Assessing The Economic Efficiency Of Fish Cage Culture In Hoa Binh City Hoa Binh Province

VIETNAM NATIONAL UNIVERSITY OF FORESRY

FOREST RESOUCRES & ENVIRONMENTAL MANAGEMENT FACULTY

STUDENT THESIS

Assessing the economic efficiency of fish cage culture in

Hoa Binh City, Hoa Binh Province

Major: Natural Resources Management

Faculty: Forest Resources and Environmental Management

Student: Luu Thi Tuyet Student ID: 1553090289

Class: K60 Natural Resources Management Course: 2015 - 2019

Advanced Education Program

Developed in collaboration with Colorado State University, USA

Supervisor: Dr. Le Dinh Hai

Hanoi, October 2019

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ACKNOWLEDGEMENTS

I am glad to have an opportunity to express my acknowledgements to many people

involving in the study, without whom I could not finish my study.

First and foremost, I would like to express my deep sense of gratitude to respected

supervisor Dr. Le Dinh Hai from Faculty of Economics and Business Management, Vietnam

National University of Forestry for his continuous support, patient guidance and

encouragement throughout my research project. Besides, I also want to thank to Mrs. Luu

Thi Thao, a lecturer from Faculty of Economics and Business Management for her

constructive suggestion during whole time I worked with my thesis.

In addition, I would love to thank many local people for their contribution to this

study. Special thanks to local people in Thai Thinh Commune for providing helpful

information and helping me at that time I took households survey in Hoa Binh province.

The last but not least, my thanks go to my family, my dear friends for their endless

love, support and encouragement to me throughout all my life.

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TABLE OF CONTENTS

ACKNOWLEDGEMENTS ..............................................................................................................

TABLE OF CONTENTS ............................................................................................................... ii

LIST OF TABLES .........................................................................................................................iv

CHAPTER I. INTRODUCTION ....................................................................................................1

CHAPTER II. STUDY GOAL AND OBJECTIVES .....................................................................3

2.1. Goal .......................................................................................................................................... 3

2.2. Objectives .................................................................................................................................3

2.3. Space scale ............................................................................................................................... 3

2.4. Time scale ................................................................................................................................ 3

CHAPTER III. STUDY SITE & METHODOLOGY .....................................................................4

3.1. Study site ..................................................................................................................................4

3.1.1. Hoa Binh province ................................................................................................................ 4

3.1.2. Hoa Binh City ....................................................................................................................... 5

3.2. Methodology ............................................................................................................................ 7

3.2.1. Framework of factors influencing economic efficiency of fish cage culture ........................ 8

3.2.2. Data collection .................................................................................................................... 12

3.2.2. Data processing ................................................................................................................... 14

3.2.3. Data analysis ....................................................................................................................... 14

CHAPTER IV. RESULTS AND DISCUSSION .......................................................................... 19

4.1. Current situation of fish cage culture in Hoa Binh city, Hoa Binh Province ......................... 19

4.1.1. Scale of fish cage culture in Hoa Binh City ........................................................................ 20

4.1.2. Results of aquaculture industry in Hoa Binh city ............................................................... 22

4.1.3. Analyzing investment cost for fish cage culture .................................................................25

4.1.4. Revenue of fish farmers ...................................................................................................... 29

4.1.5. Results and efficiency of a fish cage ................................................................................... 32

4.2. Descriptive statistics on surveyed households in Thai Thinh commune, Hoa Binh city ................ 36

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4.2.1 Characteristic of household head ......................................................................................... 36

4.2.2. Fish cage culture activities of surveyed household in Thai Thinh commune, Hoa Binh city ....... 37

4.2.3. Correlation analysis of factors with mixed income of fish cage culture in Hoa Binh

City ................................................................................................................................................ 40

4.3 Key divers influence mixed income of fish cage culture of surveyed households ................. 42

4.4. The contribution of independent variables to the model ........................................................ 43

4.5. Orientations of fish cage culture development in the future .................................................. 43

4.6. Potential suggestions which may encourage local people to develop fish cage culture

and improve the economic efficiency. .......................................................................................... 46

CHAPTER V. CONCLUSION .....................................................................................................50

CHAPTER VI: REFERENCES ....................................................................................................51

CHAPTER VII: APPENDICES ....................................................................................................53

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LIST OF TABLES

Table 3.1: Survey sampling design in Hoa Binh city ....................................................................13

Table 3.2: List of dependent variable and potential independent variables ..................................16

Table 4.1: Fish cage culture development plan to 2020, vision to 2030 in Hoa Binh city. ................... 21

Table 4.2: Area and production of fishery in Hoa Binh in 2016-2018 ......................................... 22

Table 4.3: Number of cages, cage production of Hoa Binh in 3 years 2016-2018 ....................... 24

Table 4.4: Productivity and output of fish cage culture in Hoa Binh in 2018 .............................. 25

Table 4.5: Economic costs of some types of fish cage of surveyed households (75m

3

) .............. 28

Table 4.6: The average cost of some types of fish cage of the surveyed households ................... 29

Table 4.7: Revenue of some types of fish of surveyed households (75m3

) .................................31

Table 4.8: Results and efficiency of some types of fish of surveyed households ......................... 34

Table 4.9: Results and the average efficiency of some types of fish of surveyed househods ...... 35

Table 4.10: Descriptive Statistics of quantitative variables .......................................................... 36

Table 4.11: Descriptive Statistics of qualitative variables ............................................................ 37

Table 4.12: Variables have strong relationship with Mixed income of fish cage culture in

Hoa Binh city ................................................................................................................................ 40

Table 4.13: Key divers affecting to mixed income of fish cage culture ....................................... 42

Table 4.14: The contribution of independent variables ................................................................ 43

Table 4.15: Opinions of households about plan in the future ....................................................... 44

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LIST OF FIGURES

Figure 1. Map of Hoa Binh province ............................................................................................. 7

Figure 2. Map of Hoa Binh City, Hoa Binh Province .....................................................................6

Figure 3.1: Potential factors influence economic efficiency of fish cage culture ........................... 8

Figure 4.1 Sources of capital of households at the beginning of seasonal ....................................38

Figure 4.2: Sources of fingerling ..................................................................................................39

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CHAPTER I. INTRODUCTION

Vietnam is one of the countries in the world that has developed aquaculture and also

has a long history of aquaculture. Over thousands of years of history, aquaculture has

become an important part of the national economy (the value of aquaculture production by

price according to the farming industry, the preliminary operation of the year), in 2018

reached 228139.8 Billion VND (Directorate of Fisheries, 2018), significantly contribute to

the export of agricultural products in our country. According to the statistics of Vietnam

Customs, by the end of 2018 seafood export turnover reached nearly 9 billion USD. In

addition, aquaculture contributes to economic restructuring in agriculture and creates many

jobs, with great social significance.

Vietnam has a 3260 kilometer coastline, 112 river estuaries, an exclusive economic

zone of about 1 million km2

with more than 4,000 small islands creating many waist, bay,

lagoon, lagoon and many fishing grounds, seafood reserves nearly 3 million tons. With the

increasing consumer demand for fishery products, in addition to fishing, the aquaculture is

an effective way to meet this demand. One of the most effective forms of aquaculture is fish

cage farming. The fish cage culture model has been developing for a long time in the Red

River Delta and the Mekong Delta. The development of freshwater fish farming industries in

general and cage culture in particular will open a new opportunity for the economic

development of many localities across the country.

Hoa Binh is a mountainous province, adjacent to Hanoi capital, with 10 districts and 1

city, 210 communes, wards and towns. Hoa Binh province has a network of rivers and

streams distributed throughout all districts and cities. Hoa Binh's largest water supply source

is Da River with a total length of 151 km. Hoa Binh reservoir with a water surface area of

about 8,000 ha and a capacity of 9.5 billion m3 is in addition to supplying water for Hoa

Binh Hydropower Plant. In addition, Hoa Binh has two other big rivers: Boi River and Buoi

River, along with about 1,800 ha of ponds and lakes scattered in the province. This is also a

good place for water storage, water regulation and aquaculture. According to statistics, by

the end of 2017, there are nearly 4050 cages in the whole province, equivalent to 220