Payments for Forest Environmental Services in Viet Nam (2014–2017)

In recent years, there has been increased global recognition about the important socioeconomic contribution of ecosystem services for rural livelihoods and broader society. This has helped drive countries to make greater efforts to more sustainably manage their natural capital – forest, land, and water resources and related ecosystem services. 

One result has been the emergence of payments for environmental services (PES) schemes as a means to help reduce poverty and contribute to green growth by addressing market failures to properly value environmental services.

PES schemes are based on environmental service ‘users’ rewarding or compensating ‘providers’ of those environmental services, for example hydropower companies paying local forest communities who protect watershed areas important to hydropower generation.

In the GMS, where rapid economic growth continues to be underpinned by environmental services and where rural, poor populations – custodians of many of these services – are extensive and widespread, PES is a particularly important approach for poverty reduction and green growth.

Since 2011, Viet Nam has been implementing a national payments for forest environmental services (PFES) scheme that has mobilized hundreds of thousands of households to protect and manage more than 5 million hectares of forest land. More than $230 million has been disbursed to participating households in 40 provinces so far and the socioeconomic and conservation benefits have been well-regarded.

In 2014, the Core Environment Progam began support to the Government of Viet Nam to evolve and strengthen its maturing PFES system. With the Ministry of Agricultural Development and the Center for International Forestry Research, CEP supported a review of the country's PFES policy and three-years of implementation. One of the key outcomes of the review was the need for a systematic monitoring and evaluation approach for PFES. The following year, CEP commissioned a technical review of current PFES monitoring and evaluation which overviewed the key components, information needs, and roles and responsibilities for systematic M&E.

In 2017, using the technical review as a basis, CEP contracted the World Wide Fund for Nature to develop and test a M&E framework in Quang Nam and Thua Thien Hue provinces. The framework will focus on tracking socioeconomic and conservation outcomes as well as the operational performance of the PFES system.The results of the work will be a proposed national PFES M&E framework for the country.



File Name Size Modified
Technical Review PFES Monitoring and Evaluation Viet Nam.pdf 633 KB 09-02-2017
Inception Report​-PFES Viet Nam ​- WWF.pdf 525 KB 17-02-2017

Publish Date: 6th November 2014

Last Updated: 3rd July 2017

See also

OpEd: Technology Can Drive Green Growth in the GMS

2nd February 2018

The Bangkok Post and China Daily were among five media outlets that published an OpEd about the role of technology in spurring green growth in the Greater Mekong Subregion.

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Ministers Endorse New Environment Agenda for the Greater Mekong Subregion

1st February 2018

Environment ministers from the six countries of the Greater Mekong Subregion (GMS) endorsed a 5-year environment agenda that includes more than $540 million worth of priority projects to spur green investments and increase environmental cooperation to help the subregion achieve sustainable growth.

More details
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