EU Strategies Against IUU Fishing
In recent years, IUU fishing practices have been emerging as a critical threat to maritime ecosystems, with disastrous environmental impacts as a result due to the harmful nature of the fishing methods used, damaging the long term wellbeing of local communities, especially in developing countries. Moreover, the ripple effect of IUU fishing has an impact on broader issues, including the geopolitical risk in fueling maritime disputes when a vessel crosses a foreign Exclusive Economic Zone (EEZ), a risk of child labour, and – as noted by the Food and Agriculture Organisation (FAO) – its potential association with organised crime. Economically, the practices cause between 23.9 and 46 billion EUR in losses every year to the global economy, due to the depletion of fish stocks, which reduces the available catch for legal fisherman and disrupts sustainable fisheries. This also penalises fishing industries who adhere to the regulations, and national governments, which lose potential tax revenues and licensing fees, while the cost of enforcement to combat IUU fishing strains the already limited resources available in many countries.
The European Union (EU) is one of the world’s largest fish importers, with the industry accounting for 34% of total market imports. Because of this, the EU has been seeking to tutelage the safety of its fishing imports, avoiding engagement with IUU associated products. In 2008, the EU released its IUU Regulation, which entered into force in 2010, venturing to contribute in the fight against illegal fishing and to ensure “exploitation of living aquatic resources that provides sustainable economic, environmental and social conditions.”
The IUU regulation consists of three core components: (1) a catch certificate scheme, through which the origin of the products is validated; (2) a third country carding process, for the issuing of “yellow cards” and “red cards” when countries fail to meet the EU criteria; and (3) penalties for EU nationals when they engage in IUU fishing or related practices. Moreover, solving the maritime challenge would be significantly beneficial for the EU as it is the most impactful and cost-effective way to advance broader biodiversity agendas. Noting the EU Green Deal and its subsection on the EU Biodiversity Strategy for 2030, the latter specifically targets the impacts of climate change, forest fires, food insecurity, and disease outbreaks.
In April 2024, the European Commission released its “Fighting illegal, unreported and unregulated fishing: new report on 2020-2023 achievements.” The document noted several crucial points for the combating of illegal fishing, highlighting the usage of digital tools and collaboration at the international level. In its effort, the EU has been collaborating with regional partners, like in Southeast Asia with the ASEAN Network for Combating IUU Fishing (AN-IUU). In this regard, the EU partnered on 17-18 of July 2024 in the 4th Regional Workshop of the ASEAN Network for Combating IUU Fishing, where ASEAN member states reaffirmed their commitment to combating IUU fishing, highlighting the urgency of enhancing information exchange, improving the implementation of guidelines, and expert technical support.
IUU fishing is a critical issue in Southeast Asia, as The Philippines, Thailand and Vietnam have all three received a yellow card from the EU, and Cambodia a red card. While Thailand and the Philippines have managed to get their yellow cards lifted, Vietnam is still in the process of doing so. Its yellow card was initially issued in 2017 as a warning sign after an EU inspection. The EU’s main concerns involved the lack of a comprehensive legal regulatory system to manage maritime fisheries; an inadequacy in meeting the EU standards, the noting of the discrepancy between the vessel sizes and status of maritime resources; the absence of a catch certification system to ensure the origin of maritime products; as well as safeguards to stay within national waters without encroaching on foreign EEZ.
The implementation of the EU’s IUU fishery policy has largely impacted bilateral relations, which had previously been benefiting economically from their prosperous trade relations. Between 2012 and 2017 the EU was the second-largest importer of Vietnamese seafood products, accounting for 19-22% of Vietnam’s total seafood exports. However, after the yellow card enforcement, Vietnam’s seafood export to the EU significantly decreased from 19-22% to 12% in 2019, with an equivalent of 168.8 million EUR; and an additional 5% in 2020.
Vietnam’s IUU Challenge
Fisheries and fish trade are a core component of Vietnam’s economy, being highly dependent on related products and commerce. In 2023, Vietnam exported approximately 8.97 billion USD of fishery products. As a consequence, IUU fishing has been identified as a key national issue, also because it has been decelerating Vietnam’s development efforts.
According to the DHL Global Connectedness Index, Vietnam experienced its height of global expansion between 2001 and 2019, earning its place as the world’s 8th highest growth pole. Notably, Vietnam has also been ranked among the top 10 countries in both the pace (growth rate) and magnitude (absolute volume) of its trade growth from 2016 to 2021. As fisheries accounted for 3.18% of the country’s GDP in 2021, it acknowledges the importance of its fishing industry for its development ambitions. Hence, its challenges related to IUU fishing have put the country’s development goals and relations with external partners at risk, both to ethical and legislative concerns. For instance, Vietnam’s fishing vessels have been accused of illegally trespassing other countries’ maritime territories, as between 2013 and 2017 Vietnamese fishermen were found in Australia’s Exclusive Economic Zone (EEZ). These IUU practices also put the Vietnamese local fishing communities at risk, with related reports of child labour abuses having been flagged.
Following the IUU Fishing Risk Index, the 2023 World’s overall score amounts to 2.28 (with the minimum being 1 and the highest being 5). As of 2023, Vietnam received a score of 2.57, ranking 17 out of 152 countries, indicating a relatively higher risk compared to most nations. Vietnam has been trying to address its IUU issues, aspiring to have its EU yellow card lifted. While seeking to transition towards more sustainable fishing practices, it has thereby been reaffirming its commitment to uphold international standards and maintain strong relations with its external trading partners.
However, Vietnam’s large coastline is challenging its surveillance systems, limiting the success rate of its enforcement capabilities. The implementation of an effective monitoring system in its local fisheries system is also hampered by a lack of resources and capacity, as well as an effectiveness of local fisheries management in sanctioning violations. Moreover, in the South China Sea there is the additional challenge of disputed territory in the maritime area and islands between Vietnam, China, the Philippines, Malaysia, and Brunei, with all of them holding sovereignty claims in the region. Regardless of efforts made to solve related disputes, also through international legal frameworks and institutions, including UNCLOS and the International Criminal Court interventions, jurisdiction often remains unclear, fostering a high level of legal insecurity and risk of conflict among the parties involved. These territorial disputes further exacerbate the IUU challenge in Vietnam causing fishermen to exploit the lack of authority in the area. Furthermore, given the number of actors involved in the South China Sea, combating IUU fishing increasingly becomes an international issue rather than solely Vietnamese, requiring regional cooperation and diplomatic solutions.
While IUU fisheries may render short-term benefits, the long-term threats are critical. Vietnam has been faced with the second-highest economic loss from IUU fishing practices among the Southeast Asian nations. In addition, if the issue is not properly addressed, the EU may escalate its warnings to a “red card”, which would lead to a listing by the EU Council to impose a complete trade ban on fishery products. Such escalation could also put the EU-Vietnam Free Trade Agreement signed in 2019 at risk. Since its entering into force in 2020, the agreement has been allowing approximately 84% of imports from Vietnam to enter duty free into the EU. However, this has not been applied to fish products due to IUU-related concerns. The red-card IUU regulation, being a trade-restrictive technical measure, could also jeopardise the broader FTA in place by limiting or completely banning trade relations, which would have critical repercussions for both parties.
Between 2017 and 2024, the EU has made four inspections on Vietnam’s fight against IUU fishing, recognising and appreciating the positive progress made. Vietnam has already amended various legal provisions, noting the 2017 Fisheries Law. In the spring of 2019, Vietnam also took significant steps to address aquatic resource management. The government formed a specialised national committee and empowered a deputy prime minister to lead and synchronise its efforts. Additionally, a dedicated fund was created to safeguard and enhance aquatic resources. The implementation of long-term solutions, along with the lifting of the yellow-card would open the way to significantly enhance bilateral relations in various domains, noting maritime economy, cooperation in resource management, transfer of technologies and sustainable fishing techniques. Most importantly, by lifting the yellow card, both parties would benefit from a substantial increase of sustainable seafood trade and investment, opening opportunities for enhanced EU-Vietnam cooperation. Another promising event was the 2022 signature of the Exclusive Economic Zone (EEZ) delimitation between Vietnam and Indonesia, as the EEZ milestone was signed after 12 years of negotiations.
Vietnam’s Minister of Agriculture and Rural Development Lê Minh Hoan stated in a declaration to Vietnam News that under the directioning of Vietnamese Prime Minister Phạm Minh Chính, local authorities have increased and enhanced their IUU fishing duties. This can be noted by the issuance of Directive No. 32-CT/TW by the Central Committee on 10 April 2024 which aims to mobilise the Vietnamese government and its political system.
The EU Delegation to Vietnam is scheduled to execute its fifth inspection in October 2024. Vietnam has been pushing to improve the current situation in anticipation of the EU insights and has further implemented new measures. These actions include vessel tracking and monitoring; deploying a GPS-based tracking system; enforcing vessel registrations and fishing licences; increased patrolling at ports and at sea; preventing non-compliant vessels from accessing ports; strengthening sanctions; improving product traceability and food safety certification systems; and updating fishing vessel data in the central fisheries databases. In the Mekong Delta, the provincial government of Ben Tre has been actively working on implementing tasks and solutions to combat IUU fishing through September 2024, with ongoing efforts thereafter.
Yet, two major challenges persist, concerning illegal fishing in waters outside Vietnam’s jurisdiction, and the difficulty in tracking the origin of fish products. These issues are exacerbated by insufficient staff numbers to monitor the situation, limited resources, and weak enforcement capabilities. Moreover, there is a strong need for additional measures to ensure the consistent and effective use of vessel monitoring system (VMS) devices across the fishing fleet. Even if Vietnam has already begun increasing its monitoring and surveillance through the VMS, it is crucial that it continues to do so, while expanding the VMS also to smaller vessels. Despite these challenges, continued engagement between the EU and Vietnam could offer several tangible benefits, such as unlocking increased access to the EU market, gaining technical assistance for better regulatory compliance, and securing financial support or investment to upgrade monitoring technologies and infrastructure, including VMS systems. Furthermore, improved adherence to EU standards could boost Vietnam’s reputation globally, opening doors to other international markets and strengthening its export position.
A main source of problems regarding IUU fishing in Vietnam can be considered as poverty-related. The EU has shown a continued commitment in supporting Vietnam in its development endeavours. As early as 2002, the EU adopted its Cooperation Strategy for 2002-2006 for Vietnam. The document granted 162 million EUR for promoting human development, particularly in poor areas, while assisting the country’s economic reforms towards its integration in the global economy, in addition to regional initiatives to uplift the population’s livelihood and well-being. Nevertheless, some poverty-related challenges pertain. In this regard, Vietnam has prioritised national development and economic growth, making considerable improvements in poverty alleviation. Between 1993 and 2014 the country has managed to lift approximately 40 million people out of poverty, while shifting its status from a low to a middle-income status.
The Road Ahead: Poverty Alleviation and Capacity Building
Considering the challenges Vietnam is facing to effectively combat IUU fishing and to have the EU’s yellow card warning lifted, the country seems set to take more forceful action in enforcing its laws. A potential option could for instance be to consider making IUU fishing a criminal offence and to impose more severe penalties for violations. Vietnam should therefore focus on tightening its regulatory framework, while ensuring stricter adherence to fishing regulations. In this regard, on 22 April 2024, Vietnam issued a plan to combat fishing practices, resolution 52/NQ-CP.
Additionally, a promising approach could be to develop a longer term strategy, including for instance a 10-year action plan to reduce IUU fishing practices with yearly milestones to be achieved. This could ensure long-term measures to be achieved through shorter-term achievable strategies, while signalling Vietnam’s commitment to the EU in combating maritime insecurity. For the EU it would be significantly beneficial to support the implementation of such a long-term strategy, as part of a constructive alternative to its yellow card warning, thereby enhancing bilateral relations and EU-Vietnam cooperation.
As aforementioned, the EU’s upcoming inspection seeks to monitor developments in Vietnam in light of its yellow card warning. The EU strategy of issuing “penalty” cards is applied as an incentive to stimulate developing countries to tackle IUU fishing. Yet, this approach could be more efficient if combined with targeted measures to address existing challenges, while increasing the success rate of partner countries. The EU could provide support in areas where Vietnam cannot address issues only on its own, most notably concerning capacity building and poverty alleviation. Poverty being one of the root causes of IUU fishing, alleviation measures and support for the fishing communities are considered key mechanisms in addressing IUU fishing holistically. Without addressing poverty in Vietnam’s IUU fishing regions, local communities are more prone to seeking alternative sources of income that fail to comply with existing legislations, creating a persisting challenge in tackling IUU fishing practices and addressing poverty.
Furthermore, the EU could play a more substantial role assisting Vietnam in areas including legislative measures; increased law enforcement; enhancement of monitoring and surveillance; capacity building; data management; and public awareness campaigns. The EU could also support Vietnam in finalising other tools, such as data management databases, to improve monitoring and keep track of related efforts, as well as public awareness campaigns as a useful resource to train and raise awareness in local fishing communities on the importance of sustainable fishing practices.
The main geographical hotspots for IUU fishing in Vietnam are the South China Sea, given its fishing abundance; the southern coast, close to the Mekong delta and bordering the Gulf of Thailand; and central Vietnam, given its extensive coast. The EU could provide technical assistance to these regions by providing support through modern technologies, such as digital tools for monitoring and traceability purposes. In addition, the EU could support Vietnam in implementing monitoring tools to small scale vessels as well as by the provision of satellite-based technologies to track location and record the catch details of local vessels.
Through joint EU-Vietnam efforts combating IUU fishing, Vietnam could ensure its continuous development efforts in a sustainable way within international frameworks, while strengthening the EU-Vietnam bilateral partnership. This could benefit cooperation in much-needed domains. From sustainable seafood trade and investment, maritime economy, fisheries management systems, to the transfer of technologies and sustainable fishing techniques, as well as joint research, addressing the issue of IUU fishing has potential to pave the way for pareto-improving outcomes.
Author: Valeria Tabelli, EIAS Junior Researcher
Photo credits: Pixabay