This research aims to explore the effects of forest land allocation policy (FLA) on livelihood activities and income of the poor households in the upland areas of Central Vietnam. The research found that FLA brought many risks to the poor households’ livelihoods. They are seen in i) the transformation from agricultural to forest land leading to a decrease in land for agricultural production; ii) the dependence of a large number of the poor on plantations, which can cause great loss of earnings in the case price fluctuations have a bad impact on plantation products; and iii) landless phenomena now has appeared in a couple of young households. This is likely to make a severe land-use conflict occur between local authorities and people in the coming time. Keywords: Forestland allocation, livelihood activities, poor household, land use, income, shifting cultivation, sedentary cultivation.