INTRODUCTION
Vietnam has a rich history of aquaculture, making it one of the leading countries in the world’s aquaculture development Over thousands of years, aquaculture has become a vital part of Vietnam’s economy, with production value reaching approximately 228,139.8 billion VND in 2018, according to the Directorate of Fisheries The sector significantly contributes to national exports, with seafood export turnover nearing 9 billion USD by the end of 2018, as reported by Vietnam Customs Additionally, aquaculture plays a crucial role in economic restructuring within agriculture and generates numerous employment opportunities, highlighting its social and economic importance.
Vietnam boasts a 3,260-kilometer coastline, over 4,000 small islands, and a vast exclusive economic zone of approximately 1 million km², offering abundant fishing grounds, bays, lagoons, and seafood reserves nearing 3 million tons As consumer demand for fishery products continues to rise, aquaculture—especially fish cage farming—has become an effective method to supplement traditional fishing efforts The fish cage culture has a long-standing tradition in the Red River Delta and the Mekong Delta, and its growth presents new opportunities for economic development across various localities in Vietnam.
Hoa Binh is a mountainous province bordering Hanoi, comprising 10 districts and 1 city, with 210 communes, wards, and towns The province is characterized by a dense network of rivers and streams throughout all districts, with the Da River being the largest water source at 151 km long Hoa Binh Reservoir, covering approximately 8,000 hectares and holding a capacity of 9.5 billion cubic meters, not only supplies water for the Hoa Binh Hydropower Plant but also supports water storage, regulation, and aquaculture Additionally, the province is home to two major rivers, Boi and Buoi, along with around 1,800 hectares of ponds and lakes, serving as vital resources for water management and fish farming By the end of 2017, Hoa Binh had nearly 4,050 fish cages, indicating its active aquaculture industry.
2 thousand cubic meters, total output reaches 7700 tons, creating jobs and stable income for over 5000 workers
In recent years, the government has implemented several policies to promote aquaculture development, including Decree No 10/2015/QĐ-UBND, issued on April 27, 2015, supporting fish cage culture in Hoa Binh hydropower reservoir for the period 2015-2020 Additionally, Decree No 3124/QĐ-UBND, dated September 31, 2013, approved the project to review, adjust, and supplement the fisheries development plan for Hoa Binh province up to 2020 with a vision toward 2030 Most recently, the 2018 Hoa Binh Provincial Party Committee’s sixth congress resolution identified aquaculture as a key sector for investment, emphasizing its role in transforming the regional economy and encouraging households to expand cage culture to boost economic growth and improve living standards.
Besides that, many researches and projects related to fish cage culture were published, mentioned about different aspects of fish cage culture like research by Pham Xuan Thuy and
Vu Trong Hoi in 2012 in the economic efficiency aspect of commercial aquaculture cages in
Research by Bui Dac Thuyet, Nguyen Huu Nghia, and Phan Thi Van in 2017 assessed sustainable small-scale marine fish cage farming models in Cat Ba, Hai Phong, highlighting their potential to adapt to climate change in Northern Vietnam Similarly, Pham Thi Ngoc, Nguyen Thi Duong Nga, and To Dung Tien's 2016 study proposed solutions for developing marine cage culture in Nghi Son Gulf, Thanh Hoa Province These studies demonstrate that fish cage culture significantly contributes to regional economies and improves livelihoods for local communities.
For those reasons, I decide to conduct a study on “ASSESSING THE ECONOMIC
EFFICIENCY OF FISH CAGE CULTURE IN HOA BINH CITY, HOA BINH PROVINCE” in order to get better understanding about fish cage culture.
STUDY GOAL AND OBJECTIVES
Goal
This study evaluates the economic efficiency of fish cage culture in Hoa Binh City, Hoa Binh Province, identifying key factors that influence its profitability By analyzing these factors, the research aims to propose effective solutions to enhance the economic performance of fish cage aquaculture Improving efficiency in cage culture can contribute to sustainable fish farming and increased income for local farmers Understanding the critical variables affecting cage culture costs and yields is essential for developing strategies that maximize profitability The findings provide valuable insights for stakeholders seeking to optimize fish cage farming practices and promote sustainable aquaculture development in the region.
Objectives
(1) To evaluate economic efficiency of fish cage culture in Hoa Binh City, Hoa Binh Province;
(2) To identify key factors influencing the economic efficiency of fish cage culture in Hoa Binh City, Hoa Binh province;
(3) To provide potential suggestions which can contribute to improve economic efficiency of fish cage culture in Hoa Binh City, Hoa Binh province.
Space scale
Research project is carried out in Hoa Binh city, Hoa Binh province.
Time scale
- Primary data collection: From July 2019 to August 2019
STUDY SITE & METHODOLOGY
Study site
Located at the gateway of northwestern Vietnam, Hoa Binh is a strategically important province just 76 km from Hanoi via Highway 6, serving as a transitional area from plain to mountainous terrain and acting as a counterbalance to the capital's western region Surrounded by Phu Tho to the north, Ha Nam and Ninh Binh to the southwest, Son La and Thanh Hoa to the west, and Hanoi to the east, Hoa Binh's terrain is characterized by rolling hills and mountains that slope from the northwest to the southeast, dividing the province into two distinct regions: the higher northwest and the lower southeast Covering a natural area of 4,600 km², Hoa Binh is a mountainous province with one city, Hoa Binh, and ten districts including Cao Phong, Da Bac, Kim Boi, Ky Son, Lac Son, Lac Thuy, Luong Son, Mai Chau, Tan Lac, and Yen Thuy, along with 210 communes, wards, and towns As of 2018, Hoa Binh has a population of approximately 976,699 people, comprising six ethnic groups—Muong, Kinh, Thai, Tay, Dzao, and H'Mong—with the Muong accounting for about 63% of the population.
Hoa Binh features a tropical monsoon climate with distinct rainy and dry seasons, making it a destination with diverse weather patterns The region enjoys an average annual temperature of over 23°C, with July experiencing the hottest months at 27-29°C, while January remains cooler at 15.5-16.5°C Humidity levels typically hover around 60%, and the area receives approximately 1,800mm of rainfall annually, contributing to its lush landscapes.
Hoa Binh province boasts a comprehensive network of rivers and streams distributed across all districts, with the Da River being the largest water source, stretching 151 km Hoa Binh Lake, covering approximately 8,000 hectares, plays a vital role in the region's water resources and has a capacity of 9.5 billion cubic meters, supporting local agriculture, hydroelectric power, and tourism.
The Da River is a vital water source, supplying not only the Hoa Binh Hydropower Plant but also playing a crucial role in regulating and providing water to the Red River Delta Currently, it is a key resource for meeting Hanoi's demand for clean water Hoa Binh Province is also home to two major rivers, the Boi River and Buoi River, covering approximately 1,800 hectares, which contribute significantly to local water resources Additionally, lakes and ponds scattered throughout the province serve as important water storage and regulation reservoirs, supporting sustainable water management in the region.
Ethnic minorities predominantly rely on agriculture, engaging in small-scale farming, rice cultivation in valley regions, and planting tea, coffee, and food crops in hilly areas Industrial development is focused mainly in urban centers, driving economic growth The economy is increasingly shifting towards industrial production, construction, and service sectors, leading to a gradual decline in the share of agriculture and forestry in the nation's GDP.
3.1.2 Hoa Binh City a) Geographic location
Hoa Binh City is strategically located, sharing borders with Ky Son and Kim Boi districts to the east, Da Bac district to the west, Cao Phong district to the south, and Thanh Son district of Phu Tho province to the north The city was selected as a research site due to its accessible location and diverse regional characteristics, making it an ideal example for comprehensive study.
Hoa Binh City, situated in the northern part of Hoa Binh Province, exemplifies nearly all types of topography found in the region The city is also a significant hub for fish cage culture, particularly in districts like Da Bac and Mai Chau These districts are among the top three areas with the largest fish cage cultivation, contributing substantially to the local economy and improving residents' livelihoods.
Figure 1 Map of Hoa Binh province Figure 2 Map of Hoa Binh City, Hoa Binh Province b) Natural condition
Hoa Binh City experiences a monsoon tropical climate, with winter lasting from November to February and summer from March to October The rainy season peaks in July, August, and September, contributing to an average annual rainfall of 1,846 mm The city maintains an average temperature of 23°C, supporting its diverse water resources.
The 23 km section of the Da River flowing through Hoa Binh city is vital for hydropower production, with the Hoa Binh Hydropower Plant operating at nearly 2 million kWh, providing significant renewable energy This river segment also plays a crucial role in regulating water for agricultural and industrial use, preventing floods in the Red River Delta during the rainy season Moreover, the scenic landscape along the Da River enhances Hoa Binh city's natural beauty and tourism appeal The area's favorable conditions support large-scale fish cage farming, leveraging the underground water levels averaging 10 meters, with deeper levels along the riverbanks reaching 40-50 meters Additionally, the Da River geographically divides Hoa Binh into two distinct parts: the left bank and the right bank of Song Da, influencing the region's socio-economic development and infrastructure.
According to People Committee of Hoa Binh City, the total population in Hoa Binh City is 96,667 people (accounting for 10.2% of the total provincial population) and the
Hoa Binh City has a population density of 608 people per square kilometer and comprises 15 administrative units, including 8 wards and 7 communes such as Hoa Binh, Thai Thinh, and Dan Chu The city's economic structure is increasingly shifting towards services (55.1%), industry and construction (38.7%), and agriculture, forestry, and fisheries (6.2%) as of 2015, reflecting a diversified economy The average annual GDP per capita in Hoa Binh City is approximately 40 million VND, supporting a healthy economic environment Moreover, the city's development investment capital has achieved an annual growth rate of 9.4%, indicating strong growth and development prospects.
Methodology
Definition of aquaculture and fish cage culture
Aquaculture, as defined by the Food and Agriculture Organization (FAO, 1988), involves the farming of aquatic organisms such as fish, molluscs, crustaceans, and aquatic plants This practice requires active intervention in the rearing process—such as stocking, feeding, and predator protection—to enhance production Additionally, aquaculture typically involves individual or corporate ownership of the cultivated stock, ensuring management and control over the aquatic farming system.
Fish cage culture is a widely used method for freshwater fish production, involving the confinement of fish within cages made of wire or fiber netting suspended from floating frames (C.E Boyd, 2013) This aquaculture technique is practiced globally, allowing multiple communities to utilize the same water body while enabling individual farmers to manage their own specific fish farms efficiently.
Fish cage culture, as outlined by the United Nations Development Program and the Ministry of Fisheries in 2002, is a highly productive form of fish farming that is ideally suited for rivers, streams, and reservoirs This technique leverages specific terrain conditions to maximize yield, making it an efficient and sustainable method of aquatic cultivation.
3.2.1 Framework of factors influencing economic efficiency of fish cage culture
The Theory of Constraints (TOC), developed by Israeli physicist Eliyahu M Goldratt, is a systematic approach to management that focuses on identifying and managing key limitations that hinder business performance According to Bushong, J Gregory, and John C Talbott in their April 1999 CPA Journal article titled "An Application of the Theory of Constraints," TOC emphasizes adapting business practices to address constraints, with the goal of maximizing process efficiency at critical points This approach aims to enhance mixed incomes, quality, and other corporate objectives by optimizing resource utilization and process performance.
Figure 3.1: Potential factors influence economic efficiency of fish cage culture
Research indicates that household characteristics such as the age and sex of the household head, education level, and experience in fish farming significantly influence the economic efficiency of fish farming (A.T Olawumi et al., 2010; Gamal El-Naggar et al., 2006; Roberto Manolio Valladão Flores and Manoel Xavier Pedroza Filho, 2014) According to Gamal El-Naggar (2006), greater experience enhances the quality of fish farming activities, increasing the likelihood of successful sales Additionally, education level plays a crucial role in sustainable development by improving knowledge of fish culture techniques and environmental awareness.
The number of family members residing on the farm significantly influences fish cage culture activities Fish farmers, mostly operating small farms with diverse productive activities, require considerable time and dedication for successful fish farming Having more family members can provide additional labor for fish cultivation, thereby increasing the chances of successful sales and overall farm productivity.
(2) Characteristics of farm and biophysical factors
The economic efficiency of fish cage culture is significantly affected by various factors, including the size of the fish farm, the quality of infrastructure, and biophysical conditions such as water resources and climate These elements collectively influence productivity and operational success, highlighting the importance of optimizing farm characteristics and environmental conditions for sustainable aquaculture development.
Fish farming depends on available surface water, with larger water areas enhancing the likelihood of successful fish sales Expanding the farm area increases production potential, thereby boosting sales opportunities Specifically, each additional hectare of farmland increases the probability of selling fish by 136.8%, highlighting the importance of farm size in successful aquaculture operations (Roberto Manolio Valladão Flores and Manoel Xavier Pedroza Filho).
Fish cage culture requires strict environmental management to prevent pollution and disease outbreaks Poor environmental oversight in farming areas can lead to pollution, which harms aquatic health and causes significant losses for farmers Maintaining optimal environmental conditions is essential for sustainable and profitable cage culture practices.
(3) Economic factors (Financial status of farmers and credit situation, market, input/output price, …)
Economic factors significantly influence the efficiency of fish cage culture by affecting investment opportunities and profit returns Key elements include the financial stability of farmers, availability of credit, market demand, input costs, and output prices These factors collectively determine the profitability and sustainability of fish farming operations Optimizing financial conditions and market conditions can enhance economic efficiency in aquaculture.
Household financial status significantly influences investment in fish cage culture and mixed income generation, with higher-income households having greater resources to invest and a higher likelihood of selling fish However, increased income often enables additional farm activities beyond fish farming, which can reduce the time dedicated to fish care and lower the chances of making sales (Flores and Fillo, 2014).
The market plays a crucial role in the fish cage culture industry, directly influencing production restructuring to meet consumer demand Diverse market requirements lead to adjustments in product offerings, aligning with different customer needs The fish cage market operates at multiple levels, including grassroots, local, domestic, and international markets, encompassing wholesale and retail sectors Recently, rapid growth in aquaculture has significantly transformed the aquaculture product market, especially the fish product segment, driven by evolving consumption patterns and increased market demand.
The event proceeded more smoothly, reflecting the progress in farming and fishing production This development not only results from advancements in agricultural and aquatic industries but also plays a crucial role in promoting the growth of the fish industry and enhancing economic efficiency.
(4) Social factors (Community support, membership in group, access to extension services, credit…)
Social factors play a crucial role in the economic efficiency of fish cage culture, alongside household characteristics, farm features, biophysical, and economic factors These social factors include community support, membership in groups, access to extension services, and availability of credit, all of which significantly influence the success and productivity of fish cage farming.
Membership in a farmer association, measured as a dummy variable, positively impacts the output and efficiency of fish farmers in Egypt Farmers who are members of farmer groups have greater access to extension services, which provide essential information on productivity and efficiency-enhancing practices Consequently, they are more likely to achieve higher productivity and efficiency compared to non-members This highlights the importance of farmer associations in promoting sustainable and efficient aquaculture practices (Naggar et al.).
RESULTS AND DISCUSSION
Current situation of fish cage culture in Hoa Binh city, Hoa Binh Province
In recent years, intensive fish cage farming on rivers and reservoirs of Hoa Binh province in general and Hoa Binh city in particular has developed strongly on a large scale
By the end of 2018, Hoa Binh city's fishery output reached 980 tons with a total added value of 17.8 billion VND, accounting for 4.78% of the city’s agriculture, forestry, and aquaculture production value The city operated 997 net cages at that time, and plans aimed to increase the production value of aquatic products to over 26 billion VND by 2020, representing 6% of the combined agriculture, forestry, and aquaculture industry value Currently, Hoa Binh has 1,200 fish cages and produces over 1,300 tons of aquatic products annually, with 70% of these products consumed outside the province The local government emphasizes consolidating resources, applying science and technology to enhance breeding practices, and developing high-value fish species to boost the sector’s economic contribution.
To foster sustainable development, maintaining and developing a strong linkage model between production and consumption is essential Farmer groups voluntarily cooperate to connect production within an efficient value chain, promoting effective operational practices Since 2015, Hoa Binh City’s People's Committee has supported this initiative through Decision No 10/2015/QD-UBND, which introduces policies to encourage cage culture development at Hoa Binh Hydroelectricity Lake, strengthening local aquaculture and economic growth.
In 2020, post-investment support of VND 1,980 million was provided to 113 households engaged in fish farming in Thai Thinh commune, Hoa Binh city This support covered a total of 77 households with 153 cages, enabling cage fish farmers in Hoa Binh city to receive full funding according to their registered production development plans.
4.1.1 Scale of fish cage culture in Hoa Binh City
Fish cage culture along Hoa Binh hydropower lake has seen strong development in recent years However, current farming areas lack strategic planning, resulting in fragmented and spontaneous growth To promote sustainable fish cage farming, ensure food safety and hygiene, and overcome existing challenges, implementing comprehensive planning and new development strategies is essential for the future of aquaculture in the reservoir.
The planning for cage fish farming is outlined in Decision No 3124/QD-UBND, dated December 31, 2013, which approved the project for reviewing, adjusting, and supplementing Hoa Binh city's fishery development plan through 2020 with future orientation to 2030.
- Number of rearing cages: 1,200 cages by 2020 and 1,800 cages by 2030
- Production of fish cage farming: By 618 tons by 2015, 1058 tons by 2020 and 2900 tons by 2030
Developing fish cage culture in hydroelectric reservoirs should be done sustainably to avoid compromising water quality, while enhancing the overall water environment through ecological balance Establishing concentrated fish cage farming villages and constructing access roads to fishing wharves can promote efficient aquaculture practices Additionally, expanding fisheries and building infrastructure along the lake not only boosts local fishery economies but also creates scenic landscapes that attract ecotourism and nature exploration, contributing to the growth of the tourism industry.
For fish cage culture techniques: It is recommended to use cages with dimensions of 5m long x 4m wide x 2.5m deep, or 5m long x 5m wide x 3m deep The cage has floats and
21 can move easily to avoid floods during the rainy season On the cage surface, accommodation is managed by the on-site care manager
The culture mode primarily focuses on single species, particularly water-loving fish that feed directly, such as unisexual tilapia, white plaice, red tilapia, grass carp, and high-value indigenous species like goby, fry, and mausoleum Additionally, it incorporates new breeding objects well-suited to the natural conditions of each region, including sturgeon and salmon, to diversify and optimize aquaculture production.
Fish cage culture farmers utilize industrial and processed feeds to reduce environmental pollution and boost productivity They strategically select locations to organize cages into concentrated production zones, fostering efficient fishery logistics Over time, this approach helps build an integrated system that includes seed supply, equipment provisions, and technical consultancy services, enhancing overall aquaculture sustainability and efficiency.
Planning on cage fish culture sites
Table 4.1: Fish cage culture development plan to 2020, vision to 2030 in Hoa Binh city
Volume (m3) Yeild (ton) Number of cages
(Source: Decision No 3124 / QD-UBND dated December 31, 2013)
4.1.2 Results of aquaculture industry in Hoa Binh city
According to Table 4.2 statistics, the aquaculture area in Hoa Binh hydropower lake increased significantly from 514 hectares in 2016 to 656 hectares in 2017, reaching 681 hectares in 2018 Over three years, the aquaculture area grew at an average rate of 115.1%, indicating a strong uptrend and promising future growth potential for aquaculture in the region.
Table 4.2: Area and production of fishery in Hoa Binh in 2016-2018
(Source: Agriculture Department of the districts along Hoa Binh Reservoir, 2019)
The aquaculture industry in the region primarily focuses on high-value commercial fish species While some aquatic products like shrimp and turtles are cultured in small quantities, the long-standing experience in fish farming has driven the sector’s development Leveraging abundant lakes, rivers, and streams, local communities have adopted diverse fish farming models, notably the rapid expansion of cage fish farming in recent years to maximize surface water use and enhance income From 2016 to 2018, regional fish catches increased steadily, reaching 123.5% in the PRC, highlighting a strong and growing consumer demand for aquatic products.
The district's high fish production highlights its significant potential for aquaculture development To meet the extensive demand for seafood within the region and Hanoi city, the catch is diversified to include various aquatic products This strong market demand underscores the enormous growth opportunities in the region's aquatic industry, encouraging increased investment in fish farming and other seafood industries.
Hoa Binh's aquaculture industry, especially fish farming, has experienced significant growth in recent years, playing a crucial role in boosting regional economic development This expansion has contributed substantially to the overall increase in agricultural output and regional prosperity Looking ahead, Hoa Binh aims to further develop its fish farming sector, positioning it as a key economic driver that will generate substantial revenue and positively transform local communities.
The rapid growth of cage fish farming has played a crucial role in harnessing natural conditions, transforming the local production structure, and boosting residents' incomes This sustainable aquaculture practice has also contributed to economic diversification in rural communities, fostering new trade opportunities and supporting overall regional development.
Table 4.3: Number of cages, cage production of Hoa Binh in 3 years 2016-2018
4 Growth out (GO) Million VND 120.096 134.893 145.231
5 Average of growth out Mill.VND/cage 52.38 38.74 37.33 (Source: Department of Agriculture of Hoa Binh, 2019)
From Table 4.3, we see that the number of fish cages in the district increased sharply in 3 years, specifically from 2016, the number of fish cages in the district has only
The number of fish cages increased from 593 in 2017 to 482 in 2017, and then sharply to 800 in 2018, highlighting a strong commitment by districts along the lake to develop cage culture This growth reflects local stakeholders’ recognition of the area's advantages and potential as a key strategy for poverty reduction Focused investment of capital and resources has significantly boosted the productivity and commercial fish production in the region in recent years.
Recent aquaculture trends highlight Black carp, Red Tilapia, and Naked catfish as the most cultivated fish species, reflecting their high economic value and market demand Naked catfish, in particular, stands out as a leading freshwater species in the North due to its delicious, nutritious meat, which commands high market prices In 2016, Red Tilapia was the most farmed species, accounting for 46.2% of cages, but from 2017 to 2018, cage numbers increased significantly in Hoa Binh, driven by the species’ high productivity and yield Developed northern regions such as Hanoi, Hai Phong, and Quang Ninh show strong demand for Naked catfish, underscoring its status as a key freshwater specialty with substantial economic importance.
Descriptive statistics on surveyed households in Thai Thinh commune, Hoa Binh city
A total of 90 respondents were interviewed at the study site Table 4.10 presents the descriptive statistics for twelve quantitative variables, categorized into three groups: the characteristics of the household head, such as "Age of Household Head"; and household characteristics, including "Total Members of Household." These data provide valuable insights into the demographic and household profiles of the respondents.
The surveyed households engage in plantation activities, which are characterized by eight key variables including members practicing planting and total household monthly income The household heads range in age from 28 to 80 years old, with an average age of approximately 48 years A limited number of young people participate in plantation activities, primarily because many migrate to larger cities in search of better employment opportunities and higher income This demographic trend significantly influences the community’s agricultural practices and economic stability.
Table 4.10: Descriptive Statistics of quantitative variables
N Min Max Mean Std Dev
Age of household head (years old) 90 28 80 48.23 13.916
Total households income per month
Total investment in 1 ha fish farm 90 10.0 35.0 16.99 2.768
Area of fish farm affected by storm, flood (ha) 90 0 02 01 15.914
Most household heads in the four communes have achieved a high school education, accounting for 69.9% (93 individuals), despite an average age of nearly 58 years While 26.9% (36 household heads) stopped their education at secondary school, only five have primary school education Notably, among those practicing large-scale timber work, 43 out of 55 household heads have completed high school, with only one at primary level and eleven at secondary level, indicating a strong correlation between higher education and timber-related occupations.
Table 4.11: Descriptive Statistics of qualitative variables
4.2.2 Fish cage culture activities of surveyed household in Thai Thinh commune, Hoa Binh city
The source of capital at the start of the rotation plays a crucial role in influencing household heads' investment decisions in fish cage cultivation Notably, 83 households, representing 96.3%, finance their fish farming ventures through their own funds, highlighting the importance of self-investment as the primary source of capital in this agricultural activity.
In a survey, it was found that 38% of capital investments come from households' own funds, while only 3.7% lack sufficient own capital, relying mainly on project loans or credit funds During the first rotation of fish farming, farmers typically need to borrow from external sources to invest in constructing cages; however, by the second rotation, they start generating profits from selling fish products, which they reinvest into their fish farms.
Figure 4.1 Sources of capital of households at the beginning of seasonal
Fish cage farming and revenue from selling fish of surveyed households :
Red Tilapia, Black Carp, and Naked Catfish are the three dominant fish species in household fish cage production in Thai Thinh commune Farmers prefer these species because they generate quicker returns on investment compared to other fish varieties These popular species contribute significantly to the income of local fish farmers, making them the preferred choices for aquaculture in the region.
Consumer demand significantly influences local farmers' decisions, as they aim to ensure their products align with market needs Survey data indicates that fish rotation periods at the study site range from approximately 5 to 15 months, highlighting the importance of timely production cycles to meet market demand and optimize aquaculture sustainability.
Sources of capital of househols at beginning fish cage culture activities
The revenue from fingerling rotation is approximately 70 million VND per hectare Fish prices are influenced by various factors, including environmental conditions and proximity to the market, which can significantly affect profitability.
Area of fish cage affected by storm and flooding
Most respondents indicated that their fish cages were not damaged by storms, with nearly 0% of the fish area affected This suggests that the impact of storms on fish habitats is minimal, primarily because most cages are located on Hoa Binh Lake and are protected by dams The highest reported percentage of storm impact on fish areas is only 10%, demonstrating the effectiveness of these protective measures in safeguarding aquaculture against storm damage.
Sources of fingerling in Thai Thinh commune
According to the survey, 66.4% of households were unaware of the sources of the fingerlings they purchased This indicates that many farmers buy small fish primarily based on price and personal relationships rather than source verification Consequently, farmers tend to opt for cheaper fingerlings, potentially affecting the quality of their aquaculture practices Ensuring transparency in fingerling sources is crucial for enhancing fish farm productivity and maintaining sustainable aquaculture.
40 price to reduce the cost of fish farming Meanwhile, there are only 33.6% of surveyed household said that they bought fingerling from cooperative in Thai Thinh commune
4.2.3 Correlation analysis of factors with mixed income of fish cage culture in Hoa Binh City
Several factors can influence the mixed income of fish cage culture in Hoa Binh city, with some showing strong correlations while others do not To identify these relationships, the study employed the Pearson correlation coefficient, which measures the strength and direction of association between variables The results, detailed in Table 4.12, highlight which factors significantly impact the household’s mixed income, providing valuable insights for optimizing fish cage farming profitability.
Table 4.12: Variables have strong relationship with Mixed income of fish cage culture in Hoa Binh city
Independent variables Pearson correlation Sig (2- tailed)
Knowledge about fish cage culture 561* 000
* Correlation is significant at the 0.05 level (2-tailed)
** Correlation is significant at the 0.01 level (2-tailed)
The result of correlation shows that there are 6 variables have strong relationship with mixed income of surveyed households (Table 4.12)
- The result of “Education level” variable indicated that the significant Pearson coefficient value is 0.537 with p-value is 0.000, thus we can say that we have evidence to
41 believe that Education level of household heads and mixed income of household on fish farming are linear correlated
The analysis reveals a significant p-value of 0.000 for the variable "Knowledge about fish cage culture," indicating strong evidence of a linear correlation between knowledge and household income The Pearson correlation coefficient of 0.561 demonstrates a moderate, positive relationship between understanding fish cage culture and mixed income levels This positive association suggests that increased knowledge about fish cage culture is linked to higher household income, highlighting its potential impact on income enhancement strategies.
The p-value for the "Price of products" variable is 0.000, indicating strong statistical evidence of a linear correlation between the Price of products and mixed income The Pearson correlation coefficient of 0.544 reflects a moderate, positive relationship between these two variables This significant correlation suggests that as the Price of products changes, mixed income tends to change in a similar direction, highlighting an important association relevant for understanding market dynamics.
The p-value for the "Fingerling cost" variable is 0.000, indicating strong evidence of a linear relationship between fingerling cost and mixed income A significant Pearson correlation coefficient of 0.475 demonstrates a moderate and positive correlation between these two variables This suggests that as fingerling costs increase, mixed income tends to rise accordingly, highlighting the importance of managing fingerling expenses for income optimization.
The p-value for the "Join the production chain" variable is 0.001, indicating strong statistical evidence of a linear correlation between "Join the production chain" and mixed income The Pearson correlation coefficient of 0.359 reflects a moderate, positive relationship, suggesting that as participation in the production chain increases, mixed income tends to rise accordingly These findings highlight the significant positive association between these variables, emphasizing the importance of the production chain in influencing mixed income levels.
Key divers influence mixed income of fish cage culture of surveyed households
The regression model with five variables identified key drivers affecting the mixed income of fish cage culture An adjusted R² of 0.605 indicates that 60.5% of the variance in mixed income is explained by water area, education level, number of cages, food prices, and labor costs These findings highlight the significant impact of these factors on fish cage farming profitability.
Number of cage, price of food and training) which had statistically significant less than
0.05 are statistically significant influence to mixed income of fish cage
Table 4.13: Key divers affecting to mixed income of fish cage culture
Knowledge about fish cage culture 200 256 002 1.438
Joint the production chain 255 -.083 008 1.146 a Dependent Variable: Mixed_income
Bases on unstandadized coefficients, we have the final model equation:
Mixed_income = -0.966 + 0.244 *Education_level + 0.200*Knowledge_fish_cage +
0.316*Price_products + 0.255*Joint_production_chain
The contribution of independent variables to the model
Table 4.14: The contribution of independent variables
Variables Absolute value of beta
Knowledge about fish cage culture 0.256 25.6 3
Based on Table 4.14, the product price is the most influential factor affecting household income, contributing 29.4% to the final model Education level is the second most significant variable, accounting for 27.0% of the influence Knowledge about fish cage culture among households also plays a substantial role, contributing 25.6% Lastly, participation in the production chain has the least impact, with a contribution of 19.4%.
Orientations of fish cage culture development in the future
A survey revealed that 86 households, representing 95.56% of fish farmers, reported that cage fish farming yields 2-3 times higher efficiency compared to other agricultural sectors Only 4 households considered cage culture less effective, primarily due to limited experience in cage fish farming Most farmers, 83 out of 90 (92.22%), believe that cage culture offers lifelong productivity under certain conditions for intensive farming However, a small number, 7 households, expressed concerns about potential high risks, doubting the long-term sustainability of cage culture.
Table 4.15: Opinions of households about plan in the future
Higher value than other businesses 90 100.00
Fish farming ensures future life 90 100.00
Looking ahead, most households plan to maintain or expand their fish farming areas, accompanied by increased investment in aquaculture However, about 5.56% of households (5 out of the surveyed) intend to reduce their farming areas due to labor shortages, limited human resources, excessive land size, or a desire to rest, which leads them to shift farmland to family members.
In recent years, fish cage culture in Hoa Binh City has experienced significant growth, contributing to local aquaculture development Despite notable achievements, practical research indicates that the industry still faces certain challenges that hinder optimal productivity These limitations, including limited cultivation areas, prevent fish farming in Hoa Binh from fully realizing its productive potential Addressing these difficulties is essential to enhance productivity and maximize the region's aquaculture capacity.
Small production, many households develop spontaneously without planning
Many fish cage farmers still lack comprehensive scientific and technical knowledge, resulting in uneven qualifications across the industry This knowledge gap hinders the adoption of advanced farming techniques, leading to lower productivity per unit area Improving farmer training and technical expertise is essential to enhance overall efficiency and maximize yields in fish cage aquaculture.
Many households lack the necessary capital and confidence to make decisive investments in aquaculture, often adopting a half-hearted approach Initially, they release a large number of seeds, but to achieve optimal yields, proper feeding is essential However, due to limited funds and reluctance to further investment, their efforts are often ineffective Some households rely on state support to sustain their aquaculture activities, highlighting the need for improved access to investment resources and capacity building.
In the recent period of policies, programs to support the development of cage culture are few
To promote the sustainable development of cage culture in the coming years, it is essential to address and resolve key challenges such as overcoming existing difficulties and limitations Focusing on these critical issues will ensure the industry's growth and resilience, supporting innovative solutions and effective management strategies to foster long-term success.
Practicing well the overall planning for developing fish cage culture, developing concentrated, systematic and synchronous production
Paying attention to developing irrigation, electricity, roads and infrastructure systems in service of cage fish development
Improving the intellectual level of the people, enhance the training, propaganda and dissemination of techniques for cage fish farmers
Gradually modify local fishery structures by increasing the proportion of high-value, economically beneficial fish species, while reducing reliance on traditional species with low economic returns and limited effectiveness.
Strengthening the State management, there are more policies to encourage investment, capital support, technical assistance, new seed prices for farmers
Potential suggestions which may encourage local people to develop fish cage culture
a Solutions to stabilize and expand output markets for fish cage culture products
Price is the most critical factor influencing the combined income of fish farmers in Hoa Binh city Currently, fish cage farmers operate individually, with selling prices heavily dependent on traders and remaining relatively stable To enhance fish prices and achieve greater stability, collaboration among producers, local purchasing companies, management agencies, and the government is essential to develop the Hoa Binh fish cage brand Increasing purchase prices from cage companies will directly lead to higher and more stable input prices for farmers, fostering sustainable income growth.
Enhancing the knowledge and technological skills of cage fish farmers is essential for the sustainable development of rural agriculture, especially amid industrialization and modernization efforts Introducing new fish breeds and advanced technological processes demands that farmers possess sufficient technical expertise and adhere strictly to proper procedures As the quality of fish breeds improves, the technical requirements become increasingly stringent, making education and compliance crucial for successful and progressive cage fish farming.
Households that effectively apply scientific and technical research findings to their production practices can significantly enhance productivity, product quality, and economic efficiency, thereby promoting district-level development Prioritizing the integration of appropriate technology is essential for optimizing production models and achieving better economic outcomes Emphasizing the adoption of modern technology in household farming and manufacturing practices is a key strategy for sustainable growth and increased competitiveness in the local economy.
Farm households aim to achieve high income relative to the effort and capital invested in household production Effective management and organization of production activities are essential, including stages such as production preparation, process organization, and product consumption Understanding these key aspects ensures optimal farm performance and economic success.
Strengthening the organization of conferences and seminars among cage fish farmers facilitates knowledge exchange and networking Visiting and learning experiences both within and outside the province enhance farmers' technical skills and practical expertise This approach effectively increases farmers' access to scientific and technical knowledge, ultimately improving aquaculture productivity and sustainability.
To effectively promote the fishing industry and enhance public awareness, it is essential to have a team of highly qualified and dedicated fishery employees skilled in communication These professionals play a crucial role in disseminating scientific and technical advancements, raising community knowledge, and fostering engagement Additionally, implementing solutions that encourage households to join production chains can strengthen the industry’s development and sustainability.
The development of fish farming relies on collaboration across multiple sectors to ensure sustainable growth A joint venture between government agencies, scientists, entrepreneurs, and farmers is essential for effective fisheries development On June 24, 2002, the Prime Minister issued Decision 80/2002/QD-TTg, which promotes the sale of agricultural products through contract farming, establishing the "4-House" linkage: the State, Scientists, Entrepreneurs, and Farmers Enterprises play a central role by proactively signing contracts, guiding farmers on techniques, providing loans and supplies, and implementing product price guarantees, ensuring mutual benefits The State supports this framework through policies that encourage investment and facilitate coordination, strengthening the entire fish farming supply chain.
Effective infrastructure construction and strategic planning of raw material areas are essential for promoting scientific and technological advancements, boosting trade, and ensuring the legal enforcement of contracts To achieve sustainable fish farming, establishing strong collaborations and joint ventures among the involved agencies, organizations, and farmers is crucial for the development of cage culture Additionally, continuous inspection, supervision, and the implementation of targeted solutions are necessary to support the sector's growth and sustainability.
Economic development worldwide demonstrates a close relationship between growth and investment capital; high growth necessitates significant accumulation and sustained investment In aquaculture, especially cage culture, seasonality makes timely investment crucial for productivity and efficiency According to a survey, 92.65% of households face difficulties in securing investment, and 79.19% have loans for cage fish production, primarily from banks, with household capital being minimal On average, households seek to borrow around VND 400 million to develop cage culture As cage farming is relatively new and many households have transitioned from agriculture, they encounter various challenges, especially given the large capital requirements not only for initial setup but also for ongoing operations.
49 spend capital to renovate every year that many farmers have to face many difficulties in raising capital
Developed countries' fisheries experiences demonstrate that government policies on impact assessment, support, and encouragement are essential for developing cage culture Active policymaking significantly influences growth orientation, leading to appropriate and effective results However, recent support policies and programs for aquaculture development remain limited Moving forward, future efforts should prioritize investment policies and those that support production and consumption to foster sustainable aquaculture growth.
Environmental impact assessment is a scientific process that involves investigating, researching, analyzing, and forecasting to identify solutions that minimize the environmental effects of cage culture and fish farming areas It emphasizes the importance of strict inspection and enforcement of environmental laws, particularly in managing waste water from factories, industrial parks, and clusters to prevent pollution of local river systems This approach aims to promote sustainable aquaculture practices while protecting surrounding ecosystems.
Carry out periodic monitoring of coastal environment warnings, promptly notify cage fish farmers of environmental changes to have appropriate plans for fish harvesting and protection
Well implementing measures to prevent storms and floods Promptly notify the changes in the weather so that fish cage farmers can have a timely solution to avoid unnecessary losses