Capture Fisheries (industrial and small scale; marine and inland waters).
Established sector with constrained development potential
Overview.
Capture fisheries in Southeast Asia remain a cornerstone of regional economies and global food security. Fisheries underpin food security, trade, and coastal livelihoods across ASEAN but face mounting pressures from overexploitation, habitat loss, climate impacts, IUU fishing, and competition between industrial and small-scale actors, all compounded by uneven governance and data capacity.
Across the region, efforts to strengthen management and sustainability are underway through regional frameworks, compliance systems, and ecosystem-focused initiatives, but progress remains uneven, and many national systems continue to face constraints in data quality, enforcement capacity, and long-term planning. These challenges coincide with financial and infrastructure gaps in small-scale fisheries, fragmented harvest strategies, persistent harmful subsidies, and the need to build resilience to climate impacts and shifting ecological conditions.
Within this wider sustainability and governance landscape, capture fisheries intersect with tourism, conservation, offshore energy, coastal planning, and community livelihoods because fishing grounds, habitats, and access arrangements frequently overlap with other coastal uses. These cross-sector dynamics shape stock health, livelihoods, and ecosystem resilience, and underpin circular economy opportunities such as improved utilisation of by-products, reduced post-harvest loss, and value chain efficiency, while climate-driven shifts in species distribution, habitat degradation, and ocean conditions increasingly influence the long-term security of fisheries-dependent households and regional food systems.
Explore how Small Scale & Industrial Fisheries are positioned for each of the
Blue Economy Capitals.
Fisheries
(Small Scale)
Fisheries
(Industrial)
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Financial Capital.
Financial Capital.
Fisheries in the ASEAN region form a vital pillar of economic activity, contributing billions in gross value added and supporting diverse national economies. ASEAN nations collectively account for more than 19% of global seafood production by volume in 2023 (FAO, 2025a), underscoring their strategic role in international trade. Yet this strength is tempered by persistent challenges: compliance gaps with international food safety and sustainability standards, limited value addition to seafood products, and fragmented investment mechanisms restrict the region’s ability to fully leverage premium seafood markets such as the European Union. Advancing the blue economy will require harmonised standards, coordinated financing platforms, and innovative instruments like blue finance and impact bonds to mobilise diverse capital sources. Aligning these financial flows with fisheries sector sustainability objectives is essential to unlock opportunities for inclusive sectoral growth.
Despite this export prominence, structural constraints on the sector remain. Domestic supply of seafood meets most local demand, but imports are still necessary to fully meet consumption demand and support processing industries. Foreign investment is difficult to attract and many fisheries in the region are fully exploited or overfished, limiting prospects for further production growth (ASEAN, 2021a; SEAFDEC, 2017). Combined with low wages and persistent inequalities between industrial and small-scale fisheries, these factors make sustainable financing a critical priority for the sector and central to ASEAN’s blue economy ambitions.
Small-scale fisheries (SSF) form the foundation of coastal livelihoods, economies and food security in ASEAN, supporting nearly 46 million people across the Asian region (FAO, 2025b). Yet SSF is largely informal and remains chronically underfunded and vulnerable to climate change, habitat degradation, and market volatility.
Innovative financing models are beginning to address these gaps. The Small-Scale Fisheries Impact Bond (SSFI Bond) exemplifies this shift. Launched with USD 6 million in Southeast Sulawesi, Indonesia, the bond mobilises private and philanthropic capital for community-led fisheries co-management (Rare, 2025). Investor returns are tied to verified ecological outcomes, introducing a novelty in blue finance instrument as ‘Outcome-Based Finance’ (OBF). OBF facilitates a link between financing and the results with indicators such as increased fish biomass and habitat recovery, creating a direct link between conservation success and financial performance.
The SSFI Bond can be replicated across ASEAN, particularly in countries where SSF has significant contribution to fisheries production: Indonesia, with its vast coastal biodiversity and coral reef fishers; the Philippines, where artisanal fishing underpins food security; and Lao, Cambodia, Thailand, Viet Nam and Myanmar where inland fisheries along the Mekong River and coastal fisheries are critical for poverty reduction (TBTI, 2018).
Other ocean related financing initiatives, such as the Critical Ecosystem Partnership Fund, Blue Alliance Impact Loan Facility, and Blue SEA Finance Hub, further demonstrate the growing momentum for blue finance to support small scale fisheries in the region (Asian Development Bank [ADB], 2023; Blue Alliance, 2024; CEPF, 2024). Additionally, ADB has launched a USD 73 million project in Cambodia’s four coastal provinces to regenerate ~40% of nearshore fisheries, strengthen climate resilience, improve seafood safety, diversify livelihoods for 20,000 households (200,000 residents), and promote private-sector growth and women’s empowerment, aligned with national and ADB strategies (ADB, 2022). However, a dedicated regional mechanism for fisheries financing does not yet exist, leaving coordination fragmented.
Industrial fisheries dominate ASEAN’s export profile, driving significant revenue and positioning the region as a global seafood powerhouse. These operations are capital-intensive and geared toward international markets, but they face mounting sustainability concerns. Overfishing, harmful subsidies, particularly fuel subsidies, and high carbon footprints threaten both ecological integrity and long-term profitability.
Policy reform offers a pathway forward. Redirecting harmful subsidies toward decarbonisation and electrification of fleets could reduce emissions and align with global sustainability standards, though compliance with World Trade Organisation (WTO) rules must be carefully managed. ASEAN’s membership in the WTO also creates an opportunity for the bloc to coordinate a regional stance on subsidy reform, particularly regarding the WTO Agreement on Fisheries Subsidies (subsidies which contribute to overcapacity and overfishing), for which disciplines must be agreed by 15 September 2029.
ASEAN countries which are dominated by developing economies will need support to implement the new trade deal into their national laws, meet WTO notification requirements, reform harmful subsidies, and shift resources toward sustainable fisheries, with a special treatment, technical assistance and access to WTO Fish Fund (UNCTAD, 2025)Despite these challenges, industrial fisheries retain significant strengths: established trade networks, existing regional frameworks to combat IUU fishing, and strong export markets. By coupling these advantages with sustainability-focused financing and governance reforms, ASEAN can secure the future of its industrial fisheries while ensuring equitable growth alongside small-scale sectors.
Physical Capital.
Physical Capital.
The physical capital underpinning ASEAN’s fisheries sector is vast and diverse, reflecting the region’s dependence on marine resources for economic growth and food security. At its core, this capital comprises fleets, ports, processing facilities, cold storage networks, and distribution systems that enable the movement of seafood from ocean and rivers to market. ASEAN collectively operates hundreds of thousands of registered fishing vessels, supported by a network of landing sites, processing plants, and retail channels. Yet, despite the abundance, the sector faces significant gaps in modernisation, value addition, and digital integration, which limit efficiency and competitiveness in global markets. The sector operates more than 1.2 million various sizes of fishing vessels underscoring its socio-economic weight (FAO, 2025; SEAFDEC, 2025).
Small-scale fisheries dominate the physical landscape of ASEAN’s marine economy, particularly in countries like Indonesia, which reported 893,258 registered boats in 2022, including over 100,000 non-powered vessels. Malaysia follows with 48,605 boats, while Viet Nam, Myanmar, Cambodia, and the Philippines maintain tens of thousands more (SEAFDEC, 2025a). These fleets are the lifeblood of coastal communities, yet they often operate with minimal infrastructure support. Cold storage facilities at wharves and ports remain insufficient, forcing fishers to sell catches quickly and limiting opportunities for value addition. Processing infrastructure is similarly underdeveloped, constraining compliance with food safety standards and reducing export potential (UNEP & FAO, 2022).
Digital technologies offer a promising avenue for transformation. Mobile applications for traceability, business planning, and market access could empower small-scale fishers, while electrification of vessels would reduce emissions and operating costs. However, adoption remains fragmented, and regional coordination is weak.
Regional assessments point to persistent gaps in physical infrastructure across ASEAN. Cold chain capacity, port facilities, and digital systems vary widely, creating barriers to efficiency and market access. While industrial fleets generally benefit from better infrastructure, small-scale fisheries continue to face deficits that limit value addition and compliance with international standards. ASEAN strategies emphasise modernisation through traceability systems and the adoption of energy-efficient vessels, aligning with sustainability objectives. Addressing these disparities is critical to unlocking efficiency gains and expanding market opportunities without increasing pressure on already stressed fish stocks.
Industrial fisheries operate on a different scale, with larger powered vessels and established processing facilities, including canneries that serve global markets. These fleets are concentrated in countries with strong export profiles, yet even here, infrastructure gaps persist. While industrial operators benefit from better access to ports and cold storage, regional weaknesses in data integration and digital monitoring limit efficiency and transparency. Technologies for fisheries monitoring and handling exist but are not uniformly deployed, leaving room for IUU fishing risks.
ASEAN’s physical capital strengths include sheer vessel numbers, existing processing capacity, and growing volumes of fisheries data. However, these assets are undermined by fragmentation: information silos, inconsistent standards, and lack of coordinated investment strategies. Addressing these weaknesses requires a regional approach that prioritises modernisation – expanding cold chain networks, upgrading port facilities, and integrating digital systems for monitoring and traceability. By leveraging markets rather than isolated community interventions, ASEAN can drive systemic change, ensuring that industrial fisheries remain competitive while aligning with sustainability goals.
ASEAN’s physical capital strengths include large vessel numbers, established processing capacity, and growing volumes of fisheries data. Despite their potential, these assets are compromised by fragmentation, characterised by information silos, inconsistent standards, and limited coordination in investment strategies. Regional plans emphasise modernisation through expanded cold chain networks, upgraded port facilities, and integrated digital systems for monitoring and traceability. Leveraging these improvements through market-driven approaches, rather than isolated interventions, is critical to ensure industrial fisheries remain competitive while aligning with sustainability objectives and reducing risks such as IUU fishing.
Human Capital.
Human Capital.
The fisheries sector in ASEAN is a major source of employment, directly engaging about 9.5 million people in capture fisheries (FAO, 2023, 2025; Matsuishi, 2025; SEAFDEC, 2025). This represents a significant share of global fisheries employment, underscoring the sector’s importance for livelihoods and food security.
Regional strategies have identified gaps in skills development, noting the importance of harmonised training programs that standardise qualifications, embed safety at sea, and integrate climate resilience. These documents also highlight that digital literacy and compliance with sustainability standards are increasingly necessary for participation in modern supply chains.
Average wages in the industrial and small-scale fisheries sector remain among the lowest in the blue economy, reflecting structural vulnerabilities and the informal nature of much employment. While this low-cost labour base is often seen as a competitive advantage, it exposes workers to exploitation, unsafe conditions at sea, and human rights abuses. Modern slavery and poor enforcement of labour standards remain critical challenges, particularly in small-scale and migrant-dependent segments of the industry.
Small-scale fisheries dominate employment in ASEAN, particularly in countries like Indonesia, which employs millions in capture fisheries, far exceeding other member states. Myanmar, Viet Nam, and the Philippines also maintain large workforces, while Brunei Darussalam and Singapore have minimal employment in this sector.
Despite this abundance of labour, small-scale fisheries often operate through informal arrangements that lack social protections and clear career pathways. Women play a significant role in post-harvest processing and marketing, yet gender considerations are frequently overlooked in policy and training initiatives. Skills development is urgently needed, not only in fisheries management and food safety but also in business planning and digital literacy to enable participation in modern supply chains. ASEAN plans also emphasize gender-responsive training and business planning support to strengthen livelihoods and resilience in SSF communities.
Industrial fisheries and seafood processing rely heavily on migrant workers, creating unique governance and protection challenges. The Ship to Shore Rights South-East Asia initiative, funded by the EU with a budget of USD 3.6 million (2025–2028), represents a significant step toward addressing these issues (ILO, 2025). Operating in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, and Thailand, the program aims to improve labour migration governance, enhance worker protections, and promote decent work across the blue economy. Its objectives align with the Sustainable Development Goals on decent work, gender equality, and life below water, signalling a shift toward more ethical and sustainable supply chains.
Despite these efforts, implementation remains uneven. Capacity-building efforts exist, led by organisations such as the RPOA-IUU and SEAFDEC often target institutional actors rather than fishers and crew. Regional coordination of training and education could help close critical skills gaps, standardise qualifications, and create opportunities for career progression beyond entry-level roles.
While regional agreements exist to support worker rights, enforcement is weak, and safety at sea continues to be a major concern. Addressing these deficits requires a multi-pronged approach: strengthening legal frameworks, improving monitoring and compliance, and investing in training that equips workers for safer, more skilled roles. Creating alternative livelihoods and pathways for career advancement will also be essential to reduce vulnerability and build long-term resilience. Recent ASEAN strategies note that while these governance platforms exist, they remain underutilized. Strengthening collaboration among member states and embedding gender and rights-based approaches are critical for inclusive growth.
Social Capital.
Social Capital.
Social capital in ASEAN fisheries is anchored in a complex governance framework that spans regional bodies, technical partnerships, and policy instruments. At the core is the ASEAN Fisheries Cooperation Framework, led by the ASEAN Ministers on Agriculture and Forestry (AMAF) and the Senior Officials Meeting of AMAF (SOM-AMAF), with implementation overseen by the ASEAN Sectoral Working Group on Fisheries (ASWGFi) (ASEAN, 2023). These bodies coordinate initiatives on fishing capacity, IUU fishing, traceability, climate resilience, and resource enhancement, supported by platforms such as the ASEAN Fisheries Consultative Forum and technical expertise from SEAFDEC. Commodity-specific alliances like the ASEAN Shrimp Alliance and networks such as the ASEAN Network for Combating IUU Fishing further strengthen collaboration between governments and industry.
Both industrial fisheries and small-scale fisheries face common threats such as climate change, IUU fishing, and resource depletion, yet their governance needs diverge. Industrial fisheries require harmonised harvest strategies and compliance systems to maintain export competitiveness, while SSF needs inclusive policies that secure tenure rights, improve labour standards, promote gender equity and enable participation in value-added markets. Social capital also underpins the ability of communities to engage in decision-making and value chains, which is essential for advancing the blue economy.
SSF governance emphasises poverty alleviation, food security, and social equity. Instruments such as the Resolution and Plan of Action on Sustainable Fisheries for Food Security Toward 2030 and the Policy Brief on Human Rights-Based and Gender Equality Approaches to SSF reflect ASEAN’s commitment to inclusive development (ASEAN, 2021b; SEAFDEC, 2018). Platforms like the ASEAN Fisheries Consultative Forum address SSF issues, but implementation remains fragmented. Technical guidelines on traceability and cold chain management exist, yet uptake among SSF communities is limited due to resource constraints. Capacity-building programs such as those led by SEAFDEC, offer training in fisheries management and food safety, but these efforts are sporadic and rarely scaled regionally. The result is a governance gap: strong policy intent but weak operational support for SSF resilience (SEAFDEC, 2025b).
Industrial fisheries are deeply embedded in ASEAN’s formal governance architecture, which prioritises trade facilitation, sustainability standards, and international market access. Key initiatives include the ASEAN Catch Documentation Scheme, Tuna Eco-Labelling, and Regional Plans of Action for Fishing Capacity and Neritic Tuna, all designed to ensure traceability and compliance with global standards. These measures are complemented by technical guidelines on cold chain management and aquatic health, as well as stock assessments for key species. External partnerships, through APEC Oceans and Fisheries Working Group and Asia-Pacific Fishery Commission (APFIC), reinforce industrial priorities, focusing on vessel modernisation, eco-labelling, and blue economy strategies. Collectively, these frameworks strengthen ASEAN’s bargaining position in global seafood markets, but they primarily benefit large-scale operators with the capacity to meet stringent certification requirements.
Natural Capital.
Natural Capital.
ASEAN’s fisheries sector rests on one of the world’s richest marine resource bases. In 2022, Southeast Asia produced approximately 49.2 million metric tons of fish, accounting for nearly 20% of global supply (FAO, 2025a; SEAFDEC, 2025a). Of this, marine capture fisheries contributed 17.9 million tons, while inland capture fisheries added 2.9 million tons. Indonesia alone generated more than half of the region’s total output, followed by Viet Nam, Myanmar, and the Philippines. Key species include tuna and tuna-like species, small pelagic such as sardines and anchovies, and demersal species like groupers and snappers. These stocks underpin both industrial fisheries, which dominate export markets, and SSF, which sustain local food security and livelihoods.
The Pathways to Sustainability projects is positioned as an alternative to formal certification, using structured improvement tools (e.g., Fishery Improvement Projects) (MSC, 2025, n.d.) that closely mirror certification criteria so fisheries can progress toward measurable, MSC‑equivalent performance while remaining market‑credible (WWF, 2015; FAO, 2009). The scheme analysed is the Marine Stewardship Council (MSC) because of its internationally recognised market access and best‑practice alignment (FAO/ISEAL/GSSI), extensive program scale, and strong retail and supply‑chain traction (ISEAL, 2022; MSC, 2025; NSF, 2024). The MSC is becoming increasingly recognised and adopted within the ASEAN region, particularly in Indonesia’s small-scale tuna fisheries and supply chains. This development illustrates viable entry points for producers in the region to engage with sustainable practices (MSC, 2021; UNDP, 2021; SeafoodSource, 2021). Its Fisheries Standard (versions 3.0 and 3.1) addresses key ASEAN challenges, including overfishing, IUU fishing, and the protection of endangered species/bycatch and ghost gear. It introduces enhanced harvest strategy requirements for stocks managed by RFMOs (e.g., tuna), stricter protections for threatened species (ETP), and evidence/observation rules (MSC, 2024; Currey, 2022). This focus aligns with ASEAN and SEAFDEC policy frameworks that prioritise combating illegal, unreported and unregulated (IUU) fishing and ecosystem degradation as core regional threats (ASEAN–SEAFDEC, 2016; SEAFDEC, 2024), reinforced by broader international assessments of IUU impacts (IMO, n.d.).
Regional assessments indicate that ASEAN’s fisheries depend on ecosystems under mounting stress, driven by overfishing, habitat degradation, and climate-related impacts. Strategic plans emphasise measures such as harvest control rules, science-based management, and climate adaptation, yet uptake remains uneven across member states. Without stronger integration of ecosystem-based approaches and disaster risk reduction, resource depletion is likely to accelerate. Advancing the blue economy therefore hinges on embedding resilience measures and scaling habitat restoration to safeguard the natural capital that underpins fisheries productivity.
SSF depend on nearshore ecosystems such as coral reefs, mangroves, and seagrass beds that provide habitat for diverse species and sustain millions of livelihoods. These ecosystems are highly vulnerable to destructive fishing practices, pollution, and climate-driven changes such as ocean acidification. Governance for SSF emphasises community-based conservation and resilience, exemplified by initiatives like the Coral Triangle Initiative on Coral Reefs, Fisheries, and Food Security (CTI-CFF, 2025). CTI-CFF promotes ecosystem-based fisheries management, expands marine protected areas, and strengthens coastal adaptation strategies. However, implementation remains uneven, and coordination across ASEAN programs is limited. Technical guidelines and innovative financing models, such as habitat restoration bonds, offer promising pathways but require scaling and sustained investment.
Industrial fisheries target high-value species, particularly tuna and shrimp, using large powered vessels operating in offshore and transboundary waters. Their scale and intensity place significant pressure on pelagic stocks and require robust governance to prevent overfishing. ASEAN has responded with a suite of measures focused on combating IUU fishing and ensuring legality in supply chains. Initiatives such as the ASEAN Catch Documentation Scheme, ASEAN Guidelines for Preventing Entry of IUU Products, and the ASEAN Roadmap on Combating IUU Fishing (2021–2025) aim to standardise reporting and strengthen enforcement. Regional cooperation through the RPOA-IUU further enhances monitoring, control, and surveillance (MCS) systems, regulates transshipment, and promotes compliance with international frameworks like the United Nations Convention on the Law of the Sea (UNCLOS) and the Food and Agriculture Organisation’s (FAO) Code of Conduct (RPOA-IUU, 2007). These measures are critical for industrial fleets, which face global market scrutiny and sustainability certification requirements.
Assessment of Capacity for Growth
Assessment of Capacity for Growth
Constrained
(low or no growth in production)
Despite its scale and global significance, Southeast Asia’s capture fisheries sector has limited capacity for further expansion due to sustainability constraints, for example stocks are fully exploited or overfished, and habitat degradation continues. Growth through increased catch is neither viable nor desirable.
However, substantial opportunities exist in value addition and efficiency gains, including improved cold chain infrastructure, traceability systems, electrification of fleets, and compliance with international standards to access premium markets. Innovations in blue finance, such as impact bonds for habitat restoration, and regional coordination on harvest strategies can enhance resilience and profitability without increasing fishing pressure, positioning ASEAN as a leader in sustainable seafood supply.
