Many banks have shown reluctance to give loans to fishermen in the central provinces to build new boats because of the lack of insurance after many boats have broken down despite only being constructed recently.

Many boats have broken down despite only being constructed recently

Statistics from Quang Tri Department of Agriculture and Rural Development show that 16 steel-clad fishing boats have been built, with 12 already put into use under Government Decree 67 on supporting fishermen to build new high-capacity, steel boats for offshore fishing according to Dan Viet News. However, after one year, many boats become rusty and some of the equipment has already broken.

Some boats have unsuitable designs that caused the propellers sucked into their nets. Owners have to spend millions of VND on repairs.

Nguyen Hoai Nam, head of the Department of Capture Fisheries and Fisheries Resources Protection, said that now about eight households couldn't access the bank loans because of various reasons and the most concerned one is the rapid deterioration of the new steel-clad boats.

A new boat cost around VND20bn (USD880,000) but there is no insurance policy to ensure that the loans will be recouped if serious accidents occur. Phan Van Nghi, vice chairman of Gio Linh District said most banks only agreed to upgrade and renovate the old boats.

Thanh Nien News also reported the similar situation in Binh Dinh Province. Fisherman Pham Huu Danh said Agribank told him to withdraw the registration asking for loans to build a new boat. They were afraid after many boats became rusty after such a short time and worried that fishermen won't be able to repay the debt.

Tran Chau, vice chairman of Binh Dinh Province said they tried to persuade the banks to no avail.

Dtinews