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

Consultation Workshop on GMS Sustainable Agriculture and Food Security Program (SAFSP)

3 to 4 April 2019

GMS Sustainable Agriculture and Food Security Program (SAFSP): The proposed TA will build on accomplishments of the two phases of the Core Agriculture Support Program and support the implementation of Strategy for Promoting Safe and Environment-Friendly Agro-Based Value Chains in the GMS and Siem Reap Action Plan, which was endorsed by the GMS Agriculture Ministers in late 2017. The SAFSP interventions will focus on areas such as (i) climate-smart and gender-conscious agricultural value chains, (ii) food safety and quality, and (iii) water-food-energy nexus in a warming world (through the adoption of climate-friendly agricultural adaptation practices and technologies).


SAFSP will focus on ADB’s value addition in advancing the use of advanced digital technologies, leveraging investments and applying integrated solutions on the safe, environment and climate-friendly agro-based value chains in the GMS. The TA will assist GMS towards becoming a more integrated, prosperous, inclusive, resilient and sustainable subregion, by focusing on principles such as “food safety for all, climate-friendly agriculture, inclusiveness of small farmers, gender empowerment, corporate social responsibility, good governance, benefits for all GMS countries, and integration with ASEAN”.


The SAFSP will have the following themes to be implemented over 5 years:


      1.          Greening of agribusiness supply chains

      2.          Inclusive and gender-conscious food value chains

      3.          Financing climate-friendly agribusinesses

      4.          Food safety and quality standards, certification and traceability

      5.          Cross-border animal health and value chain development

      6.          Water for food security in a changing climate

      7.          Agricultural adaptation in the context of water-food-energy nexus


The Asian Development Bank (ADB) organized a workshop on the GMS SAFSP on 3-4 April 2019in Kunming, People’s Republic of China. The workshop was divided into six sessions, where each session discussed (i) key challenges for each seven themes, (ii)  current status (e.g. policies, building capacities and mobilizing investment for infrastructure), and best practices that could be replicated, (iii)  key priorities for action, and (iv) advantages or disadvantages in adopting a regional approach.

More than 80 participants attended. Delegates included senior government officials from 6ADB developing member countries, senior staff from international and regional development organizations, including ADB, non-government organizations, academia, and the private sector.

The agenda and presentation materials can be downloaded below.


More details

Digital Technologies for Advancing Food Security, Climate Action and Environmental Sustainability

14 to 15 March 2019

To assess current status of application of digital technologies in four areas:

1.Sustainable agriculture

2.Food traceability

3.Climate action (mitigation and adaptation)

4.Environmental sustainability


To solicit views from the representatives of the government, private sector, development partners and academia on most appropriate technologies, needs and gaps, and future priorities for action in the GMS


To identify opportunities for public-private partnerships in deployment of digital technologies in the GMS


More details
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