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					                                        APPENDICES


A.1. A Note on Fishery Industry in Vietnam

        Vietnam is at the center of the Eastern Sea with 3,200 km long of coast, has rich
natural resource potentials. In that resources, the benefits of sea creatures are determined
including 2,000 kinds of fish with 100 kinds had high economic value... Vietnamese sea
region can give an exploiting productivity of 3 million tones a year, including 250,000 tones of
special sea-products for processing and exporting. However, all country has just exploited 40
per cent of sea potential for export.

        In five years (1991-1995), the total output of marine products of all fishery industry
was over 5,944,000 tones, export value was 1,944 million USD. The average of growth rate
was 21.69 per cent and export growth rate was over 35 per cent, belongs to the fastest
growth group in Vietnam’s economy. The industry has attracted over 3 million labors for
fishery. The total capital investment in basic construction was 2,829 billion VND in the five
years and paid to state budget 1,228,147 million VND.

               Table A.1: The results and targets of fishery industry
   Year                             1994         1995          1996        1997         2000
                                                                        (planned)    (planned)
   Output (tons)                   1,211,496   1,414,376    1,373,500   1,510,000    1,600,000
   Export Value (billion USD)        0.458       0.550        0.670       0.750       1.1-1.3
   Paying to State Budget           517,414       NA         305,888     199,292
   (million VND)
   Capital investment              655,990        NA         836,000
   (million VND)
   Number of New Ships              2,700         NA         2,000
   Attracted labors additionally   200,000        NA         90,000

Technology:

        All the industry had 68,000 ships and motor boats with the total power was 1.5 million
CV for exploiting marine products. The proportion of ships with their power over 100 CV was
only 5 per cent. The total capacity of refrigeration stores is 23,000 tones, ice productivity is
3,300 tones/day, there are 1,000 lorries with total carrying capacity is 4,000 tones and 28
refrigeration ships with total carrying capacity is 6,150 tones.

       One hundred and sixty-eight refrigerated processing factories with the total capacity of
780 tones/day (130,000-140,000 tones/year). Eighty per cent of the factories was upgraded,
expanded or new in 5-10 years ago. Useful life average of main equipment was 6.5 years and
most of them made in Japan.

        The technology is also expressed through mechanism and proportion of processed
and exported products. There has not been the proportion between processing capacity and
the capacity of sea material exploitation. The cause is from unplanned development of the
export processing factories many years ago. Market information technology and marketing
are valued weak. Technology reforms are determined: “concentrating in exploiting technology
at far sea, biotechnology for farming marine products, technology for processing the high
value products...”
Products:

        Processing for domestic consumption has not developed. It has just been at stage of
producing raw material for meal, has not really produced foods for families. The proportion of
products having extended value has been only 14-15 per cent. There has been a paradox
that the profit in processing and export were 1-3 per cent, but the profit in selling raw material
was 15-20 per cent.

Markets and Customers:

       Traditional markets are Japan, Singapore, Hong Kong holding 75 per cent of export
volume. There were new markets such as EU, North America with 61 companies registered
to penetrate, 18 of them had customers, but quantity is small – export value is only 30 million
USD. However in 1996, Japan was 65 per cent, EU and North America were 13.2 per cent.

        The export price to Japan is highest and the quality is not as too harsh as EU and
North America, suitable to the domestic processing ability. The reasons are Japan has
advantage in shortest transportation, Japanese main foods usually are sea products.
Vietnamese export sea-products are in 25 countries. In the world, Vietnam was at 19th in
total output of sea-products, 30th in export value, 5th in farming shrimp and the first in export
growth rate. At big cities, industrial zones, tourism... the selling is as high as international
markets and the price is also not lower.

Competition:

        There are many representative offices of foreign companies such as Japan, Hong
Kong... operating at key shrimp areas. They have capital, markets and technical conditions
better than domestic companies. They buy material, manage production and sell the products
directly. There are also some private firms processing sea products with value of tens of
millions USD.

Investment and Joint Venture:

        Investment in fish ship is borrowed with the favor interest rate of 1.1%/month for 4
years. In 1995, the state lended 54 billion VND, but only 11.5 billion VND were used for
repairing the ships. The reasons were unsuitable interest rate and borrowing term. The firms
in fishery industry need from 8 to 10 years to be at break-even point.

        In 1994, capital investment in infrastructures, machinery and equipment was 655,990
million VND, including 66,850 million VND from state budget and 450,000 million VND from
people themselves. There were 12 joint venture projects were licensed with total registered
capital was 24.369 million USD, foreign capital was 87.8 per cent and there were 5 projects of
100 per cent foreign capital. There were 188 local businesses and 46 central businesses.

Financial Aspect:

      Demand of working capital was large for the enterprises in fishery ministry. They
needed 83 billion VND but state budget provided only 10.7 billion VND for 18 businesses.
The business had to borrow for high interest rate. Total paid interest in 1994 was 100 billion
VND. Currently, the sea-products industry needs 500 million USD of annual capital
investment. It includes 60 per cent for developing sea material production, 30 per cent for
renewing processing technology and 10 per cent for developing other services.
A.2. Questionnaire


                                 Survey of Leasing Need

Please read it carefully and choose appropriate choice to each question by tick  before
continuing the next question.

1. Your company is using main equipment
       at full their capabilities                  less than their capabilities

2. Will the demand of the kinds of product the company is producing be over the capabilities
   of current equipment?
        YES, in year of       .                   NO (Please go to Q5)

3. To satisfy the demand,
    some equipment can be added.
               Total of their values is:          VND
    current equipment can be replaced.
               Total value of new equipment is:             VND, (Please go to Q7)

4. Does your company intend to invest in the above value?
       YES                                 NO

5. Could the quality or the pattern of your company’s products be more enhanced by
   adding/ replacing new equipment? (Please choose between adding and replacing by
   make a circle)
    YES, total value of that new equipment is:              VND.
      Does your company intend to buy them?         YES, in year of      .
                                                    NO
      (Please go to Q7 if you chose “replacing”)
    NO

6. Could the company’s productivity be raised and production cost be reduced by adding/
   replacing new equipment? (Please choose between adding and replacing by make a
   circle)
    YES, total value of that new equipment is:             VND.
       Does your company intend to buy them?       YES, in year of       .
                                                   NO
    NO
7. Does your company intend to produce new products?
    YES, in year of      .
      They will be produced by     current equipment
                                   new equipment what will value:                 VND
    NO

8. If your company intended to buy some the above equipment, can it do that if it only uses
   its equity?
         YES                              NO

9. If your answer to Q8 is “NO”, can the company take loan easily to buy the above
   equipment?
    YES
    NO, reasons (please specify): __________________________________________.

10. Is your company borrowing from banks?
     YES, the interest rate the company is bearing is:       %
     NO

11. The income tax rate the company is paying is:         %

12. Has your company ever leased any equipment?
     YES
       Why has it leased? _______________________________________________
       Comparing to the cost of buying, is the cost of leasing lower?  YES  NO
       Leasing company’s name your company has leased is: ___________________
       Is there any problem when the contract is being carried out? _______________
       _______________________________________________________________
     NO
       Do you know any leasing company?
                YES, please write their name: _______________________________
                NO

13. Please give your comments or suggestions for actual leasing business:
    _______________
________________________________________________________________________
________________________________________________________________________.

14. How many companies doing business in your industry did you know?           .

15. Comparing to the above companies, you think that the equipment of your company is:
       Advanced             Equivalent            Outdated
      with the average of the equipment’s useful lives is:     years
16. Information about your company:
        a. Type of the company:        State owned    Private   Joint venture
        b. The company’s product: ____________________________________________
        c. Total assets:                   VND
        d. Employing Debt/Equity ratio:       .
        e. Forecasting the turnover in 1996:          VND

Signature (optional) ______________________   Position: _______________________________
Company’s name:                               Address: _______________________________
________________________

                      THANK YOU FOR YOUR COOPERATION
A.3. The survey result

Questio 1    2    3     4     5      6   7    8   9   10   11   12   13   14   15    16 Miss Y/N Lowest Averag Highes
  n                                                                                                        e      t
  1a     0   0    0     0      0      0    0   1    0   0   1   0   0    0     1     1        4
  1b     1   1    1     1      1      1    1   0    1   1   0   1   1    1     0     0       12
  2a     0   1    1     0      1      1    0   1    1   0   1   1   1    0     1     1       11
  2b     0 1998 1998 0       2000   1998 0        1999 0 1997 2000 2000 0 1997      1999 1
  2c     1   0    0     1      0      0    1   0    0   1   0   0   0    1     0     0        5
  3a         1    1     1      1      1        1    1       1   1   1          1     1       12
  3b         10 0.3 0.2       1.5    0.5      1.7 0.35      2  0.2  4         0.2                  0.2   1.90    10
  3c         0    0     0      0      0        0    0       0   0   0          0     0        0
  3d         0    0     0      0      0        0    0       0   0   0          0     0                     0
  4a         1    1     0      1      0        1    1       1   1   1          1     0        9
  4b         0    0     1      0      1        0    0       0   0   0          0     1        3
  5a     1   1                 1      0        1    1   1           0    0     1     0   5    7
  5b     1   1    1     1      1      0    1   1    1   1   1       0    1     1     0   1   12
  5c   0.015 10        0.2    1.5     0   0.5 1.7 2.5   2           0 0.015 0.2      0   3        0.015 1.01     2.5
  5d     1   1    1     1      1      0    1   1        1   0       0    0     1     0   2    9
  5e   1997 1998 1997 1997   2000     0 1997 1998      1997 0       0    0 1997      0   2
  5f     0   0    0     0      0      0    0   0        0   1       0    1     0     0   2    2
  5g     0   0    0     0      0      1    0   0        0   0       1    0     0     1   2    3
  6a     1   1    1            1                    1   0   1       0                    7    6
  6b     1   1          1      1      1    1   0    1   0   1       0          1     1   2   10
  6c    0.3 10         0.2    1.5    0.6 0.1   0   2.5  0   2       0         0.2        3         0.1   0.33    0.6
  6d     1   1          1      1      1    1   0    1   0   1       0          1     0   2    9
  6e   2000 1998      1997   2000   1998 1997 0 2005 0 1997         0        1997    0   2
  6f     0   0          0      0      0    0   0    0   0   0       0          0     1   2    1
  6g     0   0    0     0      0      0    0   1    0   1   0       1          0     0   1    3
  7a     0   0    1     1      1      0    1   1    1   1   0   1   1    1     1     0       11
  7b     0   0 1997 1997     2000     0 1997 1998 1998 1997 0 1998 1998 1989 1998    0
  7c     0   0    0     0      0      0    1   0    1   0   0   1   0    1     1     0        5
  7d     0   0    1     1      1      0    1   1    0   1   0   0   1    0     1     0        8
  7e     0   0         0.2    1.5     0   0.6 1.5   0   2   0   0   20   0           0   1         0.6   1.05    1.5
  7f     1   1    0     0      0      1    0   0    0   0   1   0   0    0     0     1        5




                                                           7
Questio 1        2      3    4    5    6    7   8    9    10   11   12   13   14    15   16 Miss Y/N Lowest Averag Highes
   n                                                                                                           e      t
   8a       0    0       1    1    0    0    0   1         0     0    1    0         0       1    4
   8b       1    1       0    0    1    1    1   0         1     1    0    1         1       1    9
   9a       0    0                 0    0    1             0     1         1         1       1    5
   9b       1    1                 1    1    0             1     0         0         0       1    5
  10a       0    1       1    0    1    1    1   1    0    0     0    1    1    0    1    0       9
  10b       0   1.5           0    14 1.25 2.5 12     0    0     0        1.25 0 1.25 0      1
  10c       1    0       0    1    0    0    0   0    1    1     1    0    0    1    0    1       7
   11       0    35      15        25 40 25 40 30          45    35   35   20   35   35 25   1
  12a       0    0       0    0    0    0    0   0    0    0     0    0    0    0    0    0       0
  12b       1    1       1    1    1    1    1   1    1    1     1    1    1    1    1    1      16
  12c       0    1       0    0    0    0    0   0    0    0     0    0    0    0    0       1    1
  12d       1    0       1    1    1    1    1   1    1    1     1    1    1    1    1       1   14
   14      60    10      20        30   6   15   6    5    5     5    8    30   20   30 10   1          5     17     60
  15a       1    0       0    0    0    0    0   0    0    0     1    0    0    0    0    0       2
  15b       0    1       0    0    0    1    1   1    1    0     0    1    1    1    1    1      10
  15c       0    0       1    1    1    0    0   0    0    1     0    0    0    0    0    0       4
  15d      10    10      10   5    7        10   5         15    6         10            10  5          5      9     15
 16a1       1    1       1    1    0    0    0   1    1    1     1    1    0    1    1    0      11
 16a2       0    0       0    0    1    1    1   0    0    0     0    0    1    0    0    1       5
 16a3       0    0       0    0    0    0    0   0    0    0     0    0    0    0    0    0       0
  16c           200      90 0.7    4   2.4   3   2    60 450 35       60   60 0.5    4   2.4 1         0.5   64.93  450
  16d           0.1     0.3   0    3   2.1      0.75 0.33 0.13 0.806 0.4 0.35 0.6 0.6     0  2         0.1   0.79     3
  16e            70      70   1    7    35 0.4 25 890 130 10          20   70   15   2   1.6 1         0.4   89.8   890
Investment/ca   0.05   0.003 0.29 0.38 0.46 0.4 1.6 0.05 0.004 0.06 0.003 0.07 0.03 0.05 0
     pital




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