SHRIMP FARMING IN VIETNAM: SHRIMP FARMING IN VIETNAM: CURRENT SITUATION, CURRENT SITUATION,

ENVIRONMENTAL-ECONOMIC-ENVIRONMENTAL-ECONOMIC-SOCIAL IMPACTS AND THE NEED SOCIAL IMPACTS AND THE NEED

FOR SUSTAINABLE SHRIMP FOR SUSTAINABLE SHRIMP AQUACULTUREAQUACULTURE

M. Eng Nguyen Dang Anh ThiM. Eng Nguyen Dang Anh Thi

Presentation at 7th APRSCP, Hanoi, Vietnam

25 – 27 April, 2007

OUTLINEOUTLINE STATUS OF SHRIMP FARMING IN VIETNAM STATUS OF SHRIMP FARMING IN VIETNAM

ADVERSE ENVIRONMENTAL, ECONOMIC ADVERSE ENVIRONMENTAL, ECONOMIC

AND SOCIAL IMPACTS OF SHRIMP FARMING AND SOCIAL IMPACTS OF SHRIMP FARMING

THE NEED FOR SUSTAINABLE SHRIMP THE NEED FOR SUSTAINABLE SHRIMP

FARMINGFARMING

THREE SUCCESS STORIESTHREE SUCCESS STORIES

CONCLUSIONS & RECOMMENDATIONS CONCLUSIONS & RECOMMENDATIONS

STATUS OF SHRIMP FARMING IN VIETNAM

TOP 5 COUNTRIES OF SHRIMP PRODUCTION IN THE TOP 5 COUNTRIES OF SHRIMP PRODUCTION IN THE WORLD WORLD

(Source: Nguyen Huu Dung, VASEP)

PRODUCTION & FARMING AREAPRODUCTION & FARMING AREA

(Source: Nguyen Huu Dung, VASEP)

0

200

400

600

800

x 10

00 H

ecta

res

0

50

100

150

200

250

300

350

x 10

00 M

etric

Ton

s

Series2 226 477 517 575 674 722

Series1 103 163 194 224 290 310

2000 2001 2002 2003 2004 2005

SPICIES DISTRIBUTIONSPICIES DISTRIBUTION

(Source: Nguyen Huu Dung, VASEP)

SHRIMP EXPORT VALUESHRIMP EXPORT VALUE

(Source: Nguyen Huu Dung, VASEP)

SHRIMP MARKETSSHRIMP MARKETS

(Source: Nguyen Huu Dung, VASEP)

ADVERSE ENVIRONMENTAL, ECONOMIC AND SOCIAL IMPACTS OF

SHRIMP FARMING ADVERSE ENVIRONMENTAL IMPACTSADVERSE ENVIRONMENTAL IMPACTS

Deforestation: Deforestation: Mangrove forests in 1980 - 227,000 ha; 1990 - 165,000 ha; 2000 - 104,000 ha (FAO)

(Image: EJF)

(Image: VTV)(Image: VACNE)

(Image: VACNE)

Exhaustion of ground water resourcesExhaustion of ground water resources: : A 2002 estimation by Ms. Nguyen Thi Phuong Lan (MOFI): 16,380 m3 - 27,300 m3/ha/season fresh water are needed to mix with sea water in the sandy land based farming About 20.000ha sandy land based farming in 2002 (MOFI): 400 millions m3/year fresh water needed.

Environmental pollution:Environmental pollution:Effluents containing remaining chemical (disinfectants, antibiotics,

fertilizers, pesticides, hormones), uneaten food (ammonia, phosphorous);Effluents containing high levels of organic matter have a high BOD

causing oxygen depletion in receiving waters. Effluents released directly into the natural environment.

(Image: CREB)

(Image: CREB)

(Image: CREB)

Salt intrusion

In Central provinces, the exhaustion of ground water resources promotes salt intrusion, which is the main cause for the death of coastal protective forests. In the Mekong Delta, the rotation rice-shrimp farming has led to salt intrusion to the rice areas, and reduced rice productivity. A report by Tuoi Tre Newspaper on July 20, 2005 showed that in 3 districts of Ca Mau Province, the rice cultivated area is 10,000 ha but only 200 ha were remained and harvested with a productivity lower than 1 ton/ha.

(Image: Tuoi Tre) (Image: Tuoi Tre)(Image: Tuoi Tre)

(Image: EJF)

ADVERSE ECONOMIC AND SOCIAL IMPACTS Shrimp diseases: Base on MOFI, shrimp disease in

1994-1995 impacted 84,858 ha and caused losses amounting to 20 Million USD. Shrimp diseases in Sep. 2003 cause losing of 1.6 Million USD in Khanh Hoa Province and 2.5 Million USD in Binh Dinh Province.

(Image: Vietnamnet)

(Image: Vietnamnet)

(Image: Vietnamnet)

Bankruptcies: In Phu Yen Province, nearly 200 households of Hoa Hiep Nam Commune lost a total of 250,000 USD; farmers in Hoa Tam Commune had irrecoverable debts of 437,500 USD; farmers in Ban Thach estuary had irrecoverable debts amounting to 7.5 Million USD. In Ca Mau Province, 76,609 households are in debt to the Agriculture and Rural Development Bank for a total of 84.8 Million USD. In Bac Lieu province, the debt was 75 Million USD. In Duyen Hai District, Tra Vinh province, all households were in debts for a total of 31.2 Million USD.

Unemployment, lost of land use rights… (Image: Vietnamnet)

Social conflicts • In Ca Mau province, thousands of people in Dam Doi district had demolished Thay Ky, Tam Bo salt prevention dams to take brackish water from Ganh Hao river for shrimp farming. • In Soc Trang province, conflicts broke out between shrimp farmers and rice farmers for the use of irrigation systems and shrimp farmers had set obstacles to close salt prevention canals. • In Kien Giang province, the Hung-Thanh-Hoa irrigation systems invested for rice farming but the people there had used for shrimp farming. (Image: Vietnamnet)

(Image: Tuoi Tre)

THE NEED FOR SUSTAINABLE SHRIMP FARMING IN VIETNAM

The fisheries sector, in which shrimp farming is dominant, has been playing a key role in economic development and poverty alleviation in Vietnam:

Objectives of the Vietnamese Government in aquaculture: Objectives of the Vietnamese Government in aquaculture: ““aquaculture development is to guarantee food security, produce aquaculture development is to guarantee food security, produce material for exporting, create jobs, increase incomes and living material for exporting, create jobs, increase incomes and living standards, contribute to the social – economic development of standards, contribute to the social – economic development of the countrythe country”. ”.

The comprehensive strategy on development and poverty alleviation The comprehensive strategy on development and poverty alleviation in 2002: “in 2002: “high and stable economic growths are the main factors high and stable economic growths are the main factors affected to reduce poverty percentages; in which: agriculture, affected to reduce poverty percentages; in which: agriculture, aquaculture and economic farms played an exceptional aquaculture and economic farms played an exceptional important roleimportant role””. .

The Socio-Economic Development Plan 2006 - 2010 also highlight The Socio-Economic Development Plan 2006 - 2010 also highlight agricultural development: “agricultural development: “ Improve the farmers’ living standards. Improve the farmers’ living standards. Ensure fast and sustainable growth of fisheryEnsure fast and sustainable growth of fishery ......””

The Vietnam Law on Fisheries issued by the National Assembly on The Vietnam Law on Fisheries issued by the National Assembly on 26/11/2003, Article 5: Sustainable fisheries development: “26/11/2003, Article 5: Sustainable fisheries development: “The State The State shall issue policies to ensure the shall issue policies to ensure the sustainable fisheries sustainable fisheries developmentdevelopment... The State shall develop ... The State shall develop clean and healthy clean and healthy aquacultureaquaculture......”.”.

Program 224Program 224 (Decision 224/1998/QĐ-TTg): “ (Decision 224/1998/QĐ-TTg): “Development of Development of aquaculture should follow a aquaculture should follow a sustainable orientationsustainable orientation, associated , associated with natural resources and environmental protection, with natural resources and environmental protection, guarantee guarantee stable production and living activitiesstable production and living activities””. .

Resolution Resolution 09/2000/NQ-CP09/2000/NQ-CP dated 15/06/2000 from the Goverment: dated 15/06/2000 from the Goverment: ““households and other economic components were allowed to households and other economic components were allowed to transfer from salty fields, low lying fields, salt production lands and transfer from salty fields, low lying fields, salt production lands and wetlands which have low productivities to aquaculturewetlands which have low productivities to aquaculture”. The shrimp ”. The shrimp farming development “exploded” after this Resolution was issued.farming development “exploded” after this Resolution was issued.

The Sustainable Aquaculture for Poverty Alleviation Strategy (The Sustainable Aquaculture for Poverty Alleviation Strategy (SAPA SAPA Strategy, Strategy, Decision 657/2001/QĐ-BTS): “Decision 657/2001/QĐ-BTS): “Through aquaculture Through aquaculture development to improve incomes and living standards of poor and development to improve incomes and living standards of poor and unstable people. Development and receiving unstable people. Development and receiving environmentally-environmentally-friendly aquaculture technologiesfriendly aquaculture technologies with low risk and investment with low risk and investment”.”.

Decision 10/2006/QD-TTg dated 11/01/2006 of the Prime Minister approving the Master Plan for Fisheries Development to 2010 and orientations towards 2020: “To develop the fisheries sector in a fast and sustainable manner... and combining production with product processing, sale and eco-environmental protection”.

Decision No. 06/2006/QD-BTS dated 10/04/2006, issued by the Minister of Fisheries promulgating the Regulation on management of safe regions and establishments for shrimp farming “to meet the sustainable development of shrimp farming”.

The macroscopic policies of the Government always consider the harmony of economic development, social development and environmental protection to maintain high and sustainable economic grows. The deployments of these policies have been inadequate and difficult in each practical case. The adverse environmental-economic-social impacts of shrimp farming in Vietnam have increased alarmingly Devising how to develop the shrimp farming in Vietnam in a sustainable way is not only a requirement but also a mission in the upcoming years.

3 SUCCESS CASES

Location: Cua Phu Hamlet, Bao Ninh Commune, Dong Hoi City, Quang Binh Province;

Owned by Mr Nguyen Van Sy, established in 2003;

28.7 hectares; 18 hectares (62.7%) are used for aquaculture ponds.

1.SANDY LAND INTENSIVE SHRIMP FARMING: DUC THANG FARM

(Image: CREB)

Black tiger shrimp product Productivity of 1st season: 6 – 7 tonnes/ha; 2nd season: 4 tonnes/ha. Investment capital: 1,300,000 USD, of which 1,222,875 USD for land; 69,750 USD for equipments and 7,375 USD for other costs. Post larvae are produced by the farm and used with a density of 25 - 40 PLs/m2. Feeds, chemicals and admixtures are bought from renowned suppliers. Water supply for the farm is fresh water (from ground wells) mixed with sea water to guarantee salinity within 5 – 30‰ (brackish water). Maximum 50 m3/h fresh water and 150 m3/h sea water are needed to supply for the farm.

Post larvae production workshop

Sed

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nd

Shrimp ponds

Sedi

men

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Pump station

Water recycling

Bio-treatment ponds (fish aquaculture, biological products)

Sand Filters

Shrimp ponds

Pret

reat

men

t pon

d

Stabilization ponds

Production flow of Duc Thang Farm

Post larvae production workshop

Sed

imen

tatio

n an

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sinf

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Shrimp ponds

Sedi

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Pump station

Shrimp ponds

Pret

reat

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Discharging

Production flow of conventional farms

Economic efficiency

2004 2005 2006 2007 2008 2009 2010Revenue

Harvest (ton) 180 180 180 180 180 180 180Price (USD/kg) 4.6 4.6 4.6 4.6 4.6 4.6 4.6

Revenue (USD) 828,000 828,000 828,000 828,000 828,000 828,000 828,000

Cost of goods soldLarvae 87,500 87,500 87,500 87,500 87,500 87,500 87,500

Feed 20,000 20,000 20,000 20,000 20,000 20,000 20,000Fuel (aeration, pumping) 3,750 3,750 3,750 3,750 3,750 3,750 3,750Chemicals & Admixtures 11,875 11,875 11,875 11,875 11,875 11,875 11,875

Labor 75,000 75,000 75,000 75,000 75,000 75,000 75,000Cost of goods sold 198,125 198,125 198,125 198,125 198,125 198,125 198,125

Gross profit 629,875 629,875 629,875 629,875 629,875 629,875 629,875Expenses

Bank interest 182,390 145,912 109,434 72,956 36,478 0 0Land depreciation 122,288 122,288 122,288 122,288 122,288 122,288 122,288

Equipment depreciation 13,950 13,950 13,950 13,950 13,950 0 0Total Expenses 318,628 282,150 245,672 209,194 172,716 122,288 122,288

Net profit (USD) 311,248 347,726 384,204 420,682 457,160 507,588 507,588

Creating 50 jobs with average 125 USD/month and other related jobs that contribute to the poverty alleviation.

Contributing to the improvement of infrastructures of neighbor areas. A symbol of success shrimp farms in central provinces.

Social efficiency

Using of wind energy instead of diesel for aeration will reduce costs and contribute to CO2 emissions reduction.

With the recycling of wastewater, 60% of raw water is reduced, equivalent to 216,000 m3/year is saved in comparison with conventional farms which don’t recycle treated wastewater reducing environmental impacts and minimizing natural resources usage.

The farm is also very effective in defending diseases which cause the loss of seasons and environmental pollution.

The environmental conditions had been asssessed in 2005: ambient air, surface water, wastewater and soil quality met the requirements of the Vietnamese environmental standards.

Environmental efficiency

2. COMMUNITY-BASED IMPROVED EXTENSIVE SHRIMP FARMING: VINH HUNG COMMUNE

The Vinh Hung Commune is located beside Cau Hai lagoon, Phu Loc District, Thua Thien Hue Province.

1,000 households out of the total 1,600 households of the commune are engaged in community-based shrimp farming.

The Village Convention on shrimp aquaculture agreed by all households and approved by the Commune People Committee is the valued legal document of the community.

The farm assessed in the commune is owned by Mr. Tran Dinh Quang.

(Image: CREB)

8,000 m2 area, improved extensive farming, black tiger shrimp.

Investment capital: 1,250 USD Cultured in 1 season/year Productivity: about 1.4 tonnes/ha. Post larvae density: 3 - 4 PLs/m2. Brackish water is

pumped from Cau Hai lagoon.

Maximum water requirement: 8,500 m3/year, in which 5,000 m3 are maintained in the ponds and 3,500 m3 are used for exchanging.

Cau

Hai

Lag

oon

Shrimp pond 1 2,500 m2

Clean water canal

Public wastewater canal

Other farms

Shrimp pond 2

3,500 m2

Pre-treatment pond, 1000 m2

Other farms

Bio-treatment pond, 1000 m2

Pump station

Economic efficiency 2004 2005 2006 2007 2008 2009 2010

RevenueHarvest (kg) 700 700 700 700 700 700 700

Price (USD/kg) 5 5 5 5 5 5 5Revenue (VND) 3,500 3,500 3,500 3,500 3,500 3,500 3,500

Cost of goods soldLarvae 250 250 250 250 250 250 250

Feed 625 625 625 625 625 625 625Chemicals & Admixtures 313 313 313 313 313 313 313

Labor 438 438 438 438 438 438 438Cost of goods sold 1,625 1,625 1,625 1,625 1,625 1,625 1,625

Gross profit 1,875 1,875 1,875 1,875 1,875 1,875 1,875

Social efficiency Community-based shrimp farming

needs high awareness of the householders to enhance social efficiency.

People in the community are solidary as they are aware of the common achievements, which in turn ensure the social sustainability of the community.

This commune is also a specific model in poverty alleviation.

Environmental efficiency Also a community-based environmental management model.

Very successful in preventing diseases and environmental pollution, and in maintaining high productivity sustainable production.

Development of Development of organic shrimp farming: (Source: Nguyen Huu Dung)

1999: First introduction of Organic Aquaculture by VASEP

2000: Start VASEP-SIPPO Cooperation in organic aquaculture

2001: First Organic Shrimp Project certified by Naturland

2002: First shipments of organic shrimp to Europe

2003: SIPPO-MOFI Shrimp Hatchery Improvement Project started

2004: International Conference on Organic Farming and Sea farming

2005: Areas for organic farming enlarged to 40,000 ha in Ca Mau province only and new farms established in other provinces

3.3. ORGANIC SHRIMP FARMING: MEKONG DELTAORGANIC SHRIMP FARMING: MEKONG DELTA

The organic farming emphasizes the protection of the mangrove forests.Strict guidelines have been established to assure the preservation of the mangrove forest and environment as well as the quality of farmed shrimp and the distribution of earnings to farmers.

Larvae density is very low with maximum 2 PLs/m2, some case only 1 PL in several m2. No feed is required.

(Image: Nguyen Huu Dung)

Economic efficiency

The price of the organic shrimp at the farm gate is 20% higher than conventional shrimp.

The organic shrimp pattern needs low investment and operation costs although it needs stringent management

Productivity is higher than traditional extensive farming but nearly no risk happened the production is guaranteed sustainability that ensures the stable incomes for farmers.

(Image: Nguyen Huu Dung)

The success of organic shrimp farming has opened up a new approach for Vietnamese aquaculture sector.

Nearly 500,000 ha of extensive shrimp farming areas have evaluated to be appropriated for organic shrimp farming.

This success is not only a positive symbol in Vietnam but also in the world, when food security is so important in the globalization.

Consumer awareness about food production is growing, and as a result, the organic food sector is showing strong growth in many developed country markets.

The image of the Vietnamese shrimp sector in the world-eyes has been improved after the first ECO shrimp exported to Swiss.

Social efficiency

Organic shrimp farming protects the health of consumers by reducing the overall exposure to toxic chemicals since it does not use artificial feeds, chemicals and other admixtures.

Environmental efficiencyEnvironmental efficiency

Organic shrimp farming also consists of a community-based environmental management system, for which mangrove forests protection is a priority.

The environmental quality and biodiversity has been improved gradually after each season of culturing, as it is also a requirement to maintain the production sustainability.

CONCLUSIONS Shrimp production has been taking a key role in the

Vietnamese economy, contributing 1.372 billion USD in export turn over in 2005. 722,000 hectares of areas were used for shrimp farming in 2005, with many different farming systems.

In parallel with issuing many policies to foster shrimp production, the Vietnamese Government has promulgated policies to guarantee the sustainable development of shrimp aquaculture. However, the practical implementation of these policies has been inadequate, leading to the recent apparition of many serious environmental, economic and social impacts.

Shrimp aquaculture has led to deforestation, exhaustion of ground water resources, salt intrusion and environment pollution. Shrimp aquaculture also led to bankruptcies, loss of land and properties among farmers, as well as to conflicts between shrimp farming and other rural activities using the same water and land resources as well as infrastructures.

The shrimp production is expected to be a livelihood for The shrimp production is expected to be a livelihood for poverty alleviation in Vietnam. That means shrimp poverty alleviation in Vietnam. That means shrimp aquaculture should be developed in a sustainable way to aquaculture should be developed in a sustainable way to create stable employment, ensure high incomes and improve create stable employment, ensure high incomes and improve living standards for farmers. Therefore, the development and living standards for farmers. Therefore, the development and dissemination of success models in shrimp farming is an dissemination of success models in shrimp farming is an urgent requirement in Vietnam. Because many different urgent requirement in Vietnam. Because many different shrimp farming systems have been developed depending on shrimp farming systems have been developed depending on natural ecological and socio-economic conditions, the natural ecological and socio-economic conditions, the applications of appropriate systems to the specific regions applications of appropriate systems to the specific regions are very important.are very important.

3 success cases introduced are considered to be sustainable. 3 success cases introduced are considered to be sustainable. The Duc Thang shrimp farming pattern is suitable for The Duc Thang shrimp farming pattern is suitable for intensive aquacultures while the Vinh Hung community-based intensive aquacultures while the Vinh Hung community-based shrimp farming and organic shrimp farming patterns are shrimp farming and organic shrimp farming patterns are suitable for extensive aquacultures, in which integrated suitable for extensive aquacultures, in which integrated mangrove-shrimp farming or rotation rice-shrimp farming mangrove-shrimp farming or rotation rice-shrimp farming have high potential. have high potential.

RECOMMENDATIONS It is time to have a comprehensive evaluation of shrimp farming

development in Vietnam, which should be focused on the environmental, economic and social impacts to know clearly what has been achieved and what has been lost by shrimp farming. That evaluation will be the foundation for policy making in Vietnam.

To guarantee the sustainable development of shrimp production, the policies must be more practical, the awareness must be raised, infrastructures must be improved and the the success patterns must be broadly disseminated.

The research, development and dissemination of suitable farming systems are an urgent task of the state management agencies, the institutes, the universities and other related organizations.

The participation of local and international NGOs as well as the financial and technical support from international organizations are extremely important in the upcoming times.

Email: thi.nguyen@lemna.com, Mobile: +84.918 393 767

(Image: Nguyen Huu Dung)(Image: Nguyen Huu Dung)

(Image: Nguyen Huu Dung) (Image: Nguyen Huu Dung)

THANK YOU!