The shipbuilding industry is precarious.

Two years ago (in 2017), the boat building facility of Mr. Nguyen Van Xang's family in Quynh Tho commune (Quynh Luu district) was operating continuously with many orders for boats from fishermen.

In particular, since the government's policy of supporting fishermen in building new boats under Decree 67 was implemented, from 2015 to 2017, his facility built 12 boats with a capacity of over 800 horsepower and 14 boats outside the project. After completion, these boats have ventured out to sea for offshore fishing and have all achieved high efficiency.

Many shipbuilding villages in Nghe An are operating at a reduced capacity. Photo: Viet Hung

However, since 2018, his workshop hasn't built a single new fishing vessel, leaving over 50 shipbuilders unemployed and forced to seek other work. Mr. Xang stated: "After handing over two newly built fishing vessels in March 2018, the workshop has been inactive; machinery and equipment have rusted from disuse, and nearly 70 cubic meters of unused wood are sitting in a pond for preservation. The shipbuilders have all gone to find other jobs, and the shipbuilding business at the workshop is practically shut down."

According to local fishermen, the movement to build new fishing vessels in coastal districts such as Quynh Luu, Hoang Mai town, and Dien Chau was most active in 2017, when support policies from the central government, province, and district were in effect. In 2017 alone, Nghe An built over 200 new vessels with a capacity of 400 horsepower or more, bringing the total number of offshore fishing vessels to over 1,450. However, from 2018 to the present, the construction of new vessels has shown signs of slowing down, with only 12 new vessels built throughout the province.

Due to prolonged inactivity, Mr. Nguyen Van Xang's shipbuilding facility in Quynh Tho commune (Quynh Luu district) is at risk of losses because billions of dong worth of machinery is damaged. Photo: Viet Hung

Reportedly, the main reasons are the discontinuation of support policies, the near saturation of fishing vessels, and low fishing efficiency due to rising material costs and labor shortages. In Quynh Luu district, over 30 offshore fishing vessels were built in 2017, but no new vessels have been built since mid-2018.

Fisherman Nguyen Van Manh from Son Hai commune (Quynh Luu district) said: Many fishing households want to invest in building new offshore fishing vessels, but it depends on the conditions of each region. Meanwhile, building new vessels requires a lot of capital, while bank loans are limited. In addition, the reason for this is that recently the fishing efficiency of offshore vessels has been low, the cost of fuel, fishing gear has increased, and seafood prices are volatile, so since the beginning of the year, some fishermen's boats have been docked, therefore fishermen are not "enthusiastic" about investing in building new vessels.

Nghe An currently has nearly 20 shipbuilding and repair facilities employing hundreds of workers. Among them are several large shipbuilding facilities in Quynh Tho, Tien Thuy, and Quynh Nghia communes (Quynh Luu district); Quynh Lap commune (Hoang Mai town); and Nghi Thiet commune (Nghi Loc district)... However, many shipbuilding facilities in Nghe An are operating at a reduced capacity.

Hundreds of professional shipbuilders are also out of work as demand for new shipbuilding has decreased. Photo: Viet Hung

Furthermore, over 500 shipbuilding workers in Nghe An are unemployed, forcing them to seek work elsewhere, leading to a risk of shortages and the decline of many traditional shipbuilding villages.