Open-access fishing rent and efficiency—The case of gillnet vessels in Nha Trang, Vietnam

This paper first discusses vessel behaviour and efficiency theoretically and then applies this knowledge to evaluate the economic performance of an open-access fishery. The case of the Nha Trang, Vietnam, gillnet fishery is surveyed with respect to the earnings, costs and technical characteristics and efficiency of 58 offshore vessels in 2008. On average, these vessels proved to be heterogeneous with a gross profit margin of 17.3% and a profit margin of 3.8% despite the open-access characteristics of this fishery. However, adding the calculated interest of 9% per annum on the owner's capital to the costs significantly worsens the economic results. Engine capacity (HP), gear size and days of fishing best reflect the fishing effort of vessels in the production function, and these were used to compute standardised effort and cost efficiency. An application of the Salter diagram shows that a large number of vessels with high relative standardised effort are the most cost-efficient, but not without exception. The majority of these vessels earned intra-marginal rent, while the smallest vessels are most dependent on the government's 2008 quasi-lump-sum fuel subsidy scheme.

► The average gillnetter earns a positive profit in the open access fishery.
► Engine HP, fishing days and gear are the factors best reflecting boat fishing effort.
► The standardised fishing effort is quite heterogeneous between the surveyed vessels.
► Most vessels with high relative standardised effort earn intra-marginal rent.
► The quasi-lump-sum fuel subsidies bring the most benefit for the smallest vessels.