Shrimp farming development in Tra Vinh province

fy distribution channels for whiteleg shrimp, cultured shrimp who are developing in Tra Vinh. At the same time, the thesis also analyzes costs, value added, profit rates of the parties participating in the value chain. - Clarify the successes, limitations and find the cause of the limitations in the development of shrimp farming in Tra Vinh province in recent years. - The research identifies farmers' wishes and expectations about specific policies to help them develop shrimp farming in the future. At the same time, in the implementation of policies related to the development of shrimp farming today, the author also finds out the limitations ineffective. - Based on the scientific basis of research results, the thesis proposes groups of solutions for the development of shrimp farming in Tra Vinh province in the future. 6. The structure of the study In addition to the introduction, conclusions, references and appendices, the main content of the thesis is presented in five chapters as follows: Chapter 1. Rationale for shrimp farming development Chapter 2. Research design. Chapter 3. Current situation of shrimp farming development in Tra Vinh province. Chapter 4. Analysis of factors affecting shrimp farming development from research results. Chapter 5. Solutions to promote the development of Tra Vinh shrimp farming in the coming time. 5 CHAPTER 1 RATIONALE OF SHRIMP CULTURE DEVELOPMENT 1.1. Rationale for shrimp farming development 1.1.1. The concept of shrimp farming development 1.1.1.1. Shrimp profile 1.1.1.2. Biological characteristics of shrimp 1.1.1.3. Forms of shrimp farming 1.1.1.4. Developement 1.1.1.5. Shrimp farming development 1.1.1.6. Characteristics of aquaculture development 1.1.1.7. Characteristics of shrimp farming development 1.1.2. Content and criteria to evaluate the development of shrimp farming 1.1.2.1. Expanding farming scale: Participants in shrimp farming can do so by expanding the water surface area, increasing coefficient of water surface area and increasing number of shrimp farmers. 1.1.2.2. Improve production technology level: The stakeholders involved in shrimp farming are implemented by investing in technical infrastructure, improving the quality of human resources in shrimp farming and applying scientific and technical advances in shrimp farming 1.1.2.3. Promote restructuring farmed shrimp: Criteria for evaluating structural displacement are the number of converted areas and the ratio of converted areas, the output or the value of output varies between forms of production organization. 1.1.2.4. Develop services for shrimp farming: 6 The service system is divided into two groups, including: (1) Input support group and (2) Output support group. 1.1.2.5. Evaluate efficiency and results in shrimp culture: The criteria often used to evaluate this development content are output and value. 1.1.3. Factors affect the developing shrimp farming 1.1.3.1. Lobor force 1.1.3.2. Supporting and relevant industry 1.1.3.3. Direct input 1.1.3.4. Market condition 1.1.3.5. Investment funds 1.1.3.6. Natural conditions 1.1.3.7. Industry structure and competition 1.1.4. Factors measure the developing of farmed shrimp 1.1.4.1. Performance results (PR) 1.1.4.2. Market results (MR) 1.2. Experience in developing domestic and foreign shrimp farming 1.2.1. Experience in developing foreign shrimp farming 1.2.1.1. Focusing on the planning of shrimp farming development 1.2.1.2. Application of science and technology in the development process 1.2.1.3. Control the cause of shrimp disease 1.2.1.4. Ensure food hygiene and safety for shrimp p products 1.2.2. Experience in developing domestic shrimp farming 1.2.2.1.The experience of Khanh Hoa province 1.2.2.2.The experience of Binh Dinh province 1.2.2.3.The experience of Soc Trang province 1.2.2.4.The experience of Bac Lieu province 1.3. Lessons learned for Tra Vinh 7 CHAPTER 2 RESEARCH DESIGN 2.1. Research models 2.1.1. Research framework 2.1.2. Multi-variate model 2.1.2.1. Model approach and variables definition Author approaches the diamond model of Michael E. Porter (2012), based on the original model, and inherits previous studies with the characteristics of the study area, concretized and expanded into seven group of factors affecting the rural development of Tra Vinh Province 2.1.2.2. Building research model Figure 2.1: Research models Source: Author proposal 2.1.2.3. The relationship between the concepts in the research model H1: Natural conditions (NC) have a positive impact on the rural development Market conditions Support & Relevant Structure & Competition Natural conditions Investment funds Labor force Direct inputs Operating results Develop shrimp farming Market results 8 H2: Investment funds (IF) have a positive impact on the rural development H3: Labor force (LF) has a positive impact on rural development H4: Direct inputs (DI) have a positive impact on rural development H5: Market conditions (MC) have a positive impact on rural development H6: Chain linkages (SR) have a positive impact on rural development H7: The competition (SC) has a positive impact on the rural development 2.2. Research Methodology 2.2.1. Qualitative research The author conducts discussions with two groups of experts: Economic experts, fisheries managers, experienced lecturers in fisheries, breeding facilities / agents, feed / drug establishment. production and traders to use as a basis for adjusting the model and observation variables to suit the field, object and scope of the study. 2.2.2. Preliminary quantitative research The design of preliminary quantitative research carried out through the following research order: Building a scale and measuring the scale. 2.3. Data collection method 2.3.1. Collect secondary data 2.3.2. Collect primary data Primary data is used to supplement secondary data that has not been provided, along with the sampling conditions the author chose the sample size of the study: 300 observations. 2.4. Data processing methods 2.4.1. Descriptive statistical analysis This method was used order to assess development trends through measuring development indicators of farming scale, the development of consumption channels, the association in production and product consumption, the results in shrimp farming, so that the extent of the 9 factors affecting developing shrimp farming can be assessed. 2.4.2. Verifying the reliability of the scale with Cronbach' Alpha The author took the standard Cronbach alpha coefficient which is greater than 0.60 and less than 0.90. In addition, the correlation coefficient between variables and total variables must be greater than 0.30. 2.4.3. Exploratory factor analysis (EFA) After EFA, Cronbach’s alpha was recalculated for each concept of the theoretical model in order to re-test the reliability of the scales again after a number of variables from EFA results. 2.4.4. Confirmatory factor analysis (CFA) Measuring unidirectional; Assessing the reliability of the scale; Convergent value; Distinctive value; Theoretical contact value. 2.4.5. Structural equation modelling (SEM) The model is suitable when the coefficients are CMIN / df ≤ 2 or CMIN / df ≤ 3, CFI, TLI ≥ 0.9; RMSEA index ≤ 0.08. 2.4.6. Bootstrapping Estimation results were used to test hypotheses. 2.4.7. Research results 2.5. Preliminary research design 2.5.1. Preliminary research steps 2.5.2. Results of drafting scale construction 2.5.2.1. Scale of factors affecting development 2.5.2.2. Scale of development The results of draft scale construction with 42 observed variables in the model were included in the research model. 10 CHAPTER 3 THE PHENOMENON OF SHRIMP FARMING DEVELOPMENT IN TRA VINH PROVINCE RECENTLY 3.1. Expanding the scale of shrimp farming The coefficient of using water surface (H) of whiteleg shrimp is higher than that of black tiger shrimp, the highest record in 2014 and 2017 reached H = 2.67. On average, black tiger shrimp farmers stock 1 - 2 times/year, therefore the highest H coefficient is 2.09. The characteristics of whiteleg shrimp are that they can resist diseases, adapt to climate changes, and farmers are technically trained, thus the number of crops in the year is from 2 -3 crops / year, then most of the coefficient H> 2. 3.2. Improving production technology level Irrigation systems, solid embankments are also important factors to control and limit foreign creatures from outside bringing pathogens into shrimp farm. Training courses are organized by state agencies to propagate, disseminate laws and guide farming techniques Figure 3.1. The situation of participating in training in 2 years 2016-2018 Frequency of participating in the training Household number Rate (%) Total 300 100,00 4 times or more 28 9,33 From 2 to 3 times 189 63,00 Join 1 time 74 24,67 Not engaged 9 3,00 Source: Survey data for the year 2018 11 In the study area, most of the shrimp farmers participated in the training, only a small number (3%) did not. They are small-scale farming, usually new farmers who have been cultivated by their families, mainly based on the experience of their relatives or neighboring farmers, acquaintances or establishments dealing in aquatic food and products. The application of technology in the farming phase is mainly modern machinery and equipment. Regarding machinery for the current shrimp farming activities in the farming area such as: air blower, aeration machine, food mixer, food grinder, diving machine, motorboat, water quality control equipment, through the survey, farmers are fully equipped with the necessary machinery for shrimp farming. 3.3. Promote restructuring farmed shrimp Currently, Tra Vinh has 4 types of farming systems: improved extensive farming, semi-intensive, intensive and super-intensive farming. However, the proportion of farming areas of various forms also changed in the period of 2015 - 2019 In recent years, the conversion speed from semi-intensive to intensive has tended to increase, but it is still slow because of difficulties in investment funds. Whiteleg shrimp is the key farming object, and is concerned by farmers. In 2017, Tra Vinh developed the model of raising whiteleg shrimp in the form of super-intensive, high- tech with a total area of about 145 ha, breeding 37.2 ha/year with the number of breeds fo 744 million, harvest 1,500 tons. By 2019, there were 1,394 families breeding in the form of super-intensive, on an area of 440 hectares with the number of 791.55 million. The harvested output was 12,438 tons. This is a favorable point for the development of shrimp farming industry of Tra Vinh Province in the coming years. 3.4. Development of services for shrimp farming a) Input support group 12 Developing seeds to ensure adequate supply and increase in quality. In 2019, there are 74 active aquatic seed production sties in Tra Vinh Province. The main production object is black tiger shrimps with 72 sites, accounting for 97.3%, supplying 1,000 million units/year and whiteleg shrimp seed sources depend almost entirely on foreign provinces, mainly in Ninh Thuan, Binh Thuan and Bac Lieu. There are only 2 new establishments operating in the province, but they can only meet 60 million/year, accounting for 1.28% of the breeding stock; therefore, the management of origin and quality of breed faces many difficulties. The number of stores providing inputs for aquaculture in the province is plentiful, distributed throughout the farming areas. In addition, businesses provide product usage instructions as well as technical support for farmers. In 2019, 83% of the sites working in aquatic food and drugs through inspections complied with the State's regulations, and are rated A and 17% of sites rated B for failing to comply well with regulations due to a lack of information about the law. Among the B-rated sites are those that both trade in food and environmental treatment and improvement products. This affects the farming process of the farmer because diseases and substandard treatment environment affect the following crops. b) Output support group The analysis showed that the average net added value per ton of shrimp of farmer factor was the highest, reaching 66.50 million VND/ton, accounting for 35.76% of the net added value of the whole chain. It is followed by the processing factory with net added value of 45.62 million VND/ton (accounting for 24.53%), the granary agent was 40.83 million VND/ton (accounting for 21.95%). Trader is the agent with the lowest net added value compared to others in the chain: 13 reaching 33.03 million VND/ton (accounting for 17.76%). c) Capital support group Economic integration system  Horizontal link in shrimp chains in Tra Vinh province The majority of shrimp farmers have access to information on prices and markets from traders/collectors (accounting for 80.26%), which is an easy-to-access channel but very vulnerable to price down- estimation. Figure 3.2. The development of horizontal link in Tra Vinh Province Links between farmers Number of families involved Rate (%) Coordinate in pollution treatment 142 47 Coordinating in handling diseases 129 43 Coordinate in buying seed 99 33 Coordinate in buying supplies 59 20 Coordinate in selling output shrimp 46 15 Coordinate in labor supplying 36 12 Source: Survey data for the year 2018 In the study area, over 40% of farmer families participated in the cooperation to treat farming environment pollution and disease. In addition, farmers also associated in buying breeds and materials for farming, selling output shrimp and providing labor. But the horizontal linkage between farmers is very loose, ineffective. They link together in pollution treatment and disease prevention because ponds are always adjacent to each other, thus it is easy to spread the disease, and there should be coordinated handling to reduce the rate of damage.  Vertical link in the shrimp chain in Tra Vinh Province Vertical link is mainly between: farmers and agents supplying 14 food - chemicals. According to the survey, the number of farmers participating in this link is increasing and the percentage of farmers participating in this link has increased from 49% to 72% over 2 years from 2016 to 2017. Linking helps farmers alleviate the pressure of lack of capital by not investing in food and chemicals but they have to pay a higher price than buying with cash. Link with processing plants is now on a downward trend, between farmers and traders also have no links with each other. They only operate in the form of buying – selling by bargaining for each purchase order. Figure 3.3. The development of vertical link in Tra Vinh Province Link with farmers 2016 2018 Number of families involved Rate (%) Number of families involved Rate (%) Food and chemicals provider 148 49 217 72 Seed provider 52 17 74 25 Traders 48 16 74 25 Processing plant 38 13 62 21 Source: Survey data for the year 2018 3.5. Evaluate efficiency and results in shrimp culture a) Criteria for shrimp production After 10 years, Tra Vinh shrimp production increased by 2.5 times, the average growth rate was 9.39%. The average growth rate of the black tiger shrimp production tended to decrease while the white shrimp industry had a very strong increase, reaching 65.51%. The average growth rate of farming area (0.31%) was lower than the growth rate of production, indicating that shrimp farming in Tra Vinh Province developed in the direction of intensive farming. Thanks to increased investment, application of technical 15 advances, reasonable selection of shrimp seeds, quality seed sources, etc., the shrimp farming industry in Tra Vinh Province has made certain development. b) Value indicators Production value After 10 years, the production value of the aquaculture industry increased approximately 5 times, of which the shrimp farming sector increased 3 times. Shrimp farming always gets higher value than other areas of aquaculture. Although, the production rate of shrimp farming industry in recent years was low (accounting for 35.69%), but its value was much higher (accounting for 50%). This success was due to shrimp farmers' conversion of appropriate species, the shrimp products were mainly exported to foreign countries, therefor the product value was high. Added value In the period of 2015-2019, the value of aquaculture sector increased by 10.44% and the value of shrimp industry increased by 12.89%. Through analysis, we see that shrimp farming is a risky industry, so the added value of shrimp farming industry has increased but the increase has fluctuated year by year. Value chain analysis also shows that shrimp farmers bring the highest added value in the whole production and consumption chain. Financial efficiency 16 CHAPTER 4 ANALYSIS OF FACTORS AFFECTING SHRIMP FARMING DEVELOPMENT FROM RESEARCH RESULTS 4.1. Characteristics of the surveyed objects 4.2. Results of building a preliminary scale Surveyed subjects were those farmers who had participated in shrimp farming for 5 years or more in coastal districts of Tra Vinh Province, the results of data collection and screening still from 86 samples were analyzed. 4.2.1. Cronbach’s Alpha reliability analysis results The results of the scale analysis of factors affecting shrimp development include seven factors corresponding to 34 observed variables. In particular, the scale of natural conditions includes four measurement variables; For scale of investment capital source with four observed variables; Labor force scale with six observed variables; The scale condition of the inputs with five observed variables; For market condition scale with four observed variables; The scale of supporting industries & related with six variables; Scale of industry structure & relevance with five measurement variables. Hence, the influencing factors for shrimp farming development with seven component concepts are NC, IF, LF, DI, MC, SR and SC, after analyzing Cronbach's alpha, there were 31 observed variables with high reliability. The scale was further included in the EFA analysis to assess the convergence of each concept. For the performance scale, there are four observed variables; For the market performance scale, there are four observed variables. 4.2.2. EFA results The first EFA for the scale of factors affecting developing shrimp farming, including seven factors extracted, corresponding to the 17 total extracted variance reached 63,507%. In particular, the observed variables PTR3 were excluded from the concept of measurement due to non-eligibility. The final EFA results showed that seven factors were extracted, corresponding to Average Variance Extracted (AVE) of 65,322% (higher than the original) and greater than 60%, the factor loading of the variables reached from 0,6 and above, Eigenvalue = 1,612 stops at seven factors, all of them achieved convergence and conformed to the original theoretical model, but there would be an adjustment of the order of variables in the main study and further tests for a larger sample in the official study. For the Developing Shrimp Farming Scale: EFA result shows that the scale has an extract variance of 64,133%> 60%. This result shows that the observed variables explain the concept of developing shrimp farming higher than the partial and the errors. The scale is extracted into two distinct factors that characterize two concepts: performance and market results, which is consistent with the research of Delaney et. al (1996) and Huselid (1995). Therefore, in the official study, the omnidirectional scale of business results including 2 component concepts, performance and market results, would be further tested in CFA with a larger number of samples. The scales of the concepts in the research model are changed, updated and adjusted to be included in the official study to be done in chapter 4, based on the observed variables in the preliminary scale as a basis to develop questionnaires for formal research. 4.3. Design the official research steps 4.3.1. Confirmatory factor analysis Unidirectional: chi-square = 930.585, df = 635, P = 0.00, Chi- square/df = 1.465 < 3 and GFI = 0.865, TLI = 0.931, CFI = 0.937, 18 RMSEA = 0.039 ≤ 0.08. Thus, the data is considered as suitable with market. Table 4.1. Composite Reliability (CR) and Average Variance Extracted (AVE) Factors CR AVE SC 0,800 0,502 LF 0,849 0,531 SR 0,834 0,503 DI 0,848 0,582 MC 0,838 0,565 NC 0,820 0,537 IF 0,815 0,525 Shrimp farming 0,729 0,574 Source: Calculated by the author Through CFA, together with checking the reliability, AVE and the distinctiveness of the concepts in the theoretical model, the scale of each concept in the research model achieves unidirectional convergent value and distinctiveness. capacitor and discriminant properties. The preliminary theoretical model ensures the suitability for testing. The results of CFA show that the developing shrimp farming factor in the model is a second-level factor made up of its two components, market result and operation result. Thus, with nine groups of factors measured by 38 indicators, after CFA showed appropriate scale and used for SEM. 4.3.2. Testing factor model 4.3.2.1. Structural equation modelling (SEM) SEM results show that Chi-square = 930.585, df = 635, Chi- square/df = 1.465 < 3, TLI = 0.931, CFI = 0.937 ≥ 0.9 and RMSEA = 0.039 < 0.08. The above values are satisfactory. The model 19 matches data collected from the market. Table 4.2. Results of estimated theoretical models (standardized) Relationship Estimate (ML) Standard error (SE) Critical value (CR) p- value Conclusion RD LF 0,122 0,068 1,798 0,072 BB RD SR 0,227 0,075 3,029 0,002 CN RD ID 0,111 0,049 2,271 0,023 CN RD MC 0,169 0,071 2,376 0,017 CN RD NC 0,174 0,072 2,427 0,015 CN RD IF 0,088 0,041 2,133 0,033 CN RD SC 0,290 0,075 3,895 *** CN PR RD 1,000 CN MR RD 0,990 0,127 7,829 *** CN Source: Summarized & analyzed by the author The standardized estimation results show that the relationships among the factors in the model are statistically significant (p_value 0.05. Conduct a second SEM. 4.3.2.2. Bootstrapping The Bootstrap analysis (N = 600) shows that the absolute value of CR in the relationship between concepts is small (|CR| ≤ 2). Therefore, it is possible to conclude that the estimates in the theoretical research model are reliable. This method proves that the theoretical model can be trusted in a larger sample. 4.4. Testing hypotheses and evaluating influencing factors 4.4.1. Testing research hypotheses Hypothesis test results shows that out of seven hypotheses, there are six accepted hypotheses (H1, H2, H4, H5, H6, H7), there is one unacceptable hypothesis (H3). 20 4.4.2. Evaluating influencing factors Summary of hypotheses shows that in seven hypotheses there are six accepted hypotheses (H1, H2, H4, H5, H6, H7) there is one unacceptable hypothesis (H3). Estimated results: the correlation values are positive thus the level of impact on the developing shrimp farming of the factor groups is positively impact, in ascending order as follows: investment capital (0.141), input condition (0.156), natural condition (0.163), market condition (0.161), supporting and relevant industry conditions (0.249) and the strongest impact was industry structure and competition (0.330) with 95% confidence. With remaining factors, the importance of each criterion to each factor is also different. 21 CHAPTER 5 SOLUTIONS TO PROMOTE THE DEVELOPING OF SHRIMP FARMING IN TRA VINH PROVINCE 5.1. The basis for proposing solutions 5.1.1. Changing trend of aquaculture working environment 5.1.1.1. The variation of natural conditions 5.1.1.2. The variation of human factors 5.1.1.3. The variation of market trend 5.1.2. A number of central and local guidelines and policies on shrimp farming development 5.2. Solutions to promote shrimp farming development in Tra Vinh province 5.2.1. Promote planning and management of planning: to reorganize shrimp farming areas, especially for key farming areas in the direct