Developing an Agricultural Research and Development Priority Framework for Vietnam Fisheries Sub-Sector Workshop Data and Information Sheets: Areas of Research & Development Opportunity (ARDOs) ARDO 1: ARDO 2: ARDO 3: ARDO 4: ARDO 5: ARDO 6: ARDO 7: ARDO 8: ARDO 9: Marine Finfish Cold Water Fish Crustaceans Mollusks Fresh Water Fish Post Harvest, Processing & Value Adding Extraction of Bio-Active Compounds Resource Management & Conservation Mechanisation December 2006 ARDO 1: MARINE FINFISH ARDO DEFINITION 1.1 National Goal: To increase the scale of sustainable production and quality of marine finfish, including the development of reliable seed stock and fingerling supplies and high value fish The MOFI target for 2010 is 300,000 tons of marine finfish with a market value of US$4 billion 1.2 Research Scope: Research to improve selection of appropriate species for local conditions and to improve brood stock culture, larval and fingerling rearing systems Research in the development and application of natural feeds for larvae and nursery culture and the reduction of trash fish feeding systems through the use of compound feeds for the grow out phase Development of sustainable production systems including prevention, management and control of disease, and identification and mitigation of environmental impacts 1.3 Coverage: Main species include: grouper, cobia, Red sea bream, and sea bass INDUSTRY STATISTICS 2.1 Introduction Vietnam has 3260km of coastline extending from the North to the South and ideal natural conditions for the development of marine aquaculture Marine finfish aquaculture has developed in the last few decades Grouper was introduced in the 1980s in the northern of Vietnam and since then has been widely cultured throughout the whole country Other species, such as cobia, sea bass, Red sea bream, milkfish and pompano are cultured sea cage systems and inland earthen ponds To date, marine aquaculture is not a well developed industry It is small scale, depends on natural seed collection and the use trash fish feeds Limited research has been undertaken with variable results Survival rates of larvae remain low and most fingerlings either come from the wild or from imports from China Similarly, cobia propagation is still unstable and need to be improved Marine finfish aquaculture is a new industry that has a big potential, opportunities to exploit such as natural conditions and potential for high demand in domestic and international markets 2.2 Industry Characteristics and Prospects Growing Areas and Yields  In general, marine finfish aquaculture such as culture of grouper and cobia is dominated by sea cage systems that are applied in Hai Phong, Quang Ninh, Nam Dinh, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Phu Yen, Khanh Hoa, and Vung Tau provinces Fisheries Priroity Workshop Data & Evaluation Sheets Production  Marine finfish is a new industry in Vietnam There is little information or statistics on production available  Some information on the number of cages e.g Hai Phong about 8000 cages and in Quang Ninh About 4000 cages sea cages Value and Markets  Grouper is a high value species in national and international markets For example, spotted grouper is the lowest price of among other grouper, but the price is approximately of 10USD Other marine finfish such as cobia, sea bass, and Red sea bream have lower value, average of 3-4USD/kg  The price of grouper varies depending on the demand from the local and international market Table Price of orange spotted grouper in Quangninh and Haiphong, 2006 (USD/kg) Month January February March April May June Fish size (kg) 0.5 – 2–4 0.5 – 2–4 0.5 – 2–4 0.5 – 2–4 0.5 – 2–4 0.5 – 2–4 Average Quang Ninh (USD/kg) 11.39 10.13 10.76 9.49 11.39 9.49 10.76 6.96 10.13 6.33 13.92 10.13 10.07 Hai Phong (USD/kg) 12.03 10.44 12.03 10.44 12.03 10.13 11.39 7.59 11.39 7.59 15.19 11.39 10.97 Table Price of some Grouper species in Hong Kong, China 2006 English name Humpback grouper Leopard coral grouper Red grouper Tiger grouper Giant grouper Duskytail grouper Orange-spotted grouper  China (USD/kg) Hong Kong (USD/kg) 75.00 60.28 30.00 13.33 15.92 12.50 9.06 70.00 43.74 39.58 15.64 15.00 12.00 10.30 Currently the domestic price of orange spotted grouper is higher than China and Hong Kong market but with the development of grouper aquaculture industry, the demand for grouper product in domestic is becoming lower than supply Fisheries Priroity Workshop Data & Evaluation Sheets  Development of export markets is necessary for the survival of the grouper and marine finfish industry Currently, the main market for grouper and cobia are China, Hong Kong Taiwan and Singapore Comparative Advantage  Long coastline, appropriate for sea farming operations  Young population and comparatively low labour cost is another advantage for the development of this industry  Major disadvantage is high cost of imported feed and ability to provide sufficient locally produced seed stock  Membership of WTO will provide opportunities to export but is likely to have some comparative disadvantage to industry development as import tax and trade barriers for imports are likely to be reduced Government Policies Name and contents of regulations o Decision N 112/2004/QD-TTG National fisheries and aquaculture development program from now to 2010 and the direction for 2015 Decision No 154/2006/QD-TTG National administration on drugs and chemicals and food safety condition in aquaculture from 2006 to 2010 Decision No 03/2005/CT-BTS Control the chemical and drug residuals in aquaculture Decision No 07/2005/QĐ Amendment on list of banned chemicals and drugs in aquaculture Veterinary ordinance amendment in 2005 The content of new amendment is similar to previous edition with chapters and 71 articles Veterinary ordinance Publisher Date of issue Approved by Prime 11/1/2006 Minister of Vietnam Approved by Prime 30/6/2006 Minister of Vietnam MOFI 3/7/2005 MOFI 2/24/2005 National Assembly 2005 Publishing House Ministry of Agriculture 2004 and Rural Development o Decision N 112/2004/QD-TTG The national fisheries Approved by Prime 2004 program to 2010 Minister of Vietnam National standard No TCVN 6986: 2001 Water quality MOFI 2004 standards for industrial effluent discharged into coastal waters for the purpose of the aquatic animal life protection Sector standard No 28 TCN 192: 2004 Cage culture area MOFI 2004 -Conditions for food safety National Assembly 12/10/2003 Fisheries law Publishing House Decision No 01/2002/QĐ-BTS List of banned chemicals MOFI 2002 and drugs in aquaculture National standard No TCVN 6984: 2001 Water quality National standard 2001 standards for industrial effluent discharged into coastal waters for the purpose of the aquatic animal life protection Fisheries Priroity Workshop Data & Evaluation Sheets Name and contents of regulations o Decision N 224/1999/QD The aquaculture development program from 1999 to 2010 Decision No 103/2000/QD-TTG National policies on fisheries propagation Date of issue Approved by Prime 2000 minister of Vietnam Approved by Prime 2000 Minister of Vietnam Industry Analysis 3.1 Publisher Structure Households and Size of Holdings  Grouper and cobia culture systems implement traditional small scale culture methods based on bamboo cages, wooden cages Square or reticular cages are of 20 to 50 cubic meters Advantages of these systems are low installation cost, easy to manage and appropriate for small farms For example, the price of a wooden cage of 100m³ in catba is about 2,000 USD This type of culture system is suitable for lagoons where there is little impact from big waves and strong winds Return on capital investment is relatively short and may take 2-3 years to reach the break even point depending on the experience of farm owner and the investment capacity  Recently, some commercial farmers have adopted a Norwegian production model using a circular cage with a larger volume (500-750m3) There are some private and international companies invest to grow some marine species including grouper, cobia pompano, and pearl in the coastal areas or offshore areas The operational cost of these companies is not yet documented, so there is no information about the time to reach breakeven point  Because of white spot disease in shrimp farming, many shrimp farmers are shifting into marine finfish culture Species cultured in shrimp ponds include sea bass, Red sea bream and milkfish 3.2 Supporting Infrastructure  There is no commercial pellet feed for marine finfish available at the moment, so farmers still use trash fish  No marine finfish processing manufacture available yet Therefore, the trading of marine aquaculture product is dominated by private company or traders 3.3 Markets  Currently the domestic market for marine finfish aquaculture products is mainly in restaurants, hotels and tourist areas The domestic market is expected to grow considerably as supply increases, per capita income increases and market prices decrease  The main export markets are China and Hong Kong, with smaller volumes to Taiwan and Singapore The volume of exports is small and most exports are live fish carried by private companies 3.4  Future Trends and Key Market Issues Asian economy is rapidly growing and demand for grouper and other marine commodities will increase, especially in the China market There are some Fisheries Priroity Workshop Data & Evaluation Sheets advantages for Vietnamese grouper aquaculture as this market is close and transport costs are low Japan is another potential market for marine finfish product is Japan  Foreign investment in marine finfish product is developing with Russian and Norwegian finance for marine farms in central Vietnam The product of these companies will be directly exported to Russian market  Membership of WTO will create additional opportunities to access international market  It is estimated that demand for grouper in the domestic and international market will be about 15,000 tons per year in next few years The value of these markets is estimated to be US$90 million  With the development of national economy and increases in the number of wealthy people the local market for marine finfish is likely to grow, particularly for grouper species In the short term is likely that most production increases will lead toward development of the local market through farmers directly selling to local restaurants and to middleman, who will transfer live marine finfish product to big cities R&D Information 4.1 Main Research Areas Marine finfish propagation  Grouper and cobia brood stock culture technique  Grouper and cobia seed spawning and fertilization  Natural food production for groupers and cobia larvae rearing  Grouper and cobia fingerling culture techniques  Red sea bream spawning and fertilization  Red sea bream nursery techniques Grow out culture technique  Sea cage design, produce and practice management  Sea cage aquaculture techniques  Pellet compounds for grow out phase of marine finfish aquaculture  Marine finfish culture techniques in earthen pond and inland farming systems  Environmental practices management in marine finfish culture in earthen ponds and in the sea cages farming Nutrient  Artificial feed production for marine finfish larvae nursery  Natural feed production for marine finfish larvae nursery  Essential nutrients component requirement in larvae stages  Nutrients requirement of marine finfish species at grow out stage Fisheries Priroity Workshop Data & Evaluation Sheets Marine finfish diseases prevention and control  Research on microbial diseases in marine finfish including disease cause by parasites, protozoan, fungi, bacteria, and viruses  Studying the diseases prevention and controlling method base on:  Brood stock and fingerling screening  Better management practices in sea cages farming and earthen pond system  Vaccine development and vaccination to prevent bacterial infections and viral diseases especially VNN infection in groupers, sea bass, cobia and other comedies species  Application of herb extract to control diseases in sea farm 4.2 Major Research Providers Ministry of Fisheries  Research institute for aquaculture No1  Research institute for aquaculture No2  Research institute for aquaculture No3  Research institute for marine fisheries Universities  Nha trang fisheries university  Fisheries research institute of Cantho university  Fisheries faculty of agriculture and forestry of Hochiminh university  Fisheries faculty of Hanoi agriculture No1 University  Fisheries faculty of Thainguyen University  Fisheries colleges No 4.3  Funding Estimated total funding for marine finfish research in 2005 is 246,667.00 USD The government fund was 130,000.00 USD and 116.667.00 USD from international projects including NORAD and DANIDA There is no data on provinces and private company funding for marine finfish aquaculture study 4.4 Major Achievements to Date  Some research on reproduction of grouper, cobia, sea bass and Red sea bream For example, the project on grouper seed production funded by Vietnamese government was carried out from 2002 to 2005  The national marine seed production center, sub-institute for marine aquaculture in the northern center of Vietnam, the marine seed production center in the south of Vietnam can produce some groupers fingerling, cobia, sea bass, milkfish, and Red sea bream Tradition marine sea cage farming operation and practices  Fisheries Priroity Workshop Data & Evaluation Sheets  Report on some common diseases of grouper and cobia in sea cage farming SWOT Analysis Strengths          Environment and natural resources are appropriate for marine finfish aquaculture development Potential for large increases in domestic and export markets Close to potential high value export markets Long history of aquaculture activities, so farmers have experience in fish culture Relatively good human resource skills in aquaculture in general and marine aquaculture sector Low labour cost likely to increase competitiveness for marine finfish aquaculture industry Useful as an alternative production option for disease affected shrimp ponds Some large scale investment in marine aquaculture now occurring The support from government and other agencies is also a creative advantages for this industry Weakness        Opportunities       Improvement in income will provide opportunities to expand the domestic market for marine finfish aquaculture products To be a member of WTO is another opportunity to export products of this industry to the larger market Adaptation new techniques into marine finfish aquaculture Encourage more smaller scale and more private and international companies to invest in marine finfish aquaculture Development of technical expertise on propagation, nursery, and culture techniques Development of production systems that are efficient and produce marine finfish products that met international standards for food safety Fisheries Priroity Workshop Marine finfish aquaculture is a new industry so development of new knowledge and research could be a challenge for sustainable development To date most of the production is small scale using traditional wild seed collection and trash fish feeding systems Lack of national strategies, planning and development for marine finfish aquaculture may adversely affect the development of this industry No local commercial production of pellet feed compounds Poor infrastructure for product processing Relative high cost of entry into commercial scale fisheries and lack of funding may delay development of marine finfish aquaculture industry Relatively poorly developed technologies in culture, propagation, pellet feed, processing, environment and disease management Threats  Wild catch of grouper fingerlings may cause depletion of natural resources with adverse impacts on the marine ecosystem  Natural disaster is another threat for marine finfish aquaculture industry  Adoption of high stocking, more intensive and larger sea farming size, diseases and waste pollution may directly impact on sustainable development  Membership of WTO is likely to reduce import tax for competitor countries and lower cost imports may impact on industry development and competitiveness Data & Evaluation Sheets ARDO 2: Cold Water Fish ARDO DEFINITION 1.1 National Goal: To diversify freshwater species to increase the value of freshwater aquaculture and to meet the demand of domestic and international markets 1.2 Research Scope: Research on hatchery technology and grow out in different farming systems Development of suitable feeds and feeding systems, disease management and control and assessment of environment impacts on and of aquaculture and food safety 1.3 Coverage: Samonoidae family includes Oncorhinchus mykiss, white fish This fish is family Coregonidae and scientific name is Coregonus lavaretus Acipensidae family including Acipenser baerri, A ruthenus INDUSTRY STATISTICS 2.1 Introduction Presently, among the freshwater fish species, there are a few low value species which are produced in large volume to meet the domestic and international markets such as tilapia, tra and basa catfish The group of species having high value in the markets does not exist in aquaculture practice in Vietnam Recent information indicates that in 2004, Vietnam imported 500 tons of Atlantic salmon from Norway During the first half of 2005, import volume has increased 150%, and it is predicted that import volume by the end of 2005 will reach to 1500 tons A part of the import fish products meets the domestic consumption and a part is sued for processing and re-exporting to other international market From the above information it may conclude that the culture of the low value species is sufficient but high value species are practically in shortage and due to increase of the domestic demand, the import of these fish products is required Trout and sturgeon are considered as alternative option for aquaculture of the tropical species in the North Vietnam during the winter period, when temperature of water is not suitable for grow out of the tropical fishes Thus these fish species are quite attractive for many farmers in the North 2.2 Industry Characteristics and Prospects Growing Areas and Yields The condition for culture of the cold species is the limitation of water temperature which should be lower than 240C for at least months of the year With this condition, in the North during the period of late autumn to beginning spring, some water bodies (ponds, reservoirs, rivers, and springs) can be used for culture of these species In Northern mountain provinces and central plateau, most of water bodies at the attitude above 1000m are available for culture of these species around year Fisheries Priroity Workshop Data & Evaluation Sheets Production  In 2005, only 1500m2 of the pond was used for growing out rainbow trout and 250m3 of cages and tanks were used for culture of the sturgeon  In 2006, 3.4 hectares of the pond (1 in Lam dong province, 1,5 in Lao cai, 0.5 in Lai chau, 0.2 in Ha giang, 0.2 in Cao bang) were constructed for trout culture  Three farms used circulation systems in Hai duong, and other 1000m3 of the cages were installed for sturgeon culture in Yen bai and Lam dong provinces  In 2005 the fist production of rainbow trout was about 12 tons while sturgeon was only 3.0 tons  In 2006 it is expected that the volume of trout could be reached to 100-120tons and sturgeon may achieve 12-14 tons  Grow rate of the production of these fish is expected to be doubled each year within years coming then remain 20-30% per year in the period from 2011-2015 Value and Markets  In 2005 value (farm gate value) of trout was VND1,400 - 1,500 million and sturgeon was VND600 million  In 2006 it is expected that value of trout will reach to VND14,000 million (US$ 900,000) and sturgeon will reach to VND2,4 million (US$150,000)  The markets of these fish are domestic The farm gate price of trout is about VND120.000/kg, of sturgeon is VND200-220.000/kg  The market price of trout range is VND170-180,000/kg, while the price range of sturgeon could be ranged from VND250-270,000/kg  With the expectation of the produced volume of rainbow trout, the import of the valuable fish for high market will be reduced 30-35%, while an amount of 100-150 tons of fresh fish could be exported to neighboring countries in the future  Export of sturgeon is not expected,  500 tons of sturgeon meat hopefully does not create any problem for domestic market as sale price of fish is just as eel and grouper price Comparative Advantage  Apart from cost of labour, Vietnam is unlikely to have any comparative advantage for export of trout and sturgeon fish  Maturation of brooders will open the possibility of production of caviar which may be competitive in European market due its cheaper production cost and earlier in maturation  Main benefits will come from partial import substitution and high value fish will be very competitive in terms of returns for farmers and in providing a diversity of fish in domestic markets Government Policies Fisheries Priroity Workshop Data & Evaluation Sheets 53 Opportunities       Build on international experience in developing the extraction and application of sea active compounds for pharmaceutical and nutraceutical purposes Substitution of imports and possible development of export markets for high value products Development of new industry and new employment opportunities Innovative new research programs leading to high value products and relatively high return on investment Improvement in environment through reduction of waste materials Development of good manufacturing practices and collaboration with the private sector to ensure quality of products produced Fisheries Priroity Workshop Threats  Shortage of raw materials due to undevelopment  Lack of incentives for reduction of fish wastes  Potential for environmental pollution from chemical wastewater discharged from production process  May have limited opportunity to export unless international certification and quality standards can be met Data & Evaluation Sheets 54 ARDO 8: Resource Management & Conservation ARDO DEFINITION 1.1 National Goal: To assess the current status of aquatic animal communities, populations, and ecosystems and to establish and to manage exploitation of specific regional resources through develpment of selective and environmentally friendly capture methods to ensure effective and productive fishing activities and ensure sustainable utilization of aquatic resources and environment protection The target is to mainatin current production from capture of about 1.8 million metric ton per year 1.2 Research Scope: Assess the dynamics of the fisheries resource stock, including the distribution and migration rule of fish population and further development of seasonal exploitation, fishing methods, management of fishing grounds and development of protected and conservation areas/zones Use of quantitative and qualitative data and information to prepare advice on application of fisheries management, further development of fishies regulations for management and enhancement of specific resources Adaptive research on fishing gear, effective fishing methods selective exploitation and environment protection 1.3 Coverage: Resources management: ocean ecology systems; biological characteristics and population dynamic of exploitable fish; biodiversity and the relationship between resource distribution and environment Organise regulations for resource management Fishery exploitation: fishing tools construction; methods for organising and using system tools for fishery exploitation; quantity, component of exploitation products System of methods to control the fishing power is maximised INDUSTRY STATISTICS 2.1 Introduction Development and management of aquatic resources are a key input into sustainability of the fish industry Capture fisheries account for about 60% of total fish marketed and wild capture of seed stock continues to play and important part in the development of aquaculture with secveral high values species including molluscs, marine finfish and crustaceans Resource management is carried out by local government Preliminary aquatic resource assessment and statistics of exploitation or fish catch has been undertaken in provinces On the basis of this assessment, conservation areas; restricted and limited fishing areas have been mapped and tehse have contributed to improving sustainability of fisheries However, open - access fisheries still occur in almost all areas of fresh and sea water in Vietnam Knowledge of in-shore resources has Fisheries Priroity Workshop Data & Evaluation Sheets 55 improved, but there is still a lack of significant information of offshore and deep sea resources Some work on methods for of sub management and communty management have been investigated The total annual fish catch has increased steadily but the fish productivity per boat has gradually decreased as has the proportion of trash fish and under marketable sized fish These trends indicate that sustainability of natural fisheries is problematic 2.2 Industry Characteristics and Prospects Production and Key Issues  Fishery production from capture accounted for 58% in total fishery production in 2005 aqnd the total capture volume has increased by 120% compared with year 2000  The average annual increase in fish production over the last years is 3.71%  The production structure has changed with a trend of increasing high value products from offshore  Capture productivity per horse power of boat continued to decline from 0.40 ton/HP in 2000 to 0.34 ton/HP in 2005 and the percentage of trash fish and undersize fish is high Table 1: Fishery criteria for development from 2000-2005 criteria Order I 1.1 1.2 II Infrastructure investment From state budget IV Boat capacity Machinery boat Total power Fishery processing V Comp Comp Total % Increase 2004 unit Total production Fishing production From sea From freshwater Fishery export Export value turn-over III Year 2005 2000 2001- annual 000 ton 000 ton 000 ton 000 ton 3,432.8 1,995.4 1,809.7 185.7 (%) 109.24 102.86 104.40 89.88 (%) 152.53 120.13 127.47 76.95 2005 14,516.6 9,318.9 8,247.4 1071.5 years 40.99 15.69 22.18 22.0 8.97 3.71 5.14 6.56 1000 USD Billion vnd Billion vnd 2,650.000 110.38 180.27 11,067.7 49.09 10.50 6,820 102.56 167.24 30,689 36.05 8.00 716 101.13 124.15 3,234 11.70 2.80 Piece CV factory 90,880 5,317.447 439 106.22 112.58 108.40 23 64 15.89 47.29 77.02 3.76 10.17 15.35 Source: Report on fishery summary in 2005 Value and Markets  Main export products are the whole live fish or frozen Main export markets US, Japan, EU, Taiwan for products of high value as tuna, squids; in China and Taiwan markets for processed and value added products Fisheries Priroity Workshop Data & Evaluation Sheets 56  Some fishing boats in China gulf sell their products directly to Chinese middlemen on boat  The total export product of tuna was 54,456,822 USD in 2004 Government Policies  The fishery law was approved by the parliament of Socialist Republic of Vietnam and was applied from July 2004  Seven decrees and several papers have been published to assist in application of the fishery law These include: o o o Decision No 131/2004/QĐ-TTg, dated 16/7/2004 approved by Prime Minister for prevention and development fishery program to 2010 with 06 projects with priority for management, development and prevention aquatic resources in Vietnam Decision No 10/2005/QĐ-CP, dated 11/01/20065 approved by government for totally planning in fishery development to 2010 and scheduled to 2020 Decision No 47/2006/QĐ-TTG, dated 01/3/2006 approved by Prime Mister for overall project on basic surveillance and marine resource and environmental management up to 2010 and vision to 2020 o The supported development programs in Vietnam funded by DANIDA o Planning the network of conservation marine areas in Vietnam Industry Analysis 3.1 Structure  Vietnam has great diversity in aquatic resources in terms of species, geographically scattered distribution in most regional sea areas Table 2: Volume and capacity of marine fish resources of Vietnam Sea region Ecology Depth group (m) Volume Ton Capture capacity % Ton % %KN Source KT Small pelagic 30 270,200 49.8 135,100 52.8 Gulf Benthic fish 30 98,129 18.1 39,252 15.3 ALMRV&Xa bờ 2001 542,730 100.0 256,092 100.0 Sub-total Bui Dinh Chung, 1992 Small pelagic Middle 50 300,000 48.2 150,000 50.2 Bui Dinh Chung, 1992 Benthic fish 50 104,000 16.7 41,600 13.9 622,494 100.0 298,998 100.0 49,844 12.0 Sub-total Small pelagic 30 424,313 46.7 212,157 51.0 Benthic fish 30 335,792 36.9 134,317 32.3 ALMRV & Xa Bờ 00-02 908,879 100.0 415,952 100.0 Sub-total Small pelagic Benthic fish 112,439 23.5 56,219 25.2 >30 203,561 42.5 101,781 45.6 30 South West fish