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Chapter I Introduction

 

CHAPTER I
INTRODUCTION

 

 

I. BACKGROUND AND RELEVANCE OF THE THESIS

            Nowadays, in developing countries, the weight of poverty falls most heavily on certain disadvantaged occupation groups such as marginal and landless farmers, traditional fishing populations, traditional handicraft, construction-workers, tenants, etc. Especially, in Asian countries, traditional, or small-scale fishers are regarded as an extreme poor group. Even in Malaysia where per capita income is among the highest in Southeast Asia, more than 50 percent of the traditional fishermen lives below the official poverty. In Philippine, this number is 75 percent. The similar situations also happen in Bangladesh, Indonesia and India where there have a very large number of the fishers regarded as poor. Not only traditional but also the commercial fishermen are reflected to be seriously threatened in these countries.                                                            

What are about the fishermen in Vietnam? How do they live now? Are they as poor as the fishers in some Asian countries? How poor are the fisher folks as compared to other occupational groups, such as to farmers? Up to now, these questions have been still unclear problems because of very few researches on the poverty assessment of the fisher folks in Vietnam now. Except for some reports and articles, the poverty of the Vietnam fisher folks has not been considered yet.  Moreover, the World Banks report (1995) on poverty in Vietnam discusses that, the highest poverty rate, 60%, is found among the farmers, and the second poorest one is the construction-workers. Are the fishermen poorer or richer than these groups? This is an interesting question.
The discovery of the fishermen's poverty situation in Vietnam can help us understand clearly about this problem and carry out targeting polices of reducing their poverty more efficiently.

The reasons mentioned above make me more motivated to assess the poverty of the Vietnam fisher folks. This thesis will try to look the fisher folk’s poverty in Vietnam to find the answers to questions raised above.

 

II. scope of the thesis

a. To assess the poverty situation of the fisher folks in Vietnam: the incidence, the depth and the severity of poverty

b. To find out the poverty status of the fisher folks and compare it to others in different sectors of employment in Vietnam 

c. To analyze some of the principal characteristics of the poor fishers as compared to those of other poor

d. To break down the factors affecting the poverty situation of the fisher folks

The study uses mostly data obtained from the Vietnam Livings Standard Survey 1997-1998 and other information sources from Ministry of Fishery (MOF) and from newspapers, reports and articles. Due to different sources of the data, consequently the result of this study may be affected. The results of the VLSS 98 survey can be representative at the national, urban/rural level and for some indicators at regional level. However, because of quite small sample size of the fishing households obtained from the VLSS 98, so this limitation does not allow for regional estimates.

 

III. Research questions

This thesis focuses on the key research question: "How poor are the fisher folks in Vietnam now? In order to make clear about this problem, some following sub-questions will be mentioned

1. What is poverty? What is the World Bank 's Approach to poverty? How is poverty measured?

2. How many the fisher folks are poor in Vietnam now? How are they poor? Are they as poor as the fishermen in some Asian countries? How are the fishers poor as compared to people in other occupations?

3. What are the main demographic, geographical, physical, social characteristics of the poor fishermen? What are the differences of these characteristics between the poor fishers and other poor?

4. Why are the fishers poor? What are the factors affecting this poverty situation?

5. What should Vietnam government do to help the poor fishers escape poverty?

 

IV. Structure of the thesis

Except for bibliography and appendix, the thesis includes 5 chapters:

Chapter I: Introduction

Chapter II:  Theoretical and empirical framework

Chapter III: The Profile of the Vietnam capture fisheries.

Chapter IV:  Poverty situation of the fisher folks in Vietnam

Chapter V:  Conclusions and Recommendations

 

 

Chapter II             Theoretical  and Empirical  framework

This chapter researches debates on the topic of poverty and address the World Banks approach to poverty, which is applied to analyze the fishermen' poverty in this thesis. In addition, this chapter also adds important information about the fishermen's poverty in some Asian countries. This information will be lessons for Vietnam in conducting solutions for assistance the poor fishers.

 

I. DEFINITION OF POVERTY

- In a narrow sense, the poor are those whose income or expenditure is insufficient to maintain minimum acceptable level. Consideration here is made not only of food as the main provider of physical efficiency or minimum acceptable level but also shelter, clothing and certain household sundries.

- In a broad sense, poverty is used to denote the entire spectrum of deprivation and ill being which include not only the lack of income or expenditure but also other dimensions necessary for well being (including physical, economical, psychological, spiritual and political factors), and violation of human rights.

-The World Bank approaches to poverty firstly with the narrow sense. Poverty is defined as inability to attain a minimal standard of living. It settles for standard that is “consumption-based”. This standard comprises two elements: “the expenditure necessary to buy a minimum standard of nutrition and other basic necessities and a further amount that varies from country to country, reflecting the cost of participating in the every day life of society”. The second part is far objective, in some countries, it is a luxury but in other it is a "necessity". For operational purpose, the second part is set a side. The first element depends on the minimal caloric intake per capita. The cost of minimum adequate caloric intake and other necessities can be calculated by looking at the price of foods that make up the diets of the poor. The World Bank uses expenditure per capita as the welfare indicator and dual poverty lines (poverty thresholds), one is food poverty line and another is total poverty line. The individual whose expenditure is insufficient to meet the daily minimum level of caloric intake (2,100 calories per day per capita) is regarded as the food poor. And a person lives in total poverty if his expenditure has not enough to meet the minimal level of food and non-food expenditure (other consumption on basic necessities such as clothing, heath, education, etc).

In addition, the World Bank supplements consumption-based poverty measure with several other indicators such as nutrition, life expectancy, under five mortality and school enrolment rate.

 

II. POVERTY MEASURES

Headcount, poverty gap and square poverty gap indexes are statistical indicators that can be designed to describe the size, gap and severity of poverty. Foster, Greer and Thorbecke (1984) devise that three poverty indicators can be determined by the following formula


Where:

            . Pa is simply the mean over the whole population of an individual poverty measure 

which takes the value  (1-Yi/Z) a  for the poor and zero for the non-poor

. Yi is the welfare indicator (here per capita expenditure) for the individual i

. Z is the poverty threshold that is the poverty line

. N is the total number of people in the community or sample population

           . M is the number of people identified as poor

. a can be interpreted as a measure of inequality aversion The higher the value of  a the    more sensitive the measure is to the wellbeing of the poorest person. As a approaches infinity the measure collapses to one which only reflects the poverty of the poorest person.


+ Headcount index: When [MT1] a = 0 we have head count ratio (P = M/N). It gives the proportion of the population with standard of living is below a poverty line. However, this index tells us nothing about the depth of the situation. In addition, successful policies aimed at raising the well being of the poorest of the poor will not affect the headcount ratio if their living standard is still below a poverty line.

 

+ Poverty gap index  is devised when a = 1. It shows the intensity or the depth of poverty. It estimates the shortfall of the poor’s expenditure from the poverty line. It can be used as an indicator of minimum cost of eliminating poverty using perfectly targeted transfers


However, this index does not only ignore the number of poor but also neglects inequality among the poor, it will be unaffected by a transfer from a poor person to some who is less poor.

+Square poverty gap index

It reflects the severity of poverty and gives more weight to the poorest of the poor. It does take into account not only the distance separating the poor from the poverty line, but also the inequality among the poor. Whilst a transfer from a poor household to a poorer one, leaves the head count index and the poverty gap index unchanged, the square poverty gap index would show an improvement.

 

III. DIFFERENT POVERTY'S DEFINITIONS IN VIETNAM

            Three main methods have been used for estimating poverty in Vietnam by the World Bank, General Statistical Office and Ministry of Labour and Invalid Social Affair. These three methods differ in two ways: the definition of the welfare indicators and the approach to setting the poverty lines

1. The World Bank’s poverty lines

 The World Bank (1995) establishes expenditure-based poverty lines. There are two reasons to prefer the expenditure data to income in Vietnam. First, income only raise welfare when it is used for consumption purposes, as opposed to being saved or used to pay debt. Second, income data tend to be inaccurate especially in countries such as Vietnam where the vast majority of workers are self-employed. The World Bank’s poverty line is calculated on the basic of a minimum requirement of 2,100 calories per day per capita on the assumption that a household devotes 70% of its total expenditure to food. The remaining 30% of expenditure are assumed to go to other necessary items such as clothing, health, education and transportation

Basing on VLSS 1992-1993, the World Bank found that a household would need to spend at least VND 750,000 (about $54) and VND 1,160,363 (about $83) per person per year to be out of food and total poverty, respectively. After that, the poverty lines in 1998 is calculated by adjusting 1993’s poverty lines. These adjustments depend on the changes of the prices of bundle of goods. Therefore, food poverty threshold in 1998 increases to VND 1,287,000 ($92) per capita per year and total poverty line, including food and non-food consumption, is VND 1,788,000 ($128) per capita per year.

2. GSO’s poverty line

The GSO also relied on the food energy intake method to compute poverty line. A household is in poverty if its income is not sufficient to buy enough rice to provide 2,100 calories per person per day. This measure makes no allowance for non-food expenses

3. MOLISA’s poverty line

MOLISA established the rice equivalent poverty line by classifying a household as a hungry one if its monthly per capita rice equivalent income is less than 13 kg of rice. Those with a monthly per capita income that allows for less than 15 kg, 20 kg and 25 kg of rice equivalent in mountainous areas and island; plain and midland rural areas and urban areas respectively are considered to be poor.

           

In this study, the author focuses on the expenditure per capita for assessment the fisher folks’ poverty by applying the World Bank’s definition  because this approach is  more comprehensive than GSO or MOLISA's approaches (it includes not only rice or food but also non food components)

 

IV. CAUSES OF POVERTY

            There are many causes and determinants of poverty mentioned by almost economists.

1. Demographic characteristics

 A household with large family size and too many dependants and children will be possibly poorer than another with smaller size will.

Women are more likely to suffer poverty than men are . So a household will be more likely to be poor if its head is female.

2. Education and skilled

The reason of lack of knowledge of doing business-farming; off-farm activities and other activity-as a major reason explains why the poor are poor

3. Isolation disadvantage

People may be poor because of where they live. A family living in a rural area without access to transport, market, vehicle, etc would experience deprivations that would not exist in a city supplied with these and other services

4. Lack of access to productive resources

             It includes lack of access to cultivated land; lack of access to capital. Poor resource base leads to low productivity and then low income. Many studies show that lack of credit is most often cited as the greatest obstacle to poverty alleviation

5. Employment

Employment is one of essential factors affecting poverty. In almost all countries, insufficient and unequal access to employment rank high among the major causes of poverty and inequality

6. Unforeseen shocks and expenses

 Unforeseen shocks are strong threats to a household. They include a variety of sources of vulnerability such as wars, severe floods, drought, typhoons, and pre harvest lean seasons.

 

7. Degradation of environment

Overexploitation reduces the natural fertility of land, forests are cut to meet energy needs, and lakes, rivers and offshore areas are drained of fish. These lead to depletion or irreversible degradation of resource base. Therefore the poor have not sufficient resources to serve their standards of living.

 

V. EMPIRICAL STUDIES: THE POVERTY SITUATION OF THE FISHER FOLKS IN SOME ASIAN COUNTRIES

1.  Asian fishermen

Nowadays, the fishers’ population in Asian countries increases two times as large as that of last two decades. The fishing labor force of each country comprises at least 100,000 persons. Their fishing activities are traditional since the majority of fishing boats is low power and un-motorized. So traditional fishermen still play an important role:  they provide 75 percent of the fish products for domestic market  and create direct employment to millions of people in these countries.

2. The poverty and the characteristics of the Asian fisher folks

a. Poverty

Income per capita is often used to classify the poor and the non-poor in Asian countries. Most of assessments indicate that the fishermen (especially traditional ones) in Asia are regards as extreme poverty. About 50 percent of the fishermen are living in poverty such as in the cases of Malaysia; Philippine, Bangladesh; Indonesia, and India. As for commercial fishermen, there is not a statistical data or survey relating to the poverty situation of this group, but it could be affirmed that, like the traditional fishermen, the living standards of the commercial fishermen have been increasingly threatened by overexploitation; falling of captured quantity; rising cost of fuel and high cost of maintaining large vessels and engines; increasing of competition among fishing nations and the imposition of Exclusive Economic Zone.

b. Characteristics of the Asian fishermen

Asian fishermen have some major characteristics as follows:

+ Scattering along the coasts, estuaries, rivers, and lakes. Most of them are disorganized.

+Using backward types of capture technology

+Suffering from absence of infrastructure and community services;

+Having poor nutritional, health, and low ability of skill and hygienic standards  

+Earning low and irregular incomes; Applying labor intensive rather than capital intensive methods of production; Exploiting non-renewable and open-access fresh water and depleted marine natural resources; Depending heavily on financiers or middlemen; Suffering from debt.

3. Factors affecting the Asian fisher folks’ poverty

 The main factors affecting the Asian fishermen' poverty include:

+ Less access to market

+ Less access to resources

+ Less access to infrastructure and other services

+ Overexploitation and employment

4. Solutions to help the poor fishers in Asian countries

 There are many solutions Asian countries are conducting to help the poor fishers. In recent years, these are active assistance to help the Asian fishers escape poverty

+Generation of employment is one of efficient solutions for reducing the fishers’ poverty in Asian countries.

+ Providing credit and setting funds for activities to help poor fishermen

+ Provision of production and marketing facilities and creation of infrastructure

+ Restrictions on fishing To limit overexploitation of natural resources, licensing and quota restrictions and the limitation entry into fisheries, etc are carried out by some countries.

 

V. CHAPTER REMARK

First, of the different approaches, consumption-based poverty (food poverty and total poverty) is the most popular and simplest way to evaluate poverty. In this study, the author will focus on consumption-based poverty to evaluate poverty situation of the fisher folks in Vietnam.

Second, the empirical studies show that about 50 percent of the Asian fishermen  (majority of them is traditional fishermen) are classified as poor. The solutions for help the poor fishers in Asian countries are valuable lessons for Vietnam Government in the progress of assisting the poor fishers escape poverty.   

 

 

 

 

 

 

 

 

 

 

 

CHAPTER III

THE PROFILE OF THE VIETNAM'S CAPTURE FISHERIES  SECTOR

 

The capture fishery is one important part of the fishery sector as well as of the Vietnam economy. This chapter introduces the profile of the capture fisheries in Vietnam and analyzes the advantages and the disadvantages of this sub-sector for the fishermen in improving their living standards.

 

I. The contribution of the capture fisheries to the vietnam  economy

1. Growth indicator

            From 1980, after the Sixth Central Resolution of the Vietnam Communist Party, the fishery sector has developed strongly and attained significant achievements.

Annually, the fishery sector contributes about 14 percent of Vietnam Gross Domestic product and 9.5 percent to the total export values. Of which the capture fishery sub sector accounts for the biggest contribution, 70 % of fishery sector's quantity.

 

2. Employment

During the 1993-1997 period, the fishery sector provided directly full time employment for more than 450,000 people (from 760,000 in 1993 to 1,210,000 people in 1997, accounted for 4.1 percent of Vietnam's labor force). And the number of people who engaged in the capture fisheries in this period increased by 23 percent.

In 1997, the capture fisheries and aquaculture sub-sectors provided employment for almost 3.9 percent of the labor force with 550,000 people (1.9 percent) in the capture fisheries.

 

II. Vietnam 's Natural conditions for the development of the fishing sector

 Vietnam has a favorable circumstance of natural resources and geographical condition which is convenient for development of fishing activity. However, labor force in this sub sector has to face with many difficulties caused by natural disasters, depletion of natural resources (consequence of destructive actions of man)    

 

 

III. Fishing facilities and overexploitation

1. Fishing vessels

+Although there is a great number of fishing vessels (nearly 1,000,000 pieces) in Vietnam now, a majority of them is of low capacity; traditional and small-scale.

+ Nowadays, most of the fishing vessels operate in relatively shallow water (about 30-40m deep)

2. Fishing methods

+In general, most of the fishing methods are concentrated on the 50 meters depth line which are delimiting narrow shallow water zone, especially along the Central coast.

+Inappropriate, illegal and destructive fishing methods;  backward fishing technology; illegal fishing activities (using of dynamite) have been exploited are an alarmed problem for preserving natural resources.

+Most fishing activities do operate at time where biological production is much lower than Maximum Sustainable Yield (MSY) or they sometimes operate at breeding seasons of fish. These fishing activities often destroy the capacity of natural resource to regenerate.

3. Overexploitation and long term sustainability of the capture fisheries

            Although the data of overexploitation has still not been declared officially it is generally believed and reported that the marine resources in inshore water are overexploited. The evidence suggests that as much as 98.7 percent of total marine fish production in the period 1976-1988 might originate from within the 50 meter depth (see table 1)

Table 1: Estimated fish production by Depth Zones in Vietnam (1976-1988)

Depth Zones

Percentage contribution to fisheries *(%)

<20mtr.

36.9

21-50.mtr.

61.8

51-50mtr.

1.3

>100mtr.

-

Total

100

Source: Estimated by MOF, 1996, which is based on earlier work done by Mr. Le Dang

Phan of the Ministry of Fisheries

* Actual catches for each depth zone

A vast majority of the recent production, about 86%, still originates from within inshore areas and indications are that this share of current fishery may face with severe sustainable problems.

+ For inland water bodies, gillnetting, setnetting and trawling methods are used commonly. Therefore as in the case of inshore water, many inland resources have been overexploited

 

IV. Vietnam's fishermen

+ Most fishermen's activities in Vietnam are traditional. The proportion of the fishers engaged in small-scale fisheries constitutes 90 percent of the total number of fishermen in the country

+ The number of fishermen includes about 550,000 persons of which, 450,000 engaged in the marine and 100,000 in the inland fisheries. Population which relies directly on marine fisheries is about 1,150,000 people, make up to 7 percent population of coastal districts, 2.6 percent population of coastal provinces and 1.39 percent population of the whole country (Ha Xuan Thong, 1995).

+The fishers often concentrate on communities. The fishing communities in Vietnam can be divided into 4 types: (i) the fresh water fishers' communities; (ii) the brackish water fishing groups in estuaries, lagoons; (iii) the beach, bays, island fishing communities; (iv) the concentrated off shore fishing communities.

 

V. CHAPTER REMARK

            The Vietnam capture fisheries is a significant part of the economy. Natural conditions, including geographical condition and natural resources are very convenient for developing the capture fisheries and improving the living standards of the fishermen. However, in the future, the Vietnam fishermen have to face with depleted natural sources, which will impact negatively on their living standards. Further, natural disasters are also severe threats to the life of the fishermen and they become more vulnerable by threats of storms and typhoons.

 

 

 

 

 

 

 

 

 

 

 

 

 

Chapter IV

The poverty situation of the

 

fisher folks in Vietnam

This chapter assess the Vietnam fisher folks’ poverty and compare the poverty situation of the fishers with that of other occupational groups. In addition, this chapter also addresses the factors affecting the fishers’ poverty.

I. The fisher folks' poverty

+ The poverty assessment is based on the second Vietnam Living Standards Survey, undertaken in 1997-1998.

+ A household is regarded as fishing one if majority of its members is engaging in fishing activities. From VLSS 98, we obtain a fishing sample of 100 households.

-The similar way will be applied to collect samples of farmer-households and constructor-households. Hence, of 5998 representative households in VLSS 98, 100 engage in fishing, 3367 engage in farming, 128 work in construction-activities, and 2403 households belong to other occupations.

1. The incidence of the fishers' poverty

Regarding both of food and total poverty, the numbers presented in the figure 4.1 indicate that like the farmers, the fishermen are one of the poorest by sectors of employment.

                                    Sources: Estimates based on VLSS 98

2. The depth and the severity of the poverty

Like the farmers, the fishers do suffer from not only larger but also deeper and more severe poverty than others do.

Table 2: Depth and severity of poverty by occupations in Vietnam in 1998 (%)

Occupation

Head count index

Poverty gap index *

Square Poverty gap index**

Share of poor population

Share of population

Fisher

45

9.3

2.8

2.0

1.7

Farmer

48

12.6

4.8

78.0

61.1

Constructor

39

6.8

2.1

2.2

2.1

Other

19

4.3

1.4

17.8

35.2

Vietnam

37.3

9.5

3.6

100

100

                        Source: Estimates based on VLSS 98

                        * This shows the intensity or the depth of poverty

                        ** This reflects the severity of poverty  

II. Principal Characteristics of the poor fishers

In order to describe fully the living standards of the poor in fishing activity, this part will focus on the analyses of main characteristics of the poor fishers.

1. Rural and urban poverty

            The extent of poverty varies greatly from urban to rural areas. The poverty incidence among the rural fishers is about 4 times as high as that among the urban ones. Of the different occupation groups, the poverty disparity of the fishers between rural and urban is most severe.

 Source: estimates based on VLSS 98

 

 

 

2. Household composition

Household composition of the poor and the non-poor fishers is characterized by main striking features of their households such as household size, the dependant and the child ratio, and other characteristics of its members, e.g. age and sex of households’ head. They are often quite different between the poor and the non-poor fishers.

 a. Household size

Although the difference is not very large, the poorer households are somewhat larger. Among occupations, the average household size of the poor in fishing is larger than that of the poor in other occupations.

b. Dependent ratio

The poor fishers are characterized by a high proportion of dependants. Dependant is defined as any one outside the working age group (16 - 60 years old). In detail, the poorer households in fishing tend to be younger with more children under 15; fewer elderly over age 60, and less working age-adult members than the non-poor ones

The characteristics found among the fishers are also similar for other occupational groups. However, of different occupations, the disadvantages of demographic characteristics dominate in fishing.

c. Gender and age of households head

The fishers living in the female-headed households are less likely to be poor than those living in the male-headed ones. The evidence shows the heads of the poor fishing households are, on average, six years younger than those of the non-poor ones.  And as compared to other poor, the heads of the poor fishers are too young to manage their families

 

3.  Literacy and schooling

3.1. Literacy

One of the most major differences between the fishers in the poor and the rich groups is in literacy. While 23.4 percent of the adult-fishers is illiterate in the poor fishers, the figure falls to just 6.6 percent for those living in the non-poor ones. Moreover, of employment sectors, the poor fishers must suffer the highest literacy gap between the poor and the non-poor. This is one of obstacles of the poor fishers in looking for jobs or obtaining high earnings.

3.2. Schooling

More significant differentials appear in the distribution of school attainment. The poor fishermen are also identified as the least school attainment people with lowest years of schooling of adult-members by different occupations (see table 3).

Table 3: Average schooling of household’s adults by occupations and by poor and non-poor in Vietnam in 1998 (years)

 

Poor

Non –poor

Fisher

4.6

6.4

Urban

4.7

6.6

Rural

4.1

6.2

Farmer

5.8

7.1

Constructor

7.3

8.0

Other

5.3

8.4

                                    Source: Estimates based on VLSS 98

 Further, the fishers in the households headed by someone whose education level is below the upper secondary are more likely to be poor than those in the households headed by someone who attained higher educational level.

4. Housing, conditions and assets

These are main characteristics which reflect physical conditions of the poor fishermen.

a. Housing status

Table 4 documents the differences of housing status among different employment sectors. Most of the fishers, both the poor and the non-poor, are living in the bad status of housing. (temporary or the semi-permanent houses).The numbers also indicate that housing status of the poor fishers are worse than those of the poor farmers or the poor construction-workers. However, the VLSS does not capture the fishing households who often live on rivers and regard fishing boats as their formal houses.

Table 4: Housing status by occupations, poor and non-poor groups in Vietnam in 1998 (%)

 

Fisher

Farmer

Constructor

Other

 

Poor

Non-poor

Poor

Non-poor

Poor

Non-poor

Poor

Non-poor

Total

 

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Villa

 

0.0

0.0

0.0

0.0

0.0

 

0.0

0.0

0.3

Permanent

 

4.3

8.0

5.4

10.6

25.8

24.2

5.1

31.1

Semi-Permanent

56.6

61.5

58.6

69.5

54.4

64.6

42

52.1

Temporary

 

39.1

30.5

36

19.9

19.8

11.2

52.9

16.8

Source: Estimates based on VLSS 98

b. Water status

                 The poor fishers are also extremely disadvantaged in access to safe source of water. Instead, the vast majority of them rely on unprotected and less safe water source-mainly wells without pumps (74.2 percent) and rivers or lakes (14 percent). It is also clear that, the water access of other occupational groups are much better than that of the fishers

c. Sanitation status

                 Similar differences are apparent for sanitation (see table 4.20). This condition of the poor fishers is very bad. Most of the poor fishermen, 71.5 percent, have no toilet of any kind. This figure falls to just 23.4 percent of the poor among the farmers.

d. Electricity

Another indicator of housing standards is access to electricity. Here again the access of the poor fishers lags behind. Use of electricity - the most convenient energy source for lighting is common among the non-poor fishers, but very scarce among the poor ones. The poor fisher folks are also most disadvantaged in access to electricity as compared to others. Most of the poor fishers rely on gas, oil or kerosene lamps for lighting their homes, which accounts for just one-third among the poor farmers..

e. Durable assets

Most of the fishing households, even the poor ones, 50 percent of them have bicycle. However, almost none of the poor fishers have motorbike while nearly one-fifth of the non-poor does. The shift from bicycle transport to motorbike indicates better-off families. It also shows families with better access to a variety of services and amenities. However, as compared to others, the poor fishers are the poorest one in possessing this asset.

Table 5  Possess of durable assets by occupations and poor and non-poor groups (%)

 

Fisher

Farmer

Constructor

Other

 

Poor

Non-poor

Poor

Non-poor

Poor

Non-poor

Poor

Non-poor

Bicycle

48.3

85.4

76.2

87.5

95.3

92.7

70.4

86.1

Motorbike

0.0

16.6

3.9

23.7

0.1

22.9

2.3

52.4

Radio*

39.0

58.8

33.5

52.3

52.6

43.3

29.7

51.4

Electric stove**

0.0

25.4

1.0

11.4

0.1

18.3

2.54

50.9

Color television

2.2

45.9

12.3

40.5

25.7

66.3

15.1

70.4

Telephone

0.0

5.7

0.1

1.9

0.0

3.2

0.4

22.7

Value (mill.dong)***

1,263

11,018

2,012

7,651

1,806

6,707

2,094

18,559

  *Radio item includes radio and cassette player

  **Electric stove includes electric stove rice cooker and pressure cooker

  ***Value is the value of a household's total durable assets at current price

   Source: Estimates based on VLSS 98

Similar differences are apparent for the possess of other durable assets such as electric stove rice cooker, pressure cooker, color television or telephone. Overall differences in possess of durable assets among different occupations are presented by the item of asset value. Of different sectors of employment, the lowest value of durable assets is found among the poor in fishing activity.

5. Employment

 Employment status of the poor fishers is presented in essential indicators such as unemployment rates, working hours, characteristics of fishing activity and opportunities to access to non-farm employment.

a. Unemployment rate

            The person who is in working age, but has no job and is looking for a job during seven days is regarded as unemployed. The prevalence of unemployment among the poor fishers is extremely serious, about three times as high as that found among the non-poor. Moreover, when looking at sectors of employment, the poor fishers are discovered as those with the highest unemployment rate.

Table 6:   Unemployment rates by occupations and poor and non-poor groups in Vietnam in 1998 (%)

 

Poor

Non poor

Total

Fisher

7.04

2.23

4.4

Farmer

0.42

0.37

0.39

Constructor

1.0

2.4

1.81

Other

3.12

2.34

2.49

            Source: Estimates based on VLSS 98

b. Working hours 

This indicator includes working hours in both main and secondary jobs of each adult-member in a household. Large differentials appear in the distribution of working hours per week. This indicator among the poor fishers averages only 36 hours per week, increasing to 43 hours among the rich fishers.  Here too there remains a sizable occupational gap. Mean working hours per week among the poor fishers is lower than that among the poor farmers or the poor construction-workers.

c. Working for wage or self-employment.

In fishing activity, the fishers who are self-employed are less likely to be poor than those who work for wage are.  About 80 percent of the fishers are self-employed, of which just 40 percent of them are identified as poor. But the poverty rate of the fishers who are employees is very high, more than 70 percent.

d. Opportunities to access to non-farm employment

There are various types of non-farm employment. In this study, the author considers the availability of recruiting factories in the villages where fishers are living.  The poor fishers are more disadvantaged with less opportunity to access to factories than the non-poor are. Just one-fifth of the poor fishers live in villages which have recruiting factories, whereas majority of the non-poor ones has this beneficial features. This disparity also happens among different occupations, but the poor fishers are the most disadvantaged.   

6. Isolation characteristics of the poor fishermen

Isolation from markets, physical infrastructure, transportation, etc have close relations to the probability of a household being poor. Isolation characteristics are reflected most clearly in urban and rural disparity. Except for water and electricity characteristics named in the part of housing characteristics, the author presents some more isolation characteristics of the poor fishers such as market and road access.

a. Access to road

Table 7 verifies the average distance from a household’s village to the nearest transportation road.  Access to road is typically a major problem of the poor fishers in the rural areas. In addition, a striking feature found among occupational groups is too large disparity among occupations in access to transportation.

Table 7: The average distance from a household’s village to a nearest road (km)

 

Urban

Rural

 

Poor

Non-poor

Poor

Non-poor

Fisher

0.2

0.0

7.2

1.2

Farmer

0.3

0.1

1.1

1.1

Constructor

0.0

0.0

0.1

0.1

Other

0.1

0.0

2.6

1.8

Note: The distance from a household’s village to a nearest road is zero if a road

 lie within this village or  household is living in large and medium urban areas

            Source: Estimates based on VLSS 98

a. Access to market

Access to market is also considered as one of the most significant factors affecting economic well being of the poor.  People with easy access to market are less likely to fall in poverty as compared to those lacking of access to market. Market is very important for the fishers. Since captured products are too difficult to preserve and transport for sale if fishers live far from markets. Isolation from access to market is also an obstacle to the poor to attend commercial activities for improving their income. As expected, the poor in the fishing are worse-off as compared to their counterparts in other occupationsin access to this physical infrastructure. However, the ranking of the poor in terms of access to market still verifies that the most disadvantaged ones are the poor fishers with the largest average distance of 7.8 kilometers from their home to the nearest market.

 

7. Access to resources

7.1 Access to credit

The poor typically lack of either saving or credit (not only for initial investment in starting business but also for sustaining business, disease control when there is epidemic, training of some basic methods and skills). Surprisingly, the fishers strongly have access to credit market. Of occupation groups, the average amount of borrows among the fishing households both the poor and the non-poor is largest. Therefore, it is very unclear for the conclusion that the poor fishers are disadvantaged in access to credit as compared to other poor. However, the disparity happens within the fishing groups itself, the poor is  less advantaged than the non-poor in access to credit

7.2 Access to cultivated land

Cultivated land includes annual crop land, perennial crop land, water surface, forest land, wild or barren, newly cleared, road side/riverside, swidden land and others, excludes land rented or borrowed in and residential/garden land. As mentioned in chapter III, the fisher communities in Vietnam have been the agricultural communities, the fishers have changed their occupation to fisheries in not very long time, thereby, the secondary job of them are mainly farming activities. There is more than 55 percent of the fishing households attended agricultural activities, but nearly 16 percent of them has no access to cultivated land. In Vietnam now, except for the farmers whose main occupation is cultivation, others do take advantage over the fishers in access to cultivated land. On average, just 1,290m2 of annual cultivated land are accessed by a poor fishing household while more than 2,500m2 are belonged to a poor constructor-one. The similar situation also happens in the distribution of perennial cropland.

 

III. Effects of some factors on the poverty situation of the fisher folks

In order to determine factors those contribute to the poor probability of a fishing household, a probit regression is performed. After that, in order to deal with some other external impacts, those belong to own characteristics of the capture fisheries, more qualitative analysis will be exploited to supplement this information.

1. Probit models and results

1.1 Probit Model

A probit regression measures the association between poverty and a wide range of household’ characteristics simultaneously and thereby allows one to assess the strength of the association between poverty and a given household characteristic holding constant the separate influence of other characteristics.

            At the significant level of at least 0.1, all the variables in this regression are statistically associated with the fishers’ poverty (see table 8)

 

Table 8

The probit model for the poverty of the fishing households (Marginal effects)

            Probit estimates                                                                        Number of Obs =100

                                                                                                Pob>chi2=0.0000

                                                                                                Pseudo R2 = 0.6068

 

Df/dx

P >/Z/

Dependent Variable

 

 

Poor

 

 

Independent variables

 

 

Age

-0.11617

0.035

Age Squared

0.00094

0.075

Household size

0.16803

0.010

 

 

 

Mean education

-0.15169

0.001

Head Education

-0.06870

0.019

 

 

 

Unemployment

0.67324

0.080

Self-employment*

-0.61976

0.001

 

 

 

Motorable road*

-0.59252

0.002

Transportation vehicle*

-0.48200

0.02

 

 

 

Borrowing*

-0.56423

0.002

 

 

 

Urban 98*

-0.36659

0.013

 

 

 

(*) dF/dx is for discrete change of dummy variable from 0 to 1

Z and P>/Z/ are the test of the underlying coefficient being 0

 Source: estimates based on VLSS 98

In sum, from the probit model, two conclusions can be drawn. First, of the factors affecting the fishermen' poverty, employment situation, education, access to credit, access to physical infrastructure and isolation characteristics (rural or urban) are proved as important ones which impacts strongly on the probability of a fishing households being poor. Second, it is worth noting that the factors significantly affecting the fishers’ poverty in the probit model are also the principal characteristics in which the poor fishers are most disadvantaged as compared to others, even to the poor farmers.

Furthermore, the fishermen, especially ones engaged in the marine capture fisheries have suffered from the impacts of other external factors, those are serious problems of this sub sector, especially overexploitation and typhoons.

2. Overexploitation

Overexploitation as analyzed in chapter III is an alarmed problem in Vietnam, especially in inshore water within the 50 meter depth. In these water areas, overexploitation consequently has leaded to a reduction of captured quantity and a decline of abundance of fish and other aquatic animal. According to MOF, marine catches per unit effort expended are rapidly declining. As mentioned in chapter III, although in the period of 1994-1998 the number of fishers as well as the number of fishing vessels increase rapidly (it means that fishing effort has been strongly expanded), the growth rates of the capture fisheries output in this period still declined remarkably. It is clear that the reduction of the captured capacity has threatened the living standards of the poor fishers who depend on fish resources day after day. Higher working efforts but lower captured capacity are essential reasons that bring about the unemployment problem or the tendency of labor movement from the capture fisheries to other sectors.

3. Storms and typhoons

Unlike other occupations, storms and typhoons pose major threats to fishermen and to fishing communities. Hundreds of fishermen are lost annually due to storms and typhoons, for instance, 165 fishing boats were sunk and damaged and 1,162 tons of fish and shrimp were lost by the impact of the tropical storm at the end of 1999. Similar or even greater damages were happened due to other storms such as ones in 1986, 1989, 1992, especially by Andy and Cecil in 1986 and Linda typhoon in 1999 (WB 1999, p.109). Accident of fishermen happens annually due to the absence of an early warning system that could beam meteorological forecasts to fishermen at sea and/or to coastal fishing communities (MOF 1993, p.25).

Storms have threatened not only the fishers at sea but also their family in coastal areas. For instance, in 1995, twelve major storms and four tropical low-pressure areas appeared over the Eastern Sea. Of these storms, four moved into Northern and Central Vietnam causing considerable damages in a number of coastal provinces such as Quang Ninh, Thanh Hoa, Nghe An, Quang Nam-Da Nang, Binh Dinh and Phu Yen.

For inland fishers, they are also affected by major floods, resulting from storms. In 1995 large areas along the Red River and Thai Binh Rivers, the provinces of Ninh Thuan and Binh Thuan, and especially the Mekong Delta, were severely affected by major floods that caused extensive damage of properties and loss of life.

Therefore, natural disasters are serious threats to the poor fishers and have made them, especially marine fisher folks more vulnerable than others.

 

V. CHAPTER REMARK

In sum, as analyzed above, the author points to the fishers in Vietnam as one of the poorest by employment. The poor in fishing activity also live in the most unfavorable circumstances, and suffer a loss from many physical and social disadvantages as compared to the poor in other occupations. Of the principal characteristics, household composition; education; employment; access to credit; access to physical infrastructure; isolation characteristics (urban or rural) are statistically correlated with the fisher folks' poverty.

 Moreover, the poor fishers also suffer a loss from the scarcity of natural resources resulted from overexploitation and threats of natural disasters which make them become easily vulnerable.

 

Chapter V

Conclusions and recommendations

 

Basing on analyses of the fishermen, the thesis draw conclusions and recommendation as follows

I. Conclusions

The fishermen in are one of the poorest groups in Vietnam by employment. In comparison with other occupational groups, they are also disadvantaged in most of the principal characteristics mentioned in the study.  The fishermen, like those in some other Asian countries such as in Bangladesh, in Philippines or in Malaysia, have suffered from extreme incidence of poverty with nearly half of them classified as the poor.

Of the characteristics of the fishermen, the factors which belong to household composition, education, employment situation, infrastructure access, geographical characteristics (rural or urban) and credit access impacts significantly on the fisher's poverty. Besides, overexploitation and storms, the own characteristics of the capture fisheries, have threatened the living standards of the poor fishers. These findings found among the Asian fisher folks are also discovered among the Vietnam fishers. Therefore, the solutions to dismantle these obstacles for the poor in Asian countries are lessons for us in making policies to help the poor fishers in Vietnam overcome poverty.   

Finally, it is clear that the living standards of the fishermen in Vietnam currently are less extreme than that of the farmers. Yet in coming years, if the disadvantages mentioned above are not dismantled, the living standards of the poor fishers will tend to fall down and unsurprisingly, they will be even poorer than the farmers in respect of not only total poverty but also food poverty.

II. Recommendations

After studying the solutions some Asian countries is conducting to help the poor fishers, the author recommends some important suggestions to assist the poor fishermen as follows

1. Employment Generation

2. Education priority

3. Giving priority to development of rural areas: providing infrastructure for instance, construction of roads, markets, provision of cleaning water and electricity in remote and coastal areas

4. Natural resource preservation, fishing restriction and off shore fishing development: Imposition a system of licensing and quota restrictions;  Prohibition of exploitation at breeding seasons

5. Reducing vulnerability from storms and typhoons



 


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