New Decree tackles bottleneck in fishermen ship building hinh anh 1Tien Tri 07 vessel built under Decree 67. (Source: VNA)

Government Decree 89, valid from November 25, will address roadblocks in fishermen’s ship building ​process regulated in Decree 67, according to Pham Ngoc Tuan, Deputy Director of the Aquatic Resources Exploitation and Protection Department under the Vietnam Directorate of Fisheries.

Decree 67, which took effect in August 2014, stipulates policies in investment, credit, insurance and tax incentives in support of fishermen and ship owners, who wish to build new fishing boats, upgrade their existing boats and buy fishing and marine equipment, among others.

Tuan said extending loan terms to 16 years in Decree 89 rather than 11 years as prescribed in Decree 67 and steady working capital turnover will help ease pressure on borrowers.

Under the new decree, fishermen will get full cost support for the design of steel and new-material fishing vessels with capacities above 400 CV. In addition, it does not require new machines for upgraded models, helping bring costs down for fishermen.

Regarding Decree 67, Tuan highlighted that it has modernised the fishing fleet, improved local livelihoods and made contributions to protecting sea and island sovereignty.

However, some obstacles are turning up in this decree, including incomprehensive implementation, no regulations for the design of wood vessels and steel vessels as well as unequal beneficiary treatment between members of the Vietnam Fisheries Trade Union and members of other production teams.

According to the Vietnam Directorate of Fisheries, 775 vessels have registered new construction projects while upgrades will be made to 107 others.

About 200 credit contracts worth nearly 2 trillion VND (89.5 million USD) have been inked among relevant sides. Currently, 38 fishing vessels have become operational for offshore fishing activities.-VNA