ABSTRACT Coming into the general development process of urban areas, rural settlements gradually lose their distinctive character in the cultural and spatial organization of a community. Not only that, this approach affects how the local communities change their lifestyle and livelihood and increases unsustainable development that is clearly seen through community poverty and the gradual depletion of natural resources. This research investigated local environments and efforts by local communities to adapt to new living environments. Using qualitative and quantitative research methodologies from macro to micro levels, this research discovered two settlements of the Katu ethnic group in Quang Nam province. The research findings indicated that current approaches to community planning and development are ineffective in the sustainable development of the local community; in contrast, these approaches trigger adverse changes in the cultural and biological diversity in the region. This research proposed a theoretical framework that helps the local community achieve sustainable development and the conservation of natural and cultural resources through four principal dimensions: (1) livelihoods, (2) built environments, (3) natural environments, and (4) cultural traditions. This research expanded and detailed the drivers of change in biocultural diversity theory, integrating biocultural diversity into the sustainable development of the rural community. In addition, this research showed that the sustainable development of the rural community needs to be based on respect towards the close relationship between traditional knowledge/indigenous wisdom and the natural environment. The research holds great significance in perfecting the theoretical framework of community planning, serving as a basis for proposing rural development and management policies as well as enhancing the identification of local communities, especially ethnic minority groups.
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