civil works, such as rural roads and irrigation,
will be awarded to pre-qualified contractors through local competitive bidding procedures acceptable
to ADB. For small-scale civil works of less than $10,000, procurement on the basis of comparison of
at least three quotations from local contractors will be followed. The communities themselves may
carry out small works costing $1,500 equivalent or less. Contracts for supply of materials, vehicles,
and equipment packages will be procured using international shopping procedures for contracts
estimated to cost between $100,000 and $500,000 equivalent. Direct purchase procedures will be
followed for small or off-the-shelf items valued at less than $100,000.
8. Support to the Marine Protected Area Network (DANIDA 2003-06)
Sponsor: Danish Government/DANIDA
Executing Agency: Ministry of Fisheries/Quang Nam Peoples Committee
Beneficiaries:
Contractor:

APPENDIX F
Table F1 : Page 8
Theme: Marine Protected Areas
Location: National/Quang Nam
Objectives:
1. Develop a legal and policy framework for a national MPA system;
2. Establish coordinating mechanisms for the development of a multi-sectoral approach to marine
management issues
3. Develop management procedures at the Cu Lao Cham Archipelago MPA in Quang Nam, through
capacity building activities and developing a multi-sectoral approach to management issues.
Type: TA
Summary: The three-year (2003 to 2006) project promotes the sustainable management of marine
and coastal natural resources in a national protected area system through supporting selected MPAs
and developing appropriate policies and management procedures. The project forms part of the
Danish Environmental Assistance Vietnam program component on Sustainable Management of
Coastal Zones/MPAs, referred to as the blue component.
9. Reversing Environmental Degradation (UNEP 1996-2006)
Reversing Environmental Degradation Trends in the South China Sea/East Sea and Gulf of Thailand
UNEP GEF Project
Cambodia, China, Indonesia, Malaysia, Philippines, Thailand, Vietnam:
Sponsor: GEF
Executing Agency: Secretariat for the Action Plan for the Seas of East Asia (EAS/RCU); Ministries
of Environment in each country MONRE in Vietnam
Beneficiaries: Cambodia, China, Indonesia, Malaysia, Philippines, Thailand, and Vietnam
Contractor: UNEP
Summary: Major outcomes will include an approved Strategic Action Program including, a targeted
and costed program of action and a recommended framework for improved regional co-operation in
the management of the environment of the South China Sea; a series of national and regional
management plans for specific habitats and issues; 9 demonstration management activities at sites of
regional and global significance; a regional management plan for maintenance of transboundary fish
stocks in the Gulf of Thailand; pilot activities relating to alternative remedial actions to address
priority transboundary pollutants and adopted water quality objectives and standards. Activities
include national level analysis and reviews, management of demonstration activities and regional
harmonization and co-ordination of national level actions.
Start date: 2000
Completion date: 2006
UNEP/GEF South China Sea Project Coordinating Unit
United Nations Building, 9th floor, block A, Rajdamnern Ave, Bangkok 10200 Thailand
Tel. 66-2-2881116, Fax 66-2-2812428, Website http://www.unepscs.org
Activities
Unresolved territorial disputes are a source of sensitivity in the region. Over the last several years the
countries have demonstrated a willingness to co-operate in matters relating to environmental
management, and there is an increasing recognition that the benefits resulting from co-operative
environmental management actions are not dependent on the resolution of such sensitive issues.
Recognizing the sensitivities of the area however, it has been agreed that no activities shall be
undertaken under this project in disputed areas of the South China Sea, nor shall issues of sovereignty
be addressed directly or indirectly through project activities.
The project is divided into four major components:

APPENDIX F
Table F1 : Page 9
1 Habitat Degradation and Loss
2 Over Exploitation of Fisheries in the Gulf of Thailand
3 Land-based Pollution
4 Project Co-ordination and Management
These components reflect the priority ranking determined at a regional level (Annex D) in which
habitats and biodiversity related concerns and over-exploitation of marine resources ranked higher
than either pollution or freshwater related concerns. Within the comparative ranking of importance of
the habitats in the region, mangroves and coral reefs ranked significantly higher than seagrass and
estuaries/wetlands. Over-exploitation of marine resources ranked almost as high as coral reef
degradation whilst from among the pollution related issues land-based pollution and in particular
sewage were considered the most important pollution issue in the region. Overall, pollution was
considered less important than either, habitat degradation and loss, or over-exploitation of marine
resources.
10. Assessment of the Living Marine Resources in Vietnam (Danida 1998-2003)
Code: 104.VIE.29
Sponsor: Danida
Executing Agency: Advisory Research Group and Research Institute for Marine Products in Hai
Phong
Beneficiaries: MOFI (Research Institute for Marine Products in Hai Phong) / Advisory Research
Group
Contractor: N/A
Theme: Fisheries
Location: N/A
Objectives:
Strengthen the capacity of relevant institutions in Vietnam to formulate and implement policies that
will ensure sustainable utilization of fisheries resources;
Establish a reliable multi-disciplinary information base to monitor and assess Vietnamese marine
fisheries, including information on resources;
Strengthen fisheries management advisory capacity within Ministry of Fisheries. Improve
multidisciplinary research in fisheries management to support decision-making.
Type: TA
Start date: 1998
Completion date: 2003
11. Fisheries Stock Assessment Phase I (Danida 1996)
Sponsor: Danida
Executing Agency: MOFI
Beneficiaries: MOFI
Contractor: N/A
Theme: Fisheries
Location: N/A
Objectives:
To provide and estimate of the fishery resources within the Vietnamese Exclusive Economic Zone as a
basis for the future development of the sector
Type: TA
Start date: 1996
12. Fisheries Sector Master Plan (Danida 1997)
Sponsor: Danida
Executing Agency: MOFI
Beneficiaries: MOFI

APPENDIX F
Table F1 : Page 10
Contractor: N/A
Theme: Fisheries
Location: National
Objectives:
Strengthening of Fisheries Administration; Establishment of a Management Information System for
the Fisheries Sector; Support to Freshwater Aquaculture Development, and; Development of the
Potential for Marine Fish Culture
Type: TA
Start date: NA, Completed: Approx 1997
13. Support to Socio-Economic Development in Quang Binh (EU 1997-1998)
Code: 1997/49/IT
Sponsor: EU
Executing Agency: APS
Beneficiaries: Quang Binh province
Contractor: N/A
Theme: Relief
Location: Quang Binh province
Objectives:
Coordinated interventions to cope with the environmental emergencies and their devastating impact on
economy
Type: TA
Start date: 1997
Completion date: 1998
14. The Port Development Plan in the Central Region of the Key Area (JICA 1997-1998)
Sponsor: JICA
Executing Agency: MOT
Theme: Ports, Waterways and Shipping
Objectives:
To formulate a long term port development plan for the period to 2020
Type: TA
Start date: 1997
Completion date: 1998

15. List of ODA projects of the fisheries sector for 2006-2010 Table F1

APPENDIX F
Table F1 : Page 1

LIST OF ODA PROJECTS OF THE FISHERIES SECTOR FOR 2006-2010

Nr
.

ODA project

Project on Improving
Capability of the
Capture fish and
Management of
offshore fishing
activities.
(TA and Loan)

Contents

a. Developing the forcast methodology

for capture fisheries activities:
- To establish the fishing and research
fleet..
- To form the information network on
fisheries dates.
- To establish the centre for satellite
informatics fisheries
- To set up the
data processing
and fore
- cast on
fisheries..
b. To establish the management Center
for marine capture activities.

Executing
agency

Location

National Directorate
of fisheries
Resource
Exploitation and
Protection Ministry
of fisheries
10, Nguyen Cong
Hoan, Ha Noi.
Tel: 04.7715082
Fax:84.4.8353363

H Ni

Implementat
ion period
2006- 2010

Fund (million USD)

Total
Donor Counter
-part
fund

140

120

20

APPENDIX F
Table F1 : Page 2
To do the poverty reduction and
improvement of living standard of people
through the sustainable development of
the resource of coastal area in central
part of Vietnam.

Project
on
Assessment
and
Institutional
improvement
of
coastal areas and
improvement
of
livelihoods of the
people in central part
of Vietnam
(TA v ADB loan)

Project on Fisheries - Institutional Strengthening

Sector
Program
Support (FSPS II)
- Aquaculture development
( DANIDA TA)

- Post harvest
marketing

technology

Ministry of
Fisheries
10, Nguyen Cong
Hoan, Ha Noi..
Tel: 04.7719613
Fax:04. 7716702

Ministry of
Fisheries
10, Nguyen Cong
Hoan, Ha Noi.
and Tel: 04.7719613
Fax:04. 7716702

Quang Binh,
Quang
Tri,
Thoa ThinHue, Quang
Nam.

2006 2010

Coastal
provinces

2006-2010

Thanh
Ho,
Khnh
Ho, Sc
Trng, C
Mau
Coastal area
of
North,
Cental
and
South
and
remote and
poor areas in
highland and
island places.

2006-2009

80

64

16

60,7

36,1

24,6

300

270

30

- Capture fisheries development

4

Project
Aquaculture
development.
(ADB Loan)

on To invest in aquaculture projects in Ministry of

selected provinces
Fisheries
Cong Hoan, Ha Noi.
Tel: 04.7719613
Fax:04. 7716702

Project on
aquaculture
development for
poverty reduction hunger elimination,
food security and
environment and
resource protection.

- To do the poverty reduction and hunger

elimination; conducting the environment
and aquatic resources protection.
- To construct a system of hatcheries.
- To develop the sustainable models of
aquaculture in remote and poor area. To
restructure the capture fisheries activities
in the way of marine resource

Ministry of
Fisheries
Cong Hoan, Ha
Noi.
Tel: 04.7719613
Fax:04. 7716702

2006-2010

APPENDIX F
Table F1 : Page 3
(TA and WB loan)

Project on
establishing three fish
markets.
(Japans TA)

Project on Training
center for fishermen.
(Japans TA)

10

Project on
Institutional
strengthening of
NAFIQAVED

reproduction.
- To do the environment management
and fish disease control in area.
- To establish the monitoring and
environment awareness center.
- To develop Human resources program
in the area..
To develop three wholesale markets

To train the fishermen on the fishing

technology.

Improvement of Management
capability.
Renovate the equipment for
experiment and monitoring.

Project on
mechanization of the
fisheries sector.
(TA and Loan)

- Strengthening the capability

management of mechanization program
of fisheries sector.

Project on Setting up

- To develop the fisheries extension

- To invest in 4 mechanic Centers to

serve the activities of marine capture,
aquaculture and seafood processing.

Ministry of
Fisheries
Cong Hoan, Ha
Noi.
Tel: 04.7719613
Fax:04. 7716702

Ha Noi,
Hai
Phong, Ca
Mau

2006-2009

16,5

Ministry of
Fisheries
Cong Hoan, Ha
Noi.
Tel: 04.7719613
Fax:04. 7716702
Ministry of
Fisheries
10, Cong Hoan, Ha
Noi.
Tel: 04.7719613
Fax:04. 7716702
Ministry
of
Fisheries
10, Cong Hoan, Ha
Noi.
Tel: 04.7719613
Fax:04. 7716702

Nng

2006-2010

NAFIQAVE
branchs

2006-2009

Coastal area
in North,
Central,
South and
South- West
of Vietnam

2006-2010

24

20

Ministry of

Mekong delta

2006-2010

6,5

15

1,5

0,5

6,5

0,5

APPENDIX F
Table F1 : Page 4

11

12

Training Center of
Model Drill and
technology transfer to
fish farmer in
Mekong River delta.
Japanese TA)

network.

Project on
aquaculture
development in poor
areas
(TA from Germany)

- To develop the integrated aquaculture

in coastal poor and hunger areas.

Project on fishing
boat repair and
maintenance
(TA and Loan)

- Prepare 100 units/year (100-1000CV)

BienDong Fisheries In South

- Maintenance of 500 marine

engines/year (100-1000cv)

Corporation

- manufacture spare parts and other

equipment 1.500 ton/year.

30 Hm nghi,TP Ho

- To exploit the resource in sustainable

way in eco areas.
- Hunger elimination and poverty
reduction.

( Document under preparation)).

Fisheries
10, Nguyn Cng
Hoan, H Ni.
Tel: 04.7719613
Fax:04. 7716702

Ministry of
Fisheries
10, Cong Hoan, Ha
Noi.
Tel: 04.7719613
Fax:04. 7716702

In remote and
coastal poor
areas

2006-2010

12

10

20

17

Chi Minh
Fax: 84-8-8290124
Tel: 84.8.8732271

13

Project on coastal
shrimp culture in
Kim Sn, Ninhbinh

- To prepare the master plan for

aquaculture in the area.

Department of

Ninh Binh

2006-2010

APPENDIX F
Table F1 : Page 5
province.
(TA and Loan)

14

Project on
establishing the
fisheries complex in
HCM city
( TA and Loan)

- To construct new hatcheries.

agriculture and rural

- To construct the infrastructure for

aquaculture area.

development

- To train the farmer the techniques for

shrimp culture

Phng ton Thnh ,

tho x Ninh Binh.
Tel: 030.871420.
Fax: 84.30.875824

- To construct new fishing port and other

Department of

related infrastructure.

agriculture and rural

- International Auction hall and wholes

market.

TP. Ho Chi
Minh

2006-2008

18

15

development.
: 176, Hai B Trung, .TPHCM
Tel: 84.8.9902743
Fax:84.8. 9901598.

- Frozen processing plant..

- Services facilities.
- Internal road, water and power supply

Total in USD

698,9

591,2

107,7

APPENDIX F
Table F1 : Page 6

APPENDIX G
Page 1

APPENDIX G: MAIN FISHING GROUNDS

Fishing grounds

Location

Depth

Distances

Main species

Bach Long Vi

19 30-20 30N;
107-108 30E

50m

100 km to
Hai Phong

long spine, seabream, round scad,

lizardfish, threadin bream

South Long Chau

25-30 m

40km to
Hai Phong

Sardinella gibbosa

North Hon Me

22-28m

40Km to
Thanh Hoa

Anchovy, Sardinella gibbosa

Tonkin Gulf Mouth

18 35-19 35N
106 30- 107 30E

Hon Gio

16 30-17 30N
107 - 108 E

E-N Da Nang

16-16 50N
108-110E

100-300m

Lizardfish, bigeye, threadin, bream,

yellow seabream

E-S Quy Nhon

13 10- 13-30N,
109 10- 109 40E

50-200m

Bigeye tuna, lizardfish, threadin

bream, croaker

E. Phan Thiet

10 30- 11 30 N
109 109 50

<50

Lizardfish, bigeye, scad

50-200m

Brushtooth lizard, bigeye, threadin

S. Phu Quy
(Cu Lao Thu)

30-47m

Round scad, Sardinella, rainbow

sardine
Threadin, threadin bream, toothless
travally, gray bream, lizardfish

E. Con Son

8 30- 9 30N
106- 107E

25-40m

Round scad, snappers, yellow-stripe

trevally, threadfin bream, threadfin,
lizardfish

Mekong Mouth

9 9 30 N

10-22m

Threadin, sardinella, toothless

trevally, croaker, snappers

Mekong

9-9 50 N

10-15m

Yellow-stripe trevally, snappers,

thrapon ponyfish, threadfin bream

WS Phu Quoc

9 20-10N
103 40-104 20E

10-30m

Ponyfish, yellow-stripe trevally,

snappers, thrapon, threadfin bream

APPENDIX H
Page 1

APPENDIX H: AQUACULTURE POLICIES

1.
This appendix provides additional information on the status of aquaculture and related policies
relevant to the aquaculture sector in Viet Nam.

2.

Sectoral policies

2.
Aquaculture has been strongly supported by government policy, with over 100 policy
documents issued to support the sectors development. Some notable sectoral policies include:

Decision 773/QD-TTg in 1994 as an important policy milestone in government support for inland
and coastal aquaculture. It emphasized mobilization of domestic and overseas investment, and
reclaiming of inland and coastal lowland areas for aquaculture. The policy included a significant
social orientation to step by step sustain and improve living conditions of people in new land
and an environmental orientation in protection of coastal forests. Implementation of the
decision was mainly through development of infrastructure, with less emphasis being given to
environmental management.

In 1998 the Ninth Party Congress gave a further boost to aquaculture (and fishery) development in
Vietnam with the following statement .. . make use of advantages in fishery and develop
fishery into a leading economic sector in the region.. strongly promote aquaculture in
freshwater, brackish water and marine environment, especially shrimp farming following
improved methods, efficiency and environmental sustainability. and enhance capacity for post
harvest handling to meet domestic and international markets, and ensure the renewability and
development of fishery resources.. This high profile led to further strengthening of
Government policy support for aquaculture production with the Decision for Directing principles
of aquaculture development program period 1999-2010 (Decision 224/QD-TTg, 1999) signed by
the Prime Minister. This important decision conveyed a clear policy for aquaculture development
to 2010 develop aquaculture in order to ensure food security, create materials for export, create
jobs, increase income and improve living standards for rural people, contribute actively to socioeconomic development of the country. Investment was provided by government to implement the
Decision, with a strong emphasis on infrastructure for shrimp farming in coastal areas. The scope
of this ongoing program has now been expanded to include infrastructure requirements of other
types of aquaculture.

Since 1999, the Government has issued various policies on rural development that recognize
aquaculture as having an important contribution to make in development of the rural economy.
Resolution 09/2000/NQ-CP on the rural economy for example gives special attention to the
fisheries and aquaculture sector notingthe fisheries sector is a high animal protein and demand
increased producing sector in domestic and export markets, could become the most comparative
export sector of the agricultural economy of Vietnam. Shrimp farming is identified as a leading
sector in the countrys aquaculture production. Following this Resolution, the Ministry of
Fisheries established socio-economic targets for the sectors development through the circular
05/2000/TT-BTS including: total fisheries production 2,450,000 tons in 2005 and 3,400,000 tons
in 2010, of which aquaculture achieves 1,150,000 tons in 2005 and 2,000,000 tons in 2010; export
value 2.5 billion USD in 2005 and 3.5 billion USD in 2010; and attracted 4 million laborers in
2005 and 4.4 million in 2010.

Various policies have been issued on seed production, feed, use of chemicals and antibiotics, and
biological products for aquaculture. An important policy decision regarding seed production,
complementary to Decision 224 above, is the recent Prime Ministers Decision 112/2004/QD-TTg
to approve an Aquatic Seed Development Program to 2010. The Decision provides a very

APPENDIX H
Page 2
comprehensive program of support for seed production, with additional government funding to
support its implementation.
3.
These policies have been a success in terms of boosting aquaculture production and export
value. However, implementation has also led to several problems. The 773 program for example
provided significant investment in aquaculture infrastructure systems, such as water supply and
drainage channels. Reviews of the 773 program though suggest the infrastructure was often poorly
designed, investment was insufficient and developed with limited attention to environmental issues,
despite the environmental considerations incorporated in the Decision. There was generally limited
investment in management the institutional mechanisms and services - to sustain operations after the
initial infrastructure was developed.

G. Environment and natural resources

Environmental impact assessment
3.
The Law on Environmental Protection passed by the National Assembly of the Socialist
Republic of Vietnam on 27th December 1993 provides a sound legal basis for environmental
management. Government Decree No. 175/CP (18th October 1994) and subsequent circulars provide
guidance on implementation of the Law on Environmental Protection, including environmental impact
assessment. Further guidance on implementation of EIA is provided in various circulars issued by the
Ministry of Environment, Science and Technology (and now MONRES), including identification of
projects requiring EIA, and division of projects into different categories.
4.
Category I projects include aquaculture farms10 with an area of over 200ha; and investment
projects to be implemented within or adjacent to areas of environmental sensitivity, natural resource
protected areas, tourist areas, areas of internationally and nationally values historical and cultural sites.
Category II projects include aquaculture projects of less than 200ha that would normally be subject to
the permit requirements of the appropriate Provincial Authority(s) previously DOSTE (but now
DONRES) and Provincial Departments of Fisheries. Category II projects require that the project
proponent conduct an EIA prior to submission to the relevant DOSTE of an application for
Registration for Securing Environmental Standards. This is a shortened environmental assessment
that identifies potential impacts, and management strategies in place to address these.
5.
The legal basis for EIA of aquaculture in Vietnam is quite strong, however, it has not been
widely applied, perhaps because it is seen more as an administrative and regulatory burden, rather than
an important tool for better management and sustainable basis of aquaculture.
Wetlands
6.
The decree on the conservation and development of wetlands was signed by the Prime
Minister Phan Van Khai on 23 September 2003. This is the first ever legal document on the
management of wetlands in Vie Nam. The decree provides an important legal basis for promoting
sustainable management of wetlands in Vietnam. Wetlands, as defined in the decree, include those
with unique ecosystems and high biodiversity values, have important water resource and ecological
functions, and are of national and international importance. The Ministry of Natural Resources and
Environment, the national focal point in the implementation of the Ramsar Convention, plays a state
management role in the conservation and sustainable exploitation of wetlands, including formulating
policy and legislation on the conservation and sustainable utilisation of wetlands. The decree stipulates
that wetland conservation areas need to be managed and exploitation restricted. Constructions in the
buffer zones that impact or potentially threaten wetland conservation (such as aquaculture) areas are
also prohibited. The decree also lays down that organizations and individuals who exploit resources on
10

Government Decree No. 175/CP refers to aquacultural farm. However, it is not clear in this definition if it
aquaculture estates (e.g. 773 projects). Article 9 of Decree 175/CP also refers to overall strategies for regional
development. This may also be interpreted to include regional aquaculture development plans and projects.

APPENDIX H
Page 3
wetland areas take responsibility for protecting the uniqueness of the ecosystems and for conserving
biodiversity. Following this Decree on the Conservation and Development of Wetland Areas, the
Ministry of Natural Resources and Environment has issued the "Strategic Action Plan on the
Conservation and Sustainable Exploitation of Wetlands to 2010". This strategic action plan is an
orientation document for the implementation of the Decree. The policy basis for protection of
wetlands, including coastal and inland wetlands, is therefore quite strong; however, implementation
will be a challenge and will require substantial awareness raising, and building the capacity for
management at a Provincial and local level.
Land and water
7.
Policies concerning land administration have an important role in aquaculture development in
Vietnam. The land law was recently revised in 2004. Many Provincial plans appear to be almost solely
focused on land allocation, and in some cases prove difficult to implement because of the underlying
complexities of land administration. Coastal land is under various ownerships, and renting
arrangements, from short-term rent of 1 year, to longer-term allocation of land through the Red Book
system. A Red Book effectively gives land title to the owner, for periods of 20-50 years. Red books
for longer-term land use may be issued by the district authorities for smaller areas of land (<2 ha, as
specific in land law), or provincial authorities for larger areas of land.
8.
An important development concerning land use for aquaculture in coastal areas is Decree
64/CP (issued by the Prime Minister). This Decree provides a legal basis for long-term allocation of
land, and allows farmers to convert lowland or low productivity land to aquaculture; the Decree has
been a stimulus for planning of aquaculture areas, and also subsequently conversion of large areas of
rice farms in the Mekong delta to shrimp aquaculture.
9.
Farmers, and usually, higher Provincial and District Governments are interested to allocate
land for long term lease through a Red Book. However, commune authorities may be reluctant,
because allocation of Red Books has potential to lead to a loss of income. Land issues need to be
properly understood and addressed in planning, through active involvement of government authorities
and farmers at the commune level, as unrealistic land use planning is an important constraint to
implementation of government plans and investments for the coastal aquaculture sector.
10.
To date, land allocation and issuance of a Red Book, is not contingent on satisfying any
environmental criteria. The main criteria for issuing the Red Book is whether the land is designated for
aquaculture land use on provincial/district land maps11. Linkage between land allocation and
environmental criteria (for example issuance only in zone/planned areas) has potential to control
development to environmentally suitable aquaculture areas; in practice the lack of proper
environmental assessment, and poor aquaculture planning practices make such an approach difficult.
The recent merging of the Department of Land Administration into the newly formed Ministry of
Environment and Natural Resources (MONRES) may open opportunities for creating such linkages.
11.
Allocation of marine areas for aquaculture is a new issue where more responsibility has been
given by government to MoFI. The proposed mechanisms are outlined in the new Fisheries Law.
Allocation of areas for commercial marine farming are the responsibility of the Provincial authorities,
and allocation of marine areas for local people are the responsibility of District and Commune
authorities. Implementation of this element of the new Fisheries Law will be critical in determining
how the process of water allocation proceeds, particularly in relation to environmental and equitable
development in coastal areas.

11

According to studies carried out during 2003 under a UNDP project in north-central coastal areas, maps of land use
available with the Department of Land Administration appear not always to coincide with maps prepared in
Provincial/District aquaculture plans. This makes land allocation and planning even more confusing, with obvious
governance difficulties, that should be addressed through better planning practices.

APPENDIX H
Page 4

H. Poverty reduction
12.
The Ministry of Labor, Invalids and Social Affairs (MOLISA) began coordinating the Hunger
Eradication and Poverty Reduction (HEPR) Program in 1992 as part of a large focused effort to
mobilize available resources for poverty reduction. Particularly poor communes have been identified,
and special assistance provided through government and donor programs.
13.
Recently the Government approved a program for poverty reduction among 157 poor coastal
communes (106/2004/QD-TTg), of which a substantial proportion with livelihoods dependant on
aquatic resources (identified as households with >30% of people with monthly incomes of Dong
100,00 equivalent to US$0.2 per day) represents a substantial opportunity for a targeted program of
support to build capacity among supporting institutions and reduce poverty in coastal areas. Poor
people involved with aquaculture and fishing are also found in communes outside the program.
14.
Although the fishery and aquaculture sector is important in the livelihoods of many poor
people in Vietnam, the involvement of MOFi in formulation of policy to implement poverty-oriented
programs in the fishery sector has been fairly limited to date. Only recently, was the Sustainable
Aquaculture for Poverty Alleviation (SAPA) prepared by Ministry of fisheries and approved by
correspondence 321/CP-NN in 2001 and Decision 657/2001/Q-BTS. This policy provides the basis
for implementation of more targeted interventions for poverty reduction in the fishery and aquaculture
sector.
15.
An analysis of Asian poverty reduction strategies (PRSWPs and NDPs) conducted by FAO
interestingly shows Vietnam fairing rather poorly in the way fisheries sectoral issues have been
incorporated in poverty reduction strategies. Although the sector in Vietnam is important in
trade/consumption and poverty/employment terms, this significance is not properly reflected in
contemporary PRSPs/NDPs. In fact, Vietnam, together with Thailand, is notable in this analysis of 12
Asian countries in terms of the limited representation of fisheries in poverty reduction strategies12.
This indicates a significant need to raise the profile of the fishery and aquaculture sector in Vietnams
poverty reduction strategies.
Community organization and participation
16.
In 1998 a Grassroots Democracy Decree was passed, which established the legal framework
for the participation of citizens in local decision- making processes at the commune level and their
right to "monitor" local government expenditures. Although the capacity of citizens to participate
actively remains constrained, especially by their lack of awareness of their rights and entitlements, the
decree is viewed as a step toward enhancing the transparency and accountability of local government
officials.
17.
In order to create an enabling environment for peoples participation the CPRGS points out
the need to provide a legal framework for NGOs and fully implement the Grassroots Democracy
Decree13. Recent developments in this area include Decree No. 88/2003/N-CP drafted by MoHA
provides guidance on the organization, operations and management of associations. The decree is
considered an important step forward in legal basis to facilitate the development and operation of local
NGOs and farmer organizations. The agriculture sector has seen development of successful farmer
groups involved in marketing and extension. The Decrees have had limited application in aquaculture
(or fisheries), but potential significance.

12

13

Although the fisheries sector is deemed to be highly significant in either trade/consumption and/or poverty/employment
terms in twelve countries covered in this analysis, such significance only translates into effective sectoral
mainstreaming in five instances. There is a group of two countries Thailand and Vietnam for whom the sector is
significant yet this significance is not properly reflected in contemporary PRSPs/NDPs (Thorpe, A, 2004. FAO
Fisheries Circular).
United Nations Vietnam. Informal Working Group on Peoples Participation. http://www.un.org.vn/donor/civil.htm

APPENDIX H
Page 5

I. Issues concerning formulation and implementation of aquaculture policy

18.
The Government policy provides a comprehensive basis for support to aquaculture
development in Vietnam, including measures for environment, poverty reduction and administration
of the sectors development. Implementation of policy remains a constraint, with the following of
particular concern.
Aquaculture policies include objectives for environmental protection, but in practice implementation
of the environmental aspects of these policies has been weak. In some cases, they are in conflict.
Reclamation of coastal land in the 773 program without effective environmental assessment has for
example impacted on mangroves and other coastal wetlands14. Conversion of low value agricultural
land to aquaculture has allowed substantial conversion of rice field land to aquaculture in the Mekong
delta, causing salinization and hardship to some farming communities.
There is a legal basis for EIA of aquaculture, but EIA has been used in a very limited way for
aquaculture projects. EIA is also generally not carried out as part of planning process, although the
basic EIA legal framework supports this. There is therefore a need for considerable strengthening of
environmental management in aquaculture planning. DANIDA is supporting MOFI on development of
EIA guidelines that should provide more clarification on use of EIA in aquaculture.
Coastal shrimp farms often develop in an ad hoc and clustered way around basic infrastructure,
leading to self-pollution problems and sometimes collapse of farming due to disease. Such issues can
be addressed through applying EIA to aquaculture planning and establishment of special zones or
areas for aquaculture within plans.
Implementation of 773 and 224 programs by Provincial administrations has substantially focused on
development on infrastructure, or Master plans that focusing mainly on land use planning and
infrastructure. Infrastructure development and land use planning have been poorly implemented. Lack
of capacity, lack of effective local management institutions to implement projects and lack of
investment have compounded the problem.
Significant attention in policy has been devoted to land conversion for aquaculture, contributing to
significant expansion of shrimp farming in coastal areas, rather than improvements in efficient use of
land, or better management of farming. While the area of shrimp farming has expanded, the yields per
area of coastal land have not increased. With increasing pressures on the availability of land for
aquaculture, and other uses in future, there is a need to shift attention towards improving efficiency of
farming practices.
A frequent complaint from Provincial administrations is that there is insufficient investment to
implement policy. There is a need to make further investment in small-scale infrastructure
development such as water supply and drainage systems for aquaculture areas, but new ways need to
be devised in such systems can be sustained. More detailed analysis of financing procedures and
institutional mechanisms for infrastructure development and operation would be useful, perhaps
learning from experiences of agriculture.
Implementation of policies for poverty alleviation in the aquatic resources sector need to be given
more attention. MOFi also should take a more active role in ensuring the fishery and aquaculture
sectors are properly incorporated, and resourced, as part of overall national poverty reduction
strategies.
19.
The newly approved Fisheries Law contains many provisions relating to aquaculture. The
Ministry of Fisheries is in the early stages of development of specific regulations that will provide the
legal instruments for implementation of the Fisheries Law. The new Fisheries Legislation provides a
clean slate to reform and develop legislation that not only continues to support the development of
this important sector, but better integrates critically important social and environmental issues into the
mainstream of aquaculture development. This would include the delicate balancing of attracting
private sector investment to the sector whilst supporting environmental protection and social
development.
14

With many of the resulting aquaculture ponds having low shrimp productivity (10-200kg/ha/year), it is questionable in
some cases whether this is any net economic gain from the lost wetland resources.

APPENDIX H
Page 6

J. International agreements
20.
Apart from the FAO Code of Conduct (CCRF), that is discussed in detail in the main text,
there are several other international agreements relate to the aquaculture sector in Viet Nam.
Convention on International Trade in Endangered Species (CITES)
21.
Viet Nam is a signatory to the Convention on International Trade in Endangered Species of
Wild Fauna and Flora (CITES). CITES members are increasingly concerned about the trade in some
endangered aquatic animals that are significant in fishery trade, recently including seahorses and
Napolean wrasse in the CITES appendix for trade regulation. International shipment of these species
must be accompanied by an export permit certifying that they were legally harvested of farmed in a
way that is not detrimental to the survival of the species. Whilst not directly affecting aquaculture at
this time, there may be further restriction if species of aquaculture interest are added in future to
CITES regulations.
Convention on Biological Diversity
22.
Viet Nam is a signatory to the Convention on Biological Diversity. The recent meeting of the
CBD has given special attention to improving the environmental sustainability of brackish water and
marine aquaculture, emphasizing the importance of use of EIA, site selection within the framework of
integrated coastal zone management, research on the impacts of mariculture on biodiversity and
others15. Whilst implementation of these measures is not binding, or related to trade at present, it is
likely that future international attention will be given to the biodiversity aspects of coastal aquaculture
development, requiring Viet Nam to continue to seek and adopt better practices for environmental
management of the sub-sector in coastal areas.
World Trade Organization/Sanitary and Phytosanitary (SPS Agreement)
23.
Viet Nam is in the process of accession to the WTO, which means that the country will
eventually have to comply with the rules of the WTO. This will have crucial implications for
Vietnamese aquaculture and fisheries, consisting mainly of small-scale fishers and farmers.
24.
A significant challenge faced by Vietnam after WTO membership will be the Sanitary and
Phyto-Sanitary Agreement. To quote from an OXFAM analysis16 Poor farmers will struggle to
understand what these standards are never mind comply with them. If tough new standards are
imposed upon accession without support a large number of Viet Nams poorest farmers will no longer
be able to produce for export. Fresh fruits and the fisheries and seafood sectors will probably be most
affected. In WTO negotiations, Vietnam is requesting a transition period and technical assistance to
implement SPS measures; such an approach seems amply justified considering the dominance of
small-scale farmers, the difficulties in communication and extension, as well as fragmented market
chains. Ultimately, the development of national standards to international levels will enable Vietnam
to take better advantage of seafood export markets; however, substantial capacity will be required.
25.
Negotiations to date include a request that Viet Nam adopt a bill to amend the Law on the
Promulgation of Legal Documents to include procedures for publication and public comment.
OXFAM consider that increased transparency will be good for increasing accountability in the
decision-making process and improving transparency and accountability that will benefit the
Vietnamese people including poor women and ethnic minorities.

15
16

Pages 138-140 of the Report of the Conference of the Parties to the Convention on Biological Diversity, Kuala
Lumpur, 9-20th and 27th February 2004. UNEP/CBD/COP/7/21.
Unpublished OXFAM analysis of Viet Nams Accession to the WTO. March 2004.

APPENDIX H
Page 7
26.
WTO members can apply safeguards against imports of each other in cases of "market
disruption", and such safeguards have been applied against China. The standards for application are
much lower than in the WTO Agreement on Safeguards, and OXFAM consider this provision may
lead to an increase in anti-dumping measures affecting Vietnam with implications for people in the
fishery sector. Further analysis of WTO impacts would be useful to provide specific policy guidance
on the implication of WTO accession for fisheries and aquaculture.
Ramsar Convention
27.
Viet Nam is also a member of the Ramsar Convention on Wetlands, with the Ministry of
Environment and Natural Resources as the focal point for implementation. Obligations under the
Ramsar Convention have been considered in the development of the wetland strategy for
implementation of the Wetlands Decree.

APPENDIX I
Page 1

APPENDIX I: AQUACULTURE TRENDS, SECTORAL ANALYSIS

AND ENVIRONMENTAL ISSUES
3.

Aquaculture development trends

General overview
1.
Aquaculture production, the area devoted to aquaculture ponds, and value of aquaculture
production has increased significantly in the past 10 years. Total production in 1990 was 306,750
tonnes, and in 2003 MOFI estimates are around 1.1 million tons, within which is included an
estimated 200,000 tonnes of inland capture fisheries. Based on MOFI figures, aquaculture makes up
around 44% to total production of aquatic products.
2.
Although not completely consistent with MOFI data, statistics from the Government
Statistical Office
Table I1: Total aquaculture production
(GSO,
2004)
1991
1996
2000
2001
2002
2003
provide further
Area (ha)
309760 498687.7 640496.1 755177.6 797704.8 865414
understanding of
trends within the
Production (t)
168104 423038.2 589600
709900 844800 966100
aquaculture
Yields (t/ha)
0.54
0.85
0.92
0.94
1.06
1.12
sector.
Source: GSO, 2004
Aquaculture
production in 2003 is given by GSO at 966,100 tonnes, from an area of 966,100 ha, with an average
production of 1.12 t/ha (Table I1).
3.
Aquaculture area in Viet
865,414 ha in 2003 (Table I2).
Out of this total, the largest
area of aquaculture ponds is
found in the Mekong delta. In
terms of area devoted to
different forms of aquaculture,
in 2003 the largest land area is
shrimp (579,388ha, mainly
brackish water shrimp), fish
(256,511ha), and 19,044ha for
other forms of aquaculture.

Nam continues to expand has increased from 309,760 ha in 1991 to

Table I2: Aquaculture area (ha) in Viet Nam
1991
1996
2000
2001
2002
2003
Total area
309,760 498687.7 640496.1 755177.6 797704.75 865414
Red river delta 42,815 66075.2 68349.8 71333 75686.4 81149
North east
19,332 29934.3 29847.3 31088.5 35873.6 40968
Northwest
2,522
3129.3 3505.4 3820.9
4432.7 4687
North central 23,038 27877.7 30641.5 32716.4 36291.4 39806
South central 8,972
12967 17299.4 19061.6 20446.8 19366
Central plateau 3,449
4265.5 5115.9
5643
5683.6 6175
South east
53,321 34143.7 40582.6 44409.1 48972.55 52083
Mekong delta 156,311 320295 445154.2 547105.1 570317.7 621180

Source: GSP, 2004

4.
The
value
of
aquaculture production (based on farm gate prices) has also expanded, reaching 5,448 billion Dong in
1999, or US$347 million. Again, the Mekong delta dominates in terms of values with over 3,680
billion Dong, or 67% of the total value. Shrimp farming in particular provides significant value to
aquaculture production in Viet Nam, with carps and freshwater species of lower farm-gate value
Regional trends
5.
There are substantial differences between aquaculture developments in different regions of
Vietnam.
North-eastern coastal region
6.
The northeastern region contains the five coastal provinces of Quang Ninh, Hai Phong, Thai
Binh, Nam Dinh and Ninh Binh, with well developed freshwater, brackish water and marine
aquaculture, with potential for further development. Aquaculture production has expanded from

APPENDIX I
Page 2
15,400 tons17 in 1990 to 98,800 tons in 2003. Freshwater aquaculture (mainly carps) contributes
approximately 50-52 % to total aquaculture production, with brackish water and marine aquaculture
makes up the rest. Household-level cage culture is found in the sheltered waters of the two provinces
of Hai Phong (surrounding Cat Ba islands) and Quang Ninh (Ha Long and Bai Tu Long bays), farming
groupers, cobia and pearl oyster. At present there are 6200 cage units in operation producing
approximately 1700 tons of marine finfish. The region also produces mollusks, seaweeds and shrimp
(Penaeus monodon) and recently the exotic Penaeus vannamei). Another feature of this region is the
active trade in aquatic products with nearby China.
7.
There are 52 small-scale freshwater hatcheries in the region, producing about 2.0-2.2 billion
freshwater carp fry. There are about 30 shrimp hatcheries, in 2002 producing around 290 million
shrimp PLs, including at least one recent large investment producing the exotic Penaeus vannamei.
Locally produced shrimp PLs meet only 20-30% of the farmers demand, with the remainder supplied
by central provinces, or import from China, including Penaeus vannamei. Marine fish seed comes
collection of wild seed, or hatchery reared fish from Cat Ba, or import from China or Taiwan.
Although most aquaculture in the area is small, household scale, there is a trend towards more
industrial intensive farming of shrimp, and marine fish.
Northern inland and Red river areas
8.
This inland region comprises 14 mountain provinces in the northeast and northwest of the
country, and six inland provinces in the Red river delta, including some of the poorest and remote
regions in the country. Aquaculture in the Red river delta provinces in particular has expanded in
recent years, from 13,300 tons in 1990 to 76,400 tons in 2003, from 21985 ha to 36100 ha in the same
period. Due to land use pressures, increased aquaculture production in the Red River delta has been
mainly the result of intensification, from 0.6tons/ha/year in 1990 to 2.1 tons/ha/year in 2003. Although
volumes are smaller, midland and highland provinces have also seen significant growth in aquaculture
production, from with a fourfold increase from 6443 tons in 1991 to 29,130 tons in 2003, from a twofold increase in culture area. The success of aquaculture development through UNDP projects in some
poor mountain communes (UNDP, 2000) has led to increasing interest in aquaculture for poverty
reduction in this impoverished region.
9.
The traditional polyculture and integrated farming system (garden-fish pond-livestock pen as
called VAC) in some cases with modifications (VAC with forestry-R or AR) are commonly practiced
in the Red river delta. Rice-cum-fish as well as rice fish rotation are also common in most lowland and
midland provinces. Although statistical information is sparse, rice cum fish and rice fish rotation has
expanded since 1990, with around 10,000ha of low lying paddy field in the Red river delta and in
some midland and highland provinces (Phu Tho, Bac Giang, Hoa Binh and Son La), contributing to
diversification of rice-based agriculture farms in the region. Fish cage culture has been widely
practiced in many mountain provinces, mainly involving grass carp, but disease outbreaks have
seriously constrained this type of aquaculture.
10.
Freshwater carp species (Chinese and Indian carps) dominate (85-90%) this region, while
diversification of culture species has potential for future development. The Red River delta provinces
have a strong fish hatchery and nursery network with more than 100 hatcheries of all sizes. In the
northern mountains a decentralized seed production system and network has been introduced and has
help overcome some of the fish seed shortages in this remote region.
North central coastal area
11.
Central Viet Nam has six provinces running more than 600 km of coastal line, from Thanh
Hoa to Thua Thien Hue province. The region is characterized by a very long costal line with long
sandy beaches and a narrow coastal plain (mainly rice fields), with remote mountains to the west.
17

Unless otherwise specified, the statistical data in this section come from GSO,2004.

APPENDIX I
Page 3
River systems in the region are short with limited estuarine areas and a seasonal current. Aquaculture
has been growing in the region over the last decade, from 5340 tons in 1990, 23,900 tons in 1999 and
a major jump to 45,988 tons in 2003. This increase has come from expansion of freshwater
aquaculture, dominated by Chinese and Indian carps, but also growth of brackish water farming.
Freshwater aquaculture is mainly integrated farming in small ponds or in rice paddies. Freshwater
seed, although easy to produce, is limited in this region, due to climatic conditions and poor
infrastructure. There are only 25 small-scale hatcheries producing approximately 700-800 million carp
fry meeting, supplying only 50 % of the demand. According to the Department of Fisheries in Nghe
An, aquaculture in remote western mountain areas is constrained by lack of seed.
12.
Traditional brackish water farming has been practiced for some time in this region, based on
extensive ponds built into estuarine areas, but more organized shrimp aquaculture started in the early
nineties. Shrimp production (P monodon) in the region increased from 170 tons in 1990 to 9300 tons
in 2003. Increased production has come mainly from expansion of culture areas, although
intensification has started in some locations during the last 3 years. Seed demand for P monodon in the
region is growing, with significant expansion of hatcheries over the past two years. However, demand
outstrips supply and the hatcheries in this region can meet only 25-30 % of the demand, the remainder
being imported from Da Nang and Khanh Hoa provinces in Southern central Vietnam, bringing
problems of quality control and disease. A hatchery of P vannamei is being constructed in Ha Tinh
during 2004, to stock a large commercial shrimp farm of several 100 ha. Seaweeds (Gracilaria sp.) are
also cultured in a small way in coastal lagoons, as are clams reaching with an estimated production in
2003 of 7,400 tons.
13.
Marine areas are quite deep and exposed in the Northern central provinces, with some shelter
provided by a few islands. However, water quality in general is very good, with limited influence of
freshwater large rivers. Norwegian style and flexible rope cage have been tried for marine finfish
culture in Nghe An province since 1999 on an experimental basis by RIA-1, and recently by private
investment. To date there are 40 Norwegian style cages and a few flexible cages made from ropes
installed in Nghe An for cobia, grouper and red drum culture. About 100 other wooden raft cages are
in operation in Nghi Son bay, Thanh Hoa province. Last year, about 70 tons of cobia and grouper were
harvested. In this year, it is expected about 100-110 tons of cobia and groupers and red drum will be
produced. The long beach and estuarine areas of the narrow and small rivers are used for stocking of
clam species. According to the MOFI review of 2002, Northern Central provinces produced 5000 tons
of bivalves, 950 tons of crab and 1500 tons of fresh agar seaweed (Gracilaria sp).
South central coastal area
14.
The Southern central coastal is located in the south part of central Viet Nam with a coastline
about 600 km. The region has considerable climatic and geographical advantages for brackish water
and marine aquaculture, while freshwater aquaculture plays only a minor role. Aquaculture production
in the region increased from 1054 tons in 1990 to 9784 tons in 1999 and reached 19,498 tons in 2003.
Shrimp farming is dominant. From 589 tons in 1990, it has increased to 4135 tons in 1999 to 15,524
tons in 2003, making up 78% of total aquaculture production. Marine mollusks are also cultured, but
with limited production at present. Pearls, mussels and experimental abalone, scallops and Babylonia
are grown, benefiting from the research program of RIA-3 and Nha Trang Fisheries University located
in Nha Trang. Marine cage culture of groupers, and recently cobia, is found in this region, and there
has been recent foreign investment in marine fish cage culture and hatcheries in Khanh Hoa, so further
expansion of marine fish farming is expected in the future. The region is the largest lobster producer in
Viet Nam. According to MOFI information, there were about 26,480 lobster cages producing about
1,000 tons of lobster in 2002. This region is the largest producer of shrimp (mainly P. monodon) seed
in Viet Nam. In 2003, there were 2702 shrimp hatcheries/nurseries in this region, contributing about
35% of national total shrimp seed production. Shrimp PLs from this region are exported to coastal
shrimp farming areas throughout Viet Nam.

APPENDIX I
Page 4
15.
The central plateau region of Tay Nguyen has a small amount of freshwater aquaculture,
mainly involving freshwater pond farming, together with a number of small and medium sized
reservoirs stocked with carps. GSO figures estimate around 6,175 ha of freshwater aquaculture area in
2003. Cage culture of grass carp was also found in this region, although this has apparently declined
due to disease problems. Snakeheads are also cultured in cages in at least one reservoir.
Southern eastern region
16.
Aquaculture development in this region is very diverse, and expanding. The production has
grown very quickly from 6,448 tons in 1990 to 48,013 tons in 2003. Mollusk farming, shrimp culture,
lobster and marine fish farming are important aquaculture activities in this region. Shrimp farming has
grown fast in recent years from 465 tons in 1990 to 14,846 tons in 2003. Brackish water and
freshwater fish farming makes up less than 10% of the total. In Ninh Thuan and Binh Thuan there are
450 small-scale lobster cages in operation producing about 40 tons of marketable size lobster. While in
Baria-Vung Tau and Binh Thuan provinces, there are about 1500 cages for grouper and cobia culture
producing around 200 tons up till 2003, although apparently declining in 2004 due to problems with
marketing of cobia. There are 1606 shrimp hatcheries (2002 data) producing 7.8 billion P monodon
PLs for local use and export to other provinces in the North and Mekong delta. There are some foreign
investment projects in this region, including Taiwanese investment on marine fish farming for cobia
since the late nineties.
Mekong delta
17.
The Mekong delta provinces from Long An to Ca Mau contributes the largest volume and
value to Viet Nams aquaculture production. Aquaculture in the Mekong Basin is a diverse activity. It
encompasses breeding, rearing and sale of shrimp, prawn, mollusk and fish fry and fingerlings, and
growing of wild or hatchery-reared fry and fingerlings in enclosed or semi-enclosed water bodies,
such as ponds, rice fields, mud flats and cages. According to GSO data, total aquaculture production in
2003 was 324,400 tons, from a culture area of 616,600 ha
18.
In brackish water areas, the most widely cultured species is tiger shrimp P monodon, raised in
ponds. There are a few intensive shrimp farming projects culturing the exotic P vannamei. Shrimp are
grown in intensive commercial shrimp farms and throughout large areas of extensive traditional ponds,
including mixed shrimp-mangrove and shrimp-rice farming systems. Crabs, mollusks and brackish
water fish are also farmed, mainly in low input extensive traditional farming systems. There is limited
marine aquaculture development in the Mekong delta, except some marine fish cage farming in Kien
Giang province. Brackish water shrimp production makes significant contributions to export earnings,
although yields per land area are still low.
19.
In freshwater areas, the most commonly cultured fish species in Mekong Delta ponds are river
catfish P. hypophthalmus (tra), silver barb Barbodes gonionotus common carp Cyprinus carpio,
tilapia (mainly O niloticus and O.mossambicus), giant gourami Osphronemus gourami, sand goby
Oxyeleotrix marmoratus, hybrid catfish Clarias gariepinus, C. macrocephalus, silver carp
Hypophthalmichthys molitrix, Indian carps and snakehead Channa striatus. Freshwater prawn
(Macrobrachium rosenbergii) is also cultured. Polyculture is the norm with stocking regimes and
densities varying with feed availability, water quality and market price. Fish pond farming in the
Mekong Delta has traditionally been integrated under the VAC system, However, VAC systems are
becoming less common, as farms specialize in more intensive farming of higher value species mainly
catfish but also tilapia. Rice-fish and prawn farms are also common. Extensive use is made of
agricultural and fisheries by-products, and abundant cheap labour, which keeps fish prices relatively
low. Although most freshwater production is predominantly for domestic consumption, catfish,
cultured in ponds and cages, has become a major export earner.
20.
Over the past 5 years, aquaculture has expanded quickly in the Mekong delta, both in area
covered and production. There are also ambitious plans for future development, and recent

APPENDIX I
Page 5
government plans call for raising the output to 1.8 million tons, or 60 per cent of the country's total, in
the next three years, and by expanding
Table H3: Shrimp hatchery development in Vietnam.
the
freshand
brackish-water
Region 1985 1990 1995 2000 2001 2002 2003
aquaculture, to cover 815,000 ha by
North
6
10
17 769
2010. All three Mekong delta provinces
Central
2,139 2,653 3,483 2,702
visited during the preparation of this
South
791 1,114 1,268 1,546
report give a high priority to aquaculture
Total
5 500 685 2,936 3,777 4,768 5,017
development, particularly in brackish
S
Nh
t l 2004
and marine coastal areas.

K. Sub-sectoral trends
Freshwater aquaculture
21.
Freshwater aquaculture is now well established and continues to expand in inland areas. The
farming systems are characterized by being quite diverse, relatively low risk, and have been shown to
adoptable by agriculture farmers without major problems. Environmentally sound, integrated,
polyculture systems in ponds or rice fields are widely practiced and dominated by (exotic) carps.
Semi-intensive and intensive monoculture culture of catfish and tilapia is now well established in both
Mekong and Red river deltas, and there are trends towards intensification and monoculture. Cage
culture has developed in the north and some reservoirs, with moderate success, but the major
expansion of cage farming has been with catfish farming in the rivers of the Mekong delta.
22.
Freshwater aquaculture has demonstrated its potential to contribute to diversification of smallscale agriculture households in the Mekong and Red river deltas and food supply and poverty
reduction in subsistence-level farming in remote northern mountain areas. Opportunities exist to
further expand freshwater aquaculture for further diversification of agriculture farms, including remote
mountain areas.
23.
Freshwater aquaculture provides a low risk and environmental sound option for diversification
of on-farm income for agricultural households. Pilot level successes in poverty reduction through
aquaculture in remote upland areas, such as through the UNDP northern upland projects18 suggest
substantial opportunities for expansion of aquaculture in mountain areas to contribute to poverty
alleviation.
24.
Freshwater fish seed production for freshwater species is quite well established with an active
private sector engaged in hatching and nursing in many parts of the country. In Can Tho city, for
example, there is an active small-scale fish hatchery and nursing network, including the active
involvement of women (Minh et al, 1996). Fish seed quality is a problem in some areas, and genetic
management needs to be improved. In the new fish seed program, MOFI is also keen to promote
species diversification through culture of indigenous species and introduction of new exotics.
25.
Feed is not a constraint for freshwater carp species in polyculture and integrated systems, but
with trends towards monoculture, and in intensive freshwater aquaculture, it is becoming increasingly
important. According to Edwards (2004) feed for lower cost freshwater fish will not be able to
compete with higher value marine and brackish water species and freshwater fish will need to be fed
increasing amounts of plant-based proteins. Water quality and availability may well become a future
constraint to freshwater aquaculture.
Marine aquaculture (finfish and mollusks)
26.
Marine aquaculture is being given a high priority for development by Government, with an
ambitious plan for a finfish production of 200,000 ton by 2010 and further development of mollusk
18

Aquaculture Development in the Northern Uplands of Vietnam (UNDP project VIE/98/009/01/NEX)

APPENDIX I
Page 6
and agar seaweed production. At presently, marine culture relies mainly on very limited finfish species
(cobia, groupers, red drum and sea bass) as well as crustacean (lobster) and mollusks (clam, blood
cocker, pear oyster, oyster, blue mussel) and some seaweed species. Although no accurate statistics are
available, mollusk production dominates in volume. There are significant regional differences in
marine aquaculture, but all coastal areas appear to have potential for further expansion of marine
aquaculture.
27.
Marine hatchery technology for three marine finfish species and mollusk has been developed
to some extent (in 2004, more 100.000 fingerlings of 15-25 cm of cobia and more than 120.000
fingerlings of grouper and 50.000 of red drum were produced in Cua Hoi). However, supplies are
limited and the survival rate of larvae in different development stages remains low. Future
development of marine fish and mollusk farming will certainly require investment in hatcheries and
nurseries to supply seed. Marine fish hatcheries are found in Ha Long Bay (Cat Ba island and near Ha
Long city) and RIA1s hatchery facility at Cua Lo (Nghe An province) in the north; at Vung Tau near
Ho Chi Minh City in the south. Nha Trang in south-central Viet Nam has some foreign investment in a
marine fish hatchery, and is the site of further commercial (private) and government marine fish
hatcheries. At present there is one Taiwanese supported private hatchery in Van Ninh district near
Nha Trang spawning grouper and sea bass. The University of Fisheries in Nha Trang has some noncommercial spawning capacity for their own research purposes. The output from hatcheries is
expanding quickly. Estimates of grouper production in the north-central Viet Nam suggest 150,000200,000 grouper fingerlings were produced in 2003, compared to 70,000 in 2002.
Brackish water aquaculture
28.
Brackish water aquaculture in Viet Nam is dominated by shrimp farming, although crabs,
mollusks, and brackish water fish are also cultured in extensive traditional ponds from the north to
south of the country. Much government attention has been placed on shrimp farming, which now
makes a substantial contribution to export values for the country.

Shrimp culture area (ha)

and production (ton)

29.
Extensive, traditional forms of shrimp culture, have existing for some time, but there was a
significant expansion in 1990s and early 2000s Perhaps the most spectacular increase in shrimp
farming area followed the government policy change allowing farmers to convert unproductive rice
fields, uncultivated areas and salt pans into aquaculture ponds. The area for shrimp culture jumped
increased from 250,000 ha in 2000 to 478,000 ha in 2001, largely in the Mekong delta. Although the
growth rate slowed down, during 2002-2003, the area of shrimp culture in Viet Nam still continues to
increase and at the end of 2003 there were an estimated 550,000ha of land used for shrimp culture.
Currently Viet Nam is among the worlds largest shrimp farming nations in terms of area cultured.
Figure I1 shows the trends in production, yields and area, having barely increased since the early
1990s. Yields continue to be low by Asia
Figure 11. Trends in shrimp production and area
regional
standards,
and
indicate
considerable
scope
for
improved
0.5
700000
Area
efficiency of use of land and better
600000
0.4
farming practices
500000
Aqua.
400000
300000
200000
100000
0

0.3

production

19
91
19
96
20
00
20
01
20
02
20
03

0.2
Productivity
30.
Shrimp farming systems in Viet
0.1
Nam are still dominated in terms of area
0
by low input, extensive, farming practices,
Productivity (ton/ha)
and in the Mekong delta by rice-shrimp
farming systems, and some mixed
mangrove-shrimp systems. The main Source: GSO, 2004
shrimp species cultured in Viet Nam are
Penaeus monodon, P. merguiensis, P. orientalis and Metapenaeus ensis, among which P. monodon is
the most important in terms of production. The white shrimp (P. vannamei) was introduced in 2000,
but production is confined to a few intensive commercial farms and is overall still low.

APPENDIX I
Page 7
31.
An extensive network of over 5,000 small-scale hatcheries supports shrimp farming, in 2003
producing around 25 billion shrimp PLs. These hatcheries are concentrated in the Central Southern
provinces. However, quality and shrimp disease are major problems. Currently, Mekong delta and
Northern provinces are trying to produce shrimp seed by themselves to meet local demand and
minimize the risks of spreading shrimp diseases and improving quality. Shrimp farming is also
supported by feed and chemical suppliers, makes the major contribution of shrimp for export and is a
major employer in coastal areas of Vietnam, but particularly in the Mekong delta. The expansion of
shrimp farming has been increasingly controversial, contributing to loss of mangrove forests, degraded
water quality, social problems, and significant risks associated with shrimp disease.
32.
Risks associated with shrimp farming are prompting increasing interest in diversification of
coastal aquaculture species and farming systems. Brackish water farming systems in the Mekong delta
traditionally harvest a range of aquatic products, including fish, mollusk, crabs and shrimp, and further
development of such systems would provide better lower risk options for small-scale poorer farmers
and fishers in brackish water areas. Mud crab farming for example is a lower risk option that has been
adopted by poor farmers, for example Khmer fishers with small traditional ponds in Bac Lieu. Local
markets are available, crabs are suitable for simple collection and transport methods and can be
cultured with minimal inputs in traditional ponds. Sustainable development of crab farming will
depend on development of hatcheries, but technology is becoming available in Vietnam to produce
hatchery-reared crabs. Brackish water fish culture is also practiced in some areas, with species such as
mudskipper, sea bass, mullet and milk and tilapia farmed, mainly on an extensive scale, but deserves
more R&D attention.

L. Environmental issues
33.
Aquaculture development of aquaculture in Viet Nam also has significant environmental
implications. Aquaculture may impact the surrounding environment and is affected by changes in the
environment. Small-scale aquaculture can also contribute to environmental improvement but on- and
off-farm environmental interactions need consideration in the promotion of aquaculture in Viet Nam.
34.
Aquaculture is vulnerable to both natural and man-made environmental change. The severe
flood in 2000 caused significant damage to aquaculture ponds in the Mekong delta (van Anroy, 2000),
perhaps compensated to some extent by increased fish catches resulting from the flood. Pesticide use
in agricultural areas is of increasing concern for water quality and human health, as well as
aquaculture (Phuong 2002). Integrated pest management (IPM) incorporating (valuable) fish or prawn
may offer opportunities to reduce pesticide use in rice fields, and should be more widely promoted.
Aquaculture infrastructure as well as fisheries is also vulnerable to coastal typhoons and associated
floods that are a feature of Viet Nams coastline.
35.
Small-scale aquaculture may have positive impacts on the environment. Ponds on integrated
farms such as the traditional VAC system recycle waste and store water that can be used for livestock,
watering vegetables, and as a domestic water supply during the dry season. Integration of fishponds
into water resource schemes and irrigation networks can also create more income from water
resources. As part of a household livelihood strategy, a pond is an important natural asset for many
small-scale farm households. For many years also, the sewage fed fishponds and agriculture fields in
the outskirts of Hanoi in Tranh Tri have provided a cost-effective and environmentally sound way of
producing food and treating domestic effluent.
36.
Most water and effluent from freshwater aquaculture ponds can be recycled and efficiently
used on agricultural crops without environmental concern. By contrast, more intensive farming
practices, particularly those associated with large concentrations of cage farms where wastes are
discharged directly into the water body without treatment, risk localized water pollution. This has led
to deterioration of water quality and fish disease outbreaks, for example, with grass carp cage culture
in the reservoirs in Dak Lak (Phillips, 1998). Such problems can be addressed through better cage
culture management practices that reduce feed losses, better site location for cages, and localized

APPENDIX I
Page 8
management arrangements that reduce conflicts and maintain the number of cages and production
within the assimilative capacity of the water body.
37.
Freshwater aquaculture systems in Viet Nam also rely heavily on exotic (introduced) carps
and tilapias. No problems have been reported to date, and exotic carps contribute significantly to
aquaculture production and farm income. However, care has to be taken with introduction of new
exotic species, due to risks of disease and impacts on aquatic biodiversity, through adoption of risk
assessment procedures. There have been a number of fish disease outbreaks in Viet Nam, and it is
likely that such problems will increase in future with further expansion and intensification of
aquaculture. The spread of serious aquatic animal diseases is becoming a feature of international trade,
making it important for Viet Nam to develop and adopt effective measures for aquatic animal disease
control, to protect livelihoods of people involved in aquaculture, and trade.
38.
The conversion of wetlands and even parts of rice fields to fishponds can lead to losses in
wetland habitat and wild fisheries. This is an important concern in Viet Nam, where significant coastal
areas have been converted to aquaculture. Such problems need to be avoided through better planning
approaches that consider both aquaculture and wild fisheries. Aquaculture should add-value to
natural resources and the livelihoods of people that depend on natural resources.
39.
In coastal areas, environmental concerns from wetland conversion are significant. Expansion
of shrimp farming has contributed to loss of coastal mangrove wetlands in Viet Nam (Hong and San,
1993), and has also encroached into coastal estuaries, many of which are important fish nursery areas.
During the period from 1975 to 1990 an estimated 75,000 ha of mangrove forest was removed because
of fuel exploitation, agriculture and aquaculture development, and although replanting has taken place
have been significant impacts on biodiversity, coastal erosion and water quality (Nhuong et al, 2004).
Such problems have to be addressed through better planning and siting of aquaculture ponds away
from mangroves, raising awareness on the importance of mangroves and conservation of important
wetland habitats. The new Wetland Decree provides a sound legal basis for protection of wetlands
and implementation if required. Several studies and international NGOs (e.g., EJF, 2003) have raised
concern about the environmental and social aspects of development of shrimp farming in Viet Nam.
40.
Siting of shrimp ponds in rice farming areas, following the major conversion in 2000 has
raised incomes among many shrimp-rice farming households, but has resulted in salinization of
agriculture areas. Such problems need to be managed through improved water management and
farming practices in this hydrologically complex area in the Mekong delta. Recent expansion of
shrimp farming in sandy areas, promoted by MOFI as a means of improving livelihoods of the many
poor people in Viet Nam living in coastal sandy areas, has also led to concerns over the salinization of
freshwater aquifers, due to seepage and extraction of groundwater. Studies on the impacts of sandy
soil shrimp farming ongoing by IFEP, raise significant questions about the economic and
environmental sustainability of this practice.
41.
Intensive farming practices, shrimp and marine fish farming, can lead to water quality
problems due to discharge of effluent. Such problems can be managed by better feed management,
and treatment of effluent from intensive ponds, and ensuring density of cage farms are kept with
assimilative capacity.
42.
There has been a dramatic recent rise in the use of trash fish in aquaculture with the
development of marine cage culture of grouper and lobster, and the expansion of freshwater culture of
river catfish in cages, ponds and pens. Recent estimates from Edwards (2004) suggest inland
aquaculture consumes between 64,800t and 180,000t (solely catfish), coastal between 72,000t and
144,000t, with a total between 177,000t and 364,000t. There are also conflicting uses for trash fish for
livestock feed, fish sauce and direct human food as well as for a direct aquaculture feed and fishmeal
manufacture in some areas. Collection of so-called trash fish for aquaculture and other uses is also a
concern because such fish usually contain juveniles of economically important fish. Availability of

APPENDIX I
Page 9
trash fish as a direct feed is likely to restrict the future expansion of aquaculture as supplies are finite
and alternatives and improvements in feeding efficiency are required.
43.
Aquatic animal disease problems are also significant, causing major economic damage,
particularly in the shrimp sector. Major problems include white spot disease (WSSV) in shrimp, red
spot disease in grass carp, and others. Whilst some progress has been made, shrimp farming still
suffers from disease problems, which have led to debt among farm households, and in some cases
forced farmers to sell land. Better quality of disease free seed supplies, together with overall lifting of
farm management practices, and improved planning and regulatory frameworks, will be essential to
reduce this risk. Investment in facilities and people is required at all levels, from farm to MOFI, to
build the capacity to reduce risks to the aquaculture sector from aquatic animal diseases. MOFI has
recently approved an environmental and disease monitoring program, but this needs further support in
terms of design, coordination, skilled people and facilities if it is to be successfully operated.
44.
Some of the environmental problems in aquaculture have arisen because of a poor planning
framework for aquaculture development, particularly in coastal areas, emphasizing the general need to
strengthen planning processes for aquaculture, and integration within coastal zone management
schemes. Better zonal planning and management of aquaculture is required, in inland and coastal
areas. Existing plans are mainly based on zoning of land areas, with limited attention to environmental
impacts or management. There is a need to review and improve many of the existing zonal plans,
including conducting more comprehensive EIA, and implementing and investing in realistic
environmental management plans.

APPENDIX J
Page 1

APPENDIX J: MARKETS AND PROCESSING

4.

Market Channels

1.
The marketing of fish, shrimp and other capture and culture products in Viet Nam is complex.
There are numerous species, product forms, marketing channels and markets. Products may be
marketed live by farmers or sold to middlemen who assemble product and sell to processing plants (or
in the case of shrimp fry or grouper fingerlings, to other producers). At the same time, few data exist
on marketed species, volumes and prices, making definitive analysis of the markets and marketing
chains impossible. The following sections summarize available information on the domestic and
export markets relevant to Vietnamese aquaculture. For many products (notably shrimp), the capture
and culture sectors produce the same species that are handled by the same processors. In many cases
marine capture species compete in the same markets as culture products. It is therefore necessary to
give consideration to both capture and culture fisheries products in an analysis of the market or market
opportunities.
2.
About 170 marine species are considered to be of commercial importance in Vietnam. About
30 species are of significance to marine fisheries; with shrimp being the most important by value,
followed by cephalopods, scads, croakers, snappers, sardines, lizardfish, jacks and tunas. Tunas have
increased rapidly in importance in the last five years to reach production of around 50,000 tons
annually from a low base. Of the exploitable fish stocks, it is estimated that some 60 per cent are
pelagic (primarily surface dwelling) species and 40 per cent are demersal (mainly dwelling at or near
the sea floor or reefs). Carps (Chinese and Indian) are dominant among freshwater cultured species.
3.
Marine fish are normally sold to agents at the port or jetty. Fishers often develop long-term
relationships with market traders or wholesalers who provide them with credit for fuel, ice and other
supplies, and can provide finance for off-season needs or even assist with vessel purchase. Agents
will usually send trucks to pick up fish from the vessel even if landings are seasonally away from the
main port. In the past, most fish used to change hands four times between the vessel and the retailer or
processor. However, more normally, there are only two changes of ownership. Agents are almost all
family businesses (87%) or private enterprises (11%), with only 2% being public enterprises,
demonstrating the dominance of the private sector in fish marketing. Agents handle an estimated 90%
of fish landings and production (Dang & Ruckes 2003). Only 31% of agents use storage, and agents
thus have limited capacity to even out supply.
4.
For offshore vessels, fish may be sold at sea to buyers on transport vessels or collector vessels
run by their agents. For example the Vung Tau fleet may spend many months at sea, transshipping
product at Con Dao, and purchasing ice and other inputs from the collector vessels or from the new
port. Where marine product processing plants are present, vessels may contract to supply them with
product. Factories can seek product over a wide area. For example the crab canning factory near Nha
Trang purchases marine crabs through a network of agents between Vinh and Rach Gia (Kien Giang).
In the north, significant quantities of fish and other products are purchased by Chinese agents using
collector vessels, providing a strong market for fishers from Quang Ning and Hai Phong in particular.
5.
Aquaculture products follow a similar path to marine fish. However, some contract directly
with processing plants. Dang & Ruckes (2003) estimate that 33% of aquaculture products are sold
directly to processors and a further 25.5% to processors through wholesalers. Almost all processed
product (95.5%) is destined for export.

M. Wharf/Farm Gate and Export Prices

6.
Few data are available on producer or retail prices. FICEN does collect some data such as
those presented in Table J-1, which summarize available data on shrimp price at the farm gate in the
four main regions. The most detailed data are for the Mekong, which suggest that the price for large
shrimp have increased over the past 12 months (from about 120 to 130/kg for shrimp over 50

APPENDIX J
Page 2
grams (<20/kg). Prices for smaller shrimp (41-50/kg) have declined from around 85/kg in July to
August 2003 to around 70/kg over the same period in 2004. In future, consideration should be given
to collecting and disseminating detailed price data on a daily or weekly basis. Study of collection,
analysis and dissemination systems is merited. A price of 70,000/kg ($4.50) is marginal for
intensive shrimp production, raising questions about the viability of the system, particularly where
only one crop can be grown each year due to climatic factors (e.g., in the north).
Table J-1 Farm gate price of shrimp (000)
Months
North
No/kg
31-40 41-50
Feb-03
Mar-03
Apr-03
May-04
Jun-03
Jul-03
85
75
Aug-03
80
75
Sep-03
85
75
Oct-03
3-Nov
Dec-03
Jan-04
Feb-04
Mar-04
Apr-04
May-04
Jun-04
80
70
Jul-04
80
70
Aug-04
85
80

N. Central
31-40 41-50

87
80
85
85

S. Central
31-40 41-50

95
95
75
80
80

74
75
65

85

95

90

Mekong Delta
<20pcs/kg 21-25 26-30 31-40 41-50
130 120 105
80
65
135 116 100
80
67
118 105
88
80
75
120 108
95
80
60
118 105
88
80
60
120 114 108
96
90
120 110 105
92
82
120 110 105
82
75
116
96
82
61
48
108
93
57
88
72

135
125
126
130
137

120
110
105
102
102

105

85

110
105
95
95
92

100
90
77
75
75

80
80
72
68
73

Source: FICEN (pers comm.)

7.
For carps in the Hanoi market, the retail price of 22,400 represented a markup of 59% on the
farm gate price. For major carps, the markup was 62%. The margins for fish transported from distant
provinces to major markets are higher, due to transport costs, though these are low by international
standards. Marketing and transport margin for major carps from Nghe An sold in Hanoi were
approximately 66%. Overall, marketing margins are low, suggesting a highly efficient marketing
chain. Prices along the marketing chain in 2001 are given in table J-2.
Table J-2 Average price of major species in 2001

000 /kg
Product
1
2
3
4
5
6
7
8
9
10
11
12

Dried fish
Dried squid
Fish sauce
Mackerel
Tuna (skipjack?)
Dried shrimp
Common carp
Snakehead
Grass carp
Scad
Pomfret
Anabas

Source: Dang & Ruckes (2003)

Fish Farmers

Fishers

Wholesalers

Retailers

Processors

13.9
15.2
9.2
11.0

na
77.2
20.9
6.9
11.4
13.0
7.6
7.1
17.1
11.0

28.2
96.6
6.0
23.7
8.4
69.2
16.0
20.4
11.6
7.1
20.4
-

34.8
116.0
8.9
27.6
9.9
131.4
18.5
22.8
11.7
7.9
24.5
20.0

16.15
153.3
6.8
43.7
-

APPENDIX J
Page 3
1. Export Volume and Value
8.

Export volumes and values over the period 1995 to 2001 are in Table J-3
Table J-3 Main Fisheries Export Products of Viet Nam
Volume ('000t) Frozen shrimp Frozen squid
1995
66.0
7.2
1996
72.0
9.5
1997
65.7
24.3
1998
65.0
20.0
1999
61.3
21.9
2000
66.7
21.2
2001
87.2
21.1
Value ($ mil)
1995
360.0
27.4
1996
381.6
39.9
1997
389.7
84.0
1998
449.0
70.4
1999
482.3
75.5
2000
654.2
82.4
2001
777.8
80.7
Price ($/kg)
1995
5.5
3.8
1996
5.3
4.2
1997
5.9
3.5
1998
6.9
3.5
1999
7.9
3.4
2000
9.8
3.9
2001
8.9
3.8

Fish Dried squid Other products

25.0
5.5
0.0
30.0
6.0
0.0
37.2
10.6
68.7
30.6
7.7
77.3
36.4
10.0
100.3
56.5
26.4
121.1
74.1
18.1
175.1
50.0
66.0
94.1
78.6
96.5
165.8
221.9

39.6
45.0
38.7
40.4
54.4
211.3
153.8

2.0
2.2
2.5
2.6
2.7
2.9
3.0

7.2
7.5
3.7
5.3
5.4
8.0
8.5

Total
103.7
117.5
206.4
200.6
230.0
291.9
375.5

73.1
117.5
154.9
179.7
230.2
364.9
543.2

550
650.0
761.5
818.0
938.9
1478.6
1777.5

2.3
2.3
2.3
3.0
3.1

5.3
5.5
3.7
4.1
4.1
5.1
4.7

Source: FICEN

9.
Total export value was
$1.8 billion in 2001 and in 2003
reached $2.2 billion.
Shrimp
contributed $1.14 billion (52%). In
2004, export values are somewhat
lower, and are unlikely to exceed
2003 levels. In 2000, Japan and
other Asian markets dominated
exports with 60% of the volume
and value of exports (Table J-4).

N. Consumption

Table J-4 Volume and Value of Exports by Market (2000)

Volume (t)

1997

1998

1999

2000

Japan

85302

69580

67226

68717

24%

US
EU

6098
20475

10908
23081

18933
21977

37979
20290

13%
7%

Asian (except Japan)

Other markets

86553
7969

84830
12155

99919 106779
21908 58155

37%
20%

206398 200556 229964 291923

100%

Total
Value ($ mil)

382.8
357.5
383.1
469.5
32%
10.
There have been a number Japan
of studies of fish consumption in US
39.2
80.2
130.0
301.3
20%
Vietnam. FAO food balance sheets EU
75.2
93.4
90.0
71.8
5%
indicated that average consumption
Asian (except Japan)
236.5
234.8
273.0
412.4
28%
in Viet Nam increased from 13.2
Other
markets
27.8
52.1
62.8
223.7
15%
kg/person in 1990 to 18.7 kg in
761.5
818.0
938.9 1478.6 100%
2000 (reported in Lem 2002?). Total
Additional data can be drawn from Source: IFEP
the Fish Marketing Study in Tien
Giang province, carried out in 1999 and part of the project Rural Extension for Aquaculture
Development of Mekong Delta. Although this study aimed particularly at forecasting demand for

APPENDIX J
Page 4
freshwater species, it also surveyed consumption of all fish products. Average fish consumption per
caput for the province was estimated at 38.5 kg/year). Price elasticity for fish was estimated at -0.466
and income elasticity at 0.112 (ibid). An annual nutrition survey in 2000 reported annual consumption
of 24kg/person nationally, ranging from 12kg per person in the north to a high of 33kg in the Mekong
Delta.
11.
Fish consumption was estimated through a wide ranging survey of 656 households under an
FAO study by Lem (2002). The consumption estimates are high compared to other studies but are of
interest as they confirm the importance of fish in the Vietnamese diet, with consumption of 2.8 times
that of the other three protein sources combined. The report indicates that consumption of fish is
lower in the northern provinces than in central and southern provinces. Consumption in the cities is
lower than in both suburban and rural areas, a result that is common throughout the country and
suggests inadequate distribution channels in urban areas or problems in logistics and marketing.
12.
Surveys made by the National Institute of Nutrition from 350 households in Hanoi suburbs
and Ha Nam Ninh province in 1989 indicated that daily consumption of protein on integrated farm
(VAC) households is much higher than that of comparable groups (Nam et al, 1999).

O. Processing
13.
The processing sector has expanded rapidly over the past few years, particularly with the
development of large modern facilities particularly in the south in Khanh Hoa and most Mekong delta
provinces. There are about 400 registered processing plants in Viet Nam with around 0.8 million tons
input capacity. According to (Dang & Ruckes 2003) 77% of institutional consumers required safe
and hygienic food certificates. Among processors, 74% had HACCP certification, 54% were Good
Management Practice certified, 24% had EU certification while 16% were ISO certified. Of registered
processing plants, 80% were in the south, 12% in the central and 8% in the north regions of Vietnam.
By 2003, 100 enterprises and 8 mollusk production areas were certified for the EU market.
14.
A majority of the plants process shrimp. Frozen shrimp exports were 56,000 tons in 2000, and
have subsequently increased. Other products include swimming crab, snail, mud crab, oyster and
scallop which in total contributed 77,200 tons to exports in 2000, or 26% by volume of total exports.
15.
A total of 43 companies and many thousands of small enterprises process fish products for
domestic markets with a total input capacity about 330,000t/year (Fisheries Master plan). Products
include fish sauce, dried products, fishmeal and frozen and chilled products. Dried products are
popular with small businesses as they are simple to make and do not require complicated facilities and
technology. The main products are dried squid, fish, shrimp, seaweed (Gracilaria) and products dried
with spices.

P. Export Market Impediments

16.
As aquaculture products have made an increasingly important contribution to export value and
trade in fishery products, Viet Nam has faced increasing problems with various international trade
measures. Viet Nam has made substantial investment in upgrading the quality of its seafood
processing factories, and HACCP and EU and Japan health and hygiene standards are now being
widely adopted. Nevertheless, recent events and trends show that significant challenges remain for
Viet Nam to be competitive in the international market for aquaculture products that go beyond
processing plant quality control and processing technology. Aquaculture is likely to be the main
supply for higher value exported aquatic products, therefore considerable investment in addressing
trade-related constraints is needed to remain internationally competitive.

APPENDIX J
Page 5
1. US Anti-dumping Measures
17.
In part due to the great success in penetrating export markets, there have been a number of
recent developments that have resulted in export bans or limits. Catfish were subjected to US antidumping legislation in 2002. Vietnamese exporters have been highly successful in identifying new
markets for process catfish, which are now exported to more than 40 markets. Exports to Europe have
increased by 250% since 2003 and to the Pacific region by 350%. The number of processors
exporting catfish has increased from 16 prior to the introduction of tariffs to more than 30. The
farmgate price of catfish in the Mekong delta has reached a record 15,000/kg. Further information
on the catfish dumping case is provided in Appendix G.
18.
The proposed US shrimp anti-dumping tariffs (planned for imposition in China and five other
countries as well as Vietnam), could cost exporters fines of between 12 and 93% of FOB value. The
impact of this would be significant in the short-term, but many exporters look on shrimp as a
commodity, and expect the markets to even out such pricing issues quite quickly. Further information
on the shrimp anti-dumping case is in Appendix G.
19.
There are no direct subsidies in the aquaculture industry. That is, there is no direct payment to
farmers from the government for producing aquaculture products. Government infrastructure
investment, (e.g., under Programs 327 and 773) can be seen as an indirect subsidy to the aquaculture
industry. However, these programs are multipurpose in nature and the aquaculture industry is not the
only beneficiary. Also, the government sponsored hatchery research and feed production programs
are multipurpose and of such a small size they do not significantly subsidize the sector raising
questions over the validity of the anti-dumping programs.

Q. Market Development Issues and Constraints for Aquaculture

20.
Apart from the anti-dumping measure, the shrimp farming sector in Viet Nam is being
influenced by several macro-level market-related trends, including:
Trends towards lower farm gate prices
Increasingly stringent food safety and quality standards
Certification and trace-ability
Importing country awareness of social and environmental issues in shrimp farming.
Vertical integration in the shrimp industry to control costs and risks
21.
These aspects are discussed below on a preliminary basis, bring together current
understanding of the implications of these trends for livelihoods of the stakeholders involved, and
particularly for poorer stakeholders.
1. Food safety and quality
22.
A major challenge faced by Vietnamese fisheries in relation to market access, especially to
markets in the EU, followed by the United States and Japan, concerns food safety. Internationally,
there is also an increasing trend towards trace-ability and application of HACCP at the farm level to
reduce risks of contamination in the production process, particularly antibiotic residues. This raises
significant challenges for all in the shrimp sector in Vietnam, but perhaps most to the many thousands
of small-scale producers involved, connected to markets only by fragmented market chains.
23.
While implementation of effective SPS measures in the shrimp sector will enable the country
to remain competitive on international markets, the implications for poorer farmers could be
significant. The implementation of HACCP and food safety management at farm level requires
knowledge and skills and investment in infrastructure and extension. Poorest producers due to
limited human, social, financial assets - are likely to find it most difficult. The need to assure the
quality of inputs and trace-ability and verification procedures may also make it difficult for anything

APPENDIX J
Page 6
but the most organized input suppliers (feed and seed) to comply again putting at risk substantial
numbers of people, for example in the shrimp seed business.
2. Certification and Eco-labeling
24.
Certification of shrimp aquaculture products is slowly coming to the international scene,
partly in response to food safety concerns, but more generally in response to consumer and NGO
concerns over sustainability of shrimp farming. Certification is a relatively new concept for
Vietnamese fisheries in general. At present, the Vietnamese government is pilot testing some
certification procedures for food safety of shrimp aquaculture products from farms operating Good
aquaculture practice (GAP), learning experiences with the Code of Conduct and GAP programs from
Thailand and elsewhere. The intention is to establish a wide coverage of a basic GAP program, with
certification of shrimp product from certified farms by NAFIQAVED, the Government agency with
designated responsibility for seafood certification. There is also a pilot organic shrimp certification
scheme in southern Vietnam, with shrimp certified by the organic certifier Naturland. The scheme
offers a 20% market price premium to farmers, with shrimp exported to Germany and Switzerland.
Farmers and the State Enterprise in the Mekong delta involved in the scheme commented recently at a
public meeting in Ho Chi Minh city (Organic aquaculture conference, organized by INFOFISH) that
they would like to simplify the certification procedures, and be able to adapt the standards to allow for
more intensive aquaculture (the system is confined to extensive farms, with limited stocking and no
feeding, hence limited financial return to farmers).
25.
A certification system will require substantial investments in farmer organization, support to
implementing certification standards and a credibly organized certification system. Again, substantial
knowledge and skills, financial assets, and access to institutions and services to support the
certification scheme will be required. It is inevitable that poorer farmers will find it most difficult to
participate in such schemes, unless substantial focused support on the small-scale sector is provided.
Certification is a substantial challenge in Viet Nam where there are many thousands of farmers
involved.
3. Environmental and social awareness in importing countries
26.
Although food safety is probably the most significant issue influencing shrimp imports at the
present time, there is evidence of increasing awareness of the environmental and social issues in
importing countries and regions. Following a major campaign by a UK based NGO for example, UK
supermarkets have been exploring accessing shrimp produced and processed in socially responsible
ways. In the US, NGOs are increasingly targeting consumers with campaigns about the environmental
and social implications of seafood. This appears to be slowly driving the industry towards
certification, and industry assurance systems that address social and environmental issues.
27.
Provided effective institutions can support better environmental management, there would be
benefits to coastal people in Viet Nam because of its small-scale sector base. However, costs of
putting place certification systems based around this concept may make it difficult. At the processing
plant level, policies and support services that reduce the vulnerability of poor women and men may be
positive, although with potential increased costs. Again, the least organized groups and individual
farmers will find it most difficult to organize and implement systems.
28.
All these trends point to increased vulnerability and difficulties for the small-scale coastal
shrimp farmer, and point to the need for diversification of product away from the more risky shrimp
sector to other products, as well as diversification of markets. Finally, the growth of demand for
fishery products in China, and potential for competition with China is likely to have a significant
influence on the demand and markets for Viet Nams fishery and aquaculture products.

APPENDIX J
Page 7

R. Future Demand and Price

29.
The population of Viet Nam in mid-2004 was approximately 83 million, and was growing at
around 1.3% annually based on the UNs world population estimate for 2002. While child survival is
approaching replacement rate (2.1 children per woman), the young population and increasing life
expectancy mean that continued growth is inevitable, with a projected population of around 105
million by 2025. In addition to its population growth, Viet Nams economy and thus disposable
personal income levels are growing rapidly, with GDP increasing by an average of around 7%
annually. The number of households living in poverty is falling rapidly, ensuring that the number of
potential purchasers for fish and marine products will increase steadily. Health factors with increasing
awareness of the beneficial impacts of fish consumption on heart disease, will also promote demand in
Vietnam. All of these factors suggest that local demand for fish will grow strongly over the next
decade at least. Given the large potential to expand freshwater culture, it is expected that production
will more or less keep pace with demand for the next few years, suggesting average real prices will
remain reasonably stable. However, given the reported inelastic demand, substantial short-term
fluctuations are likely.
1. Price trends
30.
Predicting export price is inevitably hazardous, since it depends on a range of factors and
perceptions. In Viet Nam, processed shrimp is the dominant export product, and its price prospects
are critical for the future viability of brackish water farms along much of the coastline. Globally, the
farm gate prices of shrimp have shown a steady decline in recent years, most significantly in the past 3
years. This is in response to the increased global supplies, expansion of P vannamei farming in Asia
(China and Thailand in particular) and recently uncertainties in the global market related to the US
shrimp anti-dumping case. Prices are currently at a historical low, which is even more significant in
real terms. There do not seem to be any factors leading to optimism about future prices, since
production increases in Viet Nam are likely, while the US anti-dumping tariffs, if implemented, will
reduce export price to that market. However, Viet Nam is a low cost producer, and should be able to
weather market shocks better than some of its competitors (such as Thailand or China). Future
demand for shrimp products is likely to grow, and this could be encouraged by improved brand
naming and promotion of Vietnamese product. It is becoming harder to produce large shrimp from
aquaculture, suggesting that in the medium term, price for larger shrimp (>40/kg) will increase or at
least remain at about their present level, while downwards pressure is likely to continue on smaller
sized shrimp.
31.
The reduction in farm-gate price is already well recognized by farmers as a significant
influence on their livelihoods. Lack of ability to negotiate prices with buyers and prices fixed with
credit suppliers create additional vulnerability for farmers. The influence is most significant for
indebted poorer farmers, reduces the capacity of indebted farmers to pay off existing debts (which are
significant among some coastal shrimp farming communities), and will inevitably increase the
likelihood of poorer farmers having to leave the industry. Poorer farmers tend to be at most risk from
disease problems, due to limited skills, and ability to purchase quality inputs, compounding the risk.
Small-producers also lack the ability individually to reduce input costs because of small volumes of
purchase, and credit-relationships with input suppliers. As in the case of catfish, wealthier farmers
may reduce expenditure on labor to reduce costs.
32.
Combined with the increased investment in food safety and quality control systems, noted
below, the price trend can be expected to have increasing implications for competitiveness of smallscale farmers. One option is to explore economies of scale and efficiencies in the small-scale farming
sector through working together, probably through more organized cooperation or self-help groups of
farmers. Without a concerted focus by government and industry on the small-scale sector, there may
be serious social implications in coastal farming communities.

APPENDIX J
Page 8

5.
8.1

Export Barriers
EU Antibiotic Residue Issue

33.
A recent major problem for shrimp aquaculture products occurred in 2001, when the EU
detected banned antibiotics (chloramphenicol and nitrofurans) in imported shrimp from Vietnam, as
well as other exporting nations in Asia. The problems emerged from use of new analytical techniques
that allow detection of these chemicals at very low levels (they also have to be seen in the context of
increasing consumer and government concern in the EU over food safety). The result was rejection
and destruction of containers, and increased inspection, with EU examinations of 100 percent of
shrimp products imported from Vietnam, as well as China, Thailand, and Indonesia and other
countries during late 2001 and 2002. Containers with contaminated shrimp were destroyed, causing
significant financial losses for some exporters. The export turnover from Vietnam into EU in the first
6 months of 2002 registered an 87% decrease compared to 2001.
34.
On 20 September 2002, the EU Veterinary committee stopped the compulsory 100%
examination policy on shrimps imported from Vietnam; the result of efforts by MOFI, VASEP, and
exporting companies to raise awareness and control use of banned chemicals and antibiotics in the
country. The problem has proved a complex one to control, as it relates the farm production system,
lack of awareness among farmers, and easy importation and trade of chemicals from neighboring
countries. There still exists a need to strengthen policy on the responsible use of chemicals in
aquaculture, and further strengthening of quality control and food safety measures in aquaculture
production.
35.
In response to the EU problems, some exporters gave more attention to the apparently lower
risk US market, which processors interviewed during the mission regarded as less fickle. This major
expansion of exports destined to the US from 2001 to 2004 then created its own trade problems.
5.2

Antidumping Measures on Farmed Catfish

36.
After an early but unsuccessful attempt to restrict imports by disallowing the name catfish
on imports from Vietnam, the US Government through the International Trade Commission (ITC)
under the United States Department of Commerce (DOC) received a petition from the Catfish Farmers
Association and eight individual catfish processors in the United States demanding an anti-dumping
investigation into the imports of certain Vietnamese frozen fish fillets (from catfish now called tra
and basa). The petitioners alleged that the Vietnamese frozen fish fillets were sold in the United States
at less than its production value, and such imports were materially damaging the US domestic catfish
industry. After its investigation in January 2003, the DoC ruled in favor of the US catfish industry, and
levied a series of tariffs against Vietnams catfish exporters from 37% to 53%.
37.
The decision had significant ramifications for the people involved in the catfish industry in the
Mekong delta, particularly the most vulnerable. The most immediate effect was a decline in the farmgate price of basa below production costs, and cost cutting measures by processing factories, leading
to loss of employment among hired laborers on cages and ponds and processing factory workers
(mainly women), some of the poorest people in the catfish market chain. It is estimated that in An
Giang province alone the reduction of farm gate price led to a loss of more than VND 200 billion
(US$ 12 million). Taking into account this province produces half of the total production of catfish in
Vietnam, it is estimated the antidumping decision caused an economic loss of US$ 24 million to the
catfish farming households in Vietnam. It is estimated that among small-scale farm households,
laborers and people working in processing plants that 8,000 laborers lost their jobs and 10% or 500
workers lost their jobs from export-processing enterprises in An Giang province.
38.
The influence of the US antidumping decision was significant, but local institutions and
government policy addressed the problem with several strategies. Initial cost cutting was carried out
by the enterprises and farmers, saving businesses, but leading to loss of employment among poorer

APPENDIX J
Page 9
laborers and processing factory workers. Vigorous promotion by Government and processors resulted
in significant increases in domestic consumption. This has led to significant increased consumption of
catfish in Vietnam, to some extent reducing dependence on export markets. New export markets were
opened in Europe and the Americas. By late 2003 and the first quarter of 2004, the tra and basa fish
price had completely recovered to the prices seen before the antidumping case. There is new
investment in the industry, including new processing factories. The Vietnamese catfish industry has
not only sustained but also has developed further after the US antidumping decision.
5.3

Antidumping measures on farmed shrimp

39.
Vietnam faces a new anti-dumping threat that may have a major impact on stakeholders
involved in the shrimp industry that may be more difficult to address than catfish. This is the claim
made by US Gulf of Mexico shrimp fishermen and farmers that a number of developing countries are
dumping farmed shrimp in the USA market. The challengers are the Southern Shrimp Alliance, an ad
hoc group of shrimp fishers (mainly) and farmers. Their petition to the US International Trade
Commission names Vietnam among the six developing countries that are globally all significant and
low-cost shrimp farmers. Antidumping petitions were filed with the United States International Trade
Commission (ITC) on 31 December 31 2003.
40.
In a February 2004 decision, the United States International Trade Commission (ITC)
determined that there is a reasonable indication that a U.S. industry is materially injured or threatened
with injury due to the import of certain shrimp products from Brazil, China, Ecuador, India, Thailand,
and Vietnam. The affected products include frozen and canned warm water shrimp and prawns that are
allegedly sold in the United States at less than fair value. A preliminary antidumping determination
was released in July 2004, with taxes of 12-93%.
41.
Studies by Action Aid have warned of the social impact on many thousands of farmers, and
workers as a result of the US antidumping measure. As in the case of catfish, the effects of an
unfavorable decision in the US antidumping case will lead to substantial negative consequences for the
many small-scale farmers and other stakeholders involved in the industry, and particularly the poor
and vulnerable. Already, prices for shrimp are 10-15% lower in 2004, including both farmed and wild
shrimp. Respondents during the mission also reported reduced prices, and reduced earnings of
processing factory workers.
42.
In both of the anti-dumping cases, Vietnam is at a disadvantage because it is not WTO
member and therefore does not have access to the formal WTO mechanisms for challenging antidumping measures imposed on the country. Membership of the WTO should obviously put Vietnam in
a better position for challenging anti-dumping cases.

Appendix K
Page 1

APPENDIX K: DEVELOPMENT PRIORITIES

AND FOLLOW-UP RECOMMENDATIONS
The following lists the major recommendations arising during the Sector Study. This list provides the
basis for the synthesis presented in Chapter 7 of the main report.

Marine Sector
A1

A2

A3

Inshore Fishing Effort Reduction

Develop program to reduce fishing intensity on inshore stocks, particularly through

support for sustainable alternate activities for poor fishing communities.

Promote use of environmentally friendly gear, reduce fishing vessel numbers, support comanagement.

Develop alternative income options including aquaculture, agriculture, contracted works

for coastal forest protection, and other off-farm livelihood development.

Enforce push net and near shore trawl bans, dynamite, electric and poison fishing.

Institute closed fishing seasons or seasonal gear restrictions.

Offshore Fisheries Management

While some provinces continue to support increasing offshore effort, it is generally

considered that new boat construction should only be allowed if , for example, at least
equivalent fishing effort is removed permanently.

Improve stock assessment analysis capacity.

Commence a compulsory logbook scheme for all vessels over, for example, 90HP.

Introduce in conjunction with industry a license limitation scheme.

Remove all subsidies and subsidized interest rates from all state fishing enterprises as
quickly as possible.

Continue and expand program of repossession of subsidized fishing vessels in default

under the offshore fishing program.

Develop rights based fishery

Consider benefit and practicality of instituting closed seasons for catch in selected areas or
for particular types of gear.

Management Plans

Tonkin Gulf fisheries are overexploited and require improved management. Initially
conduct a Tonkin fisheries study and develop management plan (with China) including
stakeholder involvement.

Over time, develop management plans for all fisheries.

Appendix K
Page 2
A4

A5

Technology Development

Conduct research into stocks and grounds.

Develop and extend improved technology for sustainable management/harvesting of

currently under-exploited resources should they be identified under the above research
deep-water demersals and meso-pelagics.

Depending on the above, develop improved and more environmentally sensitive fishing
gear assess potential to separate fisheries into e.g., fish, shrimp and squid (and
cuttlefish/octopus) with different gear restrictions for each. For example a 7.5 cm
stretched mesh codend could be considered for fish, while limits on gear size might be
merited for shrimp/squid (as in the northern Australian shrimp fishery). Promote use of
bobbin trawls to protect benthic environment.

Develop/improve monitoring system for vessel profitability (e.g., through ongoing

ALMRV type surveys).

Fishing Ports

Conduct national port planning study, to include major port definition.

Develop selected existing or new fishing ports as international standard ports to service offshore fleet,
if needed based on the above study.
Study of estuary siltation and river mouth bar development in relation to use by fishing industry for
mooring/unloading and typhoon protection.
Develop local typhoon protection shelters in typhoon-prone areas.
Introduce private sector involvement in port management as required by a MOFI circular
in 2004.

Inland fisheries
217.
Inland fisheries are important sources of fish and other aquatic products for rural inland areas.
There is evidence that they are of particular importance to some of the poorest landless people.

Recognize the importance of inland fisheries for the poor.

Assess the importance to the national economy and local farmers and poor inland fishers
in reference to the trade-offs, particularly of flood control for agriculture.

Identify of appropriate management measures such as appropriate gear and closed-fishing

seasons in selected areas.

Identify sanctuaries and establish management plans to protect key breeding and nurturing
habitats to sustain or improve productivity and biodiversity conservation.

Aquaculture
218.
Aquaculture development is required to meet the future demand for fishery products. It is also
one of the few alternative livelihood activities available in coastal areas with potential to contribute
significantly to poverty alleviation among inshore fishers. Government policy strongly supports
aquaculture development, particularly as the visibility of the sector has increased with growing export
earnings. National policy covers most of the major development issues in the sector. The priority
now is to translate existing policy concerning aquaculture, including its role in poverty reduction and
environmental management, and the new Fisheries Law, to effective implementation.

Appendix K
Page 3
C1.

C2.

Environment and Natural Resources

Planning of coastal aquaculture should be conducted within the framework of integrated

coastal zone management.

Zones/areas should be designated for aquaculture within ICZM plans.

In delta areas where ICZM will prove difficult, identify and designate areas/zones for
aquaculture, taking account of environmental suitability.

Include assessments of carrying capacity in planning for marine aquaculture development.

Aquaculture development planning in coastal areas should adopt a amore balanced

approach, protected areas of high biodiversity value such as wetlands.

Environmental rehabilitation projects should be initiated on degraded common property.

EIA should be conducted for aquaculture projects and aquaculture development plans, and
used to prepare local environmental management plans.

Larger commercial coastal aquaculture projects make it increasingly urgent to apply

effective EIA procedures in aquaculture projects.

EIA should be used as the basis for development of environmental management plans for
aquaculture projects and areas, with resources for follow up monitoring.

Training and awareness raising should be conducted among government staff on EIA use
on aquaculture, at central (MOFI, MONRE) and Provincial levels (DOFI, DONREs)

The early warning system on disease and environmental pollution is an important

initiative that should be supported with skilled staff, facilities and coordination (with
MONRE and others).

A national strategy for aquatic animal disease control should be prepared.

Prepare legal documents to guide local administration in environmental management,

planning and monitoring in coastal areas.

Develop educational/training tools to build skills among local administrations and farmers
in the environmental management of aquaculture.

Support research on marine fish cage systems that are less damaging to the environment,
particularly through better feeding practices and integrated marine aquaculture where cage
culture is combined with seaweed, bivalve and holothurian farming

Aquaculture Planning

Aquaculture planning gives too much emphasis on infrastructure and land allocation, but
not on capacity and organization, sources of investment and implementation. Budget
allocations for aquaculture plans should be sufficient to include environmental and
development of implementation plans, taking account of both short and long-term
requirements for sustainable investment.

Appendix K
Page 4

C3.

C4.

Local government (district, commune) has responsibility for management of substantial

areas of common property land in coastal areas. The options for use of this land should be
carefully considered during aquaculture planning, and priority given to environmental
restoration, such as mangrove rehabilitation or reclamation of estuarine fishery habitat.

The new Fisheries Law provides for allocation of water areas for commercial purposes and
use by local people. Marine farming is a new frontier in Vietnam, with significant
potential. MOFi is recommended to develop regulations for allocation of water areas for
aquaculture, in ways that balance the requirements for commercial investment in
aquaculture, and the needs of local people.

When leasing public land and water for commercial aquaculture development, financial
mechanisms should be included to cover costs of investment in environmental monitoring
and management in these plans.

Planning of coastal aquaculture should give more emphasis on zonal planning, defining
the areas suitable for aquaculture development, ideally within the context of integrated
coastal zone management. Local management systems should be established within each
zone, under the responsibility of local stakeholders (public and private), for coordinated
management of the zones.

Land allocation for rent and red book registration should include adherence to certain
environmental criteria defined in aquaculture plans. Aquaculture should be restricted as
far as possible to designated aquaculture zones. Aquaculture development outside of
designated aquaculture zones should be subject to strict EIA procedures.

Establish a licensing system for aquaculture farms within planned aquaculture areas/zones.

Aquaculture Diversification

Invest research in diversification of coastal aquaculture species and farming systems, with
emphasis on low risk options particularly for coastal poor.

Prepare a strategy to define investment and technical assistance needs for quality seed
production as prescribed under Government Program 112 with emphasis on Government
to maintaining aquatic genetic resources, at least for the short-term and the private sector
role for mass seed production for aquaculture

Poverty and Social Development

219.
Poor people are major stakeholders in aquaculture and small-scale inland and inshore
fisheries. The priority for the fishery and aquaculture sector in Vietnam is the effective
implementation of governments policy for poverty reduction in the fishery sector - Sustainable
Aquaculture for Poverty Alleviation (SAPA) strategy.

Improving the poverty targeting of aquaculture planning by ensuring more effective

participation of and consultation with poor in planning for aquaculture development at all
levels.

Support capacity building among Provincial and local staff to implement more effective
poverty focused approaches to aquaculture.

Appendix K
Page 5

C5.

The new GoV program for poverty reduction among 157 poor coastal communes
(106/2004/QD-TTg) represents an excellent opportunity for a targeted program of support
to build capacity and alleviate poverty in coastal areas.

More widespread communication for sharing of experiences in poverty reduction in the

aquatic resources sector to promote more widespread adoption of better practices.

Shrimp farming has been the major aquaculture intervention in coastal areas; the risks
associated with shrimp farming make this form of aquaculture risky for poor people.
More diverse less risky aquaculture activities should be investigated in coastal areas (e.g.,
mollusks, fish nursing, fish or crab culture)

With growing commercial investment in shrimp farming, and other aquaculture, develop
mechanisms for investments in the sector that benefit poor people but do not expose them
to risk. This may involve for example contract farming, joint ventures, farmer group
collaboration and other means of contributing equity.

Ensure consideration of poverty issues in the further development of the regulations for
implementation of the new Fisheries Legislation through participatory consultations with
poor people.

Ensure consultation and participation of poor people in aquaculture planning and policy
development.

Farmer associations and community organizations

Support local farmer organizations to manage aquaculture zones/areas in coastal areas in

collaboration with local government.

Develop local service centers, preferably, in conjunction with existing local institutions to
support local farmer groups, with facilities for environmental management, disease
control, and access to information on markets, technology and management.

Encourage cooperation between farmer groups and Provincial and National service
providers, including research institutes, extension agents, and marketers.

Based on the macro-policy and concept of local farmer groups, MOFi should develop
guidelines to support the establishment of community-based management/co-management
in aquaculture.

MOFi should assign responsibilities, encourage and build capacity among Provincial and
local authorities to promote community based management.

Encourage participation of the private sector and farmer organizations in development of

policy on aquaculture. VINAFIS and VASEP for example could be supported to take
more responsibility for collaboration and organizing consultation among members.

Create cooperation between local farmer groups and processors and markets.

Undertake pilot projects to build experience in local farmer organization and services
centers.

Appendix K
Page 6

Processing and Marketing

D2.

Improved branding of Vietnamese products is required to improve brand recognition and

market loyalty.

Research into state support for aquaculture is merited to assess whether there is
justification for anti-dumping actions by foreign nations and, if so, what measures can be
taken to remove the factors.

Occupational safety and health (OSH) is a key issue in processing and requires
intervention, perhaps in relation to shift length and working conditions (including
mandatory break periods).

Continue support plants to obtain HACCP and other export registration.

Promote development/use of flake ice and alternative cooling systems, such as chilled
brine, brine freezing etc for long-trip vessels. Initially conduct study.

Privatize/equitize all state processing enterprises, including restructuring (and possible

break-up) of the three state fishery holding companies.

Develop local markets.

The potential for local markets to support viable production has been highlighted with the
local marketing campaign for catfish following the US anti-dumping action.

Improve dissemination to farmers and fishers of market information.

At present, little reliable information is available to producers to assist them to plan their
activities and marketing.

International trade

220.
Farmers and other stakeholders are being exposed to increased risks as well as the rewards of
international trade in aquaculture products.

Vietnam can benefit from: (a) full attention to international market trends, such as in food
safety; (b) improvements in the dissemination of relevant market trends to farmers and
other aquaculture stakeholders; and (c) more effective engagement with international
standard setting bodies, ideally also in collaboration with neighboring countries for a
greater voice.

Within government, clarify responsibilities for engagement in WTO, OIE, Codex and
CITES and ensure that fisheries and aquaculture issues are properly considered.

Awareness of food safety issues is increasing, but there is still limited awareness among
many farmers about food safety risks and management of such risks. Future market trends
towards trace-ability will pose severe difficulties for Vietnamese farmers/producers due to
the many small-scale farmers, and fragmented market chains. Therefore, a comprehensive
food safety program should be developed and implemented in the aquaculture sector.

Mechanisms should be established to better disseminate market information to

farmers/producers. Local authorities, including aquaculture and agriculture extension
should play a more active role in provide marketing information.

Appendix K
Page 7

Low risk options for marketing of aquaculture products from small-scale, risk prone,
farmers should be supported.

Information and Planning

B1

B2

B3

Statistical System and Research Reports

Improve fisheries statistical system through unification of GSO and MOFI system as
planned. However, ALMRV landing place survey outputs need to be continued and
integrated into the system.

Analysis should include landings of economically important species. The current system
of aggregating all fish species precludes much use of the data for modeling purposes.

Improve data on inland fisheries in the national statistical system.

Research reports should be published as soon as produced and reviewed. Rapid

circulation of information is critical to the orderly development of responsive fisheries
(and aquaculture) sectors.

Fisheries Planning

Develop improved fisheries (and aquaculture) sector planning by strengthening capacity at

provincial level.

Support ICZ planning and management in selected provinces.

Develop mechanisms for improved consultation with industry (e.g., with VINAFIS).

Consider separation of VINAFIS into aquaculture and capture fisheries chapters and
provide support to allow it to represent fishers in their consultations and negotiation with
government in relation to fisheries management. To provide effective representation for
fishers, VINAFIS needs to be wholly or largely independent of government for
management and budget.

Integrated Coastal Zone Planning and Management

Potential for conflict between different coastal users such as inshore fishers, mangrove
users, tourists, rice farmers, aquaculturists and urban and industrial developers, is growing
as pressure on resources increases. It is timely to move towards an integrated approach for
development of aquaculture, fisheries and other activities through ICZM. Based on the
experience gained under existing projects, the concepts of ICZM should be extended to
additional coastal provinces.

Implement as many as practicable of the remaining 12 approved MPAs as soon as

possible. Where co-management is implemented, consider establishing additional
commune or province-level MPAs for stock enhancement through providing secure
breeding and nursery areas for inshore fish species.

Appendix K
Page 8
B4

Co-management

Develop pilot co-management models for near-shore waters, aquaculture, reservoirs and
fishing ports.

Develop co-management processes in the offshore fishery, through supporting

mechanisms for effective consultation between industry, research and government.

Support fisheries law implementation by provinces. Provide training and planning

support, using a participatory process where appropriate.

Fisheries Education, Training and Extension

221.
The basic systems for research, education and extension have been established and
strengthened in recent years. Key priorities for implementation of policy are:
F1

Education and Training

222.
Since it is desirable to reduce the number of inshore fishing vessels and to limit the growth of
offshore fishing effort, encouraging youths to enter marine capture fisheries may be undesirable.
Nonetheless there is an urgent need to assist fishers to increase their skills.

F2

Encourage skippers, engineers and mates on offshore fishing vessels to upgrade their
knowledge and skills. Encourage fishing crew to take vocational courses. Provide
additional training courses in regional centers.

Determine the need for developing fishing technology testing and analysis facilities or
more reliance on outsourcing tests to another nearby country that has that equipment. The
willingness of industry to pay for net development would need to be assessed and
construction compared to the potential for use of regional facilities and/or computer
simulation. It is possible that a regional facility could be developed, which might: (i)
increase potential for grant funding; and (ii) improve usage and thus financial viability.

Investment in vocational training should be given a higher priority to support building of

capacity among local service providers and farmers. Farmers who have received technical
training in aquaculture are better able to reduce risk and earn better incomes.

Extension

Support for extension activities in aquaculture should be further strengthened. Given the
increasing number of aquaculture farmers, and limitations in government extension staff,
there is a need for new approaches.

Develop a comprehensive strategy for aquaculture extension.

Promote user-funded extension, e.g., through supporting farm groups to engage

technicians.

Women are actively involved in fish culture, but traditional extension activities may not
reach women. Ways to reach women would be to increase the number of female staff
working in extension of projects, and specific invitations to women to attend training.

Appendix K
Page 9
F3

F4

F5

Research

Investment in research has increased substantially as the value of the aquaculture sector
has increased. Further investment in research is required. There needs to be closer
cooperation with the private sector in the setting of research priorities and the conduct of
research.

Most research is of a technical nature. More research should be directed towards social
and economic aspects, and the small-scale sector.

There is a need for better coordination of research programs, to better link research to
farmer needs, to increase quality through making research applications more competitive
and to continue to build research capacity.

Credit

Traditional agriculture loans are small compared to investment required for aquaculture.
There is therefore a need to mobilize capital for the sector, in ways that do not expose poor
farmers to increased risk, possibly through being trained and having a competency
certificate accompany the loan applications.

Promote local peoples credit institutions, which have a good experience in other rural
areas of Viet Nam. Local authorities might consider spending some savings from land
leases to support credit for local people.

Development of insurance mechanisms for farmers should be investigated as a potential

way of managing risk in aquaculture.

Communications and Collaboration

At national and local levels there is a great need for exchange of management experiences
and collaboration between different government and donor projects. Projects should
therefore prioritize networking with key stakeholders.

Communication and sharing of experiences among farmers and fisheries at local levels
should be supported.

Promote collaboration among Ministries (e.g., MOFI, MPI, MARD, MONRE, MOLISA,
MOST) and Provincial Departments (DPI, DOFI, DOST, DONRE, DOLISA) to support
coordinated management of aquatic resources and integration of fisheries within projects
and activities in other sectors (e.g., consideration for aquaculture development in irrigation
projects, integrated in rice farming).

Promote coordination among donors working in the aquatic resources and related sectors.

Appendix L
Page 1

APPENDIX L. RECOMMENDATIONS FROM MOFi STUDY REVIEW

WORKSHOP AUGUST 31, 2004
1. Introduction
1.
Honorable Minister Dr. Ta Quang Ngoc of the Ministry of Fisheries opened and chaired the
workshop to review the study teams findings and recommendations that took place on the morning of
August 31, 2004 at MOFi.. Dr. Ngoc emphasized economic and employment the importance of the
sector to people of Vietnam. He also emphasized the importance of sustainable development and
management of Vietnams fisheries and aquaculture resources through addressing the challenges of (1)
effective environmental management, proper planning, and the development of support infrastructure;
(2) the need to promote fisheries development to improve food security and quicken poverty
alleviation; and (3) decision making to assure stable productivity and sustainability of the sector.
2. Schedule
2.

The workshop program was as follows:

Time

Activities

Responsibility

07:30-08:00

Registration

International Cooperation
Department

08:00-08:10

Introduction

Mr. Pam Trong Yen

08:10-08:20

Welcome Address

Dr. Ngoc, Minister of Fisheries

08:20-08:40

Mission Introduction

Mr. Ronald Zweig, Mission Leader

08:40-09:10

Presentation on findings and recommendations Dr. Ha Xuan Thong

on marine fisheries sub-sector

09:10-09:40

Presentation on findings and recommendations Dr. Le Thanh Luu

on marine aquaculture sub-sector

09:40-10:00

Comments

10:00-10:30

Coffee/Break

10:30-11:15

Group
discussion
on
findings
and All participants
recommendations (Four groups coastal zone
management, fisheries, aquaculture, marketing)

11:15-11:55

Group presentations

Group Leaders

11:55-12:10

Wrap-up

Mr. Ronald Zweig, Mission Leader

12:10-12:30

Conclusion

Dr. Vu Van Trieu, Deputy Director,

ICD

3.

Team members

Appendix L
Page 2
4. Workshop Findings and Recommendations
A. Coastal Zone Management
The key needs for CZM include:
(i) capacity building;
(ii) improvements in coordination among stakeholders;
(iii) formulation of strategic policies regulations and guidelines to strengthen capacity to
improve CZM;
(iv) awareness raising of the need and benefits of proper planning and management of coastal
resources, including the establishment of marine protected areas and community involvement,
responsibilities and rights in their management;
(v) create lines and system of communications to foster information sharing; and
(vi) focus on sustainable marine and aquaculture development.
B. Fisheries
The group identified the following problems and resolutions:
(i) fisheries resources are declining rapidly, particularly in coastal areas;
(ii) number of particularly small fishing boats continue to increase;
(iii) support offshore fisheries resource assessment;
(iv) investments needed in fisheries infrastructure;
(v) safety for fishers needs to be improved;
(vi) raise fishers awareness of the fisheries law and regulations;
(vii) fishing grounds need to be allocated;
(viii) establish a center for coastal monitoring.
C. Aquaculture
The main recommendation s for aquaculture are the following:
(i) base development on Decree 224;
(ii) base aquaculture development using scientific principles;
(iii) improve accuracy in reporting production by species;
(iv) improve infrastructure of farms with regard to water supply and drainage systems; and
(v) increase diversification of species cultivated;

Appendix L
Page 3
(vi) improve understanding of environmental and disease management and the linkages
between them;
(vii) improve quality and timely delivery of seed;
(viii) expand aquaculture sector with focus upon poverty eradication;
(xi) clarify terminology used to describe the characteristics of the sector;
(x) priorities:
(a) promote poverty reduction with aquaculture;
(b) promote marine aquaculture;
(c) diversify brackish water aquaculture ;
(d) improve warning systems concerning disease pandemics and drops in
environmental/water quality;
(e) apply FAO Code of Conduct for Responsible Fisheries;
(f) assure adequate credit is available to foster development; and
(g) examine development criteria to assure that they are reasonable and practical.
D. Marketing
The main findings of the marketing sub-group pertain to the content of the study reports Executive
Summary and are the following:
(i) the market for raw material developed spontaneously and not systematically in a
responsive way to meet market demands;
(ii) the domestic market has not been given enough attention with most emphasis on exports;
(iii) the processing capacity needs to be developed based on market demand;
(iv) mechanisms to improve prices to producers need to be explored through more
competitive and improved direct access to markets; and
(v) greater attention needs to be placed on understanding international market situation (e.g.,
greater market intelligence needed) to assure effective competition.
The main recommendations from the group are the following:
(i) develop strategy for seafood production based on market demand;
(ii) promote products of Vietnam and improve competition in international markets;
(iii) build up market system including the wholesale sub-sector and brand naming of
Vietnamese products;
(iv) need new policy to develop efficient marketing system;

Appendix L
Page 4
(v) create a system to be able to trace aquatic products to the production source, especially for
aquaculture, to help meet the needs to eliminate barriers; and
(vi) donor assistance required to help develop and improve fish marketing in Vietnam.

Appendix L
Page 5
List of Workshop Participant
No
Names
Government Agencies
1
Nguyen Thi Thu Hong
2

Tran Thi Lien

Organization
Expert - International Cooperation Department - Ministry
of National Resources and Environment
Vietnam Agriculture and Rural Development Bank
Ministry of Fisheries

3
4
5
7
8
9

Ta Quang Ngoc
Pham Quang Toan
Nguyen Van Thanh
Do Thi Thu Hong
Nguyen Thi Kim Anh
Nguyen Phuc Dong

10
11
12
13
14

Vu Thi Anh Hong

Nguyen Thai Phuong
Nguyen Long
Bui Van Thuong
Nguyen Duy Chinh

15
16
17

Pham Tuyet Nhung

Ha Xuan Thong
Vu Van Trieu

18
19
20
21
22
23
24
25
26
27
28

Doan Manh Cuong

Do Duy Con
Tran Van Quynh
Tran Thi Mieng
Ngo Duc Sinh
Nguyen Xuan Ly
Nguyen Thi Hong Nhung
Dinh Ngoc Anh
Vu Van Tien
Le Thanh Luu
Nguyen Ngoc Oai

29
31
32

Pham Trong Yen

Le Thi Van Anh
Dang Thai Hung

Minister for Fisheries

Secretary for Minister
Deputy Director of Aquaculture Department
Inspector of Fisheries Ministry
Legislation Department
Deputy Director of Colletive Economy and Private
Economy Department
Nafiqaved
VASEP
Deputy Director of Research Institute of Marine Products
Vice General Secretary of Vietnam Fisheries Associate
Deputy Director of Institute for Fisheries Economic and
Planning
Deputy Director of Informatics Center
Director of Institute for Fisheries Economic and Planning
Acting Director General of International Cooperation
Department
Expert - International Cooperation Department
Deputy chief of Ministry Cabinet
Director of National Fisheries Extension Center
Deputy Director of Planning and Finance Department
Deputy Director of Department of Personnel
Director of Science and Technology Department
VASEP
Deputy chief of Ministry Cabinet
Ministry Cabinet
Director of Research Institute for Aquaculture I
Deputy Director of The National Directorate of Aquatic
Resources Exploitation and Protection
Deputy Director of International Cooperation Department
International Cooperation Department
International Cooperation Department
Provincial Departments

33
34
35
36

Diep Thanh Hai

La Chau Trinh
Nguyen Ngoc Phuong
Quach Thanh Son

37
38

Dau Van Cuong

Tran Dang Tuan

39

Nguyen Quang Diep

Deputy Director of Ca Mau Fisheries Department

Deputy Director of Binh Thuan Fisheries Department
Deputy Director of Kien Giang Fisheries Department
Head of Planning Office, Khanh Hoa Fisheries
Department
Deputy Director of Hai Phong Fisheries Department
Deputy Chief of Fishing Management Office - Nghe An
Province Fisheries Department
Director of Quang Ninh Fisheries Department

Appendix L
Page 6
40

Le My An

Deputy Chief of Planning Office - Thanh Hoa Fisheries

Department
Projects and International Organizations

41
42
43
44
45
46
47
48
49
50
51
52
53

Karl Johanstaehr
Lars Joker
Erling Bendsen
Don Griffiths
Ronald Zweig
Jon Cook
Nguyen The Dzung
Laurent Msellati
Tran Trong Chinh
Ragna Fidjestol
Pham Gia Truc
Irmen Mantingh
Bui Thi Thu Hien

Senior Advisor of ALRMV

Coordinator of FSPS
FSPS
Senior advisor of SUFA
World Bank
World Bank
World Bank
World Bank
Norwegian Embassy
Norwegian Embassy
FAO
FAO
IUCN

Appendix M
Page 1

Appendix M. Recommendations from the MOFi Workshop on 10-Year

Investment Priorities for the Sector-- October 28, 2004
A. Introduction
1.
Honorable Vice Minister Dr. Nguyen Viet Tang opened the meeting with a welcoming
address that defined the objectives and expected outcomes of the workshop. To start, he defined the
importance of fisheries and aquaculture to the national economy with regard to food production,
employment generation, poverty reduction and export earnings. There has been a steady increase in
yield of fisheries and aquaculture production with the 2004 output expected to reach 1.2 million tons
from fisheries and 700,000 tons from aquaculture. The development has been through a government
partnership with local stakeholders, governments and the international donor community. However, it
has become evident that the near-shore fishery has generally become over-exploited with little scope
as well for further expansion and increased exploitation of the offshore fishery. For aquaculture in
general, there is great potential with increased production as well as employment generation and
poverty reduction through further investment in this sub sector; however, it has become clear that
careful planning is required to mitigate and minimize the adverse environmental impacts that can
result from unregulated expansion of aquaculture. Also, for aquaculture, the quality of the cultured
organisms with regard to growth efficiency, nutritional value, and disease resistance are critical
aspects that require more attention in Vietnam. Moreover, general inland and coastal area
management plans are critical to achieving integrated co-management strategies that can assure
sustainable and optimal economic benefits from those resources. Production thus needs to be better
managed in a carefully structured manner for the long assure that the Vietnam can fully benefit from
the use of these resources for the long-term.
2.
Dr. Tang expressed MOFis appreciation to the World Bank for providing the assistance for
the study and the workshops to review the teams findings and to provide guidance on the way
forward. He indicated that the workshop should focus on formulating a strategy that can help advance
the Ministry and nations management and utilization of fisheries and aquaculture resources through
identifying investment priorities over the next ten years. Generally, the investment priorities identified
in the Executive Summary and Appendix K of the report formed a good basis from which to work to
complement the ongoing programs in the country and to advance the objectives of those programs.
Toward this end, he also identified the need to form new policies that can support sustainable resource
use with the main objective of reducing poverty in an environmentally sustainable and socially
acceptable manner.
B. Schedule of Workshop
3.
The schedule of the workshop at which there were 72 participants (see list below) was the
following:

Time

Activities

08:00-08:30
08:30-08:40
08:40-09:00

Registration
Introduction
Welcome address

09:00-09:20

Mission introduction

09:20-09:40

General WB policy and overview of the

implementation of WB funded Projects
in VN
Agriculture and rural development
sector -- some lessons learned
Priority for Investment in the on-going

09:40-10:00

Responsibility
ICD
Mr. Pham Trong Yen
Dr. Nguyen Viet Thang
MOFI Vice Minister
Mr. Ronald Zweig, Bank Team
Leader
Dr. Cao Thang Binh
( WB)

Mr. Nguyen Huu Khuong Planning

Appendix M
Page 2
10:00-10:20
10:20-10:50
10:50-11:00
11:00-12:00
12:00-13:30
13:30-15:00
15:00-15:30
15:30-16:30
16:30-16:40
16:40-17:00

on fisheries
Tea break
Review of mission on fisheries status
and recomendations of the last
workshop
Group division
Group discussion on fisheries and
aquaculture status
Lunch (Trade Hotel)
Group discussion on investment priority
Coffee/Break
Group Presentation and orient
discussion
Wrap-up
Conclusion

and Accounting Department

MOFI Cabinet
Dr. Le Thanh Luu
Dr. Vu Van Trieu
Groups
MOFI Cabinet
Group leaders
MOFI Cabinet
Group leaders
Mr. Ronald Zweig
Dr. Nguyen Viet Thang

C. Workshop Findings and Recommendations

4.
The workshop participants broke into three working groups I. Integrated Coastal zone
Management and Fisheries, II. Aquaculture, and III. Institutions and Markets. The specific comments
and opinions from each working group were the following:
Group I: Integrated Coastal Zone Management & Fisheries
A. Acceptance of the report
Structure:
Combine two parts of the report: capture fisheries & aquaculture
Fisheries and aquaculture is freely developed, without any master plan or lack of control
capacity of local authorities.
Lagoons in central Vietnam are important but have not been mention in the report.
MPA is important, but should be carried out by the integrated approaches.
Consideration of ICM as the main activity in fisheries is not proper.
Awareness is important for fishermen and for local stakeholder.
Inland fisheries:
Inland resources play an important role. Inland fisheries resources involve trans-boundary
issues and depend on the environmental condition. Co-management of inland fisheries is
important are affected by developments such as hydro-electricity and flood-control projects.
Upstream issues, especially as they affect the Mekong Delta need to be addressed.
Guidelines and regulations for resource protection are necessary such as the construction of
hydro-electricity plants that should consider solution for migration of fishes.
Strengthening awareness of fishermen on sustainable use of resources should be emphasized
rather than the fishery law.
Integrated Coastal Management
ICM is a new and requires an intensive coordination among interest groups. ICM is still
implemented separately among the involved stakeholders without any master plan. This is a
constraint for development of ICM. Nevertheless, ICM is urgently needed for proper resource
management.
As part of capacity building, detailed information is needed on the actual situation.

Appendix M
Page 3

Regarding the reduction of fishing effort, alternative livelihood options are required for local
communities.
MPAs should be considered as a high priority in fisheries. There is no doubt about the
significance of MPA establishment.
Emphasis should also be placed in Vietnam0in implementing international conventions to
which it is a party.

II. Projects and Priorities

Projects are needed to convert livelihood of fishermen in coastal areas to alternatives from
fishing, especially for small-scale fisheries. These are very common difficulties in almost all
coastal provinces.
Job conversion from fisheries to aquaculture is needed for fishers.
Difficulties exist in the management of small-scale fishing fleets. Fisheries management
should be delegated to local authorities to improve management capacity of fisheries.
Fisheries development plan should also include islands, especially in Khanh Hoa.
There are inconsistencies in fisheries management due to a lack of a long-term plan.
Therefore, there is a need to have a master plan for long-term development purposes.
Infrastructure needs for fisheries should also include those needed for inshore fisheries.
Training for fishermen should be provided to improve the awareness of managements and
sustainable uses of fishery resources.
MPAs should be established for resources protection.
Inconsistencies in policies at the local level are main reason for unplanned fisheries
development. There is a need to apply integrated management and legislation. It is agreed that
conversion of livelihood should be high priority.
For integrated resource management, there is a need to assess the status of resources,
economic activities, and actual use of resources to find out the solution for development.
Emphasis should be placed on the role of local authorities.
There is a need to assess the inshore resources. This has been implemented, but it is
inadequate.
Trawl and light purse seines are important and contribute a lot to production. If these fishing
fleets are reduced, the conversion of fishermen livelihood will be a major and urgent
requirement.
Increase the labor quality in fisheries.
Strengthen the research capacity in resource assessments and fishing technology.
Foster the recovery of inland and marine fisheries resources.
We should limit the priorities in term of WB support. We may apply the development model
from China funded by WB.
In general, there is a lack of integrated management in Vietnam. A focus on integrated
management is suitable for development. It can play an important role in poverty reduction
and environment protection.
Include the support for livelihood development within the ICM program.
MPAs should be managed by local authorities.
The three-priority areas should be ICM, MPAs, and co-management.
There is a lack of sufficient information for effective planning and management.
There is an urgent need for routine data collection on fisheries and marine resources, both
inshore and offshore area.
Consider the support for community-based management for more MPAs (e.g., at provincial
and district levels) in addition to the MPA system of 15 MPAs identified by MOFi.
Credit is needed for job conversion.
Develop marine cage culture, especially around islands.
Reorganize the offshore fisheries.
Support for MPAs should not be the main activities in fisheries.

Appendix M
Page 4

Recover the resources in reservoirs should be given high priority.

MPAs should not be developed with investment from WB.

Group II: Aquaculture

I. Acceptance of the report

The working group accepted the report, although suggested more emphasis be placed on the
need for investment in water supply and drainage systems for aquaculture.

II. Projects and Priorities

5.

The working group raised the following points:

The need to prioritize investments in locations suitable for aquaculture, with potential to
produce high volume production for market.
Coastal areas should be given priority, due to poverty, the need to find alternative livelihoods
for inshore fishers, and good potential for further aquaculture development.
Mekong delta provinces are also a priority for further investment in aquaculture due to the
high potential of this region.

Specific investment needs:

Water supply and drainage systems for aquaculture in coastal and freshwater areas. These
should be designed to meet the special requirements for each province/region. The group
emphasized strongly a point emphasized by Dr. Thang - the need for parallel investment in
human resources and local capacity for management (i.e. not only construction and
infrastructure).

Aquatic seed production. Both public and private sector investment is required.

Environment and disease monitoring systems mostly considered responsibility of the public
sector.

Human resources and systems for co-management in designated aquaculture areas and
reservoirs.

Aquaculture and fishery development in reservoirs. Reservoirs are considered as important for
poorer people displaced in reservoir construction. Emphasis in reservoirs should be on
development of co-management systems.

Aquaculture zones for production of safe aquaculture products and development of quality
assurance systems. An integrated approach should be used to invest in aquaculture farming
zones, including seed/feed, grow-out ponds, water irrigation systems, environmental and
disease monitoring, and market development. This would involve public investment (major
infrastructure), private investment (individual farms/ponds) and grants (training, development
of co-management systems).

Build capacity for extension network and develop infrastructure for extension and provincial
fishery associations and service centers. This would involved mainly technical assistance
(grant), but investment by government to develop local service centers and farmer associations

Appendix M
Page 5

Investment should be based on essential needs of each province. A specific project is needed
for each province based on detailed consultation within each province to develop these
projects.

Give more attention to insurance in the aquaculture sector. (Note: an aquatic resources
protection fund has been recently established).

III. Next steps action, timing and responsibilities

Ministry of Fisheries is responsible for appointing task force group to be in charge of the
necessary steps, materials and information for formulation of a World Bank project.

Request assistance from World Bank for project formulation and training and human resource
development to develop and manage project (2005-2006).

Group III: Marketing, processing and institutional needs

I. Acceptance of the report
6.

Generally, it is good:
It reports the socio-economic characteristic and international acceptance of Vietnamese
fisheries.
Report has analyzed the difficulties in Vietnamese fisheries.
Given priorities for investments

7.

However, some items/aspects need to be improved:

Report has not clarified small-scale fisheries in inshore area, multi-species fishery, and multispecies fisheries at small household level. These should be considered carefully for planning.
Vietnamese fisheries are spontaneous, sensitive with high risks and low competition capacity.
Management capacity and legislation system are still weak, and there are still difficulties in
putting management and legal systems into practice.
Skills of fishery labor are still low.
Some data in the report are not presented in a standard way, which makes comparisons difficult.
Also, data available in the country is generally weak affecting capacity to make informed
decisions.
Report has not mentioned the co-ordination among management steps, both large and small
scale. It is important to identify management weaknesses and to strengthen them. Current
policies are not applied uniformly.

II. Projects and Priorities

8.

Agree with trend of investment include in the report:

Integrated coastal management (ICM)
Fisheries managements
Diversification of aquaculture developments.
Markets

In addition, the group suggests the following priorities:

Investment for human resources development, both management and technical skills. Only with
capacity building will we be able to improve the quality of aquaculture products and market
options.
Investment for fisheries resources assessment, include fisheries resources, species, area, human
resources, market, technical issues, as a basic requirement for planning.

Appendix M
Page 6
Look at diversification of processing plants. For example, after the tra and basa antidumping
case, fishery officers were dynamic in accessing other markets (This comes from the
presentation by Tuan - I think the point here is that when pressed people respond well). Now
officials in Vietnam are very inexperienced with co-management.
There is traditional, local ownership of resources, and this tradition provides a basis for further
development of co-management systems.
Fisheries information is limited, and improvements are needed for effective management.
9.

On policies:
There is a need for more study on policy effectiveness and institutions, as the basis for
revision of policies.
There is no strong link between policies at central and provincial levels.
There should also be more consultations/exchange of experiences between provinces.

10.
Another important area is the development in use of information technology (IT) for fisheries
management. Training in IT should be provided.
D. Summary of Investment Priorities and Final Remarks
11.
Dr. Nguyen Viet Thang summarized the outcome of the workshop at its conclusion. In
general, he agreed and supported the priorities identified through the study and the conduct of the
workshops. The key point is that there needs to be a balance between the technological and
management aspects of fisheries and aquaculture development in Vietnam. This should be further
complemented with an emphasis on achieving the governments objective of poverty reduction
through direct engagement of inland rural and coastal poor in the sector to the degree possible to
provide them with adequate income generating options.
12.
Conservation of resources should be a key element of both fisheries and aquaculture
development. From a development standpoint, it is also critical to consider the infrastructure needs
while at the sane time rationalizing production within an environmental management context,
including working within carrying capacity limits of the area being exploited under fisheries or for
aquaculture development supported by effective environmental monitoring.
13.
It is correct to put coastal zone management as the first development priority. It is important
to focus more on sustainable resource management. The main challenge is to identify how best to
solve the problem and to improve management.
14.
With regard to production, nearly all or about 98% of development should be done by the
private sector, allowing market mechanisms to determine the development direction. Therefore, good
market intelligence with a long-term view is critical with diversification a key element in the
consideration of expanded production. Concerning the challenges posed by importers on exports from
Vietnam, the exporters should unite deal with this issue.
15.
Another key element is to strengthen technical, environmental management, and marketing
capacity in the fisheries and aquaculture sector. Educational and training programs should be
supported to improve these aspects and address the challenges facing the sector.
16.
To achieve the above goals, Dr. Thang endorsed the setting up of a working group under
MOFis International Cooperation Department. He also requested that the World Bank provide more
detail on what would be required for the formulation of an investment operation for the sector that can
be focused on achieving the above objectives in the program that would start at a relatively modest
size from which experience can be gained for subsequent adjustment and expansion of the investment.
He also encourages the local governments to be directly involved in the formulation process and

Appendix M
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implementation of the investment. Toward this end, Dr. Thang requested that training be provided on
World Bank procedures.

Appendix M
Page 8
E. Workshop Participants
No
Name
Government Agencies
1
Hoang Xuan Huy
2

Hoang Viet Khang

Nguyen Lan Anh

Nguyen Van Thuy

Ministry of Fisheries
5
Nguyen Viet Thang
6
Vu Dung Tien
7
Nguyen Thi Kim Anh
8
Nguyen Van Diep
9

Nguyen Van Chiem

10

Nguyen Van Chau

11

Nguyen Hong Mai

12
13
14
15
16
17
18
19

Le Thanh Luu
Nguyen Van Trong
Nguyen Hung Dien
Do Duc Hanh
Ha Xuan Thong
Nguyen Chu Hoi
Cao Le Quyen
Nguyen Viet Nghia

20
21
22

Le Van Thang
Thai Thanh Dang
Vu Van Trieu

23
24
25
26
27
28

Nguyen Huy Dien

Nguyen Van Nam
Do Van Nam
Nguyen Hoai Nam
Pham Van Nghia
Bui Van Thuong

29
30
31
32
33
34
35
36

Ho Thi Thu Hien

inh Ngc Anh
Nguyen Van Tien
Vu Tuan Cuong
Do Duy Con
Nguyen Quang Huy
Nguyen Van Nguyen
Pham Trong Yen

Organizations
Expert - International Cooperation Department, Ministry of
Nature Resource and Environment
Deputy Director of External Economic Relationship, Ministry of
Plan and Investment
Expert, International Financial Institutions division, Ministry of
Finance
Expert, Preparing for Irrigation Investment Board, Ministry of
Agriculture and Rural Development
Vice Minister
Aquaculture Department
Legislation Department
Director of Collective Economic and Private Economic
Department
The National Directorate of Aquatic Resources Exploitation and
Protection
Director, The National Directorate of Aquatic Resources
Exploitation and Protection
The National Fisheries Quality Assurance and Veterinary
Directorate
Director, Research Institute for Aquaculture No 1
Vice Director, Research Institute for Aquaculture No 2
Director, Research Institute for Aquaculture No 3
Fisheries Magazine
Director, Institute for Fisheries Economic and Planning
Deputy Director, Institute for Fisheries Economic and Planning
Institute for Fisheries Economic and Planning
Deputy Chief of Marine Resource Section, Research Institute of
Marine Products
Vice Rector of Fisheries College No 4
Director of Informatics Center
Acting Director General of International Cooperation
Department
Deputy Director of National Fisheries Extension Center
Deputy Director of Department of Personnel
Expert of Science and Technology Department
VASEP
VASEP
Vice General Secretary of Vietnam Fisheries Associate
(VINAFIS)
Vietnam Fisheries Associate (VINAFIS)
Deputy chief of Ministry Cabinet
Ministry Cabinet
Ministry Cabinet
Ministry Cabinet
RIMP
RIA1
Deputy Director, International Cooperation Department

Appendix M
Page 9
DOFI & DARD
37
Diep Thanh Hai
38
Do Thanh Do
39
Nguyen Ngoc Phuong
40
Dao Cong Thien
41
Tran Cao Muu
42
43

Nguyen Quang Diep

Le My An

44

Ha Van Tra

45
46
47

Nguyen Van Hieu

Tran Van Chuong
Nguyen Van Thanh

48

Ly Ba Quang

49

Bui Luong Nhuan

University
50
Nguyen Anh Tuan
51
Tran Danh Giang
International Organization
52
Nguyen Phuong Lien
53
Niels Svennevig
54
Michael Akester
55
Ronald Zweig
56
Michael Phillips
57
Cao Thanh Binh
58
Tran Trong Chinh
59
Ragna Fidjestol
60
Pham Gia Truc
61
Irmen Mantingh
62
Misha Coleman
63
Nguyen Minh Thong
64
Nguyen Hoai Chau
65
Nguyen Song Ha
Mass Media
66
Trinh Thuy Lien
67
Nguyen Duc Thuat
68
Nguyen Cam Van
69
Tran To Nhu
70
Nguyen Lan Huong
71
Ngo Mai Huong
72
Nguyen Thuy Hien

Deputy Director of Ca Mau Fisheries Department

Deputy Director of Binh Thuan Fisheries Department
Deputy Director of Kien Giang Fisheries Department
Director, Khanh Hoa Fisheries Department
Deputy Chief of Fishing Management Office - Nghe An
Province Fisheries Department
Quang Ninh Fisheries Department
Deputy Chief of Planning Office - Thanh Hoa Fisheries
Department
Head of Planning and Investment Office, Ha Tinh Fisheries
Department
Director, Ben Tre Fisheries Department
Vice Director, Thua Thien - Hue Fisheries Department
Vice Director, An Giang Agriculture and Rural Development
Department
Head Deputy of Technical Office, Hanoi Agriculture and Rural
Development Department
Director of Thai Binh Agriculture and Rural Development
Department, Member of Standing Committee Vietnam Fisheries
Associate
Vice Director, Can Tho University
Head of Training Office, Nhatrang Fisheries University
DANIDA
SINTEF, NORWAY
Senior advisor of SUMA
World Bank
World Bank
World Bank
Norwegian Embassy (NORAD)
Norwegian Embassy
FAO
FAO
ACIAR
IUCN
Action Aid
STEAM - NACA
Enterprise Newspaper
Ha Noi Moi
Labor Newspaper
Vietnamnews
Ha Noi Moi
Today Agriculture
Vietnamnews Agency

Note: Most of Participants also joined the August 31, 2004 Workshop.