Vietnam's Fisheries: Growth, Sustainability Match up

In the past 20 years, the fisheries sector has obtained considerable achievements and has also made significant to the development of the national economy. After 20 years to 2005, the fisheries output rose 4.24 times, from roughly 808,000 tonnes to 3,432,800 tonnes. Remarkably, the rearing output increased above 6.22 folds, from 231,200 tonnes to 1,437,355 tonnes. If the aquatic product export turnover were merely US$90 million in 1985, the value jumped to US$2.74 billion in 2005, bringing Vietnam to the list of the world top seven aquatic exporters.

 

The development of the fisheries sector has created more jobs from farmers, from 740,000 in 1985 to some 4 million in recent years in 2005. The labour structure has also changed considerably. Previously, fishermen mainly caught fish ashore, but they now catch fish offshore, rear fish, process fish and provide after-catching services

 

The processing industry just began with scattered units in several urban zones or industrial zones but now it has expanded nationwide. The image of the fisheries sector has changed. The aquatic export value in only Mekong Delta region reached some US$1.7 billion, two thirds of the country’s total of US$2.74 billion.

 

In the fishing industry, Vietnam had only 29,323 motorized ships with a total capacity of 494,507 CV, or 16.9 CV each on average, in 1885 but the country had 90,880 motorized ships with a combined capacity of 5.318 million CV within 20 years. With larger ships, fishermen can catch fish offshore.

 

In the processing industry, if the processing capacity of 72 refrigerators was 381 tonnes a day in 1985, it reached 4,262 tonnes a day with 439 refrigerating plants. The Vietnamese aquatic products have been exported to 105 markets, which generated US$2.65 billion for Vietnam in 2005.

 

The 20-year achievements are remarkable and stable. The growing industry has contributed to the socioeconomic development, national security and national defence. The fisheries industry has become a key exporter. This labour-intensive sector has created higher incomes for labourers in rural and coastal areas. This industry has also become a poverty eliminator.

 

When Vietnam is admitted to the WTO, not only the fisheries industry but others also have chance to penetrate the global market. The WTO admission is also a chance for foreign investors to invest in developing the fisheries industry in Vietnam.

 

The preferential treatments in tariffs, product origins, non-tariff barriers and fair treatments of the WTO will facilitate the spread of Vietnamese aquatic products worldwide.

 

However, the bright side always go together with the black side. Vietnam is a developing country; hence, the competitiveness of its aquatic products is quite low and the management level still has shortcomings while the requirement for quality, safety and hygiene is higher and higher. Besides, the limited understanding of Vietnamese companies about international laws, especially those related to trade disputes, has affected their competing capacity.

 

The trademark issue for the Vietnamese aquatic products is considered a big challenge because Vietnamese aquatic products are currently imported and distributed by various foreign firms which label a lot of different trademarks. To this end, Vietnam cannot popularise products as well as it can fall into trade disputes like the recent catfish case in the US.

 

The fisheries industry has set up a goal to bring in an export turnover of US$4 billion by 2010 but we decided to raise the target to US$4.5 billion after the results we have made in 2006. If the food safety and hygiene is improved, Vietnam can add US$200-300 million to the export value each year.

 

In the past five years, the fisheries industry has experienced and tackled the safety and hygiene issue (the antibiotic residue in seafood exported to Europe, the US, Japan and Australia) as well as two antidumping cases (one was the catfish case and another was the shrimp case). We have a stable rearing system to produce large volumes of fish. The last matter is the unavoidable risks such as Act of God and commercial risks. The goal of US$4.5 billion is within reach.

 

The sustainable development follows the good development. The development relies on two factors. First of all, the stable development must originate from aquaculture, not catching. In the next five years, the fisheries sector must still put forward growth targets. Fisheries and potentialities have become exhausted; hence, we should be inclined to rearing aquatic creatures in freshwater, brackish and salt water areas.

 

The second factor of the development is the value. In the globalisation process, the output is only relative; hence, the value increase is the target of the industry. Then, we will have many potential sectors to process the final products of high export value.

 

Under the ratified Overall Fisheries Development Plan until 2010 and further to 2020, the Vietnamese aquatic product output will increase 3.8 per cent a year on average. The export revenue averagely grows 10.63 per cent a year. The job creation of the fisheries industry annually increases 3 per cent on average. By 2010, the aquatic product output will reach 3.5-4 million tonnes, the export revenue will verge on US$4 billion and the number of fishermen will 4.7 million people.

 

The fisheries sector also clearly defines the targets of the seafood sector. By 2010, the exploited seafood output will be maintained around 1.5-1.8 million tonnes, the fishing boat population will be 50,000 units, the rearing output will reach 2 million tonnes and the area will be expanded to 1.1-1.4 million ha. Until 2010, the processing industry can handle 891,000 for export, which is estimated to generate US$4 billion.

 

The plan also sets development orientations until 2020. Vietnam will continue promoting its advantage in potentiality and developing concentrated production areas in combination with processing and service industries. The industry will diversify processed aquatic products and develop Vietnam’s typical key products. At the same time, the country will also develop the offshore fishing soundly and stably, stabilise the ashore fishing, expand and diversify aquaculture, protect fisheries resources, protect environment and ecology and supply materials for the export processing industry.