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 target of a reduction. In particular, 80% of the fishing vessels operating in the coastal areas 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 has been investigated based on a 2011 survey of the cost and earnings data of 62 anchovy purse seiners, representing about 46 % of such vessels in Nha Trang, Vietnam. The empirical results show that an average purse seiner is able to cover all the costs and earn a profit margin of 17.41% and that crew members earn their opportunity cost of labor or above. Engine power, number of crew size, and number of fishing days are identified as the main factors affecting fishing effort of the vessel. An application of the Salter diagram indicates that a large number of vessels with high relative standardized effort are the most cost-efficient vessels. The majority of these vessels are found to earn intra-marginal rent despite the open-access characteristics of this fishery.