According to a report Indonesian waters possess good quantity of fish stocks because the country’s marine fishing industry has not developed. Therefore, over these recent times, Vietnamese companies aim to operate fishing in Indonesian special economic zones. These companies are facing strict challenges to operate in Indonesian waters.
Rear Admiral Syahrin Abdurrahman from Ministry of Marine Affairs and Fisheries, was speaking at the Investment Promotion Conference of Vietnam seafood enterprises held by Vietnam Directorate of Fisheries. He said that presently, Indonesia wants to cooperate with countries having large experiences in catching and processing operations like Vietnam to explore fish stocks at allowable level.
He also added that Vietnamese companies need to use fleets with capacity of 100 MT lead by Indonesian captain, investing in local processing plants with contributed capital of at least 80 percent. According to Nguyen Tran Bien, representative of Indonesia-based PT Papua Fishery Development, administrative procedures remain the biggest obstacle of Vietnam companies when injecting funds in processing plants in Indonesia.
Vietnamese companies are investing 80 percent of their capital in these efforts and have to complete a various range of procedures to receive needed certificate. Moreover, regarding to a new regulation of Indonesia Ministry of Finances taking effect in December 2011, Vietnam operators are required to contribute 5 percent of ship import duty for each fishing contract. However, Vietnam companies are only signing one-year fishing contract with Indonesia and then receive fleets at the expiration of contract.
