STRENGTHENING LINKAGES AND BALANCING THE INTERESTS AMONG

ACTORS IN THE OCEANIC TUNA VALUE CHAIN

OF KHANH HOA PROVINCE

Assoc. Prof. Dr. Nguyen Thi Kim Anh

Nha Trang University

Abstract: Khanh Hoa is a southern central coastal province with thea coastal line
length of 385 km, including islands, bays and river channels as well. Therefore, the
fisheries capture isare one of the industries that have development advantages in this
province. The transfer of Ttechnology transfer of for fisheries' processing and catching
enterprises fostered the rapid development of the oceanic tuna fishing (mainly yellowfin
and bigeye tuna) in Khanh Hoa Province in the early 1990s. Since then, the exploitation
of the oceanic tuna has been developing and is becoming one of the most important
economic fishingeries industries, in terms of foreign income generation, offor Khanh Hoa
in Vietnam. The research was conducted to understand and analyze the industrial growth
and development of the region and propose solutions to improve the Khanh Hoa's oceanic
tuna value chain. The process involves emphasis on strengthening linkages and balancing
interests among actors in the chain. This paper employs the theory of value chain analysis
to answer the research questions: (i) Who are the actors involved in the oceanic tuna value
chain? (ii) What type of market structure is in place and what are its effects on product
flow? (iii) What is the value-added distribution structure of the individual actors in the
chain? (iv) Are there recommendations to harmonize the interests of the actors in the
marketing chain?
Key words: Oceanic Tuna, Value Chain, Khanh Hoa Province, Vietnam

1. Introduction
The oOceanic tuna fishing is an offshore fishing off the coast of Khanh Hoa province,
but has not been highly effective for both fishermen and processing companies in recent
years. Because the oceanic tuna fishing boats are mainly small which havedo not good
capabilitiesle for of standing strong waves, fishing equipment and preservation methods
used are poor. Besides, fishermen only pay more attention to the quantity of catch of
oceanic tuna on their fishing trips, but they are less careful of how to manage their
products' quality for post-harvest. In addition, there have been increasing costs of fishing
trips, the reducinged tendency of catches, higher competitive pressure in export markets,
constantly changes in technical barriers from other foreign countries, theand imbalance
in the benefits among the actors, etc ... Therefore, in order to createing competitive
advantages that are sustainable for Khanh Hoas oceanic tuna products and contributinge
benefits to each actor in the value chain requires each member in the value chain to push
strengthening linkages with each other from the fishing exploitation procedure to
consumption process.
2. Objectives of the report
- To describe the market structure, oceanic tuna distribution channels from fishermen
to final consumers as well as the relationship among the majority of actors in the market
channel of oceanic tuna
- To analyze and assess the effectiveness among major actors in the value chain.
- To propose suggestions for policy to adjust harmonious benefits relations among
fishermen and other major actors in the chain.
3. Methodology
 Data was collected by survey questionnaire (with 44 observations mainly in Nha
Trang and direct interviews with three major actor: 39 observation of fishermen (mainly
vessel owners or captains), 3 observations of middlemen, 2 observations of seafood
processing companies). The interviews were undertaken from 2009 to 2011.
In this study, the paradigm of Structure Conduct Performance (SCP) (Bain, 1951)
was used forto analysis. According to the SCP paradigm, there is a dynamic relationship
between market structure, conduct and performance. Market structure and market
conduct influence market performance. In turn, market performance will influence market
structure and market conduct in the long run (see Figure 1 below).

Market structure Market conduct Market performance

Figure 1: Structure of the SCP model

Source: Bain (1951)
The authors used elements of the SCP paradigm and integrated some concepts of
the theory of institutional economics and the marketing channel approach to analyze as
the table 1 below:
Table 1: Elements of SCP paradigm
Elements of market Elements of market Elements of market
structure conduct performance

- Number of major actors in - Types and quality - Value-added analysis of

the value chain. classification major actors to identify
- Characteristics business of - Price formation process where the economic value
major actors. - Types of information is created within a value
- Competitiveness in ocean exchange chain for each major actor.
tuna industry such as: barriers - Payment and transaction
to entry and exit, assortment method.
of product quality,
distribution of market
information.

Analyzing market performance, we focus on distribution of the value-added of the

actors in the value chain.
Value-added analysis is based on their total production costs, total-marketing costs
or incremental costs and profit margins of each actor in the value chain. Two ratios will
be used in the analysisanalyzing:
Profit margin_total cost ratio = Profit margin/ Total cost
Profit margin_Incremental cost ratio = Profit margin/ Incremental cost
These ratios will show the relationship between the profit margin and total cost
that each actor earns. A comparison between these ratios for each actor in the distribution
channel will be performed to determine which actor has a higher percentage of profit in
order to identify reasons why the profit of each actor in distributed differently.
4. The results of interviews and discussions
4.1 Structure of ocean tuna market in Khanh Hoa Province
Major actors in the value chain of oceanic tuna
 The study was carried out in 2012, based on a survey questionnaire with 44
sample direct interviews with three major actors: 39 sample of fishermen (vessel owners),
3 samples of agents, 2 samples of enterprises (seafood processors and exporters). The
interviews were undertaken from 2009 to 2011 in mainly Nha Trang city.
The results provided that there are three major actors involved in the value chain
of oceanic tuna in Khanh Hoa province including fishermen, middlemen, and processing
companies as shown in see figure 2.

73.6% Processing 99.6%

companies Foreign importers

Fishermen
26.2% 0.2%
26.3% 0.1%
Middlemen Supermarkets
0.1%
0.1% Restaurants

0.1%

Wholesalers Retailers Consumers

0.1%

Occurs frequently Occurs infrequently

Figure 2: The value chain of Khanh Hoa oceanic tuna
Source: Survey (2012)
As can be seen from the figure 2, Khanh Hoas oceanic tuna is distributed through
two channels:
- Export market: Fishermen mainly distribute their oceanic tuna products in two
directions: 73.6% to processing companies, and 26.3% to middlemen. Middlemen mainly
provide for processing companies and very small products approximately 0.1% for
restaurants. Processing companies purchase oceanic tuna products from fishermen and
middlemen and mainly exported 99.6% and 0.2% infrequently provide for a number of
restaurants and supermarkets in domestic markets.
- Domestic market: Fishermen distribute infrequently with a very littlesmall
number of their oceanic tuna to wholesalers about 0.1%, and retailers purchase oceanic
tuna from wholesales and their selling in retail markets. The trading activities in the
channel are mostly infrequently.
Fishermen
They are the first actors who isare participating in the value chain. They are
mainly using offshore longline boats. According to the survey results, fishermen who are
joining to the activities of oceanic tuna fishing in Khanh Hoa mainly concentrate in Nha
Trang city and approximately 80% of them are living in wards of Xuong Huan, Phuoc
Dong , and Vinh Phuoc. A popular method of quality control is mainly based on their
observingation methods and their experience. They arehave almost, on the average, of 12
- 20 years theof experience ofwith oceanic tuna fishing. They often come from traditional
fishing households and have good experiences. They often use boats with the average a
length of from 13.5m to 18m and the average equipment with engine power of from
90CV to 350CV. AlmMost boats are equipped with line haulers, a compass,
communication facilities, etc. And eEach vessel has from 8 to 12 crew members,
including the captain. A trip length is around 20 - 28 days with 1 - 2 shoots per day. In
each year, they exploit from 4 to 7 fishing trips,. anThe average catch per trip is 1.46 tons
andwith a decreasing trend in recent times. For specific example:, Iin 2009, the average
catch per trip iswas 1.91 tons, 1.29 tons in 2010 and 1.18 tons in 2011.
As the survey results show, there are five fishing boats suffered losses on a total
39 boats in 2011 because of the increasing of fuel price, reducinged oceanic tuna
resources, increasinged the number of fishing boats, abrupt climate abrupt changinges,
usinge of traditional techniques and methods, lack of safety instruments such as GPS,
echo-sounder, radar, etc.

Middlemen
They work as an intermediary between fishermen and processing companies. They
purchase oceanic tuna within large amounts and mainly distribute to processing.
According to the survey results, there are two types of middlemen in Khanh Hoa:.
- Type 1: They have strong capital. They often provide capital to assist fishermen
such as giving vessel owners loan capital or investment in fishing gear or building boats
for fishermen or guarantor for fishermen to buying fuel, ice, etc before fishing trips. And
Tthen, fishermen are forced to sell all their products forto them after harvesting.
Normally, they are the priority buyingers for fishing boats in which they have invested.
Anhd then, they resell tofor reputable processing companies. Some of them have their
own frozen truck or own factory and they readilyy have some employees at port to
conduct sorting, loading and transportation and preservation of oceanic tuna. In recent
years, these middlemen haveare gradually been reduced because the fishermen know
clearly that they are purchased with low forced prices forced, cheating on the grade,
quality and weight, etc.
- Type 2: These kind of one is middlemen who commission processing companies.
They work for processing companies which are located inof Khanh Hoa, Ho Chi Minh
city or Phu Yen . They are either paid a commission on percentage per kilogram of
oceanic tuna or they can get monthly salary. They have the right to the decision of the
purchasing price based on the daily information prices which are supplied byof their
companies or they can understand the base on market prices or the level scarcity of
oceanic tuna, etc. Most of them have more experiences because they come from
traditional fishing exploitation families for many years in Khanh Hoa.
BesidesFurthermore, they have good relationships with fishermen. So, it is very
convenient for them to check quality, conduct grade sorting, etc. According to the survey
results, most of fishermen are prefer to choose the middlemen now because they can
have higher selling price due to as the purchasing price of processing companies and less
risk of payment problems than the first one.
Processing companies
They are important actors in the value chain. At present, in Khanh Hoa, there are
seven processing companies, who purchase oceanic tuna from fishermen or middlemen.
And Tthen, they process and export to overseas markets with large output (about 99.6%).
They will mainly export with good quality oceanic tuna for whole individual exporting
purpose to overseas counterparts and the rest will be exported under fillet or smoked
terms. In addition, they also infrequently supply to restaurants and supermarkets in
domestic markets with a very small amount (about 2%). In the survey results, the authors
investigated and approached two companies: such as Hoang Hai Co., Ltd and Ben Vung
limited company,. whoseThese are the two largest oceanic tuna purchasing companies in
Khanh Hoa now and they are some ofin the top 20 exporters of Vietnam tuna.
Foreign importers
 The last major actors in the value chain of oceanic tuna. According to the survey
results, Khanh Hoas oceanic tuna products were exported to over 80 major oversea
markets, mainly in the USA, Japan, EU. They have more right to makehave decisions
which influence to other actors in the chain such as quantity of consumption, purchasing
prices, assessment of product quality, etc. In particular, they always make strictly
regulations on oceanic tuna product quality standards, due to the issue of product
traceability and other conditions of tuna product supplying and processing.
Competitive situation in the oceanic tuna market
Degree of product differentiation
The difference of Khanh Hoa's oceanic tuna products are based on by size, weight, quality
(fresh levels, scratches, etc.), and color. The quality of oceanic tuna is appraised based on
fishing region and it is also influenced by factors such as of biological, ages, fishing
methods, the ways ofmethods for killing and processing, preservation technologies, etc.
Using rods to stab the fish for testing and observation, middlemen and processing
companies are usually classify the fish into 3 grades:
- 1st grade: the eaverage weight of 30 kg plus and good quality.
- 2nd grade: the eaverage weight from 20 kg to 30 kg or fish with more than 30 kg
in weight but scratched, poor quality such as chocolated color fish or "infected alum
fish".
- 3rd grade: eaverage weight lower than 20 kg.
Normally, the 1st grade oceanic tuna are directly exported of raw fish by air to
overseas markets after purchasing and pre-storage and packing.
Barriers to entry into the market
As the survey results show, the barriers to entry for fishermen such asinclude lack
of capital, increasing costs for a trip, fishing ground competition , declining mining profit
and a few other reasons as changeable weather and long days trip, more risks of payment,
etc. And tThe middlemens the barriers are the lack of supplies, lack of capital, the
competition level between middlemen and the processing companies because most
fishermen prefer to sell directly to processing companies. And now, in Khanh Hoa has 7
companies specialized in purchasing oceanic tuna with large output, they have very big
decision right for fishermen and middlemen. However, the companies also face a number
of barriers such as competitive pressures, lack of supply of raw materials, import
procedures and papers, strict regulations on quality standards of products from importing
countries, the issue of product traceability and other conditions of supplying and product
processing, etc.
Accessing to market information
The survey results show that the majority of fishermen access to market
information rather easily account for 56.4%. Some fishermen who find itare rather
difficult to access the market information account for 33.3%, and 10.3% find itare
reallyvery difficult to access information. They mainly get market information through
their friends for 54.5%, and around 31.8% through the conversations between other
fishermen who have the same working through radio broadcast receivers. In addition,
they may also access market information through the general public media or processing
companies or middlemen.
However, processing companies and middlemen can more easilyer access market
information than fishermen through the general public such as websites, journals, or
communication media, etc.
4.2 Market conduct and organization
The process of setting price
 As the survey results show, 99.6% of Khanh Hoa oceanic tuna is exported to
countries around the world and Japan, the US, the European Union are three biggest
importers. Almost all of export prices depends on the price of the export markets.
Processing companies are mainly based on the daily purchasing price of the
importers market. After that, they will deal with the buying price for fishermen or base
the decision on the fixed buying price for middlemen. Therefore, they play a big role in
setting and control of price.
Before the boats' arrival at port, processing companies or middlemen can
negotiate the buying price with fishermen through their relatives by phone call or by
seeing them directly.

In recent years, the local oceanic tuna output does has not meet export demand.
So, many processing companies of Khanh Hoa and other provinces have to turned to
imports. Therefore, there are strictly competitions between processing companies with
each other or between processing companies and middlemen in the purchasing of
fishermens products.
Although fishermen understand in advance the market price clearly and they can also
negotiate with many middlemen or processing companies before their boat arrives at the
landing site, but they still prefer to sell their product for middlemen or companies that
they are believed in and regularly supplying. In some cases, fishermen are greedy for
gain, they sell their products to other middlemen or other processing companies with
higher price, they can take risks such as fish eliminated rate areis higher, late payment,
etc. In addition, when they sometimes are lack of capital investment in their fishing trips,
they often come to the middlemen directly to borrow money to buying fishing gears,
food, oil, or they can receive an advance on the middlemens oil, gas, ice, etc. The
loan is done without any collateral and usually with minimal or no documentation. In
return, fishermen have no right to choose someone else to sell, and then they must pledge
to sell their products exclusively to the middlemen after their fishing harvesting. They
know clearly that the business relationshipive between them is not fair because theyof
getting payments with a lower market price and higher fish eliminated rate but there is no
other way.
To identify the purchasing price, buyers base their decision on tuna of weight,
quality, age, color, scratches, fishing methods, preservation technologies, and even though
depends on fishing trips which isare long or short days. If the trip istakes long days, the
buying prices will be lower than short trip days. As the survey result shows, buying prices
of oceanic tunas are differentce among class such as class 2 which is half as much price
as class 1 and class 3 has only 1/3 of class 1.

Figure 3: The average market prices of oceanic tuna in the period of 2009 - 5/2011
 Source: Hoang Hai Co., Ltd.
The fluctuation in monthly the purchasing prices of oceanic tuna are described in
the figure 3. There is a difference among the purchasing price between the processing
companies and middlemen from 6,000 VND/kg to 12,000 VND/kg. After buying
products, middlemen often sell their whole raw ocean tuna directly to the companies at
the negotiable price.
In general, in the process of setting prices, fishermen are suffered the greatest
disadvantage and risks because of their lack of the market information. Some fishermen
have long-term relationships with middlemen, they are always tied together by
middlemens capital. There are not vertical cooperation relationships among actors in the
chain. The majority of oceanic tunas are exported in the form of frozen whole fish with
low prices. Despite the quality of Khanh Hoas oceanic tuna, they isare higher price than
Phu Yen, Binh Dinh but the competition is too weak to compare the global tuna value
chain. The processing companies are not really strongly concentrated to researching,
expanding markets and their advertising and promotion activities are still limited. It
seems that they work as a foreign importers trustee, so the selling price often is not high
and they have limited the global market information. Besides, Khanh Hoas oceanic tuna
is exported under foreign brand names on the world market because of strict food safety
and quality requirements in many countries. At present, Viet Nam has not been named the
full member of the Western and Central Pacific Fisheries Commission (WCPFC), a
condition to expand fishing ground and build up branding.
Transactions and payment methods
The purchasing and selling of oceanic tuna in Khanh Hoa use free transactions,
without any contracts or official documents. The relationship of purchasing and selling
among actors in the chain is primarily through faith-based negotiations and oral
agreements.
Fishermen can receive an advance in payment from middlemen or processing
companies when they supply their product or they can receive a little money in advance
during one or two days following. And tThen, final payment will be paiday later
depending on the agreement between the buyer and the seller. In general, the transaction
and payment methods always take risks for fishermen because ofthey are done without
contract. In some cases, processing companies or middlemen arehave late payments for
them. And even, some middlemen have no payment for fishermen if they are lost in their
business or plunged into bankruptcy. Fishermen do not have any certificate and proof to
reclaim the money from buyers.
Processing companies sometimes also face more difficulties in payment when
they export products of ocean tuna to overseas importers. Sometimes, they suffer heavy
losses in business because they exported the oceanic tuna products to foreign importers as
per the contract but they do not pay in full as per the agreements. In another cases,
processing companies export the products on consignment to foreign companies, but after
goods delivering the goods, importers give reason that the products wereare reduced in
value during shipping. So, they pay for exporters with lower inthan the real value such as
the 1st grade will be paid into the 2nd grade and the 2nd grade will be paid into the 3rd grade.
4.3 Market performance results
Analysis of costs and profit margins for each actor in the value chain
Table 2 gives an overview of costs and profits margins analysis among actors in
the Khanh Hoas oceanic tuna value chain.
During the past 3 years (2009 - 2011), the average total costs per fishing trip for
fishermen was 123,940 VND/kg, including variable (59.4%), labor (32%), depreciation
(3.5%), maintenance and insurance (3.8%) and other (1.5%). There was a significant
increase in the average selling price during period time. However, the trend of weaker the
average profit margin fishermen was an opposite of the average selling price. In 2009, the
average selling was 95,513 VND/kg and the average profit margin of fishermen was
13,138 VND/kg. The average selling price rose 141% to 134,872 VND/kg in the 2010
compared to the 2009, but the average profit price fell 21% down 2,741 VND/kg. And the
average selling price rose 170% to 162,308 VND/kg in the 2011 compared to the 2009,
but the average profit price fell 39% down 4,993 VND/kg. In general, as the survey result
from 2009 to 2011 show, the average total costs per a fishing trip for fishermen is
123,940 VND/kg, the average selling price is 130,897 VND/kg and the average profit
margin is 6.957 VND/kg.
For middlemen, their main costs were the transaction fees in their business and
also the average additional costs. As the survey results show, their average costs were 562
VND/kg and the average profit margin is 9,480 VND/kg.
For processing companies, they mainly bought oceanic tuna for export purposes.
Normally, if they bought the 1st grade oceanic tuna, they would be exported immediately
after carefully quality checks. And Tthe remaining grade (the 2nd grade and 3nd grade)
would be exported later under fillets fish or smoked fish form after they had been
processed in their companies.
Table 2: Average Cost and profit margins of the major actors in the value chain
Unit: VND/kg
The average over the
Items 2009 2010 2011
past three years
a. Fishermen
The average total costs per a
82,374 132,131 157,315 123,940
fishing trip
The average selling price 95,513 134,872 162,308 130,897
Margin profit 13,138 2,741 4,993 6,957
b. Middlemen
The average purchasing price 95,513 134,872 162,308 130,897
The average additional costs 410 579 697 562
The average selling price 102,236 147,523 173,059 140,940
Margin profit 6,313 12,072 10,055 9,480
c. Processing companies
Buying directly from fishermen
The average buying price 95,513 134,872 162,308 130,897
The average additional costs 48,248 56,106 67,508 57,287
The average selling price 198,938 227,101 272,001 232,680
Margin profit 55,177 36,123 42,186 44,495
Buying from middlemen
The average buying price 102,236 147,523 173,059 140,940
The average additional costs 48,248 56,106 67,508 57,287
The average selling price 198,938 227,101 272,001 232,680
Margin profit 48,454 23,472 31,435 34,453
Source: survey by authors
Table 2 showeds that the processing companies exported with the average price
was 232,680 VND/kg, and the average additional costs was 57,287 VND/kg, their margin
profit was 44,495 VND/kg if they direct bought from fishermen with price 130,897
VND/kg, and their margin profit was 34,453 VND if they bought through middlemen
with price 140,940 VND/kg.

Structure of value-created and profit margin in the value chain

Figure 4 and table 3 illustrate the division of the average value-created and the
average profit of each actor in the value chain from fishermen supply direct to processing
companies. Fishermen capture a higher proportion of value-created (56.3%) than
processing companies, but earn low margin profit (6,957 VND/kg). Processing
companies, by contrast, capture lower proportion of value-created (only 43.7%), but earn
huge the average profit margins (44,495 VND/kg).

Fishermen Processing
companies

Receiving prices (VND/kg)

130,897 232,680
Value-created (%) 56.3 43.7
Figure 4: The division of the average value-created of each actor in the value
chain from fishermen direct supplied to the processing companies.
Source: Survey by authors

Table 3: The division of the average margin profit of each actor in the value chain
from fishermen direct supplied to the processing companies

The The average

The The The average margin
The
average average average margin profit/ The
average
Actors increasing selling profit profit /The average
costs
costs prices margin average increasing
costs costs
(VND/kg) (VND/kg) (VND/kg) (VND/kg) (%) (%)
Fishermen - 123,940 130,897 6,957 5.6
Processing
57,287 188,185 232,680 44,495 23.6 77.7
companies
Source: Survey by authors
Figure 5 and the table 4 show the division of the average value-created and the
division of the average margin profit of each actor in the value chain in case the
processing companies purchase oceanic tuna from fishermen, middlemen. Fishermen
capture a relatively large proportion of value-created (56 %), but earn the lowest the
margin profit (6,957 VND/kg). Contrary to fishermen, middlemen capture the lowest
proportion of value-created (4.3%), but earn the higher the margin profit than fishermen
(9,480 VND/kg), and have the higher the average margin profit on the average costs ratio
than fishermen (7.2%) and get the highest the average margin profit on the average
increasing costs ratio (1,687.6%). But processing companies only capture a proportion of
value-created (only 39.4), but earn the biggest the average profit margin (34,453
VND/kg) and have highest the average margin profit on the average costs (17.4%) but get
lower the average margin profit on the average increasing costs ration than middlemen
(60.1%).
 Fishermen Processing
Middlemen
companies

Receiving prices (VND/kg) 130.897 140.940 232.680

56,3 4,3 39,4
Value-created (%)

Figure 5: The division of the average value-created of each actor in the value chain
from fishermen, middlemen supplied to processing companies
Source: Survey by authors

Table 4: The division of the average margin profit of each actor in the value chain
from fishermen, middlemen and processing companies
The
The average
average
The The margin
The The average margin
average average profit / The
Major average margin profit
increasing selling average
actors costs profit /The
costs prices increasing
average
costs
costs
(VND/kg) (VND/kg) (VND/kg) (VND/kg) (%) (%)
Fishermen - 123,940 130,897 6,957 5.6
Middlemen 562 131,459 140,940 9,480 7.2 1,687.6
Processing
57,287 198,227 232,680 34,453 17.4 60.1
companies
Source: Survey by authors

Through the analysis of marketing results, it is recognized that fishermen who are
the actor suffer high costs of fishing trips and take more risks in the value chain, but they
have not received adequate benefits. They have to face the capital pressures due to increasing
input costs such as fuel, fishing gear, labor, etc and output of oceanic tuna exploitation is
really high in recent years. Besides, the market price of the oceanic tuna is extremely
unstable. Therefore, they always feel very anxious and their quality of life is also negatively
affectioned. In contrast with fishermen, for a small transaction costs, middlemen have
virtually no other costs. Therefore, they capture the lowest proportion of value-created
(4.3%), but get the highest the average margin profit on the average increasing costs ratio
(1,687.6%). Compared to other actors in the value chain, they almost suffer less risks.
Although, Vietnams in general and Khanh Hoa oceanic tuna in particular are strongly
eaffected by fluctuations in price and the instability of import markets. However, in the value
chain, based on the world prices, the processing companies makehave pricingdecisionss
pricing and they also earn the biggest the average profit margin. However, in order to
participate in the chain, they investhave a large of funds into the initial investment such as
building factories, cold storage facilities, manufacturing fish processing equipment and tools,
marketing research, etc. In addition, they also face many risks due to import market
fluctuations such as trade barriers, strict regulations and standards of the import markets, the
problem of traceability, ... In general, basinged on the average margin profit on the average
increasing costs ratio, middlemen are the most beneficial actors in the Khanh Hoas oceanic
value chain.
CONCLUSION AND RECOMMENDATIONS
Conclusion
In the process of international economic integration, Vietnam in general and Khanh Hoa
province in particular have been strong opportunities for growth in all fields and fisheryies
sectors - especially oceanic tuna product are also no exception. The results of Khanh Hoas
oceanic tuna value chain analysis show that the major actors in the value chain capture more
risks and barriers. They are strongly eaffect by fluctuations in price and the instability of
world markets.
For fishermen, they are backward of fishing boats, fishing equipment and preservation
method used are poor. Therefore, efficiency and quality of oceanic tuna catches are always
low. Besides, Khanh Hoas oceanic tuna product has not been building their own branding
name yet. So, processing companies face many difficulties toin exporting oceanic tuna such
as certificates of origin document requirements, quality risk and others. Therefore, in order to
creatinge competitive advantages that are sustainable for Khanh Hoas oceanic tuna products
and contributinge benefits to each actor in the value chain requires each member in the value
chain to makeing closed links with each other from the fishing exploitation to consumption
processing.
Recommendations
Through the research, the authors suggest some recommendations as follows:

Viet Nam authority clearly need to issue the standards of quality offor oceanic
tuna which is used as a basics of regulations forto appraisal and evaluation of the quality
of oceanic tunas and setting prices during purchasing, selling and exporting processing.
Thus, the actors in chain can be shared the balance of benefits together, creating a fair of
market, supporting for fishermen the necessary fishing technique requirements which aim
not only to ensure the balancing of the economic benefits among actors but also to
contribute atowards to the sustainable development of the Khanh Hoa fisheries industry
and the country.
States should construct the fish auction market under strictly management and
control of authorities in Hon Ro port of Nha Trang. In the auction market areas, they
needing to invest in synchronic development of infrastructure facilitiesy tofor methods of
preserving fish safely, fish quality assessment, setting price and making of purchasing and
selling convenient, easily and quickly procedures. And then, fishermen may be have the
right decision right of choosing any buyers who can pay higher price with their products
and will be have no more unfair cases for fishermen such as decrease of tuna value or
quality from buyers.
Government needs to setting up the transparency of information systems so that
the actors in the value chain can understand more information of local and global market
prices, keep up with fluctuations and changings of oceanic tunas importer markets and
also the regulations and standards of fisheries industry, some incentives and policies for
fishermen, etc in order to bring more benefits for fishermen. Through this, the actors can
learn and improve their quality of products.
Along with the administrative section, Khanh Hoa Fisheries Association should
be organized by the Committee, the Center and the joint ventures economic organizations
to conduct the research tasks, consultancy and technology development, production
organization, development of branding, product promotion, organization of fairs,
exhibitions for seeking integration and international cooperation in order to limit risks and
barriers.
 Government Offices should take appropriate measures and policies to encourage
the actors to boosting cooperation and strengthening linkage with each other. The
fisheries sector of Viet Nam should invest in building up the fisheries infrastructure and
logistics of services, and then transfer to local industrial management (as Department of
Agriculture and Rural Development Khanh Hoa or Khanh Hoa Province's Aquatic
Resource Exploitation and Protection Sub-department) or Khanh Hoa Fisheries
Association who is in charge of organization, management and usage. Besides, the
seafood processing companies have strong capital and output markets and fishermen have
oceanic tuna products. So, they can coordinate together, eliminate the role of middlemen
(their buying and selling procedures happen at the fish auction market), reduce post-
harvest losses and ensure stable development, sustainable and balancing interests among
actors. By the way, the actors in the chain can be shared their experiences and knowledge
such asof fishing grounds, fishing techniques, and methods of catching and preserving
tuna to ensure the standard of tuna product quality and hygiene safelty.
Enhance athe role of professional associations in cooperation with State
administration agencies forto propaganda and dissemination of international and national
legal regulations on marine fisheries and to provide fishermen with training courses on
the application of new technology in the field of oceanic tuna capture in order to improve
production efficiency and stabilize fishers livelihood.
Pushing up the modernization of the oceanic tuna catching profession is a measure
to enhance capacity, economic efficiency, building and repairing vessels in a
modernization way. Encourage fishermen to work in groups so that each vessel can be
given timely support including information about fishing grounds and weather conditions,
supply of fresh water, food and fuel during long day trips. Specialized offices need to
make regular forecasts of fishing points, resources, and seasons for oceanic tuna
exploitation and conduct training courses to direct exploitation and, preserve processing
to ensure hygiene safely. In addition, providing locating machines, pulling machines,
controlling vessels, avoiding storms, ensureing navigation security, etc to fishermen.
Government should consider and improve the processes of supporting gasoline
costs and loans for fishermen to help them receive the benefit of policies. Besides,
needing to create advantageouse conditions to improve the quality of the oceanic tuna
catching profession and combine to protect the national marines.
Early bBuilding the oceanic tuna brand in Khanh Hoa and getting the MSC
certificate for Khanh Hoas oceanic tuna products to help increase and expandd of
markets, pushing higher exportting prices, and bringing benefits to the actors in the chain.

References
Bain J.S. (1951). Relation of Profit to Industry Concentration: American
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FAO (2009). Fisheries and Aquaculture country profiles - Vietnam. Food and
agricultural Organization of the United Nations. Available at:
http://www.fao.org/fishery/countrysector/FI-CP_VN/en.
Kaplinsky, R., and Morris, M. (2001), A Handbook for Value Chain Research.
Nguyen Thi Kim Anh, Tam Ngoc Dang Thi, Prof. Ola Flaaten, Dung Thi Phan,
Tram Anh Nguyen Thi. (2006). Costs and Earnings from offshore tuna longline fisheries
in Nha Trang, Viet Nam. Fish for the People.
Department of Khanh Hoa Agriculture and Rural Development, General
developed project of Khanh Hoa fishery during 2010-2015 to 2020.
 Nguyen Ngoc Duy, Nguyen Thi Kim Anh, and Nguyen Thi Tram Anh (2012).
Harmonization of interests among fishermen and other actors in the seafood value chain
In case of Longtail Tuna in Khanh Hoa Province. Journal of Agriculture and Rural
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