Implications of regional economic conditions on the distribution of technical efficiency: Examples from coastal trawl vessels in Vietnam

Abstract

Vietnam's marine capture fisheries are open-access, and the increasing number of fishing boats has led to concerns about the sustainability of the industry. Information on the level of efficiency and its determinants can help inform appropriate regulations and policies that support sustainable fisheries. However, such management must also be sympathetic to the regional economic environment in which the fishers operate. In this paper, the level of technical efficiency and its determinants for trawl fishing vessels in Vietnam is estimated using stochastic frontier analysis. The empirical results suggest that the average technical efficiency of the surveyed fishermen is about 79%, suggesting potential room to improve performance. Several factors have been identified which affect technical efficiency, including the age of the vessel, skipper experience and age, distance from fishing ground, engine type and use of family members in the crew. Significant differences were also seen between regions, with technical efficiency seemingly affected by the opportunity cost of labour. Poorer regions with fewer alternative employment opportunities were also associated with lower average technical efficiency, reflecting the effects of greater capital and labour non-malleability in these areas.