Abstract
For a common small- to medium-sized fish farm in an agricultural-based economy, monitoring costs is very important, since financial constraints are always a problem for these farmers. This will be thus easier if the farmers can get access to external funds. This paper used data envelopment analysis (DEA) to examine the technical efficiency, cost efficiency and allocative efficiency of 639 fish farms in the Red River Delta (RRD) in Vietnam in 2018 to see how fish farmers control their costs and if financial access can really help in this matter. We found that these fish farms were very inefficient, meaning that they did not succeed in monitoring and allocating their costs and resources. Among the factors that could improve their efficiency, we found that developing the rural banking system to provide more financial access for RRD fish farms is an important solution.
Highlights
Vietnam is arguably an agricultural-based economy, since this sector still accounts for more than 15% and 40% of the country’s gross domestic product and labor force, respectively (General Statistics Office 2017)
We report the results of the first-stage cost efficiency data envelopment analysis (DEA) in Table 2, in which the first three rows (technical efficiency (TE), cost efficiency (CE) and allocative efficiency (AE)) were calculated via Equations (1), (3) and (4), respectively; the last row (“TE in the literature”) is the average of all TE values derived from previous aquaculture studies
This paper examined the performance of 639 fish farms in 2018 in the River Delta (RRD) area in terms of technical efficiency, cost efficiency and allocative efficiency
Summary
Vietnam is arguably an agricultural-based economy, since this sector still accounts for more than 15% and 40% of the country’s gross domestic product and labor force, respectively (General Statistics Office 2017). The aquaculture’s farmed area doubled between 1995 and 2013, while its production volume increased up to eight times (World Bank 2017). This trend is projected to continue, with aquaculture’s output expected to reach about 4.5 million tons in 2020, contributing around 3.5% to the national gross domestic product and creating jobs for nearly 5 million people, with income three times higher than at present (Japan International Cooperation Agency 2013; Vietnamese Government 2013). For pro-aquaculture economies such as Vietnam, improving the efficiency and performance of its fish farms is an important matter
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