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Thursday, 10 October, 2002, 11:46 GMT 12:46 UK

Catfish row threatens Vietnam farmers

by Oliver Woods
in Vietnam

Catfish farmers in Vietnam are becoming increasingly worried about the country's trade dispute with the US.

The row over dumping of the fish has seen export orders from the US falling.

About half of Vietnam's catfish exports go to the American market, after the fish is cut into fillets and steaks at local factories.

The dispute is the first bilateral trade row since the US lifted the trade embargo against Vietnam in 1994.

Important income source

Over the past 60 years, Vietnam's history has been one of wars and political change.

It's a period that has seen many Vietnamese leave the country to start new lives in America, Australia and Europe.

But now some of the descendents of these emigrants are returning to the country - and bringing fresh business ideas with them.

"I work as a teacher, but my basic salary is not enough for me to cover all the expenses of my family," says Leng Ob Yoi who lives in a home built on a raft of oil drums tethered to the river bed.

"So catfish farming is an important second income for me - it's a profitable business for me," she says.

Accused by the US

Like many homes along the Mekong, Leng Ob Yoi's home doubles as an open plan catfish farm, with four large fish cages set into the floor of the house.

"America's accusation that Vietnam is dumping catfish is incorrect," she says.

"Farming is cheap in Vietnam because production costs are less than in other countries."

"Other products like rice are also sold cheaply - but no-one accuses Vietnam of dumping rice, so why catfish?" she asks.

Livelihoods under threat

Bo Oui is managing director of a fish factory and says that by selling products cheaply, Vietnam is only doing what made American stores such as Wal-Mart a success.

However, at the other end of the country in Hanoi, American Chamber of Commerce director, Adam Sitkoff, takes the opposite view.

He argues the legal action started by American fish farmers can only benefit Vietnam.

But for most Vietnamese fish farmers and exporters, this dispute is still viewed as an attack on their livelihoods.


Related to this story:
Catfish row mars Vietnam trade talks (20 Dec 01 | Business) Country profile: Vietnam (27 Jul 01 | Country profiles) Investment into Vietnam slumps (12 Jun 02 | Business)


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