Forest Protection Fund staff coordinate with rangers to propagate forest fire prevention information to people in Tả Lẻng Commune, Tam Đường District. VNA/VNS Photo

HÀ NỘI The Việt Nam Forest Protection and Development Fund has announced that in 2025 it will continue reviewing revenue sources and strengthening efforts to ensure timely payments by units utilising forest environmental services.

Lê Văn Thanh, the fund’s Deputy Director, said the goal is to collect VNĐ3.3 trillion (US$131.5 million), ensuring accurate and comprehensive collection while promptly disbursing funds to the appropriate recipients and purposes.

Thanh said last year, fund units nationwide signed 218 new contracts for forest environmental services. These contracts serve as a critical foundation for organising and enforcing the collection and payment of service fees from users in the future.

Since the policy's implementation, Việt Nam has signed 1,803 contracts made up of 631 contracts with hydropower plants, 437 with clean water plants, 34 with tourism businesses, four with aquaculture facilities and 697 with industrial production plants.

In 2024, total revenue from forest environmental services reached over VNĐ3.76 trillion. The effort to mobilise additional revenue through forest carbon sequestration and storage services remains ongoing.

On March 15, 2024, the World Bank (WB) disbursed the remaining $10.3 million under the North Central Region Greenhouse Gas Emission Reduction Payment Agreement (ERPA).

To date, Việt Nam has received a total of $51.5 million from the WB to support forest protection and development, reduce deforestation and forest degradation, and improve the livelihoods of forestry-dependent communities in six North Central provinces.

The successful implementation of ERPA represents a significant milestone, as Việt Nam has transferred 10.3 million tons of CO2 (achieved through emission reductions in North Central natural forests) to the Forest Carbon Partnership Fund (FCPF) via the WB. This has generated substantial financial resources to protect over 2.15 million hectares of natural forests in the region.

The pilot programme under Decree No 107/2022/ND-CP, which governs the transfer of emission reduction results and financial management of greenhouse gas emission reduction payment agreements, marks a pivotal step toward expanding new forest environmental services.

Specifically, the service of carbon absorption and storage in forests is seen as a pathway to sustainable development, environmental protection, biodiversity conservation, and climate change adaptation.

He highlighted that the policy on forest environmental service payments has met practical needs, with most services implemented and widely supported by authorities, organisations, and individuals. Service users are becoming increasingly proactive in signing contracts and fulfilling their obligations.

The policy's implementation across provinces has yielded positive results. Funds generated from forest environmental services have significantly improved livelihoods and incomes for forest-dependent communities while enhancing environmental protection, biodiversity conservation, and climate change mitigation efforts.

These funds have also alleviated financial constraints faced by forest owners in managing and protecting forests, complementing state budget allocations for forest conservation.

Revenue from forest environmental services currently supports the management and protection of 7.45 million hectares of forest, accounting for 53.53 per cent of the country's total forest area.

The funding has played a crucial role in addressing financial challenges for 235 special-use and protection forest management boards, 99 forestry companies, and thousands of households, individuals, and communities.

Since the government halted logging in natural forests, revenue from environmental services has enabled forestry companies to sustain operations, restore production, and maintain financial stability, ensuring effective forest protection during the sector's transition and modernisation. VNS