Payments for Forest environmental services (PFES) in Vietnam: Findings from three years of implementation

The sustainable management and protection of Vietnam’s forests and landscapes is vital for the health and well-being of its rural communities. Forests play a crucial role in protecting watersheds, preventing soil erosion, maintaining the water cycle, and fighting climate change. Timber and non-timber forest products (NTFPs) are an important source of income and nutrition. But economic development and growing demand for food, energy and wood resources are putting increasing pressure on Vietnam’s forests and landscapes. To protect these vital ecosystem services, in 2010 the Government of Vietnam became the first country in Asia to institutionalize a nationwide policy on PFES. Mandated through Government Decree No.99, the PFES policy requires users of forest environmental services to make payments to suppliers of these services. Vietnam’s payments for forest environmental services (PFES) policy aims to incentivize individuals and communities to sustainably manage and protect their forests by providing compensation for their efforts.