In Nghe An province, over 57% of fishing vessels (67) are facing bad debt.

Quynh Luu district is the locality with the highest number of newly built fishing vessels under the government's support policy.Decree 67/CPQuynh Luu district has the highest number of vessels in the province, with 52. Mr. Nguyen Xuan Dinh, Vice Chairman of the People's Committee of Quynh Luu district, said that after many years of operation, as of June 2022, 26 vessels had basically repaid their debts, while the rest were operating inefficiently and had long-standing debts, including 6 vessel owners who had been sued in court.

As of June 2022, only over 33% of fishing vessels classified as 67/CP were operating effectively. Photo: Xuan Hoang

"Many boat owners and their relatives are at risk of losing their homes due to the debt incurred by the 67 boats, and the district and commune levels are unable to help the fishermen. Therefore, higher authorities need to quickly find fundamental solutions to alleviate the difficulties for the fishermen," Mr. Nguyen Xuan Dinh lamented.

According to information from the Department of Agriculture and Rural Development,Nghe AnThere are 104 fishing vessels built under the support policy of Decree 67/CP, with a total disbursed amount of VND 859.999 billion. As of June 20, 2022, 4 vessels that experienced accidents (fire, sinking) have fully repaid their loans.

The number of operating vessels that are making effective principal/interest payments as committed is 35 (accounting for 33.65%), with outstanding debt of VND 143.811 billion; the number of vessels operating intermittently, inefficiently, and unable to repay principal/interest as committed is 5 (accounting for 4.8%), with outstanding debt of VND 44.83 billion. The number of vessels classified as bad debt is 60 (accounting for 57.69%) with a total bad debt value of VND 418.254 billion, accounting for 68.26% of the total outstanding loan balance under Decree 67.

Up to 57.69% of Nghe An's 67-ton vessels are operating inefficiently. Photo: Xuan Hoang

Of the 60 vessels classified as non-performing loans, 43 were subject to legal action by banks or asset seizure by enforcement agencies to recover capital due to loan repayments and breaches of loan agreements. Of these, 6 vessels were successfully auctioned off.

At a recent meeting of the Provincial People's Committee to discuss solutions to address difficulties faced by fishermen,Vice Chairman of the Provincial People's Committee Hoang Nghia HieuIt is suggested that, regarding the current situation of vessel 67/CP in the province, the State Bank of Vietnam in the province, along with commercial bank branches, should coordinate with the vessel owners to assess and classify the actual production activities, and advise on specific, appropriate, and reasonable solutions.