Open-access inshore fisheries : the economic performance of the purse seine fishery in Nha Trang, Vietnam

Abstract

In Vietnam, the number of fishing vessels, especially near the shore, has increased continuously, despite the Government’s aim for reduction. In particular, 80% of the fishing vessels operate in the coastal areas that make up only 11% of the exclusive economic zone. Such heavy use of near-shore fish resources could imply overfishing and economic decline. Therefore, the economic performance of the inshore purse seine vessels in an open-access fishery have been investigated, based on a 2011 survey of cost and earnings data of a sample of 62 anchovy purse seiners, representing about 46 % of such vessels in Nha Trang, Vietnam. The empirical results show that an average purse seiner was able to cover all the costs and earned a profit margin of 17.41% and crew members earned their opportunity cost of labour or above. Engine power, number of crew size, number of fishing days and dummy variable for location are identified as the main factors affecting the annual vessel performance, represented by gross revenue. An application of the Salter diagram shows that a large number of vessels with high relative standardised effort are the most cost-efficient vessels. The majority of these vessels earned intra-marginal rent despite the open-access characteristics of this fishery.