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The Asian Development Bank (ADB) supported the provincial authorities of Quang Nam in Viet Nam to scale up the implementation of payments for forest environmental services (PFES) through a technical assistance financed by the Governments of Sweden and Norway. The project pilot-tested two innovations---the group approach and the use of a geographic information system---to speed up PFES planning and implementation in the province. Starting with five villages in Ma Cooih commune, the initiative expanded to include two more communes in the Song Bung 4 watershed. This publication shares lessons and insights gained from this experience, and with it ADB intends to contribute to developing a robust, affordable, and sustainable process of planning and implementing PFES at the provincial level, thereby helping accelerate its implementation.
Key messages Despite being a new funding source, PFES now contributes 22% of total forestry sector investment.The impact of PFES funding differs by location and actor group.To enhance the scale of PFES, and its impac
As natural ecosystems continue to degrade, mainly due to human activities, payment for ecosystem services (PES) is becoming an increasingly popular way to use market logic and economic rationality in ecosystem management. This study aims to understand how payment for forest environmental services (PFES) policy, initially introduced as a neoliberal concept, has been shaped by a local context in which it is situated: Vietnam. It was found that PFES understandings and practices differ significantly from the ideal portrayed in the neoliberal PES definition, with very weak elements of conditionality and voluntariness. The neoliberal logic to address environmental problems by providing monetary incentives does not correspond with the views held by the Vietnamese PFES participants and is barely translated into implementation. Although PFES has brought some changes to policy conceptualization and discourses, these changes don’t significantly alter the pre-existing forest governance structures at local and national levels. It is recommended that PES be understood and analysed in its situational history, practices and scales; in Vietnam PFES is characterized by an actor-oriented, learning-based approach to co-invest in stewardship.
This policy learning tool is primarily designed for policy makers and government officers who need to carry out M&E and report on the progress and impact of Payment for Forest Environmental Services (PFES policies). While this policy learning tool is designed to meet policy makers’ need to understand the impact, opportunities and challenges of PFES, it can also be adapted by analysts, program sponsors and managers, practitioners in research and research funding organizations, and professional evaluators for their own needs in understanding and identifying areas for PFES improvement.
Research on payments for ecosystem services (PES) schemes indicates that few of them in fact implement full marketization on the ground, highlighting the need for better understanding of the performance of incompletely marketized PES models. One prominent example of a PES program with incomplete marketization is Vietnam's Payments for Forest Environmental Services (PFES) scheme, a payment for environmental services program that has been progressively rolled out across over 40 provinces since 2008. The program is notable both for its spatial extent and its implementation, collecting funds primarily from taxes on water consumption in hydroelectric dams and water companies and redistributing it through a diverse array of contracts managed at provincial and national levels to protect and plant new forests. We assess the impact of PFES using matched two-way fixed effects models and matched multi-period difference-in-differences estimation. These methods both suggest that PFES restrains forest loss at a rate comparable to or greater than state-managed protected areas. Importantly, these effects are weak or nonexistent until PFES has been established for over three years. Taken together, these findings provide strong evidence that state-managed PES-like programs can perform well in forest protection even if they lack full marketization.
Vietnam is acknowledged to be REDD+ pioneer country, having adopted REDD+ in 2009. This paper is an updated version of Vietnam’s REDD+ Country Profile which was first published by CIFOR in 2012. Our findings show that forest cover has increased since 2012, but enhancing, or even maintaining, forest quality remains a challenge. Drivers of deforestation and degradation in Vietnam, including legal and illegal logging, conversion of forest for national development goals and commercial agriculture, weak law enforcement and weak governance, have persisted since 2012 up to 2017. However, with strong political commitment, the government has made significant progress in addressing major drivers, such as the expansion of hydropower plants and rubber plantations.Since 2012, Vietnam has also signed important international treaties and agreements on trade, such as Voluntary Partnership Agreements (VPAs) through the European Union’s (EU) Forest Law Enforcement. These new policies have enhanced the role of the forestry sector within the overall national economy and provided a strong legal framework and incentives for forestuser groups and government agencies to take part in forest protection and development. Nevertheless, new market rules and international trade patterns also pose significant challenges for Vietnam, where the domestic forestry sector is characterized by state-owned companies and a large number of domestic firms that struggle to comply with these new rules.The climate change policies, national REDD+ strategy and REDD+ institutional setting has been refined and revised over time. However, uncertain and complex international requirements on REDD+ and limited funding have weakened the government’s interest in and political commitment to REDD+. REDD+ policies in Vietnam have shown significant progress in terms of its monitoring, reporting and verification (MRV) systems, forest reference emission levels (FREL), and performance-based and benefit-sharing mechanisms by taking into account lessons learnt from its national Payment for Forest Environmental Services (PFES) Scheme. Evidence also shows increasing efforts of government and international communities to ground forestry policies in a participatory decision-making processes and the progress on developing safeguarding policies in Vietnam between 2012 and 2017 affirms the government’s interest in pursuing an equitable REDD+ implementation. Policy documents have fully recognized the need to give civil society organizations (CSOs) and ethnic groups political space and include them in decision making. Yet, participation remains token. Government provision for tenure security and carbon rights for local households are still being developed, with little progress since 2012.The effectiveness of REDD+ policies in addressing drivers of deforestation and degradation has not be proven, even though the revised NRAP has recently been approved. However, the fact that drivers of deforestation and degradation are outside of the forestry sector and have a strong link to national economic development goals points to an uneasy pathway for REDD+. The business case for REDD+ in Vietnam has not been proven, due to an uncertain carbon market, increasing requirements from donors and developed countries, and high transaction and implementation costs. Current efforts toward 3Es outcomes of REDD+ could be enhanced by stronger political commitment to addressing the drivers of deforestation from all sectors, broader changes in policy framework that create both incentives and disincentives for avoiding deforestation and degradation, cross-sectoral collaboration, and committed funding from both the government and developed countries.
What are the roles and responsibilities of different levels of government over forests and land use in Vietnam? Over the last two decades how have government priorities shifted? How has decentralisation been realised through changing land laws and forest protection and development programs? Which powers and responsibilities are centralized, and which are decentralized? What role do local people play? This report reviews the statutory distribution of powers and responsibilities across levels and sectors. It outlines the legal mandates held by national and lower level governments with regard to land and forest allocation, afforestation programs, rubber plantations, Payments for Forest Environmental Services (PFES), land use planning, and more. The review considers legal and policy changes in land use and forestry in Vietnam following the ‘doi moi’ reform in 1986 up to 2014. After a short introduction, the second section describes the decentralization process, including mechanisms for participation. The third section outlines sources of revenue available to different government levels from forest fees and payments for environmental services. The fourth section details the specific distribution of powers and arenas of responsibility related to multiple land use sectors across and within levels, and the fifth and final section concludes on the policy changes and processes in relation to observed forest cover change. The study was commissioned under CIFOR’s Global Comparative Study on REDD+, as part of a research project on multilevel governance and carbon management at the landscape scale. It is intended as a reference for researchers and policy makers working on land use issues in Vietnam.