Vietnamese fishermen will be given preferential loans, at interest rates of only 1-3 percent per year, to build offshore fishing ships, under a new decree that will take effect on August 25 this year.

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Such soft loans are specified in Decree 67 issued on July 7, 2014 by the government to provide a number of new policies on fishery development, amid the tension in the East Vietnam Sea following the illegal deployment of China’s oil rig Haiyang Shiyou 981 since early May.  

Accordingly, fishermen who want to build steel-clad fishing boats will be given loans at interest rates ranging between one and two percent per year, depending on ship capacity.

As for those who want to build wooden-clad ships, the interest will be three percent per year.

Fishermen can get a loan equal to 70-95 percent of the estimated value of the ship to be built, depending on its capacity, and the security for the loan is the vessel to be built with the loan.

The term of such a loan is 11 years and the borrower will be exempt from paying interest for the first year of lending.

In case of a force majeure event, which prevents borrowers from repaying their loans on schedule, the bank will extend their loan terms to help them overcome their difficult times.

The decree also stipulates that the government will pay 10 percent of the accident insurance premium for people who work on fishing ships.

Regarding insurance for the ship’s body and equipment on board, the government will pay 70 percent of the total premium for ships with capacities from 90 HP (horsepower) to just under 400 HP, and 90 percent of the same for vessels with capacities of 400 HP or higher.

Beijing has maintained its illicit rig within Vietnam’s exclusive economic zone and continental shelf since May 1, along with a strong fleet of more than 100 vessels to guard it, despite strong protest from Hanoi.

These vessels, including large iron-clad fishing boats, have continuously rammed or fired water cannons at local ships, including wooden fishing boats in the waters.

On May 26, Chinese vessels crashed into and sank a fishing ship of central Da Nang City, leaving behind 10 fishermen drifting at sea before they were saved by another Vietnamese vessel.

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