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Finding a balance between economic performance and capacity efficiency for sustainable fisheries: Case of the Da Nang gillnet fishery, Vietnam

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  • Pham, Thi Duy Thanh
  • Huang, Hsiang-Wen
  • Chuang, Ching-Ta

Abstract

Marine capture fisheries in Vietnam are small-scale, multi-species, multi-gear, and open access regime. Under numerous governmental promotion programs, Vietnamese fishing fleets have expanded at an uncontrollable rate. This research analyzes the economic performance and capacity efficiency of the Da Nang gillnet fishery. Data were obtained from 45 gillnetters in Da Nang using questionnaires, which were administered between April and July of 2011. The results showed that large-scale vessels (engine power≥90hp) had better economic performance than small-scale vessels (engine power<90hp) with average gross revenue flows of 1346.7 and 750.7 million VND, respectively. The large-scale vessels further actualized positive profits (15% gross revenue), while the small-scale vessels demonstrated negative results (−0.4% gross revenue). The main operating costs of fuel and labor accounted for 44% and 26%, respectively, of the total operating expenses. However, the results of the data envelopment analysis (DEA) showed that the Da Nang gillnet fishery did not operate at full capacity and that the unused capacity and the technical inefficiency rates were approximately 21.2% and 10.8%, respectively. The over-use of fuel, net sheets, and number of days at sea in the large-scale vessels were 7%, 10%, and 3%, respectively, while these ratios in the small-scale vessels were 7%, 3%, and 7%, respectively. Overcapacity may be separated into two parts, one part resulting from the optimal technical use of inputs and a second part resulting from enhancing the current policies. As such, feasible policies may include implementing the buyback of small and unprofitable vessels, and reviewing subsidy programs.

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  • Pham, Thi Duy Thanh & Huang, Hsiang-Wen & Chuang, Ching-Ta, 2014. "Finding a balance between economic performance and capacity efficiency for sustainable fisheries: Case of the Da Nang gillnet fishery, Vietnam," Marine Policy, Elsevier, vol. 44(C), pages 287-294.
    • Handle: RePEc:eee:marpol:v:44:y:2014:i:c:p:287-294
    DOI: 10.1016/j.marpol.2013.09.021
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    1. Duy, Nguyen Ngoc & Flaaten, Ola & Long, Le Kim, 2015. "Government support and profitability effects – Vietnamese offshore fisheries," Marine Policy, Elsevier, vol. 61(C), pages 77-86.
    2. Fukuyama, Hirofumi & Song, Yao-yao & Ren, Xian-tong & Yang, Guo-liang, 2022. "Using a novel DEA-based model to investigate capacity utilization of Chinese firms," Omega, Elsevier, vol. 106(C).
    3. Fukuyama, Hirofumi & Liu, Hui-hui & Song, Yao-yao & Yang, Guo-liang, 2021. "Measuring the capacity utilization of the 48 largest iron and steel enterprises in China," European Journal of Operational Research, Elsevier, vol. 288(2), pages 648-665.
    4. Nguyen Ngoc Duy & Ola Flaaten, 2016. "Profitability Effects and Fishery Subsidies: Average Treatment Effects Based on Propensity Scores," Marine Resource Economics, University of Chicago Press, vol. 31(4), pages 373-402.

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