Báo cáo Nghiên cứu khoa học About developing an agricultural research and development priority framework for Vietnam

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: Marine Finfish ARDO 2: Cold Water Fish ARDO 3: Crustaceans ARDO 4: Mollusks ARDO 5: Fresh Water Fish ARDO 6: Post Harvest, Processing & Value Adding ARDO 7: Extraction of Bio-Active Compounds ARDO 8: Resource Management & Conservation ARDO 9: Mechanisation December 2006 Fisheries Priroity Workshop Data & Evaluation Sheets 1 ARDO 1: MARINE FINFISH 1 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. 2. 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 2 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 1. Price of orange spotted grouper in Quangninh and Haiphong, 2006 (USD/kg) Month Fish size (kg) Quang Ninh (USD/kg) Hai Phong (USD/kg) January 0.5 – 2 11.39 12.032 – 4 10.13 10.44 February 0.5 – 2 10.76 12.03 2 – 4 9.49 10.44 March 0.5 – 2 11.39 12.032 – 4 9.49 10.13 April 0.5 – 2 10.76 11.39 2 – 4 6.96 7.59 May 0.5 – 2 10.13 11.392 – 4 6.33 7.59 June 0.5 – 2 13.92 15.19 2 – 4 10.13 11.39 Average 10.07 10.97 Table 2. Price of some Grouper species in Hong Kong, China 2006 English name China (USD/kg) Hong Kong (USD/kg) Humpback grouper 75.00 70.00 Leopard coral grouper 60.28 43.74 Red grouper 30.00 39.58 Tiger grouper 13.33 15.64 Giant grouper 15.92 15.00 Duskytail grouper 12.50 12.00 Orange-spotted grouper 9.06 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 3  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 Publisher Date of issue Decision No 112/2004/QD-TTG National fisheries and aquaculture development program from now to 2010 and the direction for 2015 Approved by Prime Minister of Vietnam 11/1/2006 Decision No 154/2006/QD-TTG National administration on drugs and chemicals and food safety condition in aquaculture from 2006 to 2010. Approved by Prime Minister of Vietnam 30/6/2006 Decision No 03/2005/CT-BTS Control the chemical and drug residuals in aquaculture. MOFI 3/7/2005 Decision No 07/2005/QĐ Amendment on list of banned chemicals and drugs in aquaculture. MOFI 2/24/2005 Veterinary ordinance amendment in 2005 The content of new amendment is similar to previous edition with 6 chapters and 71 articles. National Assembly Publishing House 2005 Veterinary ordinance Ministry of Agriculture and Rural Development 2004 Decision No 112/2004/QD-TTG The national fisheries program to 2010 Approved by Prime Minister of Vietnam 2004 National standard No TCVN 6986: 2001 Water quality standards for industrial effluent discharged into coastal waters for the purpose of the aquatic animal life protection. MOFI 2004 Sector standard No 28 TCN 192: 2004 Cage culture area -Conditions for food safety. MOFI 2004 Fisheries law National Assembly Publishing House 12/10/2003 Decision No 01/2002/QĐ-BTS List of banned chemicals and drugs in aquaculture. MOFI 2002 National standard No TCVN 6984: 2001 Water quality standards for industrial effluent discharged into coastal waters for the purpose of the aquatic animal life protection. National standard 2001 Fisheries Priroity Workshop Data & Evaluation Sheets 4 Name and contents of regulations Publisher Date of issue Decision No 224/1999/QD The aquaculture development program from 1999 to 2010 Approved by Prime minister of Vietnam 2000 Decision No 103/2000/QD-TTG National policies on fisheries propagation Approved by Prime Minister of Vietnam 2000 3. Industry Analysis 3.1. 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 5 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. 4. 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 6 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 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 7  Report on some common diseases of grouper and cobia in sea cage farming. 5 SWOT Analysis Strengths Weakness  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  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. Opportunities Threats  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  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. Fisheries Priroity Workshop Data & Evaluation Sheets 8 ARDO 2: Cold Water Fish 1. 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 2. 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 4 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 9 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 ha in Lam dong province, 1,5 ha in Lao cai, 0.5 ha in Lai chau, 0.2 ha in Ha giang, 0.2 ha 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 5 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 10  The ministry of Fisheries through extension and research channels for the last two years has offered to RIA 1 projects on “transfer of seed production technology of two these species” and “assessment of cold water resource in the northern mountain area for planning cold aquaculture in the future”.  The provinces having good potential for cold aquaculture such as Lao cai, Lai chau, Yen bai, Lam dong and others have developed good policies in extension to support culture of these species through building a demonstration farms (providing 40% of seed input and 20% of feed input for demonstrators).  The Ministry of Fisheries is also promoting commercial aquaculture of the cold species in reservoirs in the northern mountain provinces as well as in central plateau in order to increase trade value for freshwater fish species and value of commercial production in the reservoirs. 3. Industry Analysis 3.1. Structure Households and Size of Holdings  Production of the cold fish species is mainly by private companies and cooperatives that have the financial capacity for investment in infrastructure, technology development and operation costs.  It is estimated that during the period 2006-2010, 85 % of total volume of production will be produced by the companies and 15 % will be produced by the cooperative and individual families.  The size of the companies is ranging from 2-5 ha, with production capacity of 100- 200 tons while the size of family scale is 1000-5000m2 with the production capacity of 10-20tons.  For a 2 ha operation, cost of construction is about VND450 million (US$30,000), Annual production expected is 100 tons. Return expected is US750,000 with annual production costs of around US375,000 and a net profit of approximately US$375,000 (VND6 billion) or US 187,500 per ha.  For a smaller scale production unit of 2000m² construction cost is VND100 million. Returns for 4 ton annual production is VND4.8 billion and net return is about VND1.2 billion per year.  The net profit from trout is about VND50,000 – 60,000 per kg of fish after 12 – 14 months.  3.2 Supporting Infrastructure  The government has funded for construction of the research center for cold fish species considering as the primary infrastructure for promotion of cold aquaculture development.  Government will also support for building infrastructure of the project which could produce about 500 tons of fish (10 ha and above). It is expected that in the five years Fisheries Priroity Workshop Data & Evaluation Sheets 11 coming there will be 4-5 intensive infrastructure sites will be built in the potential areas.  Some processing factories in different provinces mainly in the north will be involved in processing of filet and smoked products. 3.3 Markets  The main markets are domestic. Since, these fish species are highly valuable, their products will be sold in mainly supermarkets and restaurants.  A part of the produced production will be exported to other neighbor countries in South-East Asia. 3.4 Future Trends and Key Market Issues  The grow rate of the production of the cold fish species will be high and within 5 years coming it is expected that 1000-1200 tons of rainbow trout and 250-300 tons of sturgeon will be available for the markets.  During this period, the first generation of fry of trout will be produced in Vietnam and the brood stock of sturgeon will be matured.  The success of caviar production could be created a new export market to developed countries.  The key issue is how to expand the market accordance with the growth of the production. Appropriate development planning has to be based on the market expansion. 4. Research and Development Information 4.1 Main Research Areas  Seed production  Farming systems  Nutrition and feeds  Diseases and environmental monitoring  Environmental impacts of the introduced species  Markets and products 4.2 Major Research Providers  RIA 1 and 3. The National Extension Center and provincial extension centers 4.3. Funding  The main financial resources for development are coming from the private sector  Government allocation for research and resource from the programme 224, 112.  For the last three years, MOFI has allocated VND 2.6 billion for research and cold water resource assessment. Fisheries Priroity Workshop Data & Evaluation Sheets 12  In coming 3-5 years, it is expected that an amount of VND 5-6 billion will be allocated for the research on farming systems, feeds, disease, seed production, processing techniques.  An amount of VND5-6 billion will be allocated for dissemination of the research results to users 4.4. Major Achievements to Date  Import of fertilized eggs of the rainbow trout from Finland (the country has temperature much lower than in Vietnam) has been carried out for the last two years. The quality of eggs was very good, hatching rate was achieved 96-98%, and survival rate of larvae to fry was around 90%. The primary survey on development of gonad showed that within a year, some females already are reaching maturation stage. It means that, the possibility of formulation of brood stock in Vietnam is basically proven.  The first experiment on hatching sturgeon eggs and nursing fry and fingerlings were successful. The trial on culture of Siberian sturgeon in cold water resources, in Thac ba reservoir and in recirculation in Hai duong has been carried out. Growth rate of those fish in Sapa is much slower than in cages in Thac ba reservoir and recirculation system in Hai duong. 5. SWOT Analysis Strengths Weaknesses  High market value species  Domestic market likely to exceed supply for many years  Great potential in many mountain areas in Vietnam, where tropical species grow slowly  Potential for industrial aquaculture with high productivity  Fast growth  Less pollution due to efficient use of feed  No disease occurred as yet  Private sector interested in investments  Government support policies  Lack of knowledge and aquaculture experience about these species  Supply of seed and quality feed depends on imports  Lower production costs in western countries for the similar products  Farm sites are in the most remote areas where it is difficult to access to public services (transport, communications etc.)  Lack of HR and qualified trained people  No technology approaches for processing products  High investment and high technology are required  Requirement of strict environmental conditions: low temperature, clean water Opportunities Threats  Domestic and international (south-east Asia ) markets  Restructure freshwater aquaculture species to produce high value products  Development of quality local seed supply  Further development of large scale culture systems including nursery and grow out  Alien species causing impacts on biodiversity  Disease associated with intensive large scale production Fisheries Priroity Workshop Data & Evaluation Sheets 13  Better use of water resources, cool weather and turn disadvantages into advantage Fisheries Priroity Workshop Data & Evaluation Sheets 14 ARDO 3: Crustaceans 1. ARDO DEFINITION 1.1. National Goal: To expand and diversify rearing methods and to improve the competitiveness, product quality, food sanitation and safety (HAACP) of crustacean production for species of major economic importance. The Government target for aquaculture in 2010 is 2 million tons of yield, over US$2.5 billion in exportable value, providing employment and income for about 2 million people. The target is for crustaceans to contribute to 60% of the total value of aquatic products. 1.2. Research Scope: Research to improve technical process for hatchery reproduction, higher yield and propagation quality, and to build the technological process of rearing for marketable size product. Development of quality standards and quality assurance for seeds, suitable food, and management rearing conditions. Research on solutions for safe rearing, improvement in product quality and management and control of aquatic diseases. Market development research. 1.3. Coverage:  Priority objects for coastal culture : Tiger shrimps, mud crabs  Priority objects for sea farmring: lobsters  Priority objects for freshwater culture: Giant river prawns 2. INDUSTRY STATISTICS 2.1 Introduction The crustacean species are economically important and have had a significant impact on development of the aquaculture in Vietnam. They contribute 60% total of the total annual export value of the fishery from aquaculture. Development of the industry has created shrimp and crab nursing jobs and wild and hatchery seed production has generated further employment and raised income levels for producers and employees in production, processing and exporting. This has had significant contribution in improving social and economic conditions of the fisherman community. In recent years, aquaculture in general and shrimp culture specifically is facing challenges in seed quality, environmental pollution and diseases. These have in some cases caused extreme financial losses and poor returns for labour and have resulted in numerous farms which are fallowed for several crop cycles. Solving these problems is urgent and further significant investment in quality management of reproductive technologies, quality and improved quantity of feed used in aquaculture, and management systems and control and management of disease is required. The aim is to create shrimp and crab products of high quality, produced using good management practices and sanitary condition to provide safe food to increase the reputation of shrimps and crabs from Vietnam, so that they are more competitive in world markets. Fisheries Priroity Workshop Data & Evaluation Sheets 15 2.2. Industry Characteristics and Prospects Growing Areas and Yields Production and Yields  With 3260km coastline together 959.945ha of brackish water areas and approximately 1.000.000ha of fresh water areas, Vietnam has a high potential for developing aquaculture in general and crustacean species in particular in all of the fresh water, brackish water and sea areas. Increases in the number of juveniles from the nature and from hatcheries, development of rearing areas for shrimps and mud crabs has expanded in recent years:  Tiger shrimps are cultured in brackish water ponds in coastal area within a 5-25% salinity range. The cultural areas have increased from 210448 ha in 1999 to 489.475 ha in 2002 and to 604479 ha in 2005. They are the main aquaculture product from coastal areas and provide very important export income. Tiger shrimp culture has become more and more specialized in each production phase such as juvenile reproduction (post larvae) and production of marketable products Table 1: Annual Tiger Shrimp Production Year Tiger shrimp juvenile yield (million individuals) Tiger shrimp yield (ton) 2000 11440 97628 2001 16291 156636 2002 19363 189184 2003 26429 234412 2004 25943 290797 2005 28279 324680  Mud crabs are reared in brackish water ponds in coastal areas within a 5-25% salinity range. Areas for rearing have increased from 35000 ha in 2000 to 115276 ha in 2005. Production is often practiced in place of tiger shrimps in the areas where tiger shrimp culture is marginal and has low efficiency. Annual production of mud crab juveniles from hatchery is approximately 480- 800 tons.  Lobsters are reared mainly in cages or traps in bays and lagoons within a 30-35% salinity range. The number of lobster cultured cages/ traps has increased from 14000 in 2000 to 35000 in 2005 and occupy approximately 1 million ha of sea area. They are the only high value commercial crustacean species capable of production in the sea. However the juvenile source depends entirely on harvesting from nature. The lobster yields from farming was 500 tons in 2000, 2.400 tons in 2004 but was only 1.500 tons in 2005 because of high mortality of the juveniles.  Giant river prawns are mainly reared in fresh water areas in the Cuulong river Delta. Crop production is from April to October each year. Prawn culture is practiced in only four provinces: Angiang, Cantho, Dongthap and Vinhlong. Areas have increased from 1800ha in 2001 to 3839ha 2004 which occupies approximately 0.43% total fresh water areas. They are the only high commercial value fresh water Fisheries Priroity Workshop Data & Evaluation Sheets 16 crustacean species in fresh water areas. In 2005, the prawn yield of the whole country was 6400 tons in which 6012 tons were from the Southern provinces. Value and Markets  Crustacean species as tiger shrimps, mud crabs, lobsters and Giant river prawns are the main aquaculture export products accounting for 60% the total exportable values of the fishery.  Export values of tiger shrimps increased from US$607million in 2000 to US$1,230 million in 2005.  Lobster exports were US$73.5 million in 2004.  Expansion of the domestic market for shrimps is expected in the near future. Comparative Advantage  All four species: tiger shrimps, mud crabs, lobsters and Giant river prawns have competitive advantages in both the world and the domestic markets including: o Production of juvenile source e.g. 20 billion tiger shrimp juveniles, 100 millions mud crab juveniles and over 40 millions giant river prawn per annum. In addition 2.5 million lobster juveniles are harvested from the nature annually making Vietnam the top lobster source country in the world. o Environmental and weather conditions: tropical climate completely suit growing and developing of crustaceans. o Cost of Labour and production: Unemployment in coastal areas is high, costs of labour are low and the overall cost of production is low.  Areas where Vietnam is not as competitive include: o Control of quality of juvenile sources: The quality of the juvenile source have not been managed well in most cultural areas. o Control the environmental conditions and diseases: Most of cultural conditions and diseases used in marketable productions have not been managed and this has led to loss of income and competitive advantage. o Preservation products: preservative technology of the products post- harvest is not high resulting in decline of the product quality and competitiveness. Governmental policies  Government policies to encourage developing aquaculture in coastal and sea areas include: o 09/2000/NQ-CP of 15th June 2000 about transforming economic structure and consumption of agricultural products; o 03/2000/NQ-CP resolution mentioned farmstead economy; o 103/2000/Q§-TTg Decision about investing infrastructure of trade village, traffic and aquaculture in country side; Fisheries Priroity Workshop Data & Evaluation Sheets 17 o 112/2004/Q§-TTg Decision about the program of developing aquatic juveniles until 2010; o 126/2005/Q§-TTg Decision is the policy of encouraging to develop culture seafood in sea, etc.  Other encouragements include: o Tiger shrimps, Giant river prawns and Mud crabs :  The Government policies permit transfer of marginal areas for rice, low ground and coastal areas to rear aquatic animals and to develop cultural models depending on each ecological area.  Planning cultural areas and irrigational systems sufficiently for aquaculture.  Strengthening the aquacultural extensive system and deploying efficiently aquaculture models  Giant are encouraged investing in technological process of reproduction in local areas to gain 60.000 tons of marketable size shrimps in 2010. o Lobster: The Government supports farmers who sea-farm lobsters through access to loans for capital investment. The amount depends on amount of lobsters, from 5 to 100 million VND per family with 1.18% in interest rate for 24 months. 3. Industry Analysis 3.1. Structure Households and Size of holdings  Tiger shrimps: o Juvenile and marketable products have developed under state, private companies and at family scale of operation. o There are about 4281 hatcheries with different scales. Market prices of the seed that be produced at each time is often changed, the profit therefore has reached averagely to 30-50% of foating capital for small production hatchery systems, and its breakeven point compared with fixed capital investment is about 3-4 years. As for large systems, profit is 20-35%, so after 4-5 years it would be breakeven. o There are 3 popular cultural models: improved extensive culture (approximately 300-800 kg per crop per year), semi-intensive culture (1-3 tons per hectare per year) and intensive culture (over 3-5 tons per hectare per year).  Mud crabs: o The juveniles are from nature and meet about 10- 20% of demand o Reared in traditional extensive culture with about 140 kg per ha production. Fisheries Priroity Workshop Data & Evaluation Sheets 18 o Hatchery juveniles have been produced since 2000. There are now over 100 private hatcheries in 18 provinces from Kien Giang, Ca Mau to Hai Phong, Thai Binh. o The main cultural model is improved extensive culture in 5000m2 - 10 ha per pond and the productivity is about 0.5 – 1 tons/ha/year  Lobsters o The lobster source is mainly from nature. Harvesting lobster juvenile is done families by three main harvest methods: boat- net- light, trapping and diving o There are service systems as supply of juveniles, fresh food for lobsters and buying marketable lobsters in the cultural areas. o Marketable lobsters are cultured mainly in bays, lagoons along the Central coast by two ways: in cages and in floats. After 18- 24 months, the marketable lobster size is 800-1000 g per individual.  Giant river prawns o The juvenile source from nature meets only 30-40% demand of marketable culture. o Prawn hatcheries started developing in 2000. Most hatcheries are private (77.4%). Others are state (19.4%) and collectives (3.2%). Production of hatchery juveniles is 90 to 162 million individuals annually. o Cultural models take many forms depending upon local characteristics and include integration with prawn- rice crop rotations, semi- intensive culture, intensive culture in ground ponds, in channel in gardens, in weirs in flood areas and feeding by fresh food such as fresh water snails, trash fish. The productivity is approximately 148- 924 kg per ha. 3.2 Supporting Infrastructure  Tiger shrimps, Giant river prawns, mud crabs and lobsters o 10 national hatcheries belonging to Research Institutes and Universities were built in different ecological areas in the whole country to produce juvenile with high quality for culture. o The Centers of aquatic reproduction belongs to Aquaculture offices in locals are also being built to provide sufficiently juvenile for culture. According to the data census in recent years, there are over 4200 of private hatcheries which in seeds be provided to farms are approximate 95% every year. However, the quarantine on larval quatity and diseases from these hatchery sectors is being limited. o Setting up organs research on manufactured pellets that being equipped facilities in order to process feed for shrimps, crabs, lobsters. Simultaneously, to collaborate with manufacturers of aquatic feed in both domestic and foreign countries to produce pellets. Because in these cases, labours and processing materials will be cheaper, even salvaged local source. Fisheries Priroity Workshop Data & Evaluation Sheets 19 Approaching therefore to advanced technology overseas and utilizing labours and local materials for processing suitable pelleted foods for shrimps, crabs especially seacaged lobsters are a reasonable direction.  3.3. Markets The main markets include: Products Main markets Remarks Tiger shrimps and its products America, Japan, EU, Australia The prices are lower than of Thailand and India because preservative techniques of the products after harvesting are low. Expenses and employment cost are cheaper. Live mud crabs China, US The prices from Vietnam are lower than other Asian countries because the exportable products are raw materials mainly. The processing techniques are not developmental yet. It is possible to expand exportation to EU market. Live lobsters China, US The price from Vietnam is higher than from other countries in the world because of higher quality and nicer coloration of the tropical lobsters cultured in Vietnam The processing techniques are not developmental yet. It is possible to expand exportation to EU market. Frozen Giant river prawns US, Japan, EU The prices from Vietnam are lower than other Asian countries because the exportable products are raw materials mainly. The processing techniques are not developmental yet. 3.4. Future Trends and Key Market Issues  Tiger shrimps: The need is to apply the international standards of safety in food and managing quality bases on ISO and HACCP for domestic and international markets. There is also a need to post-harvest processing and preservation technology to increase export value.  Mud crabs: The international market for live mud crabs is increasing but the price is low because the products are raw materials. The need is to diversify the processed products made from mud crabs to increase export values.  Lobster: The export lobster price in the world market is increasing leading to expansion of culture areas of lobsters. This will require improvement in juvenile reproductive technology of lobsters in order to expand lobster production. Development of Vietnamese lobster trademark and increasing in the exportable values by diversifying lobster products are other strategies for development.  Giant river prawns: the demand for Giant River prawns in the world and domestic markets is increasing. The marketable size of prawns needs to increase to meet market needs and international standards of safety in food and managing quality bases on ISO and HACCP. To improve product diversity through processing and preservation products after harvest to increase in exportable prawn values. Fisheries Priroity Workshop Data & Evaluation Sheets 20 4. R&D Information 4.1. Main Research Areas  Tiger shrimps, mud crabs and Giant River Prawns: o Research on enhancement reproductive technologies, reducing the cost of juveniles. o Developing systems and technology for reproduction, rearing to market size safely and guarantee of food safety. o Investigating industrial feeds to suit culture to market size of mud crabs and Giant river prawns. o Study efficient and stable models as culturing mud crabs with tiger shrimps, and with other animals; culturing Giant river prawns in rice fields; semi- intensive culture in ponds and in weirs. o Solution for management environment and crustacean diseases. o Setting up new technologies of product after harvesting, processing and diversifying shrimps and crab products.  Lobsters o Investigating solutions for protecting the spine lobster resource in nature. o Lobster culture technology to market size in sea, managing environment, diseases and feed. 4.2. Major Research Providers Fishery Ministry  Tiger shrimps: Research Institute for Aquaculture No 1(RIA1) ; Research Institute for Aquaculture No 2 (RIA2) ; Research Institute for Aquaculture No 3 (RIA3) ; National Fisheries Assurance and Veterinary Association (NAFIQUAVED)  Mud crabs : Research Institute for Aquaculture No 2 (RIA2) ; Research Institute for Aquaculture No 3 (RIA3) ; National Fisheries Assurance and Veterinary Association (NAFIQUAVED)  Lobsters: Research Institute for Aquaculture No 3 (RIA3)  Giant River Prawns: Research Institute for Aquaculture No 1 (RIA1) ; Research Institute for Aquaculture No 2 (RIA2) ; Research Institute for Aquaculture No 3 (RIA3) ; National Fisheries Assurance and Veterinary Association (NAFIQUAVED) Research Institutes and Universities  Oceanographic Institute  Ecological Institute, TP HCM  Viet- Russia Tropical Research Centre  Fishery University  Forestry- agriculture Thuduc University, HCMC Fisheries Priroity Workshop Data & Evaluation Sheets 21  Cần Thơ University  Forestry- agriculture Hue University Others  The local offices (Fishery offices, Scientific and Technological Offices, Encourage Aquaculture centers)  Aquaculture Association  Private aquaculture hatcheries: over 3000 tiger shrimp hatcheries, approximately 100 mud crab hatcheries and 100 Giant river prawn hatcheries.  There are over 20 Limited liability Companies and Stock Companies for Aquaculture  The foreign organizations mainly includes DANIDA, IDRC, ACIAR 4.3. Funding Estimate of finance for research in 2005  About 6 billion VND (375000 USD) from the Government  About 1 billion VND (93750 USD) from foreign fund 4.4. Major Achievements to Date  Tiger shrimps: Develop high quality shrimp parent stock. Environment and aquatic disease situation are surveyed and forecasted. Some different ecological areas are investigated and evaluated for production suitability. Study on suitable feed for each larval stage and for juveniles. Quarantine regulations for shrimp post larvae quality and reduction of use of antibiotics in production market size shrimps.  Mud crabs: Juvenile production of mud crabs in some ecological areas in North, South and centre. Rearing of market products in extensive culture models in different ecological areas with achievement of production of 1ton per ha. Study on nutrient requirements of market size crabs.  Lobsters: Investigation of 3 technologies for harvesting and perseveration of natural juveniles from sea. Rearing for spine lobsters in cages and weirs in sea resulting in achievement of 45- 55kg per 18m3 of cage. Development of Lobster – blue mussels, seaweeds, spotted snails (babylonia snails) culture models resulting in income of 1 billion VNS per 0,5 ha sea surface. Development of community management model for management of the lobster resource.  Giant river prawns: Technological processes for a closed water cycle in juvenile production have increased survival rates from 30 - 60%. Rotational cultivation model between the prawns and rice increased crop yield from 500- 3.000kg per ha and 15- 60 millions VND per ha per crop in income. Intensive culture systems increased crop from 1.5 – 1.8 tons per ha income from 39- 49 millions VND per ha and semi- intensive culture model produced 3 tons per ha 96 millions VND per ha per crop in income. 5. SWOT Analysis Fisheries Priroity Workshop Data & Evaluation Sheets 22 Strengths Weaknesses  The resources, environment and weather in Vietnam suit development of aquaculture generally, culture crustacean species particularly all year round.  Established and growing export and domestic markets – crustaceans account for 60% of aquaculture export income  The potential area of suitable water surface is very large.  Diversity in production options suitable for a wide range of aquatic conditions  Many smallholders in shrimp production with experience in production  The live food sources in local areas are plentiful.  In Vietnam, employment is plentiful, diligent and cheap.  Experience technical personnel especially in shrimp production.  The governmental policies support development of aquaculture.  Provides employment in villages, coastal areas with a relatively large number of women employees.  Provides improved income for poor employees in villages to help improving economic social life, eliminate hunger and reducing poverty  Production is small scale and supporting infrastructure is weak  Low levels of investment in prcessing, preservation and packaging  Relatively low education standard of people is likely to reduce the speed of uptake of new technologies  Relatively poor supply of juveniles of high quality and quality of marketable product is not high enough to guarantee high prices  The preservation techniques of the products after harvesting are low to reduce quality of productions  Lack of good trademarks in the world market.  Market research is weak and market fluctuation causes uncertainty for producers  Apart from costs of production the comparitive advantage of Vietnam is low  Sub- flock phenomenon in cultured shrimps and crabs decreases productivity and quality Opportunities Threats  Further development of quality seed and juvenile production systems to decrease mortality and increase the volume and quality of juveniles  Development of the industry including seafood processing, production of commercial feed for shrimps and crabs, and export of live crabs and lobsters.  Development of suitable species for use in a wider range of salinity conditions especially in the salty marshes  Post-harvest and preservation technologies  Diversification of products bases to meet the demands of the export and domestic markets.  Strategies for meeting world market standards for aquatic products from VN after entering WTO  Competition and contradictions in community for use of water and land resources  for suitable water and land with agriculture  Unstable market and fierce competition between countries  Fluctuation of cost depends on the chances of supply and demand in the world  The environment, epidemic diseases and sanitation and safety of food are not managed  Natural calamity, typhoon, flood and drought Fisheries Priroity Workshop Data & Evaluation Sheets 23  Management of the environment and natural resources to ensure bio-diversity and availability of seed from natural sources  Development of food safety (HAACP) standards and their implementation Fisheries Priroity Workshop Data & Evaluation Sheets 24 ARDO 4: Mollusks 1. ARDO DEFINITION 1.1. National Goal: To promote the development, research and culture of mollusk species for national food security, and assurance of food safety for domestic and export markets. 1.2. Research scope: Research to improve the production, competitiveness, quality and food safety of mollusk culture in Vietnam. 1.3. Coverage: Status of mollusk aqua-culture in general and several high economical value species including: Oyster, Scallop, Clams, Abalone, Cockles, Squid, Conus, Octopus 2. INDUSTRY STATISTICS 2.1 Introduction In the past the major imact from molluscs has been through local and export markets for squid and octypus. Divestification of mollusk markets has occured with most of the effort based on clam culture. Vietnam has a very large area suitable for expansion of mollusks and increased production is one of the key targets in the development strategy of marine culture in the 21st Century. The global market has increased rapidly with the proportion of global market trade being 30% of total production and 19% of total value of all trade. Apart from food for human, mollusk bi-products have other purposes in agriculture, industry, medical and fine art. 2.2. Industry Characteristics and Prospects Growing Areas and Yields  The Tidal and Sub-littoral area with favourable conditions for culture is 760,000 ha. In addition there are more than 3000 big and small islands with tight bays and 112 estuaries that create favourable natural conditions for coastal culture. Table 4. Salt-mash area in some coastal provinces of Viet Nam Province Total area (ha) Sea coast (km) Littoral areas (ha) Inundated tidal area (ha) Quang Ninh 201.160,0 273,1 48.748,8 116.361,0 Hai Phong 71.599,5 163,8 14.431,8 46.652,4 Thai Binh 37.930,2 51,8 10.368,2 23.605,0 Nam Dinh 40.039,3 82,9 10.608,7 22.717,0 Ninh Binh 8.084 17,7 2.586 3.189 Thanh Hoa 26.414,6 99,5 5.759,1 18.173.6 Nghe An 21.568,2 84,9 2.55,0 1.845.5 Ha Tinh 17.772,9 140,0 1.845,0 Fisheries Priroity Workshop Data & Evaluation Sheets 25 Ba Ria - Vung Tau 120.000,0 45,0 45.000,0 Long An 15.650,0 Tien Giang 18.860,0 Kien Giang 86.650,0 Tra Vinh 21.560,0 BenTre 65.870,0 Bac Lieu 187.500,0 Soc Trang 88.650,0 Ca Mau 320.000,0  In the Northern area: Main target species are: pearl oyster incdata fulata martensii,Green mussels: Perna viridis,Geo duck: Lutraria phillipinarum, Clams Meretrix sp, Abalone: Haliotis sp  In the Central and Southern area. Main target species are: Abalone, Green mussels, Scallop, Cockles, Babylon, Belchry oyster (Crassostrea belcheri), Clams (Meretrix lyrata).  In the Northern area: Ha Long Bay, Bai Tu Long of Quang Ninh, Hai Phong provinces are ideal ecological areas for mollusk culture.  In the Central and Southern area: The main mollusk culture areas are Khanh Hoa province and Mekong river delta. This area is anticipated to have god advantages of natural resources, farming techniques, and consuming market of the country. Production  According to Ministry of Fisheries statistical data, total production of mollusk: o In 1999 reached 115.000 tons, in which Clams and cockles contributed 75%. o In 2002 reached 150.000 tons, in which Clams contributed 130.000 tons. Value and Markets  The main consumer market for mollusk production is the domestic market.  Naturally, price varies from species to species of mollusks, specifically: o Marketable size (3-7cm) having a price of 12.000-17.000 VND/kh at farm gate. Whereas exporting price is much higher (20.000-25.000/kg) but no international certification of healthy product is issued. o Scallops are more expensive - 45.000 VND/kg o In general mollusks production is less than market's demand  In 2002 only, small percentage of total export fishery products including mainly dried squid and octopus were exported to US and Japan (0.61% and 6.1% respectively).  Mollusk products consist of small proportion of total export quantity, mainly including squid and octopus. Fisheries Priroity Workshop Data & Evaluation Sheets 26 Comparative Advantage  Vietnam has long sea coast (of 3260 km) with a vast coastal inundated- area of about 1 million km2, which is an advantage to the aquaculture development in general and mollusk culture in particular.  Natural seed was generally very available early on in production.  Large area of flat tidal zone and ponds that are being used fro molluscs culture  Water source with high nutrient concentration and less harmful algae event observed  Availability of employment and low cost of labour  Several bay, estuary with limited waves suitable for cultivation of molluscs  In comparison to other aquaculture species such as fish, prawn and shrimps, cultivating mollusk has several significant advantages such as: o Food supply is a natural resource and no energy is required for compound feeds o Little or no pollution in the aquaculture environment o Simple cultivating techniques. o Recognized as species that may improve environmental conditions and enhance the natural resource through supplying food as ephemeral larvae for marine species feeding zooplankton such as marine fishes, Shrimp larvae, crabs, squids  Many countries such as China and Japan have well developed mollusk culture systems and are major competitors in international markets Government Policies  Particularly, investments for laboratories, manufactories as well as promoting policies for mollusk cultivation are much concerned by Ministry for Fisheries and the Government.  The Target to be achieved in 2010 is total cultivating area of 20,000 ha, average productivity of 20 tons/ha, total production of 350,000-380,000 tons of molluscs, maximum export value of 350 million USD, and creating 4000-5000 employments. 3. Industry Analysis 3.1. Structure Households and Size of Holdings There is some concentrated cultivation (Nam dinh, Thai binh provinces) but the size of holding of molluscs culture is mostly at the family level. Large area is fenced into smaller area with different investment levels and technical application leading to unstable production and uneven product quality. Initial investment (ground, raft, line, pillar preparation and seed) normally accounts up to 50% gross return, getting 50-100 mil./ha. 3.2 Supporting Infrastructure Fisheries Priroity Workshop Data & Evaluation Sheets 27  Mollusks are getting more and more attention from different economic markets. That's why a remarkable investment has been placing into the molluscs development and diversification of products. Farmers has been investing much more money into improve culture condition (about 20 mil. VND/ha for levelling culture ground with sand) while businessmen are investing in building processing units to improve profits. However, investment is still on a small scale with pre-treatment of frozen shelled products.  In collaboration with pharmacy companies extracted health substances are being integrated into pills that sell for very high prices.  Molluscs culture in general, especially calm culture is making used of flat tidal zone that is much available along the Vietnam coast line. To be cultivable ground need leveling and flatting with sand that is very costly to farmers. Other culture method like rafts, pillars, even on cages placed in water column is suitable for mussel, oyster.  Most of produced molluscs are used instantly by restaurants in cities. Not too much of them goes into factory for further processing it is due to a great demand for molluscs products. 3.3. Markets  Traditional oversea markets for mollusk products of Vietnam are: o For squid: Japan, Italy, Taiwan, Korea, China, Hong Kong, US, France, Thailand, UK, Belgium, Denmark, Holland, o For Clams: Japan, Italy, Taiwan, Korea, Holland, Thailand, China o For Cockles: China, France, Korea, US o For Scallop: Denmark, France, Belgium, Malaysia, and Japan. o For Conus: Japan, China o Processed from Clams, Cockles, Conus and Scallop have been exported in low volumes to China, Korea, Belgium, Taiwan and USA. 3.4. Future Trends and Key Market Issues  Future emphasis will be on environmental enhancement. Strong and unplanned development of several aquatic species has recently caused pollution of the environment. This is likely to increase the support for development of mollusk cultivation as it will utilize the abundant food source in the sea to create valuable products to make advantage of the seawaters for the national development.  Mollusk consumption over the world has increased over the last few years. The demand for mollusk increasing rapidly.  To date the volume of exports is very low and likely to increase as market demand and production increases.  To meet the demand of the international markets, it is planned in next 5 years to raise the quantity and quality of the mollusk products both for domestic and Fisheries Priroity Workshop Data & Evaluation Sheets 28 overseas markets, assure food safe sanitary, satisfy consumers, diverse kinds of products both in design and quality. 4. R&D Information 4.1. Main Research Areas  Research on artificial propagation and breeding for several species of molluscs: Abalone, Clam, green mussel.  Improving recently applied culture techniques: flat tidal zone, cage, integrated model with shrimps.  Investigation into geological distribution of seed source of molluscs in order to zone protected area.  Adaptive research on application of mollusk-extracted substances to pharmacy industry. 4.2. Major Research Providers Ministry of Fisheries  Research Institute for Aquaculture No 1,3 (Scallop)  Research Institute for Aquaculture No 1, 2, 3; (Clam and Cockles)  Research Institute for Aquaculture No 1 (Oyster) Universities  University of Fisheries (Clams and Cockles)  College of Fisheries 2, 4 (Oyster, Clam)  Private- own clam seed production establishments in Nam Dinh and Thai Binh provices 4.3. Funding There has been some funding for molluscs development as following:  Funding from MoFi for development of Abalone and Babylon: 2.5 Bil.VND.  Capital investment from CARD programs for clam production and developemt: 0.6 Bil.VND 4.4. Major Achievements to Date  Technologies of producing seeds of some mollusk species of high commercial value have been researched successfully, but this is still at the experimental stage, thus artificial seeds have not replaced natural seeds yet.  Intensive research on artificial seed manufacturing for large scale culture has been a focus of research organizations.  High-productivity cultivating technologies are also paid much attention by scientists.  Seed source of molluscs is a big deal of production development. Though artificial production was successful but quite of survival rate (3%) gained. Seed for growth Fisheries Priroity Workshop Data & Evaluation Sheets 29 out culture is mainly dependent on natural seed so passive cultivation as consequence. 5. SWOT Analysis Strengths Weaknesses  Vietnam is a tropical country with multi and diverse aquatic species in general and mollusk species in particular.  Vietnam has a long sea coast ( of 3260 km), with total coastal inundated area of 1 million km2, which is a big advantage for fishery culture development in general and mollusk cultivation in particular.  Large bio-diversity naturally available e.g. about 2200 mollusk species belonging to 700 genera of total 200 families, of which more than 80 species are of high commercial value.  Mollusk cultivation does not require high technologies and is appropriate for better utilization of labour resources.  Appropriate investments have been made by the Government and Ministry for Fisheries for research and develop mollusk culture.  Many projects have been implemented dealing with culture issues in which mollusk is considered dominant species in the marine culture development strategy of the nation.  Poor technical knowledge of most farmers  Reliance on use of natural seeds results in low and unstable productivity and yield.  Declines in availability of seed from natural resource sources and reduction of bio-diversity though seed capture practices  Only a relatively small proportion of the potentially suitable area is used for mollusk species and there is competition for most suitable areas from other aquaculture species  Relatively low level of culture techniques  Export markets not well developed, and likely to face competition from other countries  Technologies of storage and frozen processing for mollusk products are not well developed. Opportunities Threats  Expansion of seed production on a commercial basis to reduce reliance on natural seed.  Improve culture and harvest techniques  Quantify the positive impacts of mollusk cultivation on the environment, its contribution to other aquatic species  Selection of high commercial value species suitable for processing on a large scale  Introduction and evaluation of new species of mollusks  Market research to identify suitable species and specific market requirements  Disease  Adverse weather conditions  Market unstable Fisheries Priroity Workshop Data & Evaluation Sheets 30 ARDO 5 Fresh Water Fish 1. ARDO DEFINITION 1.1. National Goal: Increase intensification, profitability, food quality and safety and export income from freshwater fish while minimizing environmental impacts from increased production. Targets: Tilapia: 300.000 tons of marketable size fish by the year 2015. Catfish: Production of 1.0 million. tons by the year 2010. 1.2. Research Scope: Research into genetic improvement for higher growth rate in fresh and brackish water, selection for adaptability to higher salinity environments, improvement of seed stock quality and availability, improvement of culture technology, feeding systems, disease control and management, mitigation of environmental impacts, food safety and intensification of larger scale production systems. 1.3. Coverage: Tilapia: including O. niloticus, O. aureus, and Oreochromis spp. Catfish: including Pangasianodon hypophthalmus, and Pangasius bocourti 2. INDUSTRY STATISTICS 2.1 Introduction Vietnam has a long history and experience of fish culture. Tilapia was fisrt known in Vietnam since 1950s but really productive from 1990s, whereas catfish was first in operation 1980s. At the early stage they were mainly under household scale. Up to date catfish and Tilapia cultivation is getting more concentrated and more intensive giving high yield of 10-15 tons/ha for tilapia and 200-250 tons/ha for catfish. However culture of these species is experiencing some problems in term of technology, feed and seed investment, depredating seed quality due to inbreeding caused by poor maintenance of bloodstocks. For steady development culture technology and seed quality and availability need further investigation. 2.2. Industry Characteristics and Prospects Growing Areas and Yields Tilapia  Suitable for culture in areas of water temperature of over 18oC. Year round production in Southern Vietnam but cooler waters in winter in Northern Vietnam is a disadvantage  At the present tilapia production is mainly coming from household's ponds Fisheries Priroity Workshop Data & Evaluation Sheets 31  A recently successful adaptation of tilapia into coastal area (brackish water) is opening a geat possibility to expand culture area and production accordingly. Catfish  Much availability of water surface area, especially in the Mekong river basin's provinces is creating a core productive region for catch fish  Most southern provinces are providing a great number of natural collected and artificial seed of catfish. Production  Annual production of Tilapia and catfish in 2004, 2005, and a projection to 2015 is (tons): 2004 2005 2015 Tilapia 30.000 54.000 200.000 Catfish 400.000 462.000 1.300.000 Source: Value and Markets Estimated total value for Tilapia and catfish in the year 2004 Culture area (ha) Production (1000 tons) % total production Total estimated value (Bil. VND) Tilapia 2.148 30.000 1.738 420 Catfish 1.195 400.000 8.165 4 800 Exporting value and domestic consumption Tilapia  Almost all tilapia is consumed domestically. 50% of production in 2015 is expected to be exported  Presently domestic selling price is equal to, or even higher than export price. Catfish  Exports for 2004 and 2005 were 83.843 and 133.000 tons with a value of US$231.5 million and US$329 million respectively.  A great demand of market (both domestic and international) is a sustainable advantage for an increasing production Comparative Advantage  In general, tropical country like Vietnam is a ideal condition to grow tilapia and catfish, Fisheries Priroity Workshop Data & Evaluation Sheets 32  Diversity and availability of water body and resources: pond, reservoir, river, rice paddy field, and so on. Particularly running water system in the South that significantly facilitate catch fish culture.  High quality and availability of tilapia seed (mono-sex), but still rather high in price  Vietnam is a country of young population and comparatively low labor cost.  Inexpensive and much available of low cost feed that can make use for the food of catch fish.  But a disadvantage is high cost of in-country produced and imported feed leading to an account of 60-80% total production cost.  Integration into WTO is bringing more opportunities to expand market Government Policies Development regulations for tilapia and catfish are as a component of the following policies  Decision No. 224/1999/QĐ-TTg dated on 8/12/1999 signed by Prime Minister on Aquaculture development program for the period of 1999-2010.  Circular No. 222/TS-NC dated on 26/1/2000 by Ministry of Fisheries guiding the implementation of decision No. 224/1999/QĐ-TTG issued on 8/12/1999 by Prime Minister on Aquaculture development program for the period of 1999-2010.  Decision No. 103/2000/QĐ-TTG dated 25/8/2000 by Prime Minister on seed development policies  Circular No. 04/2000/TT-BTS dated on 3/11/2000 by Ministry of Fisheries instructing the implementation of decision No. 103/2000/QĐ-TTG dated on 25/8/2000 by Prime Minister on seed development plan.  Decision No. 112/2004/QĐ-TTG by Prime Minister approving program on seed development for aquaculture up to 2010.  Decision No. 188/2005/QĐ-TTG dated on 22/7/2005 by Prime Minister promulgating action plan of the government following circular No.50-CT/TW dated on 4/3/2005 by Central Committee of the Party promoting the application of biotechnology for the Vietnam era of industrialization and modernization.  Decision No. 694/QĐ-BTS dated 14/6/2005 by Minister of Fisheries approving Long-term programming for Tilapia development over 10 year period, from 2006- 2015.  Decision No. 10/2006/QĐ-TTG dated on 11/1/2006 by Prime Minister promulgating long-term development program for aquaculture by 2010 and an outlook to the year 2020.  Long-term programming for Tilapia development up to 2015 by Ministry of Fisheries. 3. Industry Analysis Fisheries Priroity Workshop Data & Evaluation Sheets 33 3.1. Structure Households and Size of Holdings Tilapia  Mainly categorized as family scale enterprises, with a minority of legal cooperatives. Rotation cultivation with Tilapia can be applied in the concentrated culture area  An estimation of 50% total set production is from enterprises, other 50% from family scale Catfish  Beside traditional culture model, a community- based culture model is recommended and widely applied.  Community based role applied for all stages of production cycle including seed, growth out, feed, probiotic, utilisation of chemical and antibiotic. 3.2. Supporting Infrastructure There has been supporting infrastructure from different management levels (central to local) to freshwater fish cultivation. However, it mostly concentrated on seed production and propagation, culture technique improvement, disease prevention protocol. There is definitely no assistance in value adding, processing line investment, packaging, especially product marketing approach. Fish raisers processors are really concerned about marketing and consumption in the context of WTO integration. An unplanned and uncontrolled fish raising industry with regard to hygiene condition and production scale are comparative disadvantages. The processing and packaging technology in a large number of private- investigated establishments applied in catfish and tilapia is far behind world's pace. Frozen and vacuumed fillet are observed abundantly. Additionally, product's label is not recognized informative enough and attractive appearance. However, a newly run project hosted by RIA1 is putting a try to effectively commercialize aquaculture products, particularly tilapia. 3.3. Markets Currently most catfish's production is for exporting to EU countries, Japan, and USA while presently Tilapia is consuming domestically as a main market. Fisheries authorities and companies is setting a target to export 30 - 50% total tilapia production by the year 2010 (targeted total production of 200.000 tons). However, facing difficulty is competition from China with quite low export price for the same products. Also quality of the exported product is problematic, it is due to high level of chemical and antibiotic residue in the products. Unplanned utilization of chemicals and antibiotics is accused for this disadvantage. It is therefore that promotion of domestic consumption of tilapia is programmed by the year 2010. 3.4. Future Trends and Key Market Issues Fisheries Priroity Workshop Data & Evaluation Sheets 34  Increased and more intensive catfish and tilapia production is likely to face market issues in relation to water pollution and quality mitigation. Additionally, a conflict with agriculture due to a notable land area converted to fish pond.  Tilapia  By 2015 total yearly exporting volume is expected to be 150.000 tons of marketable size, with most of the increased production targeting export markets  Increasing domestic demand is foreseen, but currently domestic consumption is minor and is mostly fresh. Recently processed/packaged product has increased.  Catfish  Target is 300.000 tons for both domestic consumption and exporting by 2015  Export markets will require improved standards to meet market criteria relating to sanitary and phytosanitary regulations, food safety, good production practices including traceability and branding to build up Vietnam catfish logo. 4. R&D Information 4.1. Main Research Areas  Seed production and propagation, including broodstock cultivation and management, artificial spawning, egg incubation, fry and fingerling nurseries  Grow out management and feeding systems for various models  Disease prevention and treatment  Water and environmental mitigation practices 4.2. Major Research Providers Ministry of Fisheries Tilapia  Research Institute for Aquaculture No. 1, 2, 3. Catfish  Research Institute for Aquaculture No. 2. Universities  Aquaculture department of Nong Lam University- HCM city,  Can tho University,  An giang university, Others  Extension Centers at central and local level, company and enterprise that mainly undertake seed production.  Southern sub-institute of agriculture planning, Institute of fisheries economics and planning. Fisheries Priroity Workshop Data & Evaluation Sheets 35  Provincial Fisheries Department, Department of Agriculture and Rural Development located in Southern provinces and especially Cuu long river delta. And National Fisheries Quality and Quarantine of Veterinary.  Enterprises are funding themselves research and production activities. 4.3. Funding Tilapia  By government/MoFi, about 3 billion VND via Research Institute for Aquaculture No. 1, 2 to focus on: selecting seed of higher growth rate in brackish water.  Fund from RIA1- hosted NORAD project aiming to improve growth rate from1999 to 2006. Catfish  National budget, fund from different NGO and government agencies/organizations such as DANIDA, CARD, DFID, ADB and private sector. Following table gives review of funding source, up to 2006, (in Bil. VND) for catch fish and tilapia culture development. Funding source Tilapia Catfish International agency and organization ICLARM 1.5 NA SUFA 1.2 0.58 NORAD + AIDA 1.5 0.2 Government 4.5 0.6 Private (estimated, mainly in the South) 5.5 15.0 Total 14.2 1.38 Note: NA = not available or updated It is noted that RIA1 is an institution that received most of the funding for tilapia program. In contrast, both Research Institute for Aquaculture No. 2 and Aquaculture Department- Can tho University are being allocated more research fund for catfish than others 4.4. Major Achievements to Date  Seed selection, technique improvement for mono-sex tilapia production, development of different culture models/systems, feed formulation and cost effective processing systems. down.  Conducting training on seed quality and broodstock management for seed production centers located in the whole country. Fisheries Priroity Workshop Data & Evaluation Sheets 36  More than 20 reports and articles on catfish natural resources, cultivation, seed production, and fish nutrition published on Catch and Culture, Journal of Fish diseases, Aquaculture, Aquatic Living Resources.  Hundreds of reports and articles on biology, sex-conversion, breeding, nutrition, seed selection, etc. has been internationally published, there are some still in press.  Well-trained and qualified staff at RIA1,2,3 have been actively participating in seed selection, seed production and propagation.  Recognized capacity of RIA1 and 3 to implement seed production technology, the steps are: broodstock cultivation and management, artificial spawning and propagation, egg incubation, fry and fingerling nursing, disease prevention and therapy; growth out culture in varied systems and models; water and environment treatment measures. These also supported by regional- qualified infrastructure and facilities  Farmers and private bases in all corner of Vietnam also play an important role in seed production and distribution. 5. SWOT Analysis Strengths Weaknesses Tilapia  Relatively simple culture technologies, high market value and demand  Culture can be applied by all kind of aqua- farmer, using any model  High demand for domestic consumption and export markets  Adoption of production models has been rapid  Suitable for different culture areas and models  Intensive culture model with high productivity  Is considered as a suitable species of poverty alleviation  Close linkages between research and extension system to provide local- specified demonstration and training to local producers and farmers. Catfish  Low cost entry for farmers  Some large scale intensive production systems  Large and rapidly growing production  Prospects of expansion in export markets and increased domestic consumption  Availability of knowledge, skills and information to improve productivity Tilapia  Availability of reliable seed quality and high price  No effective solution for product marketing leading to poor prices  Big investment, high required technology  High possibility of intercrossing and hybridization resulting in gene pool deterioration  Lack of information on tilapia in some regions  Relatively small scale production systems Catfish  Poor planning for culture zoning resulting in uncontrolled hygienic conditions.  Blamed for natural resource depletion especially in the capture of seed causing loss of other species.  Disease transmission (vertically and horizontally) may affect human health if no strict controls applied  Effluent from culture can add to environment pollution as well as enhance disease transmission  Accumulation of antibiotics, heavy mental and pesticides can also badly impair human health. Opportunities Threats Tilapia  Improve diversity of culture species to increase exports Tilapia  Residues in product may result in decreased consumption and rejection of exports Fisheries Priroity Workshop Data & Evaluation Sheets 37  Adaptation to expanded water resources and areas and colder conditions  Research on improvement of seed and feed.  Improvement of post-harvest practices and marketing systems  Possible improvement of specific characteristics driven by market requirement  Development of improved safe treatments for disease management and control Catfish  Better management of culture environment, post-harvest product preservation, processing line, product distributing and consumption, and exporting.  Treatment of water and wastewater that conform to quality control guidelines and the government standards and even international criteria  State management needs enforcing with special regard to: building and deploying safe production area (free disease pathogen, clean water environment), setting up sanitary- qualified culture model and guidelines for implementation  Development of quarantined and controlled systems for seed quality, feed processing and, treatments for disease prevention.  Development of improved community based management systems.  Application of barcode technique to support product marketing and traceability.  In collaboration with Ministry of Agriculture and Rural Development (MARD) and other related institutions to program well-shared irrigation network.  Use of biotechnology to improve seed selection and production; feed processing, environment treatment, disease prevention and treatment.  Ecological disturbance due to natural escape  Overdevelopment may result in abundance in the future  Catfish  Acute and cumulative impact by effluent from industrial establishments, transportation, tourism  Change in natural condition like temperature, rainfall, flooding, and bad effect from using huge amount of chemicals and pesticide in agriculture sector. Fisheries Priroity Workshop Data & Evaluation Sheets 38 ARDO 6: Post Harvest, Processing & Value Adding 1. ARDO DEFINITION 1.1. National Goal: To add value and diversify processed fishery products and to develop products which are valuable and highly competitive in export markets to assist in fisheries maintaining its place as a dominant export earning industry for Vietnam. Specific Targets  An annual average increase of 10.63% in the fishery export turn-over in 2006-2010  Total export income of 4 billion USD in 2010.  4.7 million fishery employees in 2010 1.2. Research scope: To research on solutions to ensure the stability of high quality raw material sources; diversify product lines; expand export and domestic markets for fishery processing, aqua-culture and capture businesses. 1.3. Coverage: The research covers current key export aquatic products of the nation (such as tiger prawn, catfish, oceanic tuna) and products culturally fit for local consumption and tourism. 2. INDUSTRY STATISTICS 2.1 Introduction Of the total fishery products recorded as 3,300,000 tons in 2005, 1.940,000 tons were produced from marine and inland capture (1,750,000 tons and 190,000 tons respectively) and 1,300,000 tons were from aquaculture. About 25% (825,000 tons) of the total product were processed for export, and the rest of about 75% (2,475,000 tons) were consumed by domestic markets, 1,480,000 tons for direct human consumption and the rest as processed or pre-processed products such as fishmeal, animal feeds and inputs for medicinal products, fish oil and fertiliser.. 2.2. Industry Characteristics and Prospects Production Table 1: Production and Expected Export Volumes (tons) Species Raw material (ton target 2010) Volume of exports (ton) Prawn Group Ratio Raw Material : Export 1.8 : 1 75-80% Exported Tiger Prawn 360,000 160,000 White-legged Shrimp 60,000 25,000 Lobster 3,000 1,300 Fisheries Priroity Workshop Data & Evaluation Sheets 39 Giant Freshwater Shrimp 60,000 25,000 Shutchi Catfish & Yellowtail Catfish: 800,000 240,000 (fillets) Oceanic Tuna 50,000 Squid & Octopus 180,000 75,000 Mollusc & Bivalve 530,000  Vietnam fisheries primary focus is quality-centered that is reflected by diversifying product categories, enhancing technology base and processing capabilities, increasing the proportion of value-added products (from 17.5% in 1998 to 40-45% of total value of fisheries production in 2005). These all have influenced on the dramatic growth rate in fisheries exports. Fish Product Categories  Live and fresh fishery products: Mainly for domestic consumption including fresh marine fish, crustaceans; live molluscs and aqua-cultured fresh water fish. Exported products include mainly chilled oceanic tuna fish and live lobster. This is a relatively small value of about 2-3 % of export turnover.  Frozen products: About 65-86 % of turnover values of seafood export, mainly including frozen shrimp and fish fillet. They are in the form of fish fillet, frozen head-off shrimp; boiled, steamed shrimp, breaded and breading seafood products... However, the proportion of value added products to the total one is still low, for example there are about 10 types of value-added products compared to about 50 types produced from shrimp available in international markets (Fisheries scientific, Technology and economics, 1/2005).  Canned products: Small in quantity and mostly for domestic consumption. The dominant component of this is tuna, sardine, and scad products. Crustacean and mollusc cans are mostly for export.  Fish sauce and other fermented products: Traditional product which is served in daily meal. It is consumed very widely in Vietnam. Production yield of fish sauce in Vietnam is about 200 millions lit/year. Vietnamese fish sauce is only exported in small quantity due to its strong smell and poor packaging.  Dried products: Dried fish and shrimp and seasoning dried fish are exported to China, Taiwan, Hongkong, Russia... It contributes about 4-14 % of fishery export turnover. Dried natural seaweed in Vietnam is recorded about 150-200 tons /year. Seaweed is commonly dried and exported. There are some companies and local manufacturers producing Agar-agar but in small quantities.  Other products: Includes fish meal, smoked fish, fish fin and seaweed extract products such as Agar-Agar, Alginates... Fish meal is sold in local markets. The quality of smoked fish and seaweed-extracts still do not meet export standards. Value and Markets Export Markets  Export markets over the last few years have become more balanced. At the end of the 20th century, the biggest export market of Vietnam was Japan and Asia consisting of 60% of the total. By 2005, a better market structure was formed with Japan Fisheries Priroity Workshop Data & Evaluation Sheets 40 consisting 30% of the total export turn-over, USA 23%, EU16%, Asia (excluding Japan) 19%, others 12%. Chart 1: Market-based proportions of fisheries export values 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2001 2002 2003 2004 2005 Others Japan U.S. EU Asia (exclusive of Japan) Source: National Fishery Information Center, Ministry of Fisheries of Vietnam  Export turn-over has increased sharply with 1,478 billion USD recorded in 2000, added 2 more billion USD in 2002, and was beyond 2.5 billion USD in the end of 2005. Table 2: Export turn-over by commodity by year in the period of 2001 to 2005 (1000 USD) No. Commodity 2001 2002 2003 2004 2005 1 Frozen fish 221.948 361.646 405.741 464.727 531.849 2 Tuna 58.593 77.463 47.723 55.055 78.402 3 Frozen squid 80.708 96.001 68.565 96.517 103.582 4 Dried squid 153.810 109.207 57.080 65.420 75.293 5 Frozen shrimp 777.820 949.418 1.057.863 1.268.039 1.307.155 6 Others 484.607 429.085 562.605 451.023 642.446 Total 1.777.486 2.022.821 2.199.577 2.400.781 2.738.727 Source: Source: National Fishery Information Center, Ministry of Fisheries of Vietnam  Vietnam fisheries has been steadily gaining a foothold in the international markets. It has got out of the situation of anonymity, building trading relationships with 108 countries worldwide, and ranking seventh in the leading group of fisheries exporters.  Fisheries export has played an active role in building bridges between production and market, providing solid ground for the development of raw materials, and creating powerful stimuli for the fundamental shifts towards modernisation within the industry. Aqua-culture is considered as key industry to ensure stable material sources to the processing industry in producing for export; creating more employment and improving income and live-hood for farmers. Fisheries Priroity Workshop Data & Evaluation Sheets 41 Domestic markets and imports:  With a total population of about 80 millions, the domestic market growth has significant potential. Annual average fish consumption of 18.5 kg per capita. This figure is anticipated to increase to 20-25kg per capita by 2010. Accordingly, overall fishery demand in Vietnam is estimated as follows (with the population of 80 million) Year Average consumption(kg/capita /year) Overall consumption (1000tons/year) 2005 18.5 1,480 2010 20 – 24 1,600 – 1,920  Fishery processing for domestic consumption has undergone many changes. Enhanced quality and cleanliness is high priority. In addition, a variety of fisheries products are popularised by packaging design and quality such as those from catfish, shrimps, marine fish, and those from recycling and by-products use.. Fish source can be regarded as a typical product of this kind, with highly prestigious brand name like Phu Quoc, Phan Thiet, Cat Hai, Nha Trang etc..  According to the Ministry of Fisheries of Vietnam (MOFI), Vietnam has imported fishery products from 40 countries and territories, with the total import turn-over of 90-100 million USD, equivalent to 3.5-4% of the export turn-over. It is forecasted by MOFI, in 2010, the annual value of imported fishery products will be about 190 million USD, equivalent to 4.5% - 5% of the export turn over, of which 70% are frozen shrimp, 16% are frozen fish, the remain are fresh salmon, frozen salmon, lobster and canned fish….  Vietnamese consumers traditionally prefer live and fresh products, so the main domestic consumption includes mainly fresh water aqua-culture products fresh and live like species such as amur, carp, tilapia, basa, featherback, goby etc.... Shrimp, crab, squid are also in favour but not as common because the prices are much higher than buying power of people. Comparative Advantage  In the coming years, Vietnam fisheries sector will meet difficulties in increasing export turn-over as it faces in competition from other fish export countries and strict requirements on quality and food safety and assurance of the importers.  The cost of processed product is relatively low due to the low price of raw materials and low labour costs  Many of the state owned processing enterprises still use out-dated technology, but other newly established companies (e.g. Viet Nam Joint Stock Company use state of the art technologies. Government Policies Development of fisheries has benefited form government support, in particular:  Decision No.251/1998/QD-TTg of the Prime Minister on the Export Development program to 2005, Fisheries Priroity Workshop Data & Evaluation Sheets 42  Decision No.224/1999/QD-TTg dated 8th December 1999 on the approval of the Aqua-culture Development Program in the Period of 1999-2010;  Decree 09/2000/NQ-CP, released on 15th June 2000, stipulating the shift in agriculture and agro-consumption pattern  Decree 03/NQ-CP, issued on 2nd February 2000, dealing with farming economics  Decision 10/2006/QD/TTg on 11th January 2006 of the Prime Minister adopting the Master Plan of the Fishery Sector to 2010 and Guidelines to 2020, etc which have pushed the strong development of aqua-culture and fishery export nationwide. 3. Industry Analysis 3.1. Structure  Vietnam with 3,260 km coast along with 112 estuaries, 39 bays, areas and ponds, and more than 3,000 islands allows natural mobilizations to fishing grounds in the neighbouring waters. The exclusive economic zone is defined over one million km2 of water territory.  Inland, there are 2.360 rivers and streams; 2,470 reservoirs with total area of 183,579.5 ha, small pond and lake of 120,000 ha, brackets waters of 600,000 ha, low-lying fields of 580,000 ha. In 2004, aquaculture area reached 959,908 ha. Major issues of post-harvest storage technology Poor infrastructure, fishing fleet, and landing site Low competition among intermediary components Poor technologies of material preservation Lack of appropriate storage facilities and means Lack of collect means Short quantity and low quality of Ice Low quality of material Big loss in post-harvesting High and unstable price of material Short and unstable supply to production Ineffective resource protection Inappropriate investment to capture and aqua-culture Dispersive and small scale fishing and aqua-culture Lack of material development policies Lack of information on material supply Fisheries Priroity Workshop Data & Evaluation Sheets 43 3.2 Supporting Infrastructure  The marine fishing fleets has made speedy development in the recent years, but as a matter of fact, this was a ahead of the corresponding development of the fishery infrastructure including landing sites, fishing ports, warehouses, which affected severely to the quality of material source for processing. The fundamental infrastructure has not been constructed and upgraded till now with the funds from the Government and foreign sources.  Today, fishing boats all have preserving holds and tools. Small power fishing boats are equipped with preserving facilities at a required minimum level. Bigger power fishing boats (of more than 75 HP) have holds that can preserve landings very well at required temperatures. Several of this type have ice grinders onboard. Offshore fishing boats, especially those are fishing oceanic tuna, equip ice liquid maker or freezer onboard as a secondary cool storage facility.  The level of landing preservation varies from boat to boat depending on the level of storing facility equipped on board:  Small fishing boats usually use ice storing methods but this is time limited and they often come back during day. Additionally, fishers use salt or dry methods to preserve the landings.  For preserving technique for oceanic tuna, fishers have been trained with the preservation technology researched by the Research Institute for Marine Fisheries and Research Institute for Aquaculture No.III. Most of preserving methods being commonly used are well-known, methods that are newly researched domestically and have also been introduced in real life.  Application of new technology should be concentrated on improving freezers, usage of new solutions to prolong cool conservation, and usage of bio-active substances to prevent from micro-organisms, to limit enzyme hydrolysis.  Fish processing is an important industry, and has made a speedy development in recent years. In 2005, the number of processing units was 439, increasing 113% compared with 2000, of which 320 units are frozen processing for export with total freezing capacity of more than 4,262 tons/day. There have been 171 processing businesses recognized in the list of standard exporters by EU, 300 others applying HACCP accepted by US, 295 accepted by China, 251 accepted by Korea (Summarized Report of 2005, MOFI). 3.4. Future Trends and Key Market Issues  According to export development program in the period of 2006-2010, Vietnam Ministry of Fisheries, it is estimated that the quantity and values of fishery products as follows: Table 3: Estimated quantity and values of fishery products in the period of 2006-2010 No 2006 2007 2008 2009 2010 Total in five years (2006-2010) Increase (%) In 5 Years Annual Fisheries Priroity Workshop Data & Evaluation Sheets 44 1 Total output (1000 tons) 3.439 3.592 3.757 3.936 4.000 18.724 16.30 3.85 2 Total export turnover values (millions USD) 2.670 2.840 3.110 3.480 4.000 16.100 49.81 10.63 3 Quantity of exported fishery products ( Tons) 539.315 578.655 637.430 718.615 831.210 3.305.235 54.12 11.42 4 Frozen shrimp products (Tons) 160.990 171.890 189.590 214.815 250.000 987.285 55.29 11.63 5 Frozen fish products (Tons) 250.615 227.710 318.040 373.275 450.000 1.669.640 79.56 15.76 Source: Fisheries Informatics Center- Ministry of Fisheries  In order to increase export values, it is required to improve both quality and diversification of value-added products instead of increasing quantity of products only. The proportion of value-added products compared to raw, semi-processed ones must be increased, new value added products must be increased and the proportion of raw, semi- processed (frozen, chilled and dried ones) must be decreased.  With the strong development of tourism, industrial zones, export processing zones, supermarkets and retail systems through out the country along with higher living standards, it is anticipated that the higher domestic consumption of fishery products will increase. Commodities sold in domestic market will be fish sauce; traditional fermented, dried, live and fresh, frozen processed and instant fishery products 4. R&D Information 4.1. Main Research Areas  Cool storage for marine capture fisheries,  Very limited post-harvest research over the last 5 years apart from quality management at the farm level and some research on preservation methods to improve quality 4.2. Major Research Providers Ministry of Agriculture and Rural Development  Department of Post-harvest Technology of the Research Institute of Marine Products (20-25 scientists),  Center for Fishery Post-harvest Technology of the Research Institute for Aquaculture (20-25 scientists),  Research institute for Aquaculture No3 (5-10 scientists)  In 2003, the Center for Fishery Post-harvest Technologies was invested with laborotaries for food processing, microbiological, and bio-chemical reseaches. Other Fisheries Priroity Workshop Data & Evaluation Sheets 45 institutes and the University of Fisheries have also equiped necessary and modern instruments for research trainning. Universities  University of Fisheries with about 35-40 researchers and lecturers professional in seafood processing technology Others  Seafood processing companies in Vietnam are mostly small and medium size business. They do not have separate R& D division. Manufacturing technicians and specialist of the companies are also responsible for R&D work. The products from their R&D work are usually highly accecepted by the markets. However, the technicians have little chance to approach new knowledge and technologies which are the strength of experts at institutes. 4.3. Funding Budget: 3,0 billion VND. 4.4. Major Achievements to Date  To date most emphasis is on improving storage facilties and practices including, storage holds, preliminary treatment techniques (of sorting and categorizing materials), ratio of ice amount to fish quantity, use of anibiotic substances in material preservation and