Fishing vessels with a total main engine capacity from 800CV to under 1,000CV, ship owners are supported with 35% of the investment value for new construction but not exceeding 6.7 billion VND/vessel.

Central budget invests in many large projects

Specifically, regarding investment policy, the decree clearly states: The central budget invests 100% of the construction costs of essential items of type 1 fishing ports, regional storm shelters (including wharves; embankments, breakwaters, sand barriers; dredging of port channels, ship mooring areas; ship mooring facilities; wastewater treatment systems; classification houses; operating houses; internal yards and roads; lighting systems; buoy systems, signals, signal lights; specialized communication systems) and invests in the construction of 5 large fishing centers (dynamic fishing ports).

The Central budget invests 100% of the construction costs of projects managed by central ministries and branches for key infrastructure items of concentrated aquaculture areas; concentrated seed production areas including: Water supply and drainage systems (ponds, tanks, culverts, canals, water supply and drainage pipes, pumping stations), dykes, embankments, roads, electricity systems, common wastewater treatment facilities; upgrading infrastructure of national aquaculture seed centers, regional aquaculture seed centers; aquaculture environmental monitoring and warning centers, central and regional aquaculture testing, inspection and certification centers.

Allow implementation of shipowner conversion mechanism

The Decree also adds provisions on risk handling mechanisms in credit policies. Accordingly, it allows the implementation of a mechanism for transferring ship owners in cases where the ship owner is no longer able to continue implementing the project of building or upgrading a ship, or the ship owner has completed the building but is not capable of operating seafood exploitation. The new ship owner will continue to enjoy interest support when receiving the handover of the ship and the loan from the old ship owner.

The working capital lending policy has also been amended. Specifically, the subjects eligible for loans are owners of offshore fishing vessels; owners of offshore fishing logistics service vessels (collectively referred to as customers). The lending of working capital is agreed upon by credit institutions and customers in accordance with current regulations of law on credit policies for agricultural and rural development.

Add one-time support policy after investment

The Decree supplements regulations on one-time support policies after investment. The subjects eligible for support are owners of newly built ships and owners of offshore fishing vessels or offshore fishing logistics service vessels with a total main engine capacity of 800 CV or more, specifically: Newly built ships are among the number of ships allocated by the Ministry of Agriculture and Rural Development to the provinces; newly built ships replace trawlers with a capacity of 90 CV or more converted to encouraged development occupations such as: purse seine, gillnet (except tuna gillnet), fishing, casting, logistics services.

To be supported, the ship owner must be a member of a production team, fishing union, or fishing cooperative approved by the People's Committee of the province or centrally-run city; the newly built fishing vessel must be an offshore fishing vessel, an offshore fishing logistics service vessel with a steel or composite hull; the newly built main engine vessel must use a 100% genuine new marine engine.

Building new fishing boats in Nghe An. Photo: Archive

Fishing vessels must be equipped with long-range communication equipment integrated with satellite positioning equipment and connected to shore stations to manage and monitor the journey during the vessel's operations at sea; offshore fishing vessels have been granted a Fishing Vessel Technical Safety Certificate, a Fishing Vessel Registration Certificate and a Fishing License; offshore fishing logistics service vessels have been granted a Fishing Vessel Technical Safety Certificate and a Fishing Vessel Registration Certificate.

Support level regulations

Regarding the support level, the Decree clearly states that for fishing vessels and seafood logistics service vessels newly built with steel hulls (including new equipment): Fishing vessels with a total main engine capacity from 800CV to under 1,000CV, the ship owner is supported with 35% of the investment value for new construction but not exceeding 6.7 billion VND/vessel; fishing vessels with a total main engine capacity from 1,000CV or more, the ship owner is supported with 35% of the investment value for new construction but not exceeding 8 billion VND/vessel.

For newly built fishing vessels and seafood logistics service vessels with composite hulls and a capacity of 800CV or more (including new equipment), ship owners are supported with 35% of the investment value for new construction, but not exceeding 6.7 billion VND/vessel.

The state budget supports insurance costs for offshore fishing vessels and offshore fishing logistics service vessels that are members of fishing teams, fishing unions, and fishing cooperatives and have a total main engine capacity of 90 CV or more. Specifically, 100% of the cost of crew accident insurance for each crew member working on the vessel will be supported annually. 50% of the cost of hull insurance will be supported annually (insurance for all risks to the hull, excluding fishing equipment and fishing gear on the vessel).

Decree 17/2018/ND-CP takes effect from March 25, 2018. The policies stipulated in this Decree are implemented from January 1, 2018.