Environmental and Social Impacts of Shrimp farming in Tam Giang lagoon, Vietnam-Local perception

LOCAL PERSPECTIVES ON THE ENVIRONMENTAL
AND SOCIAL IMPACTS OF SHRIMP FARMING IN
TAM GIANG LAGOON, VIETNAM.





TUONG PHI LAI











A Thesis Submitted in Partial Fulfillment of the Requirement for
the Degree of Master of Science
(Management of Natural Resources and Sustainable Agriculture)

Submitted to:
Norwegian University of Life Sciences
Department of International Environment and Development Studies

June, 2005

ii
The Department of International Environment and Development Studies, Noragric, is the
international gateway for the Norwegian University of Life Sciences (UMB). Eight
departments, associated research institutions and the Norwegian College of Veterinary
Medicine in Oslo. Established in 1986, Noragric’s contribution to international
development lies in the interface between research, education (Bachelor, Master and PhD
programmes) and assignments.

The Noragric Master theses are the final theses submitted by students in order to fulfil the
requirements under the Noragric Master programme “Management of Natural Resources
and Sustainable Agriculture” (MNRSA), “Development Studies” and other Master
programmes.

The findings in this thesis do not necessarily reflect the views of Noragric. Extracts from
this publication may only be reproduced after prior consultation with the author and on
condition that the source is indicated. For rights of reproduction or translation contact
Noragric.

© Tuong Phi Lai, June 2005
E-mail:

Noragric
Department of International Environment and Development Studies
P.O. Box 5003
N-1432 Ås
Norway
Tel.: +47 64 96 52 00
Fax: +47 64 96 52 01
Internet: />
Formatted: French (France)
Formatted: English (U.S.)

iii

DECLARATION

I, Tuong Phi Lai, do hereby declare to the Senate of the Norwegian University of Life
Sciences, that this dissertation is entirely the product of my own original research work,
unless where it is acknowledged, and that it has not been submitted to any other
University or academic institution for award of any degree.



------------------------- ------------------
(TUONG PHI LAI) Date



iv
Acknowledgements

I am thankful for Dr Nguyen Viet Nam and Msc Tran Van Nhuong - who paved the way
for me to attain a NORAD scholarship by giving information and encouragement. I also would
like to express my gratitude to Prof. Ian Bryceson, my main supervisor for his patience in
correction of my English and straightforwardness in guidance for completion of this study. My
hearty thanks are also given to my local supervisor Dr Le Thanh Luu for his valuable guidance
and administrative support during my fieldwork. Special thanks NORAD for awarding me the
scholarship provided an opportunity to improve my knowledge. Many gratitude are given to to all
Noragric staff for their academic presentations and hosting me in Norway.
I am thankful to Mr Nguyen Luong Hien, Mr Nguyen Quang Vinh Binh, Ms Vo Tuyet
Hong, Mr Tran Xuan Binh and Ms Lam Thi Thu Suu for providing me valuable information and
academic knowledge for carrying out the fieldwork in the study area. Personally, I heartily would
like to express many thanks to Mr Phan Van Xuan, Mr Chau Ngoc Phi and Mr Le The Nhan who

worked so hard with me in field and helped me a lot in primary collecting data.
Additionally, I would like to thank all the people as to whom I can not name all here:
Ngo Trung Nhat Quang, Pham Quang Anh Khoi, Phan Thanh Anh Dung and all participants from
three communes for their valuable assistance and patience during the field survey. Many thanks
are given to Nguyen Dac Ve, Lai Duy Phuong, Lai Thi Hoa, Ho Cong Huong, Nguyen Van
Khanh, Van Thi Thu Vinh, Tran Thi Nguyet Minh, Nguyen Van Tuan, and Dinh Hung for their
assistance in data collection; many thanks also given to Mai Van Tai, Shagufta Jeelani and Ngo
Thi Thom for their assistance in correcting my languages and academic comments in this thesis.
I also would like to thank the Diversity Enhancement Fund (DEF) for a partial financial
support during my student’s life in Norway. Special thanks are given to Ms Nguyen Thi Thanh
Binh and other staff in Centre for Educational Exchange in Vietnam (CEEVN).
Last but not the least, my hearty thanks to my parents and my friends and those who
always provided me encouragement and who contributed in various ways towards the
accomplishment of this study.


v
Abstract

Shrimp aquaculture is one of the major economic activities in coastal areas of Vietnam.
However, the relation between shrimp aquaculture and coastal environmental and social
issues are not well documented in the Tam Giang lagoon. This thesis focused on the
environmental and social implications of shrimp aquaculture in three coastal shrimp
farming communes: Phu An, Phu Da and Vinh Ha in Phu Vang district. The links
between the impacts of shrimp farming and policies, institutions and farming practices
were investigated. Attention was paid to both negative and positive impacts of shrimp
farming. Local people's perceptions of these factors were investigated using a
participatory approach. We found that people perceived that waste discharges, fishery
reduction, habitat destruction and salinisation of soil to be the foremost environmental
impacts of shrimp farming. Meanwhile, conflicts among shrimp farmers, traders, fishers

and rice-farmers are important social impacts. In addition, debt burden, migration of
women and conflicts of interests among resource users and sectors and local government
were also considered to be critical issues. However, shrimp farming also significantly
contributes to income generation, employment creation and livelihood diversification in
coastal poor communities. The sector contributed to changing the livelihoods of local
people from subsistence and small-commodity production into commercial production,
that in the long run are important for local communities in the context of trade
liberalization and globalisation. The environmental and social impacts of shrimp farming
are strongly linked to economic reforms, aquaculture promotion policies and the
management of local government and local farming practices. We highlighted the need to
internalise the externalities of shrimp farming sector. We recommend the introduction of
environmentally friendly aquaculture within the framework of community-based and
integrated coastal area management. We also recommend the necessity of adjustment of
institutional frameworks to enhance environmental protection and improve the feasibility
of aquaculture planning and building capacity for local authorities and lagoon resource
users.


vi
List of Abbreviations and Acronyms

CRES Centre for Natural Resources and Environmental Studies
CSSH Centre for Social Sciences and Humanities
DFID Department for International Development
DOFI Provincial Department of Fisheries
DOSTE Provincial Department of Science, Technology and Environment
EIA Environmental Impacts Assessment
EJF Environmental Justice Foundation
FAO Food and Agriculture Organisation of the United Nations
GO Government Organization

HIO Hai Phong Institute of Oceanography
HSU Hue Science University
ICLARM International Centre for Living Aquatic Resource Management
IDRC International Development Research Centre
IFEP Institute for Fisheries and Economic Planning
IUCN World Conservation Union
MOFI Ministry of Fisheries of Vietnam
MOSTE Ministry of Science, Technology and Environment
MPI Ministry of Planning and Investment
NACA Network of Aquaculture Centres in Asia-Pacific
NEA National Environment Agency
NGO Non-Government Organisation
NORAD Norwegian Agency for Development Co-operation
PCC People Committee of Commune
PCD People Committee of District
PCP People Committee of Province
PRA Participatory Rural Appraisals
RAMSAR The convention of wet land resources reservation
RIA Research Institute for Aquaculture
RIMF Research Institute for Marine Fisheries
RRA Rapid Rural Appraisals
SLA/F Sustainable Livelihood Approach/Framework
SRV Socialist Republic of Vietnam
UNDP United Nations Development Programme
VND Vietnamese currency Unit (Đong)

vii
TABLE OF CONTENTS
Acknowledgements
Abstract

List of Abbreviations and Acronyms
Table of Contents
List of Tables
List of Figures

INTRODUCTION ........................................................................................ 1

1.1. Objectives of the study........................................................................................... 10
1.2. Research questions................................................................................................. 10
MATERIALS AND METHODS ............................................................... 11

2.1. Study area............................................................................................................... 11
2.2. Site selection.......................................................................................................... 14
2.3. Data collection techniques ..................................................................................... 16
2.3.1. Secondary data collection ............................................................................... 16
2.3.2. Primary data collection ................................................................................... 17
2.3.3. Standard survey............................................................................................... 18
2.4. Analytical framework ............................................................................................ 21
2.5. Data processing and analysis ................................................................................. 22
2.6. Limitations of the study ......................................................................................... 22
ENVIRONMENTAL IMPACTS OF SHRIMP FARMING .................. 23

3.1. Areal expansion ..................................................................................................... 23
3.2. Water consumption................................................................................................ 25
3.3. Feed use ................................................................................................................. 26
3.4. Chemicals use ........................................................................................................ 27
3.5. Waste discharge ..................................................................................................... 29
3.6. Disease issues......................................................................................................... 31
3.7. Destruction of nursery beds and breeding grounds................................................ 34
3.8. Effects on sea-grasses ............................................................................................ 36

3.9. Impacts on fisheries ............................................................................................... 38
3.10. Salinisation of agriculture land............................................................................ 40
SOCIAL IMPACTS OF SHRIMP FARMING ....................................... 43

4.1. Income generation.................................................................................................. 43
4.2. Employment........................................................................................................... 44
4.3. Shifting of livelihoods............................................................................................ 46
4.4. Changes in living conditions.................................................................................. 49
4.5. The risks in shrimp business.................................................................................. 51
4.6. Debt issues ............................................................................................................. 55
4.7. Gender issues ......................................................................................................... 58
4.8. Conflicts among resource users ............................................................................. 59
4.9. Conflicts among sectors and policies..................................................................... 66
CONCLUSIONS ......................................................................................... 71

REFERENCES............................................................................................ 74


viii


LIST OF FIGURES

Figure 1. Aquaculture production of Penaeus monodon by countries (1980-2002)........... 2
Figure 2. Map research site: Phu Vang district in Tam Giang-Cau Hai lagoon, Vietnam 11
Figure 3. Analytical framework for environmental and social impacts of shrimp farming
........................................................................................................................................... 21
Figure 4. Extensive net-enclosure (left) and intensive shrimp aquaculture (right) in Tam
Giang lagoon..................................................................................................................... 25
Figure 5. Map of nursery sites in and the replacement of those sites by shrimp farming

Tam Giang-Cau Hai lagoon system.................................................................................. 35
Figure 6. Net enclosure aquaculture (left) and fishing boats (right) in Tam Giang lagoon
........................................................................................................................................... 40
Figure 7. Numbers of shrimp farmers and shrimp traders in three communes in Phu Vang
district, Tam Giang lagoon ............................................................................................... 45
Figure 8. Original livelihoods of present shrimp farmers in Phu Vang district, Tam Giang
lagoon................................................................................................................................ 48
Figure 9. Proportion of farm affected by disease in Phu Vang district and Tam Giang
lagoon................................................................................................................................ 52

Figure 10. Perceived levels of risk in relation to various livelihoods............................... 54
Figure 11. Shrimp farming, transportation and fishing activities in Tam Giang lagoon.. 62



LIST OF TABLES

Table 1. Overview of Potential Environmental Impacts of Shrimp Pond Construction and
Operation (reproduced from Clay, 1996 cited in Tobey et al., 1998)................................. 5
Table 2. Overview of Potential Social and Economic Impacts of Shrimp Pond
Construction and Operation (reproduced from Clay, 1996 cited in Tobey et al., 1998) .... 6
Table 3. Development trend of shrimp farming in Vietnam: area, production and yield... 7
Table 4. Baseline socio-economic data in Phu Vang district, Tam Giang lagoon............ 12
Table 5. Gross Domestic Production of economic activities in coastal area and Tam
Giang lagoon (Unit: million VND)................................................................................... 13
Table 6. Baseline data of shrimp aquaculture in Phu Vang district, Tam Giang lagoon.. 13
Table 7. General criteria for selection of study sites in Tam Giang lagoon, Thua Thien
Hue province..................................................................................................................... 14
Table 8. Specific criteria for study site selection in Phu Vang district, Tam Giang lagoon
........................................................................................................................................... 15

Table 9. Number of respondents in different groups under impacts of shrimp farming in
Phu Vang district, Tam Giang lagoon (N=294 respondents)............................................ 18
Table 10. Criteria for characterizing farming system in Phu Vang district, Tam Giang
lagoon................................................................................................................................ 19
Table 11. Numbers of respondents from different shrimp farm systems in Phu Vang
district, Tam Giang lagoon ............................................................................................... 20
Table 12. Water consumed by shrimp farming as estimated through interviews............. 26
Deleted: 51
Deleted: 61

ix
Table 13. Usage of pellets and raw-fish or home-made feed in shrimp farms in Phu Vang
district, Tam Giang lagoon (N=100 respondents)............................................................. 26
Table 14. Chemicals and drugs use in shrimp farming in Phu Vang district, Tam Giang
lagoon................................................................................................................................ 28
Table 15. Estimations of solids waste discharged from shrimp farming.......................... 29
Table 16. Local perception about effects of shrimp farming waste on the lagoon water
quality (N=294 respondents) ............................................................................................ 30
Table 17. Proportion of shrimp farms that encountered disease and their responses in Phu
Vang district in 2004 (N=294 respondents)...................................................................... 33
Table 18. Local perceptions about the effects of shrimp farming on nursery and breeding
ground in Tam Giang lagoon (N=294 respondents) ......................................................... 35
Table 19. Local perspectives on the effect of shrimp farming on the sea-grass condition in
Tam Giang lagoon (N=294 rspondents) ........................................................................... 37
Table 20. Local perspectives on the effect of shrimp farming expansion on the reduction
of fishery production in the lagoon (N=294 respondents)................................................ 38
Table 21. Factors effecting lagoon fishery resource reduction in Phu Vang district, Tam
Giang lagoon..................................................................................................................... 39
Table 22. Local perspectives concerning the effect of shrimp farming on salinisation of
agriculture land in Tam Giang lagoon (N=294 respondents) ........................................... 41

Table 23. Various income sources of local people in Phu Vang district, Tam Giang
lagoon (N=294 respondents)............................................................................................. 43
Table 24. Numbers of shrimp households and jobs related to shrimp farming in Phu Vang
district, Tam Giang lagoon ............................................................................................... 44
Table 25. Numbers of jobs in different shrimp farming systems in Tam Giang area
(N=100 respondents)......................................................................................................... 46
Table 26. Local people’s identification of rich and poor in Phu Vang district, Tam Giang
lagoon................................................................................................................................ 47
Table 27. Original livelihoods of present shrimp farmers in Phu Vang district, Tam Giang
lagoon (N=100 respondents)............................................................................................. 47
Table 28. Background of shrimp farmers in relation to different farming systems in Tam
Giang lagoon (N= 100 respondents)................................................................................. 48
Table 29. Local perspectives on the impacts of shrimp farming on the living condition of
local community (N=294 respondents)............................................................................. 50
Table 30. Proportion of diseased farms in the three communes in Phu Vang district, Tam
Giang lagoon during 2004 ................................................................................................ 52
Table 31. Proportion of shrimp farm failures due to disease outbreaks in different farming
systems in Phu Vang district, Tam Giang lagoon in 2004................................................ 53
Table 32. Local people's perspective on the risk level of different livelihood options in
Phu Vang district, Tam Giang area................................................................................... 53
Table 33. Debt situation of different livelihood groups in Phu Vang district, Tam Giang
area (N=294 respondents)................................................................................................. 56
Table 34. Debt situation of shrimp farmers in Phu Vang district, Tam Giang lagoon
(N=100 farms)................................................................................................................... 57
Table 35. Local perception of the conflicts among resource users in Tam Giang lagoon 60



Deleted: 59

1

INTRODUCTION
The shrimp aquaculture industry is looked upon as a highly profitable business in several
developing countries. The sector attracts a range of investors including the state, private
enterprises and external assistance in many of these nations. During the last two decades,
shrimp aquaculture has become a major sector of aquaculture in terms of space occupied
and market values. There has been a rapid expansion of shrimp aquaculture in many
parts of the tropical world since 1980s (Gräslund & Bengtsson, 2001). In 1975, shrimp
aquaculture contributed to 2.5% of total shrimp production, which gradually increased to
around 30% of total shrimp supply in the 1990s (Rönnbäck, 2002). Global production of
farm shrimp increased from 71,000 tons in 1980 to 1,271,000 tons in 2001, in which 80%
production from Asia (FAO, 2004)
.
In the South East Asia, the production of cultured
crustaceans increased by over 500% between 1981 and 1995 (FAO 1997a cited by
Gräslund & Bengtsson, 2001). By 1998, the total shrimp aquaculture in the region was
580,000 tones, i.e. slightly more than the quantity of shrimp caught in the wild (Gräslund
& Bengtsson, 2001). Today shrimp makes up only 3-4% of global aquaculture
production by weight, but almost 15% by value (FAO 1999a cited by Rönnbäck, 2002).
The black tiger shrimp, Penaeus monodon, accounts for more than fifty percent of the
total shrimp aquaculture output (Rosenberry, 1999 cited by Rönnbäck, 2002). It is
speculated that the market for shrimp will continue to grow and the demand for shrimp is
likely to remain high and their farming will play a more important role in the future
compared to capture by trawling (World Bank, 1998).

In Thailand, which is the largest producer of farmed shrimp in the world, the shrimp
industry as a whole employs more than 150,000 people of which some 97,000 are directly
involved in shrimp farming. It is estimated that 500,000 households are connected in
some ways in shrimp farming and that for every 1 Thai Baht of shrimp produced there are

∼ 3.5 Thai Baht in associated industries (Kongkeo, 1994; World Bank 1995 cited by
ODA, 1996). There were many examples of how shrimp farming contributes to improve
livelihood of coastal community and benefits to both rich and poor people. The fact that

2
the majority of intensive shrimp farmers in Thailand were previously either poor
fishermen or rice farmers could be considered evidence (Edward, 2000).

Vietnam provides another example where shrimp are now produced by relatively poor
households and production of often integrated as rice-shrimp and mangrove-shrimp
aquaculture in the Mekong Delta (Edward, 2000). In addition there are a large number of
poor people employed in shrimp farming as labour or small-scale traders indicating the
economic opportunities offered by the sector (Nhuong et al., 2003). It is clear that shrimp
farming is one of few options for economic development in poor coastal areas with saline
soils. It has potential for enhancing small holders income, or to provide relatively well-
paid employment in comparison with other feasible alternatives in poor coastal areas
(World Bank, 1998).
T h aila n d
Indonesia
India
Vietn am
P h ilip pin es
M a la y s ia
Sri Lanka
M adagascar
C h in a T aiw a n
ot her s
0
50,000
100,000

150,000
200,000
250,000
300,000
Production (tons)
(Source: FAO FishStat (2005), prepared by Ian Bryceson)
Figure 1. Aquaculture production of Penaeus monodon by countries (1980-2002)


3
There is no doubt that shrimp aquaculture is a very important economic factor in many
countries. However, many other environmental and social issues also need to be
highlighted. Negative impacts included habitat degradation, pollution by nutrients and
organic wastes from effluents and wastes, chemicals and medicinal residues to water and
soil, salinisation of agricultural land and introductions of non-native species (World
Bank, 1998).

Hopkins et al. (1995) claimed that the main environmental concerns of shrimp farming
have been the destruction of mangroves and other wetlands for the construction of shrimp
ponds. More than 50% of the world’s mangroves have been removed, and the
establishment of shrimp ponds has been a major cause behind this loss in many countries
(Primavera, 1998; Rönnbäck, 2002). NACA reports that 20-50% of all current mangroves
deforestation is due to shrimp farming. In areas of Ecuador and Thailand, large areas of
mangroves have been destroyed for shrimp ponds (World Bank, 1998).

There have been several studies focused on the impacts of shrimp farming on the
salinisation of the soil and contamination of ground water since it encroaches on
agriculture and the use of freshwater for farming. It is argued that for each metric ton of
shrimp produced, intensive farms require 50-60 million of litres of water (Gujja & Finger
Stitch, 1995). Seepage through pond bottoms, discharge of pond wastes into freshwater

and seepage from pond sediments can contaminate freshwater with salt (Boy, 1997),
canals and rice paddies (Funge-Smith & Steward, 1996). Shrimp farming can also create
eutrophication, with increased risk of algal blooms, oxygen depletion and toxic chemical
discharge such as sulphide and ammonia (Clay, 1996; Dieberg & Kiatimisimkul, 1996,
Lin, 1995; Flaherty et al., 1995, Rönnbäck, 2002). Other impacts are linked to depletion
of wild fish population (Primavera, 1998; Kautsky et al., 2000a) and human health in
term of misuses of drugs and chemicals (Gräslund & Bengtsson, 2001). The worldwide
transfers and introduction of preferred culture species might conflict with endemic fauna,
causing biological pollution of native stock and introduction of diseases and parasites to
wild stocks (Hopkins et al., 1995; Kautsky et al., 2000; Rönnbäck, 2002).


4
Regarding social impacts, critics claim that intensive farms are commonly associated
with the better-off households. Shrimp exports bring substantial foreign exchange to
developing countries and contribute to national short-term economic growth. It also
improves income for some producers and labourers (Barraclough & Finger-Stich, 1996).
However the long-term effect of the sector, particularly on the poorest group in coastal
area, seems to be neglected by those who support the industry (Barraclough & Finger-
Stich, 1996). The subsidies and institutional support goes to the companies and the rich
meanwhile it is putting at risk the livelihood and food security of many coastal
populations. After disease outbreak, most of the shrimp farm areas become polluted and
abandoned with the mode of “rape and run” production. In Taiwan production collapsed
over three consecutive years (80,000 tons in 1988 to 9,000 tons in 1990). Similar
experiences in the Gulf of Thailand caused losses estimated at about 40,000 ha of shrimp
farm were abandoned due to consistent crop failures; they remain unused today (ODA,
1996). These areas have inhibited the spontaneous regeneration of vegetation and their
use for agriculture, forestry and other aquaculture or related fishing activities
(Barraclough & Finger-Stich, 1996).

It was argued that the shrimp aquaculture has also brought about social displacement and
marginalisation of fishers and small-scale farmers. It has also caused reduction of food
production for local people on quality land used for other crops; the depletion of drinking
water and loss in other environmental services have also been criticized (Barraclough &
Finger-Stich, 1996; Rönnbäck, 2002).

Recently shrimp farming has resulted in serious human rights violations and social
conflicts in rural areas, particularly in Bangladesh and India, where there were over 100
Bangladeshi villagers killed in conflicts over land acquisition by the shrimp industry
(Ahmed, 1997) consequently, Bangladeshi women and children were identified as the
most affected victims of the disputed situation (EFJ, 2002 and Fatima, 2004).


5
Clay (1996 cited in CRC, 1998) has summarised major environmental and socio-
economic impacts of shrimp farming in Latin America. Many of these same impacts
were observed in our study in Tam Giang lagoon, Vietnam.
Table 1. Overview of Potential Environmental Impacts of Shrimp Pond
Construction and Operation (reproduced from Clay, 1996 cited in Tobey et al.,
1998)



6
Table 2. Overview of Potential Social and Economic Impacts of Shrimp Pond
Construction and Operation (reproduced from Clay, 1996 cited in Tobey et al.,
1998)

In Vietnam, shrimp farming plays an important economic role; it holds third position in
contributing to the export earnings of foreign exchange and it is considered to be one of
the most significant and attractive livelihoods to farmers in coastal areas (Nhuong et. al.,
2002). The sector has been initiated since the 1980’s and it is seen as export-oriented and
fuelled by the government support, private sector and external assistance. There are
different shrimp farming systems found in country but extensive and improved extensive
systems are dominating the sector (MOFI, 1999; Nhuong et al., 2003).



7
Table 3. Development trend of shrimp farming in Vietnam: area, production and
yield
Year Area (ha)
Production
(tons)
Yield
(Kg/ha)
1995
251 334 56 344 224
1999
255 000 100 000 392
2001
478 800 162 713 340
2002
530 000 180 000 340
(Source: Nhuong et al., 2003)

Development of shrimp farming in Vietnam has recently experienced a trend of
increasing intensification together with expansion of area. In 1999 the total shrimp area

was about 255,000 ha and increased up to 530,000 ha in 2002, more than double. The
MOFI has now established the new target of 700,000 ha of shrimp farming in 2005.

Together with the rapid development of shrimp farming, there are also several negative
social and environmental problems, and recently trading competitive and anti-dumping
issues. One of the most serious environmental problems is the pressure of expanding
shrimp farming on the coastal environmental resources, particularly mangrove forests.
Data shows that from 1943 to 2000, there was a reduction of about 290,000 hectares of
mangroves in Vietnam: the reduction of forest coverage in this period result from
aquaculture development, particularly in the Mekong delta (EJF, 2003; Wade H, 2002;
Nhuong et al., 2002). The majority of coastal farming areas after 2000 resulted from
transferring low productivity rice fields, while the minority of them originated from
mangrove forest (MOFI, 2001). The disadvantages of mangrove forest destruction have
been shown clearly such as the reduction of biodiversity, coastal erosion, and salinisation
of agricultural land, which threatens the sustainable development of shrimp farming
(Hong, 1999). Additionally, evidence shows the signals of environmental pollution
appeared in many zones of intensive farming as well as shortage of freshwater and
reduction of underground water in sandy shrimp farming zones. The discharge of waste

8
directly to the environment causes harm and increases the risk of spreading epidemic
diseases which damages the interests of shrimp farmers themselves. Since 1994-1995,
epidemics spread widely in southern provinces, influencing 84,858 hectares of shrimp
area and caused a loss of VND 249 billion (MOFI, 1996). In 2001 and 2002, shrimp
diseases continued to threaten and cause great damages to farmers in the Mekong delta
(Nhuong et al., 2002).

Although shrimp culture has been practiced for more than 15 years in Vietnam, an
institutional framework for environmental management of shrimp farming area first came
into effect in 2002 and applied to concentrated shrimp farming areas only. However,

there were no guidelines for the preparation of Environmental Impact Assessment (EIA)
reports of shrimp farms until 2004 although it was legally required since 1998. In
addition, most of recent EIA reports focus on the impacts of intensive farming project
levels only (less than 200 hectares), and there are few documents addressing the negative
impacts of shrimp farming at the communal, district and provincial levels. Consequently,
the environmental impacts and wider externalities are usually overlooked in the Master
Plan of Development and Master Plan of Aquaculture (Hoi & Dung, 2004).

In Vietnam, the negative impacts of shrimp farming have been carefully studied at
national level and intensive project level. However, most previous studies focused on
identifying the types of impacts rather than understanding the causes of those impacts.
Moreover it seems that much attention was paid to the impacts of shrimp aquaculture on
mangrove reduction and water pollution, but there are few documents written about the
environmental and social impacts of encroachment of shrimp ponds into lagoons despite
the fact that these are important ecosystems in coastal areas.

The Tam Giang-Cau Hai lagoon system is well known in Vietnam and is one of the
largest coastal lagoons in South-East Asia. The lagoon plays an important role, not only
for provincial socio-economic development, but also for national wetland programs. It is
known that the lagoons provide important spawning, feeding and nursery grounds for fish
and shellfish, which are the foundation for fishery and aquaculture. More importantly, the

9
lagoon is important to larger numbers of migratory waterfowl and shorebirds, which have
attracted the attention of scientists preparing proposals for RAMSAR site (DOSTE,
2004). The lagoons are thought to provide coastal protection to prevent saltwater
intrusion inland and to regulate the microclimate of densely inhabited and intensively
cultivated coastal areas. The lagoons also facilitate boat transport between towns and
villages along their shores, and provide sheltered ports for ocean-going vessels. PCP,
(1998) considered this area as a valuable resource with important ecological functions

that should be managed, conserved and developed in sustainable way.

Previously, several studies have been carried out in the Tam Giang related to water
monitoring, community based natural resource management, environmental management
in coastal aquaculture. However, despite the growing literature on the description of
lagoon environment and its socio-economic characteristics, the relationships between
human activities and the lagoon environment and poverty are still poorly understood,
particularly the impacts of shrimp farming on the lagoon environment and on local
livelihoods.

It seems that although local people and researchers are aware of the problems, research
on this topic has remained limited and does not provide information to local and central
policy-makers for making appropriate plans and policies to achieve sustainable
development of aquaculture and lagoon management.

This study been conducted in Phu Vang district, a central area of the Tam Giang lagoon,
in collaboration with ongoing projects: one conducting by the Research Institute of
Aquaculture No. 1 (RIA No. 1), a government agency, the other practiced by the Centre
for Social Sciences and Humanities (CSSH), a semi non-government organization
(NGO): both projects were in cooperation with the Department of Fisheries (DOFI). The
study attempts to provide a balanced analysis of both the positive and the negative
impacts of shrimp farming on the environment and local livelihoods. We attempt to
discuss the causes of problems and suggest solutions for shrimp aquaculture development
within a framework of integrated coastal zone management.

10

1.1. Objectives of the study

1. To study local people's perceptions about the impacts of shrimp farming on the

Tam Giang lagoon environment with emphasis on the major positive and negative
aspects.
2. To study perceptions about the impacts of shrimp farming on livelihoods of local
people in the lagoon community with emphasis on the major positive and negative
aspects.
3. To discuss the role of policy, institutions and farming practices in relation to the
negative impacts of shrimp farming

1.2. Research questions

1. Is shrimp farming perceived to negatively impact the lagoon environment, how
and at what levels?
2. Is shrimp farming expansion perceived to benefit or harm the poorest groups in
the local community and if so, how?
3. How do policies, institution and farming practices link in relation to those
identified impacts of shrimp farming?


11
MATERIALS AND METHODS

2.1. Study area
The lagoon of Tam Giang-Cau Hai is located at16º17’ - 16º40’N and 107º25’ - 107 º 57’
E along five districts of Thua Thien Hue in the central province of Vietnam. It comprises
a series of coastal lagoons, covering 22.000 ha. Tam Giang – Cau Hai is one of the
largest lagoons in Southeast-Asia and is separated from the open sea by a large sand dune
system. Even though the lagoons occupies about 4.5% of total area of Thue-Thien Hue, it
provides livelihood for 350.000 inhabitants, about 32% of the total population of the
province (DOFI, 2002).

(
Prepared by
: Nguyen Van Khanh, 2004)
Figure 2. Map research site: Phu Vang district in Tam Giang-Cau Hai lagoon,
Vietnam
Tam Giang – Cau Hai has a tropical climate. The mean annual temperature is 25.2 ºC
with little variation. Thua-Thien Hue is one of the areas with highest rainfall in Vietnam;

12
the average precipitation is 2744 mm per year. The rainy season lasts from September to
April, and the highest rainfall is usually in October. On average, about six floods occur
and up to four storms visit Thua-Thien Hue annually, mostly occurring in September and
October. The hydrographical characteristics of Tam Giang lagoon are complex. It was
contains fresh, brackish and marine waters and the tidal regime is semi-diurnal. The
lagoon receives inflows from five rivers and exchanges water with the ocean through the
Thuan An and Tu Hien river mouths. These characteristics influence the biodiversity of
fauna and flora of the Tam Giang lagoon (PCP, 1998).
Phu Vang is one of the five coastal districts in the central of Tam Giang lagoon with a
total area of about 28,000,000 ha and a population of 178.000 inhabitants. The district
occupies 40 km of coastline and covers around 7,000 ha lagoon water area. Major
livelihoods derived from resources of the lagoon are fishery, aquaculture and agriculture.
Recently, ecotourism, fishery processing industry, marine transportation and service have
become promising economic activities. Under the pressure of growing population and a
high poverty rate, people have increasingly exploited the lagoon, thus challenging the
sustainability of the lagoon (DOFI, 2004). Table 4 provides an overview of basic
geographic and demographic facts in the study area.
Table 4. Baseline socio-economic data in Phu Vang district, Tam Giang lagoon
Phu An Phu Da Vinh Ha Phu Vang
Thua Thien
Hue

Land area
(km
2
)
11,28 29,29 30,07 280,00 5,000,00
Population
8,875 10,510 9,399 178,000 1,105,494
Density
(persons/km
2
)
787 352 313 636 219
Population
growth (
0
/
00
) 14,02 14,00
(Source: Statistics of district and province, 2004)
It illustrates that fisheries and aquaculture play an important role in economy of the study
area. The sectors contributed to 44.4% total GDP of the province and the growth rate of
aquaculture development seem to be highest during period of 1996 and 2001.

13
Table 5. Gross Domestic Production of economic activities in coastal area and Tam
Giang lagoon (Unit: million VND)
1996 2001
Sector
Value % Value %
Total

384626 100 568807 100
Fishing catch
100502 26,13 140722 24,74
Aquaculture 19308 5,02 111998 19,69
Agriculture
150935 39,24 170770 30,02
Industry
57833 15,04 73811 12,98
Services
56041 14,57 71524 12,57
(Source: DOFI, 2002)
Shrimp aquaculture has been practiced in Phu Vang district since 1980s. However, the
increase in production has been mainly based on the increase in area rather than
productivity. Table 6 shows that most of the shrimp farming area in Phu Vang district is
dominated by extensive and semi-intensive systems. Although Phu Da commune has a
small area of shrimp farming, the productivity is highest among other communes (1.68
tons/hectare).
Table 6. Baseline data of shrimp aquaculture in Phu Vang district, Tam Giang
lagoon
Shrimp farm area (ha)
Location
Extensive
Semi-
intensive
Intensive
Total
area
Total
Production
(ton)

Productivity
(ton/ha)
Phu An
138,5 76,9 11,5 226,9 39,5 0,17
Phu Da
- 41,4 15,3 56,7 95,2 1,68
Vinh Ha - 346,8 120,0 466,8 202,0 0,43
Phu Vang
- - - 1838,1 1896,3 1,03
(Source: Statistics of commune and district, 2004)

14
2.2. Site selection

Phu Vang district was selected as the study site as a result of discussions with DOFI, RIA
No. 1 colleagues and local NGO members after making several field visits including
informal interviews with local people in the Tam Giang area.

The district is located in the centre of the Tam Giang lagoon, with a history of shrimp-
farm activities. For several years, the district has been the principal contributor of farmed
shrimp and fishing production in Thua Thien Hue province. The lagoon area is
confronted with serious environmental problems and conflicts of interest among resource
uses such as agriculture, shrimp aquaculture, traditional fisheries, transportation,
ecotourism and wetland conservation. Phu Vang district is situated 12 km from the city of
Hue and the provisional Department of Fisheries. Therefore, it facilitated access to
official data and assistance from local staff.

Table 7. General criteria for selection of study sites in Tam Giang lagoon, Thua
Thien Hue province

Criteria Remarks
Environmental Urgent issues of environment related to shrimp farming
Social
Conflicts of interests related to shrimp farming
Economic Shrimp farming success and failures resulting in wealth disparity
and debt problems
Technical
Existence of diversified shrimp farming systems


Among the twenty-seven coastal communes in the district, we collected samples from
three communes representing different geographical, socio-economic, environmental and
technical aspects. Conflicts of interests among various different resource users and
economic sectors are major emerging issues in the commune of Phu An. Meanwhile, the
main problems in the commune of Vinh Ha are the degradation of nursery and breeding

15
grounds. Although effluent discharge is an urgent issue in Phu Da, shrimp farming has
been fairly stable in this commune, while in Phu An and Vinh Ha the crops have
experienced fluctuations. Since 1997, disease outbreaks have been occurring more
frequently and caused major losses since 2002 in these communes.

Tam Giang lagoon has never been a large natural mangrove area, only about 10 hectares
of its total area of 22,000 hectares is covered by mangroves. There has therefore been
little conversion of mangroves into shrimp farming (DOFI, 2002), hence we have not
focused on the impacts of shrimp farming on mangroves in this study.

Table 8. Specific criteria for study site selection in Phu Vang district, Tam Giang
lagoon
Criteria

Location
Position Characteristics and major issues
Phu An
North of Phu
Vang
• Existence of resource use conflicts of interest
• Most of farms are in tidal area; domination of
net-enclosure aquaculture (traditional extensive
system)
• Most shrimp farms had crop failures in 2004 and
crops were not stable during the previous four years
Phu Da
Middle of Phu
Vang
• Many farms situated in the upper tidal area,
mainly improved extensive systems and semi-
intensive systems
• Most farms succeeded in 2004 and shrimp crops
were fairly stable in previous ten years
Vinh Ha
South of Phu
Vang
• Sea-grass habitat degradation/nursery and
breeding ground replacement
• Most farms are in the inter-tidal area, mainly
improved extensive systems and semi-intensive
systems
• Most farms failed in 2004 and were not stable
during the previous four years

16
2.3. Data collection techniques
A participatory approach was applied in the field survey with the assistance of a number
of experienced people from different disciplines including socio-economists,
environmentalists and aquaculturists from central and local institutions who have been
worked in the area. The research team consisted of a staff from RIA No 1, DOFI and
CSSH and officers of People's Committee of the District (PCD) and People's Committee
of the Commune (PCC).

The fieldwork was implemented from October to December 2004. The research process
was divided into three phases: (1) Initial, (2) Operational and (3) Final. The initial stage
was focused on secondary data collection and individual interviews of the local officers
and researchers in organizations where research has been carried out: mainly in national
level and provincial level in Ha Noi (capital of Viet Nam) and Hue city. The operational
stage was carried out in the district and communes with emphasis on Rapid Rural
Appraisal (RRA) and Participatory Rural Appraisal (PRA) techniques involving both
local people and authorities. The final stage was focused on the household survey using
pre-tested questionnaires.
2.3.1. Secondary data collection
Secondary data collection was mainly conducted in provincial and national agencies: the
Ministry of Fisheries (MOFI), RIA No. 1, Hai phong Institute of Oceanography (HIO),
DOFI, Department of Resource and Environment (DOSTE), and Hue Science University
(HSU). The secondary data reviewed included relevant including official statistics,
annual reports and semi-annual reports that were available in the organizations.
Institutionally, we collected and analysed the Environmental Law, Land Law and Fishery
Law and those by-laws that related to lagoon management. The Socio-economic
Development Plan, Wetland Programme Strategies, Poverty Reduction Strategies and
Fishery & Aquaculture plans and major policies/guidelines associated with those
documents were also collected and analysed at multiple levels (national, provincial, and

district and commune level). These reviews provided an overview of shrimp aquaculture,
lagoon management issues and historical background of problems related to shrimp