Abstract
The policy of payment for forest environmental services (PFES) has been implemented in Vietnam since 2011 and in Hoa Binh province since 2013. This policy has had certain impacts on improvement of local people living standard as well as on forest protection and development. Based on secondary and primary information collected in Mai Chau district, Da Bac district and Hoa Binh city, this paper analyzes the economic, social and environmental impacts of PFES on the forestry sector in general and forest owners in particular. The study showed that although money that was received from PFES by households was very small in their overall income, revenue of Commune People’s Committees communities was so large that it could help them to purchase equipment for forest protection and development. Thanks to PFES, forest area and forest cover rate of Hoa Binh province have been markedly increased.
Highlights
Forest environmental services are considered as public goods, i.e. the beneficiaries of indirect values which are generated by forests do not have to pay
According to Pham et al, [6] payment for forest environmental services (PFES) impacts could be assessed at provincial, district, commune and village levels, mostly based on indicators published by Vietnam Forest Protection and Development Fund (VNFF)
According to Decree No 99/2010/ND-CP, buyers in Hoa Binh have been identified as water supply companies, hydropower plants, and sellers as forest owners with forests allocated or leased by the State
Summary
Forest environmental services are considered as public goods (where market failures exist), i.e. the beneficiaries of indirect values which are generated by forests do not have to pay. In order to protect the existing forest area, to improve forest quality, and to increase the contribution of the forestry sector to the national economy as well as to reduce the state’s budget burden for investment in the forestry sector and to ensure livelihood of forest-based people, Vietnamese government has decided to adopt policy of payment for forest environmental services as a new financial mechanism to mobilize resources for forestry sector [6]. The total amount of PFES payments reached VND 16,758 billion, accounting for 18.2% of the total investment in forestry sector This is a stable and sustainable financial source which significantly contributes to improving the production value of forestry industry, promoting socio-economic development, reducing the burden on the state budget in forestry development strategy. The effectiveness of policy has changed people's awareness in forest management and protection, created new livelihood strategies for local people who used to live on forest [1]
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