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Evaluation of Pilot Program on Payment for Forest Environmental Services in Vietnam: Implication for Laos and Cambodia

Submitted by Michael Rastall 8th January 2014 14:49

Adaptation challenge

  • The pilot project on “Payments for Forest Environmental Services” (PFES) showed promise as a mechanism for forest management and poverty reduction in Lam Dong and Son La provinces in Vietnam.
  • The pilot PFES was the first fully self-reliant program for forest management and poverty reduction through collections for a PFES Fund. It generated about US$4.46 million of which hydropower plants contributed 89 percent to the total PFES Fund.
  • PFES resulted in enhanced protection of 209,705 hectares of forest land with cooperation of local communities. PFES proved effective as an incentive scheme to improve the participation of households, particularly poor households, in forest protection. The PFES program engaged with 7,997 households, of which 6,858 were ethnic minorities, in forest allocation and protection.
  • The PFES scheme has increased the total annual income of participants by about 30 percent.
  • Within two years of its implementation, the PFES program has lifted about 50 percent of participating households over the poverty line. This demonstrated the strong economic impact of the PFES program on local households especially in Lam Dong province.
  • Since the project was begun, the area of forest invaded/encroached has been reduced and the number of reported cases of illegal logging and wildlife poaching has decreased by 50 percent.

Expected outputs

The research project aims to evaluate the performance and impacts of the pilot PFES program in Lam Dong province and to assess potentials to adopt in Laos and Cambodia. The result of research will establish the basis for the development of the legal framework for national policy on payment for forest environmental services for implementation in practice.

Timescale of project




Focal point

Dr. Bui Duc Tinh
Hue College of Economics
Hue University, Vietnam
Email: [email protected]


Tran Huu Tuan, Bui Duc Tinh, Tran Van Giai Phong, Chhinh Nyda, Kong Sopheak

Hue University, Royal University of Phnom Penh, National University of Laos