Class : SB0861

Lecturer : Dr. Ng Quang Trung

Group Assignment
IMPACTS OF WTO ON VIETNAM
FISHERIES

L Thy Kim Khnh _ SB60676

L Th Thin Trang _ SB60574
Dng Trc Vy _ SB60653
Nguyn Thin Khnh _ FB60164
V Quc Minh _ FB60029
Nguyn Hng Nhung _ SB60568
Hunh V Thanh Vi _ SB60400

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CONTENTS :
I/ Introduction : (Kim Khnh) .............................................page2
II/ - Opportunities & Challenges (Kim Khnh) ...................page2
- Reality (Hng Nhung,Thanh Vi) ..............................page2,3
III/ Government Policies (Kim Khnh)................................page4
IV/ Stage 1 (2007-2011)
- GDP ( Thin Trang) ...............................................page 4,5
- Employment (Trc Vy)................................................page6
V/ Stage 2 (2011-2013)
- GDP (Thin Khnh)....................................................page7
- Employment (Quc Minh)..........................................page8
VI/ Solution (Hng Nhung,Thanh Vi)...............................page8,9
VII/ Conclusion (Quc Minh, Thin Khnh)..................................
VII/ Reference....................................................................page9

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I/ Introduction :
-

1. About WTO :
The World Trade Organization (WTO) is an organization that intends to supervise
and liberalize international trade.
Formation: 1 January 1995
Headquarters: Geneva, Switzerland
Members: 159

2. Operating Goals :
- Promote growth of trade in goods and services in the world.
- Resolve divergences and commercial dispute between members
- Raise standard of living, provide jobs for the member countries citizen.
3. About Vietnam Fisheries :
- Coastline is 3260 km long and an exclusive economic zone of about 1 million km2
along with plenty marine resources.
- Vietnam has 544 species of fish, 288 of them are potential ones. Aquatic resources
is around 4.5-5 million tons and allows annual exploitation from 1.2 to 1.4 million
tons.
- Consists of 2,773 islands from 0,001 km2 to 100 km2, total area is up to 1,720 km2 .
- Vietnam has about 2,860 small and big rivers and numerous natural lakes.

II/ Opportunities & Challenges Reality.

1. Opportunities & Challenges :

Opportunities :
Expand export markets to member countries.
Protect legitimate economic interests of the country
Mobilize domestic and international resources for development
Improve investment environment, business.

Challenges :
The negative effects of globalization.
The quality of human resources.
Depends on the fluctuations of the world economy.
Competitive pressure grows every year.
2. Reality (Capitals) :
Human resource :
According to the VN Fisheries, our country has about 4.7 million workers,
concentrated on exploiting, aquaculture, processing and logistics.
In fact, more than 30 million workers in agriculture-forestry-fishery sector, only
17% were trained (mostly through sketchy agricultural training).
Fisheries accounted for only 0.31% of students at universities and colleges =>
too low compared to the labor demand of the industry. (i)
There are 28 universities and colleges teach agriculture forestry - fishery
and 55 other schools have training courses related to processing agriculture forestry - fishery.

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Physical Capital :
From ancient times, our ancestors had used fishing equipment such as : hook, hoof,
drift-net, drag-net ... to catch all kinds of fish. Fishing equipment and techniques
were quite rudimentary, didnt improve the productivity and efficiency. Nowadays,
with the development of science and technology, we have been researching and
manufacturing many kinds of fishing equipment and techniques with very high
efficiency. Even so, the traditional equipments are still widely used in the shallow
waters and inland waters such as ponds, lakes, rivers and coastal areas.

Ships with capacity > 90 CV (offshore fishing ship ) , account for only 16%.
Among the ships with capacity <90 CV, Ships with capacity < 45 CV are about
85%. (ii)

Most of the ships are lack of communication, lifebuoys and safety facilities so
they could only be able to catch inshore.

(Source : (iii))

Technology:
There are good developments in the introduction of Technology progress in fisheries
sector.
Improving aquaculture, setting up test systems, quarantine good breed.
Advanced Technology imported by foreign countries => reduce the risk of
environmental pollution and resource degradation.
Production is small scale, technology and science distribution are not equal among
regions => low productivity.

The application of CAS (Cell alive system) (iv)- Preservation of fresh cells
Technology, will contribute to the technological innovation in the field of export and
food processing. The program consists of three main phases: Phase 1 is to build
CAS technology lab, receiving technology and applied research in the CAS
technology to preserve some tropical products in Vietnam .Phase 2 will transfer
CAS technology transfer to some businesses in Vietnam. Stage 3a, 3b will transfer
CAS technology manufacturing equipment to Vietnam.
Natural Resource :

Coastline is over 3,200 km, the exclusive economic zone is about 1 million
km2 => plenty marine resources.

Large inland water which area is 1.4 million hectares wide. => VN has many
outstanding advantages to develop Fisheries industry.
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However every year there are storms, floods in rain season and drought in dry
season => Raw materials exploiting and processing are unstable.

Climate Change => Fish migration and change the Ecosystem.

III/ Government Policies:

Basic contents of the State management on fisheries exports: (v)
Make plans to allocate the fishery resources according to natural conditions
and ecologic : By doing the planning and zoning development fisheries areas,
government has the role to allocate specific area for fisheries development
according to natural and ecological advantages.
Protect, maintain and regenerate fisheries resources to ensure sustainable
development of the fisheries sector :
Give rules to prevent overexploited activities which lead to exhaustion of
fishery resources in a given time or permanent.
Provide regulations prohibit fishing by using destructive devices like mine.
Give the standard size or a minimum weight for each species of fish to be
exploited.
Give limitation on the water use in aquaculture in order not to lead to
shortage of water reserves.
Give the restrictions for toxic pollutants resulting from farming activities
Examine the activities of people who live and work on fisheries sector : Government
can direct inspect people who violate the rules about fishing and decide the level of
sanctions . For aquaculture activities, the Government may conduct regulations on
protecting water resources, preventing pollution, anti-drain ...
Create and develop international relationship on the fisheries sector :
Create trade relationship, sales relationship on seafood products and
exchange relationship with other import and export seafood countries.
Import varieties of high quality seafood in aquaculture activities in the
country.
Coordinate with neighbor and region countries to execute solutions about
protect, develop aquaculture resources, environment.
Coordinate with neighbor and region countries to perform safe solutions on
offshore fishing activities as well as prevent natural disaster like storms,
tornado, typhoon, tsunami

IV/ Stage 1 (2007-2011) :

1. GDP:
GDP of Vietnams Fisheries in 2006-2011(billion dong)

Nation
Fisheries
Ratio (%)

2006
974.266
38.335
3.9

2007
1.143.715
46.124
4.0

2008
1.477.717
58.409
4.0

2009
1.645.481
59.237
3.6

2010
1.980.914
71.504
3.1

2011
2.535.000
99. 432
3.9

After 5 years Vietnam joined WTO, Vietnam GDP growth was only 6.5%. (vi)
From 2007 to mid-2008, the economic indicators of Vietnam were at high rate, GDP
growth in 2007 was 8.5%, the highest in
the last 10 years
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However, since mid-2008, economic growth slowed down with an average of

6.1%( in the period 2008-2011), in 2009 even fell to 5.3%.
Investment : (vii)
Overall,
Investment
on
Fishery
was
very
low
.
Ex : In 2009 the total investment for economic was 287.534 billion VND,
Investment on Fishery was only 1.480 billion, accounted for 0.51% of total
investment.
Low level of investment leads to the inadequacies and limitations for aquaculture
development.
Facilities have not been properly invested, affected significantly to the growth rate
of the industry.

Export :
Vietnams seafood export focus on two main types: business and goods
manufactured from imported raw material (production of import).

Vietnam's Seafood Export in 2006-2011

8
6
4
2
0

2006

2007

2008

2009

2010

2011
(Source: Fishtenet)

The total value of exports in 2008 was 4.27 billion dollars, 4.25 billion U.S. dollars in
2009, and 4.94 billion U.S. dollars in 2010.
- Exports not only increased in quantity but also the variety of seafood.
- Export market expanded to some difficult markets like Japan, EU, U.S..
- For seafood processing industry: became a modern industry, capable of integration,
international competition.
Consumption : (viii)
- Seafood consumption per capita was 19.4 kg in 1999 , 22 kg in 2007 and reached
26.4 kg in 2010.
- Freshwater foods according from 40 to more than 60% of households consumption.
- Although Freshwater foods are the most preferred food, their average price doesnt
worth much. (Accounting for 13.0% of total expenditure on food).

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Government Spending :
- In these years, Government Funds didnt focus on strategic projects, as well as the
development of local strengths.
- Demand of investment for seafood from 2007-2011 was 60.000 billion. Capital
investment in the aquaculture accounted for 44.6%, investment in processing
accounting for nearly 33%, investment in exploiting accounted for 18.6%, the rest is
investment in training and development of human resources for the fishery.
2. Impacts of joining WTO to Vietnams Fisheries employment : (ix)
After joining the WTO, the unemployment rate has dropped significantly, meaning
that employment opportunities for local people rise up after years.
Job opportunities :
- Job
opportunities
and
income
significantly
increased.
2007 - 2011: provided jobs for over 7,955 thousand people (domestic : 7,536
thousand, export labor 419 thousand people).
- The unemployment rate for urban areas decreased from 5.1% in 2006 to 4.2% in
2011
-

Wage policy:
Corrected and paid salary according to market price.
Increased paying autonomy for enterprises.
Relationship between wages and the minimum wage has been adjusted
appropriately.
Wages and income of workers increased more than 2 times, with an average of 1.8
million VND / person / month in 2006 to 3.84 million VND / person / month (2011)
Improved workers life, reduced labor disputes, contributed to maintain security,
social order and improve the investment environment.
Challenges :
Lack of qualified workers in most sectors, especially in industry and service sectors.
Labor surplus in some of the business lines.
Labor immigration from rural to industrial, urban areas increased.
Women workers have low skill levels were on the risk of job lost and reduced
incomes more than male workers.
The wage gap.
The lives of the workers were pretty much affected by inflation.
Many businesses have no longer received support from the State and were on the
verge of bankrupt, created unemployment.
Poverty reduction speed was fast. However, the gap between rich and poor was
more than likely becoming strong.
Increased differences in opportunity and income of different groups of poor people.
Most poor people were working in poor working conditions with low wages and lack
of access to social services.
Poor people become disadvantaged because of their inability to adapt to new
technology.

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V/ Stage 2 (2011-2013)
1. GDP: (x)
Fisheries sector is one of the highest ratios of exports / GDP in the country
The value of fishery products in 2011 (at current prices) was estimated at 99.432
billion, accounting for 3.92% of GDP in the country.
Total aquaculture production in 2011 was 5.43 million tons, increased 5.6%
compared with 2010, including 4.05 million tons of fish, increased 5.6%, 633,000
tons of shrimp, increased 6.8%.
Seafood production in 2011 (thousand tons)

TOTAL
Fish
Shrimp
Others

2011
5447.4
4124.4
630.9
692.1

2012 (estimate)
5732.9
4343.7
632.7
756.5

2012/2011(%)
105.2
105.3
100.3
109.3
(Source : Fishtenet)

In 2013, aquaculture products continue to grow and achieve high growth rates. Total
industry output value reached 83 318 billion, up 2.5%. Fisheries production
reached 2,737 thousand tons, up 1.5%, of which aquaculture production reached
1,425 thousand tons, decreased slightly from the same period.
Seafood production in first 6 months of 2012 and 2013 (thousand tons)

TOTAL
Fish
Shrimp
Others

6 months of 2012
2696,0
2091,8
254,6
349,6

6 months of 2013
2736,7
2109,3
261,8
365,6

2013/2012 (%)
101,5
100,8
102,8
104,6
(Source : Fistenet)

A new feature of aquaculture was a marine aquaculture model, reached 150

thousand tons of seafood of all kinds, increased 2.6% over the same period, with
the object diverse culture, such as cobia, grouper, grouper, snapper, pomfret,
sweet snail, religious comedy, pearl, seaweed ...
Consumption :
In 2011, domestic consumption of processed seafood was 950,000 tons, with a
growth rate of 3.3%.
The domestic market has a very small proportion in the total revenue of Fisheries
Industry (less than 5%). Most of the revenue came from the sale of by-products
(fish oil, fish meal ...).
In 2013, consumption of seafood products continue to experience some difficulties in
the market: the export price has not recovered, frozen shrimps was in lawsuits with
U.S.
Consumption in 2015 is predicted to be 790,000 tons, 940,000 tons in 2020.Frozen
fish products will account for over 30%.
Investment :

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Investment to develop national seafood in 2011-2020, was nearly 24,550

billion VND.

In 2012, around 1.2 million tons of raw sutchi catfish (about 65%) were from
business investment.

Vietnam should focus on improving the quality of the products instead of

massive development which lack of control or good planning, in order to increase
the value of the product rather than increasing the quantity.
Export :
Exports of fresh / frozen seafood sector in 11/2011 was 576.4 million, up 20.5%
compared to the same period last year and 97.8% in the previous month; export of
processed seafood products reached 113.7 million, increase 11.3% compared to
the same period last year and by 92.4% compared to the previous month.
Seafood export by domestic enterprises account for a large scale of over 90% of the
total exports in the country. In 2012, exports of domestic enterprises reached 5.54
billion, felt 2.8% from the previous year and accounted for 91% of the total export
in fishery sector.
Seafood export in 6/2013 reached 534 million USD. Vietnam's seafood exports to the
U.S. were valued at 579 million USD, raised 4.2%, EU: 501 million, felt 9.5%,
Japan: 481 million USD, felt 4.1%, South Korea 189 million USD, felt 20.3% ...
2. Employment :
2012, the whole country has created jobs for approximately 1.54 million workers
(reach about 96.7% of the plan). There are about 80 thousand contract workers
who work abroad. Although the plan did not achieve its goal but it is also one of the
successes in jobs solving since the global financial crisis has passed.
Unemployment 2011-2013: 2.27%, 1.99% and 2.28 (in the first 6 months of 2013).
Wage Policy :
Need to redefine the paid subjects and accounts of salary paid by the state
budget.
Perform sorting offices, business units according to specific criteria, in order to
clearly identify the correct object as the basis for the establishment of
mechanisms to ensure appropriate resources and payroll.
Increase revenues from business activities to reform wage policy.
Challenge in employment of Fisheries :
Settle labor disputes as well as labor protests.
The new quotas and lower vocational curriculum lead to the incompetence of
the labor force.
In 3 years, the unemployment rate dropped but in reality, many have accepted
to work on the liberal market with unstable wages, this is not a long term
solution.
Some enterprise didnt pay social insurance or low wages for workers.
The service activities related to the labor market is not complete, the labor
market scale is limited, the amount of labor market participation is low.
VI/ Solutions:
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Strengthen the research and application of new technologies in the production

of raw seafood, especially biotechnology, to diversify export objects with low cost.
Reorganize the production in the industry in the direction of horizontal and
vertical links between production and consumption
Accelerate the process of industrialization and modernization on fisheries,
diversify export products.
Restructure production towards promoting aquaculture development.
Strengthen promotion, focus on building brand and develop market for main
products.
Strengthen the investigation and assessment of resources to ensure
sustainable development of fisheries.
Strengthen management, to create a cohesive between production of raw
materials, processing and consumption in order to stabilize and improve
production efficiency.

VII/ Conclusion :
Joining WTO is a great opportunity for Vietnam's economy in general and fisheries in
particular. It creates many advantages for the development of the fisheries sector
and penetrate deeper into the world market, thus creating a reputation and a name
on the map of Vietnam Business World.
Anyway, everything always has two sides of it, nothing is entirely good or entirely
bad;. Joining WTO brings Vietnam's fisheries more opportunities to grow, but also
many difficulties that arise from it. With a market as competitive and fierce like WTO
and those commitments, rules, strict rules also bring many challenges which require
the Vietnam Fishery must have a strong foundation and deep understanding to make
strictly comply with regulations and commitments but also maintain and maximize
our inherent potential.
To overcome the challenges, we must have a unite coordination of all individuals,
organizations, businesses, agencies, and government should provide measures,
policy and promulgate regulations to achieve the best productivity. We should focus
on areas where the fishery is the most weak at: management capacity and
performance gaps in the law as well as in the regulations. And it is provided on the
following three key issues :
Improved the legal system, in accordance with the feasibility and development of
Vietnam's position in the world's fishing communities, to ensure harmony with the
system agreement and commitment the development of international fisheries.
Second, strengthen management systems, policy development and enforcement of
the law.
Third, promote collaborative relationships, linking members of the value chain by
this linkage is the basis for enforcement and management solutions ...
At the same time, Vietnam enterprises should strive to improve competitiveness,
apply the quality management system according to international standards, the
implementation of measures to protect and improve the environment, build branding
and product promotion, staff training and raising the level of human resources ... to
timely respond to the disputes that may arise in international trade and economic as
well as to fishery Vietnam's strong growth, maximize the potential of the industry,
create Vietnam Seafood reputation with high quality and develope its position in the
World to new heights.
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VIII/ References :
(i)
(ii)
(iii)

(iv)
(v)
(vi)

(vii)

http://www.baomoi.com/Tang-cuong-dau-tu-cho-nganh-thuy-san/45/5342877.epi

(viii)

http://vietfish.org/20111116022157484p48c62/tieu-thu-thuy-san-cua-hogia-dinho-dong-bang-song-cuu-long.htm
http://duthaoonline.quochoi.vn/Pages/default.aspx
http://www.gso.gov.vn/default.aspx?tabid=217
Fishtenet : http://www.fistenet.gov.vn/

(ix)
(x)
(xi)

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http://tintuc.hocmai.vn/huong-nghiep/nganh-nghe/16857-tao-luc-hut-chonganh-nong-lam-ngu-nghiep.html
http://tongcucthuysan.gov.vn/du-thao-van-ban-phap-luat/du-thao-thong-tuquy-111inh-ve-nghe-luoi-keo-khai-thac-hai-san-tai-vung-bien-vietnam/at_download/attachment_file
http://gso.gov.vn/SLTK/Selection.aspx?rxid=5677b76c-fe64-4d30-b6927168a4dcbab9&px_db=06.+N%C3%B4ng%2C+l%C3%A2m+nghi
%E1%BB%87p+v%C3%A0+th%E1%BB%A7y+s%E1%BA
%A3n&px_type=PX&px_language=vi&px_tableid=06.+N%C3%B4ng
%2C+l%C3%A2m+nghi%E1%BB%87p+v%C3%A0+th%E1%BB%A7y+s
%E1%BA%A3n\V_06.63.px
http://truyenthongkhoahoc.vn/vn/Cong-nghe-CAS-Buoc-dot-pha-trongbao-quan-bao-thuc-pham-c1045/Cong-nghe-CAS-Buoc-dot-pha-trongbao-quan-bao-thuc-pham-n5012
http://luanvan.net.vn/luan-van/phan-tich-thuc-te-ve-quan-ly-nha-nuoc-doivoi-xuat-khau-thuy-san-1665/
http://petrotimes.vn/news/vn/kinh-te/kinh-te-viet-nam-sau-5-nam-gia-nhapwto-khong-nhu-mong-doi.html
http://songmoi.vn/kinh-te-thi-truong/kinh-te-giam-toc-sau-5-nam-viet-namgia-nhap-wto