Caught in debt net, a series of "67 ships" must be auctioned

Decree 67 was issued with the aim of creating a mechanism and policy to support fishermen in building a stronger fishing fleet to go offshore, ensuring both economic and national security. However, after more than 8 years of Decree 67 taking effect, a series of "67 ship" owners have fallen into a state of insolvency, with many years of bad debt, forcing banks to file lawsuits.

Auction but no one buys

Up to now, the whole Binh Thuan province has built 114 new "67 ships" and upgraded and converted 6 ships. Of these, 9 ships have suffered 100% loss due to fire and sinking, the remaining ships since the beginning of the program are 111 ships. Of the fishing ships that borrowed capital under Decree 67, only 13 cases have paid off their debts in accordance with the credit contract, 16 ships are currently on shore and have stopped operating, and up to 67 ships are operating inefficiently, having to restructure their debts many times.

Agribank Binh Thuan Branch is the only commercial bank that provides loans for building and upgrading fishing vessels under Decree 67 in the province. According to Agribank Binh Thuan's report, the accumulated loan amount for building and upgrading fishing vessels under Decree 67 from the beginning of the program is 1,075.6 billion VND. The accumulated principal collection amount from the beginning of the program to December 31, 2023 is 182.4 billion VND (including debt collection from insurance compensation for damages caused by fire and shipwreck accidents of 48.1 billion VND; debt collection from customers paying debts of 134.3 billion VND, of which 3 ships have paid off their loans with an amount of 10.5 billion VND).

Recently, many ships have encountered difficulties in fishing grounds and unfavorable weather. Photo: N. Lan.

Outstanding debt by the end of 2023 is VND 893.2 billion, of which bad debt is VND 832.1 billion (in Phu Quy: VND 644.5 billion, Phan Thiet: VND 134.2 billion, Tuy Phong: VND 42.2 billion and La Gi: VND 11.2 billion), including cases where customers do not repay the debt when due and the loan has been restructured by the bank many times over many years. In particular, there are up to 39 vehicles being sued and executed (15 in Phan Thiet, 1 in Phan Ri Cua; 1 in La Gi and 22 in Phu Quy) with an outstanding debt of VND 425.4 billion, accounting for 47.6% of the total outstanding debt.

It can be seen that in recent times, due to large investment capital, exploitation and exploitation services have not been effective. The reason is that most of the vessels have encountered difficulties in fishing grounds, unfavorable weather, declining aquatic resources, increased fuel costs, operating and maintenance costs of large fishing vessels, plus the impact of the Covid-19 pandemic... so debt collection has encountered many difficulties and bad debts have tended to increase. Therefore, Agribank Binh Thuan branch is filing lawsuits in court in many cases of loans under Decree 67 to recover debts according to the law. However, the lawsuit to resolve loan contract disputes between the two parties is also facing many difficulties and problems that need to be considered and directed by competent authorities for unified handling.

Many fishing boats announced property auctions, but there were no buyers.

By the end of 2023, the People's Courts at two levels of the province had accepted 39 cases of "property loan contract disputes" with the principal amount of 425.4 billion VND, and had issued judgments in 38 cases with the amount of 414.7 billion VND. The Civil Judgment Enforcement Agency had accepted 22 cases with the total amount to be enforced of 215.5 billion VND. At the same time, the above fishing boats were announced to be auctioned but there were no buyers, although the price was reduced many times (some boats were reduced up to 24 times), they still could not be sold.

Very few "67 ships" operate effectively.

Quickly remove obstacles

Through the above incident, the Provincial Party Committee and the Provincial People's Committee have given instructions to remove obstacles in handling debts for building new fishing vessels and upgrading fishing vessels according to Decree 67. Accordingly, the Department of Agriculture and Rural Development, the Department of Industry and Trade, the Border Guard Command, and Bao Viet Binh Thuan Company are required to continue monitoring and implementing the resolution of Agribank's recommendations according to their authority. For the group of vessels that are not actively operating and are lying on shore; the group of vessels that are capable of paying debts but are slow to pay debts to banks; and do not cooperate with banks to handle debts... The Provincial People's Committee has directed the People's Committees of Tuy Phong and Phu Quy districts, La Gi town and Phan Thiet city to seriously implement the joint program of coordination and support for the banking sector in debt collection according to the signed Decree 67. Directed to review and evaluate the current status of newly built and upgraded fishing vessels according to Decree 67 in the area. Work directly with each ship owner to explain and propagate the State's policies and guidelines to stabilize the mindset and raise awareness of paying off bank debts. At the same time, classify each customer group specifically to have specific debt settlement solutions for each case.

Removing difficulties soon, the ultimate goal is still to encourage fishermen to go offshore (photo: N. Lan)

Regarding the handling of debt assets of the group of ships that are suing and enforcing judgments, the People's Committees of districts, towns and cities are requested to direct the Steering Committee for Civil Judgment Enforcement at district level to pay attention and actively support the handling of debt assets to help banks recover debts soon, avoiding the situation of assets being degraded and damaged.

In addition, the Provincial People's Committee also assigned the Department of Agriculture and Rural Development and the State Bank of Vietnam, Binh Thuan Branch, to coordinate with relevant departments and branches to monitor and summarize difficulties and problems in the process of implementing policies for newly built and upgraded fishing vessels according to Decree 67. In particular, promptly advise the Government to issue a Decree replacing Decree 67, thereby implementing one-time support for periodic maintenance and repair costs for steel-hulled fishing vessels and the support level according to the length of the vessel. Increase the support level for hull insurance costs to 90% as in Decree 67 (instead of 50% as in Decree 17), including the cost of purchasing hull insurance, equipment, fishing gear on board (all-risk insurance). In addition, add to the group of objective, force majeure causes such as unfavorable fishing grounds or prolonged natural disasters and epidemics to restructure loans and enjoy interest rate support.

Central ministries and branches should promptly report and advise the Government to issue a document directing the removal of difficulties in the enforcement of civil judgments for loan contract disputes between banks and fishermen according to Decree 67. At the same time, it is recommended that the Government have a mechanism to exempt and reduce the remaining debt (principal and interest) after selling mortgaged assets such as fishing vessels, but not enough to repay the bank debt to help fishermen overcome difficulties, creating public consensus in the enforcement of civil judgments to resolve debt collection according to Decree 67...

Removing difficulties soon, the ultimate goal is still to encourage fishermen to go offshore, contributing to maintaining the sacred sovereignty of the sea and islands of the Fatherland and developing the economy, improving the lives of fishermen.

Source: https://baobinhthuan.com.vn/vuong-luoi-no-hang-loat-tau-67-phai-ban-dau-gia-117174.html