Cost Efficiency of Fishing Among Small‐Scale Trawlers in Vietnam: A Stochastic Frontier Analysis

ABSTRACT This study analyzes the cost efficiency of small‐scale trawlers in the Mekong Delta, Vietnam, a region where small‐scale fisheries are vital for livelihoods but face significant economic pressures. Using primary data collected through surveys and interviews with 223 small‐scale trawler operators in four coastal provinces (Soc Trang, Bac Lieu, Ca Mau and Kien Giang) from January 2020 to May 2021, this study applies a stochastic frontier analysis (SFA) to estimate cost efficiency. The translog stochastic frontier cost function, chosen for its flexibility, is employed to analyze the data. Results show that the average cost efficiency of the small‐scale trawler fleet in the Mekong Delta was 70.0%. This indicated that, on average, a fishing operation in the study area had the potential to reduce costs by 30.0% to achieve the same level of output, while operating under the existing technology. Factors related to personal and fishery characteristics have varying effects on total costs. The research results revealed strong effects of factors such as vessel size, family member ratio, and fishing ground location, while education, training, and cooperation showed no discernible effects on total costs. The findings suggest that targeted policies such as expanding training programs, improving fixed assets, and increasing awareness of adherence to policies and regulations could significantly enhance the economic sustainability of small‐scale trawler operations in Vietnam.