F UNIVERSITY, HANOI VIETNAM NATIONAL VIETNAM JAPAN UNIVERSITY PHAN THI QUYNH HOA STRENGTHENING THE ROLE OF VIETNAM FOREST PROTECTION AND DEVELOPMENT FUND IN THE ENFORCEMENT OF THE POLICY ON PAYMENT FOR FOREST ENVIRONMENTAL SERVICES MASTER'S THESIS PUBLIC POLICY Hanoi, 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY PHAN THI QUYNH HOA STRENGTHENING THE ROLE OF VIETNAM FOREST PROTECTION AND DEVELOPMENT FUND IN THE ENFORCEMENT OF THE POLICY ON PAYMENT FOR FOREST ENVIRONMENTAL SERVICES MAJOR: PUBLIC POLICY CODE: PILOT RESEARCH SUPERVISOR: Dr. NGUYEN NGOC HUY Hanoi, 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS ABBREVIATIONS .ii LIST OF TABLES AND FIGURES. iv LIST OF ANNEXES. 5 Review some models of PES implementation in the world.
5 PES program in Costa Rica. 5 Programs targeting watershed services in China. 7 Payment for ecosystem services in Japan. 9 Payment for Environmental Services program in Cambodia.
14 PFES policy and VNFF in Vietnam. 18 PFES policy in Vietnam. 18 VNFF in implementation of PFES policy. 24 Review some reports on VNFF and PFES.
Report on 8 years of operations of forest protection and development funds and 5 years of implementation of the PFES policy. 26 Report on reviewing 10 years of organization and operation of forest protection and development funds from 2008 – 2018. 34 Data collection method. 34 Methods of data processing and analysis.
37 VNFF’s organization and operation. 37 Implementation of PFES policy. 40 Some specific results from interviews and surveys. 42 General evaluation on VNFF.
43 Stakeholders’ understanding about VNFF. 47 Organization and human resource. 48 Legal regulations and guidelines on PFES policy. 49 PFES management and utilization.
50 CONCLUSION AND RECOMMENDATIONS. 55 i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABBREVIATIONS ADB Asian Development Bank BoD Board of Directors CBD Convention on Biological Diversity CCICED China Council for International Cooperation on Environment and Development CIFOR Center for International Forestry Research CITES Convention on International Trade in Endangered Species CPC Communal People’s Committee DARD Provincial Department of Agriculture and Rural Development ES Environmental services EWS Eco-compensation for Watershed Services FCPF Forest Carbon Partnership Facility FES Forest Environmental Services FONAFIFO Fondo de Financiamiento Forestal de Costa Rica (National Forestry Financing Fund of Costa Rica) iPFES “Improving Payment for Forest Environmental Services” project MARD Ministry of Agriculture and Rural Development M&E Monitoring and Evaluation MoF Ministry of Finance MPI Ministry of Planning and Investment MU Management Unit NGO Non-Governmental Organizations OECD Organization for Economic Co-operation and Development PES Payment for environmental/ecosystem services PFES Payment for Forest Environmental Services PFPDF Provincial Forest Protection and Development Fund PPC Provincial People’s Committee PPSA Pago por Servicios Ambientales (payment for ecosystem services program in Costa Rica) RAMSAR Convention on Wetlands ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com REDD+ Reducing emissions from deforestation and forest degradation, conservation of existing forest carbon stocks, sustainable forest management and enhancement of forest carbon stocks SLCP Sloping Land Conversion Program UN United Nations UNCCD United Nations Convention to Combat Desertification UNDP United Nations Development Programme UN-REDD The United Nations Programme on Reducing Emissions from Programme Deforestation and Forest Degradation VFDS The Vietnam Forestry Development Strategy VNFF Vietnam Forest Protection and Development Fund VNFOREST Vietnam Administration of Forestry WCS Wildlife Conservation Society iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES AND FIGURES List of Tables Table 2.1 River basins between Vietnam and China .2 Payment level to partner producers .3 Types of forest in Japan .4 River basin between Vietnam and Cambodia .5 Policies and strategies related to PES in Cambodia .6 Total entrusted contracts as of Oct 2018 .7 The PFES collection as of Sep 2018.1 Update changes in VNFF structure & operation .2 PFES amount paid for forest owners in 2018. 41 List of Figures Figure 2.1 FONAFIFO’s organization structure.2 Programs of Kanazawa’s Five-Year Action Plan .3 Community-based ecotourism program in Cambodia .4 Milestones of developing PFES policy .5 Payment level for FES users .6 PFES distribution mechanism .8 VNFF’s Organizational structure .9 Development of PFPDF quantity as of 2015 .10 Status of FPDFs from 2009 - 2018 .1 Subjects of survey and interview .1 Statistics of general evaluation on VNFF .3 Stakeholders’ understanding about VNFF.4 VNFF’s activities in implementing PFES policy.1 VNFF MU Human resources. 48 iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF ANNEXES Annex 1.
List of legal documents related to implementation of PFES policy. List of handbooks on PFES policy implementation. List of provincial forest protection and development fund. Survey form for VNFF’s staff.
Survey form for provincial forest protection and development fund. Survey form for VNFF’s users. Survey form for VNFF’s stakeholders. 81 v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABSTRACT In line with the international trend, the policy on payment for forest environmental services (PFES) in Vietnam has created a stable financial source for forest protection and development, increases the contribution of forestry sector in the national economy, improves livelihoods and helps to stabilize the life of forest workers.
More specifically, this policy has been applied throughout the territory of Vietnam, enhancing the role and responsibility of the entire society in forest management and protection activities. To achieve that success, Vietnam forest protection and development fund (VNFF) plays a very important role in the implementation of the policy. This report will analyse in detail of VNFF with the role of an entrusted fund to mobilize, receive and utilize social resources for forest management, protection and development. Through studying legal documents in Vietnam, evaluation reports on VNFF and PFES as well as analysing data collected from surveys and interviewing stakeholders, many difficulties have been shown in the process of VNFF’s organization and operation which affects the effectiveness of the PFES policy implementation.
From these findings, the author would propose some recommendations to strengthen the role of VNFF in the enforcement of the policy in the coming time. vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENT I am really happy because I managed to finalize the thesis “strengthening the role of Vietnam Forest Protection and Development Fund in the enforcement of policy on payment for forest environmental services” within the timeframe assigned by the Vietnam Japan University, Vietnam National University, Hanoi. This report cannot be completed without the great supports and absolute trust of professors, relatives and colleagues. First of all, I would like to express my deep gratitude to my supervisor, Dr.
Nguyen Ngoc Huy, who directly guided and gave me valuable comments on my thesis. Even he is very busy, but he has always spent a lot of time and efforts to direct me throughout the process of researching and completing this report. In addition, I would like to sincerely thank the all professors and staff working in Vietnam Japan University, especially in the public policy program who dedicated to convey valuable knowledge and help me in the process of learning and researching. Finally, I am also thankful to my family, friends and colleagues who have always encouraged me and provided me utmost support to complete all assignments in the process of studying as well as finalizing this topic.
Although there are many attempts, but this research topic will not free of shortcomings, I look forward to receiving the comments of professors, experts, friends and colleagues so that my topic can be better completed. Hanoi, 31 May 2019 Phan Thi Quynh Hoa vii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com INTRODUCTION In recent years, initiative of payment for environmental/ecosystem services (PES) has been widely adopted in the world. It is considered as one of effective tools to support environmental protection and biodiversity conservation. According to Wunder, PES is defined as “a voluntary transaction where a well-defined environmental service (ES) is being “bought” by a (minimum one) ES buyer from a (minimum one) ES provider if and only if the ES provider secures ES provision” (Wunder, 2005).
After many years, this definition is broadened by Tacconi "A PES scheme is a transparent system for the additional provision of environmental services through conditional payments to voluntary providers" (Tacconi, 2012). The payment is conducted based on a voluntary agreement between providers of environmental services and users of these services. Some (PES) programs have the direct involvement of the providers and users but some others, they need the support from Government and intermediate organizations to work as a bridge between the users and providers. Users of environmental services (FES user) are the beneficiaries of the environmental services such as hydropower companies, water supply, tourism business companies, industrial production facilities, etc.
They use natural resources for their production and business such as water, ecological system, forest environment therefore they are defined to pay for the environmental services they use. Providers of environmental services (FES provider) are those involving in protecting the environment and living in the areas that providing environmental services. PES in Vietnam is linked to the payment for forest environmental services (PFES). This term is clearly regulated in the Government Decree no.99/2010/ND-CP dated 24 September 2010 (Decree 99).
It is understood as “a provision and payment relationship in which users of forest environment services pay to providers of these services”1. This policy is firstly implemented in Lam Dong and Son La from 2008 to 2010 according to 1 Article 3, Decree no.99/2010/ND-CP dated 24 September 2010 of the Government on the policy on payment for forest environment services 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com the Decision 380/QD-TTg dated 10/4/2008 of the Prime Minister and then is applied at the national level as the Decree 99 of Government and encouraged the participation of all people to the forest protection. The PFES policy has created a new, stable financial mechanism, contributing to better forest protection (VNFF, 2018). Forest protection and development fund (FPDF) is an intermediate agency to receive the indirect payment of FES users to pay for FES providers in Vietnam, it was established by Government Decree No.05/2008/ND-CP dated 14 January 2008, in which defined as “a state financial institution, with legal entity, having specified seal, and able to open an account at a bank or State treasury according to statute law”2.
The system of this fund is set up from the central to the provinces that have forests and plays as the entrusted role to ensure the successful implementation of the PFES policy. Vietnam Forest protection and development fund (VNFF) is the central fund of forest protection and development. It was established by the Decision of Ministry of Agriculture and Rural development (MARD) no. 114/2008/QD-BNN, dated 28 November 2008.
This is considered as a lead agency to receive and coordinate the PFES in Vietnam. The fact of implementing the policy during the pilot phase until now as well as the result from surveys, some shortcomings and difficulties have been defined such as not all environmental services stated in the Government’s regulations are paid, pending payment of forest users, direct payment has not been applied, the limitation in PFES monitoring and evaluation. These shortcomings affected a lot the implementation of the PFES policy. Decree 99 regulated five types of forest environmental services to be paid includes: (i) Soil protection, restriction of erosion and sedimentation of reservoirs, (ii) Regulation and maintenance of water sources for production and social life, (iii) Forest carbon sequestration and retention, (iv) Protection of natural landscape and conservation of biodiversity, (v) Provision of spawning grounds, sources of feed and natural seeds, 2 Article 6, Decree No.05/2008/ND-CP dated 14 January 2008 of the Government on the forest protection and development Funds 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com use of water from forests for aquaculture3.