VIET NAM ADMINISTRATION OF FORESTRY

(VNFOREST)

Introduction of forests and forest sector of Viet Nam

VIET NAM FORESTRY

Contents
About Viet Nam The roles of forests Forest resources Forest ecosystems Classification of forests by functions Achievements in 2006-2010 Development orientation Organization and institution Challenges and solutions International cooperation

March, 2011

Viet Nam Forestry | 1

FOREWORD Forests play a vital role in the socio-economic development and in ensuring environmental sustainability of the nation. Besides supplying forest products for economic development, forests also contribute significantly to reducing flood and storm damages by maintaining and moderating water flows, supplying water for production and livelihood activities, mitigating erosions, landslides, and siltation of reservoirs, and producing hydroelectricity. Forests also enhance climate control, conserve biodiversity and genetic resources, and provide opportunities for eco-tourism and outdoor recreation. Forests play an specially vital role in the earths climate by absorbing and storing carbon thus reducing global warming. In Viet Nam, as a specific economic technical sector, forestry significantly contributes to sustainable development of agriculture and rural areas, economic growth, stabilization of society, national security and defense. The Booklet on Forestry in Viet Nam is developed with the aim of introducing Vietnamese forests and forestry sector to a wider range of audiences. It is composed jointly by Viet Nam Administration of Forestry (VNFOREST) of the Ministry of Agriculture and Rural Development (MARD) and the Forest Sector Support Partnership (FSSP) Coordination Office, with the financial support from JICA. We would like to express our gratitude for the kind support from various colleagues within the Viet Nam Administration of Forestry, international and national partners to develop and publish this Booklet. Special thanks would be given to Mr. Noriyoshi Kitamura JICA Forestry Programme Advisor for his effective support during the process of preparing and editing this Booklet. We have tried our best to collect and synthesize information as well as provide interesting insights to our readers and colleagues. We look forward to further receiving valuable contributions, comments on this Booklet from readers. Such feedbacks would be appreciated with thanks to better improve the Booklet in the future.

Kind regards,

Hua Duc N hi

Vice Minister, MARD Director General, Viet Nam Administration of Forestry

Viet Nam Forestry | 2

ABOUT VIET NAM

Located in the Southeast of Asia, from 2324 to 835 Northern latitude and 10208 to 10928 Eastern longitude. Land area: 33,019 km2 Length: 1,652 km Width: 632 km of the widest, 42 km of the narrowest 2/3 of the mainland territorial area covered by hills and mountains, the highest mountain Fansipan with 3,143 m above sea level. There are 2,360 rivers and streams Climate: Northern hemisphere tropical monsoon, close to equatorial climate, impacted by the Northeast and Southeast Asian monsoon. Population: 85.8 million (in 2009) GDP: $104.6 billion US (in 2010) and estimated $155 billion US in 2011(WB)

Viet Nam Forestry | 3

ROLES OF FORESTS

Forests are a source of food and foodstuff: many of current food and food products originated from natural forests, such as potato, rice, fruits, coffee, chocolate, spices and so on. Many foods are still being harvested from forests such as bamboo shoots, mushrooms, ground cloves, forest animals, etc. Forests are the main material sources for building houses, housing equipment and fuels for rural and mountainous areas and are the major livelihoods of the forest dependent ethnic minority people.

Forests are a source of medicine for people of ethnic minorities and for the pharmaceutical industry. Currently we only know about 1% of flora species in tropical forests but 25% of drugs produced originating from these plants, including many species with cancer treatment possibilities.

Harvested from Plantations

Forests protect habitats of human life, wildlifes, agricultural production and mitigate damages caused by natural disasters such as mitigating negative effects of floods, watershed protection like reducing water flow speed during floods, combating soil erosion, landslides (where close forests are available, the amount of soil erosion can be reduced 80-90%).

A nest of honey bees in Song Trem, Ca Mau

Forests provide raw materials for forest product processing industry, such as production of paper, fiberboard, sawn-timber, pit-props, and NTFPs like bamboo, rattan, raisin, oils, etc.

Forests provide relaxation and entertainment areas for humans due to the pollutions of urban and industrial zones cause negative impacts to their health.

Bird sanctuary in Bac Lieu

Bamboo material for processing

Viet Nam Forestry | 4

ROLES OF FORESTS

Forests function water regeneration, maintaining water under the vegetation and groundwater and bringing water back to streams, rivers to supply for hydropower plants, agricultural production and human life in dry season. Overseas research showed that the amount of water kept and regulated by 3,000 ha of primary forests is equivalent to a reservoir of 1 mil. m3 of water. Thus, investments in forest protection and planting of watershed protection forests are considered similar to civil work investments which bring synthetic effects to the environment.

Coastal protection forests and mangrove forests are very useful for shielding waves, wind, storm, sea encroachment, sand-dune and sand moves According to an IUCN survey, the horrible tsunami in December 26th , 2004 caused the death of hundreds of thousands people in various countries in Asia and Africa. However, in areas with wide mangrove line such as in India or in Phukhet Island of Thailand, villages behind such green walls are nearly untought, because the tsurinami energy had reduced from 50 to 90%.

Forest in Phong Nha Quang Binh

Forests play an important role in carbon sequestration and storage, contributing remarkable to reduce the warming of the earth and living environment. Worldwide countries and international organizations assume that forest protection is the most effective solution for global warming reduction. Attention should be paid on the fact that carbon volume in natural forests is 5-10 times higher than that in plantations and agricultural trees.

Mangrove forest in Can Gio Ho Chi Minh City

Forests, especially natural forests, are the lungs of the planet, also contribute to climate regulation and air quality improvement (CO2 sequestration, oxygen release and air filtering), particularly in industrial zones and urban areas with high pollutions. Each person needs around 4 tons of oxygen for breathing each year, equivalent to the oxygen release level of 1,0003,000m2 of trees or 0.1 ha of forest. Forest loss could cause unexpected changes in the atmosphere and natural disasters at global scale.

Can Gio National Park

Viet Nam Forestry | 5

Ba Vi National Park

FOREST RESOURCES

Area of forest and forestry land (to 31/12/2009)

Type of forest/forestry land Forested area

Area (ha) 13,258,84 3

Forest resource 2010

A. Natural forest
1. Wood forest 2. Bamboo forest 3. Mix forest 4. Mangrove forest 5. Rocky mountain forest

10,339,30 5

8,235,838 621,454 685,631 60,603 735,779

B. P lantation
1. With standing volume (> 3 years) 2. Without standing volume (<= 3 years) 3. Bamboo 4. Specialties 5. Mangrove forest

2,919,538
1,464,330 1,124,930 87,829 206,730 35,719

In 1943, Viet Nam had 14.3 mil. ha of forests, accounting for 43% of the forest cover. Up to 1990, the forest area was only 9.18 mil. ha, particularly between 1976 and 1990, approximately 190,000 ha of natural forests had been lost annually on average. Since 1990 to date, however, the forest area of Viet Nam has been increasing continually as the results of efforts launched in afforestation and restoration of natural forests. On average the forest area increases up to 282,600ha each year (on average the area of natural forests increased 148,900 ha each year while plantations reached 133,700 ha each year in the 1995 2009 period). As of 31st December 2009, the countrys forest area was 13,258,843 ha, of which 10,339,305 ha are natural forests while 2,919,538 ha are plantations. The forest cover increased from 37% in 2005 up to 39.1% in 2009, accounting for an average of 0.4% each year.

Viet Nam Forestry | 6

FOREST ECOSYSTEMS

1. Tropical closed evergreen moist broadleaf rainforest ecosystem: Ecosystems belonging to such vegetation are very rich and diverse, distributed at height below 700m above the sea level in various northern provinces and below 1000m above the sea level in some southern provinces. Average annual temperature is about 20 - 250C while average annual rainfall is between 2,000 - 2,500mm. Annually, there is no drought month but a 3-month dry season. This ecosystem is densed with many closed layers of canopy together with evergreen broad - leaved large timber trees species.

2. Evergreen broad-leaved forest ecosystem on limestone mountains: Rocky forest area (mainly limestone) is over 1.1 mil. ha, of which forested area was approximately 0.4 mil. ha (1999) distributed in 24 provinces and cities, such as Cao Bng, Lng Sn, Tuyn Quang, H Giang, Ho Bnh, Ninh Bnh, Thanh Ho in northern Truong Son mountain ranges and some islands. The vegetation on limestone mountains basically are indigenous flora of the North of Viet Nam and the South of China, which distributed scatteredly at the height belt of 300-1200m above the sea level, resulting in microclimate areas. The average temperature is 200C annually.

Closed evergreen forest

3. Deciduous broadleaf forest ecosystem (open forest of Dipterocaps): Deciduous broadleaf forests distribute in provinces of Dac Lac, Dac Nong, Gia Lai, and some smaller ones as of Lam Dong, Ninh Thuan, Binh Thuan, Binh Phuoc, Tay Ninh and mainly locating at the height of 400 - 800m. Deciduous broadleaf forest ecosystem suffers an extremely tough dry season lasting from November to April. Dipterocaps trees species are dominant in this ecosystem.

Evergreen broad leaved forest on limestone mountains

4. Mangrove forest ecosystem: Mangrove ecosystem distributes along with the coastline of Viet Nam with 28 provinces and cities. The composition of mangrove trees species varies on the basis of ecological environment. There are 47 flora families and plenty of fauna species together with famous bird sancturaries. Coastal area of C Mau province owns an ecosystem of the most diverse trees species composition with the best growth.

Deciduous broadleaf forest

Viet Nam Forestry | 7

Mangrove forest

FOREST ECOSYSTEMS
5. Tropical closed semi-deciduous broadleaf moist forest ecosystem: Such forest ecosystem locates in some mountainous provinces of the North, North Central, Central Highlands, Southeastern regions etc., and distributes in the North at the height of below 700m above the sea level and in the South below 1000m. The average air temperature is about 20 250C annually, while average annual rainfall is between 1,2002,500 mm. Dry season occurs 1 3 months with the rainfall less than 50mm, particularly under 25mm in some months. Tree layer structure consists of 3 layers of typical timber trees species, such as Liquidambar formosana, Lagerstroemia tomentosa etc. Average tree height reaches 40m while some trees species have buttress. Lower layers and shrubs are scattered and open. 6. Natural coniferous forest ecosystem includes low mountain subtropical coniferous ecosystem distributed in some provinces, such as Son La, Nghe An, Ha Giang, Lam Dong, etc. In the south, Pinus merkusii distributed at 6001000m while in the north the distribution is probably at lower level. Pinus kesiya distributes at the height of over 1000m. Temperate coniferous forest ecosystem at medium high mountains distributes mainly at Sa Pa, Tuan Giao, Ha Giang, Tay Con Linh, Chu Giang Sinh, Lam Dong, etc with the height of over 1600m in the North and over 1800m in the South. In subtropical coniferous forests main species are Pinus merkusii and Pinus kesiya etc., and in highly mountainous temperate coniferous forests there are Fokienia Hodginsii, Cunninghamia Lanceolata, Dacrycarpus imbricatus etc.

Tropical closed semi-deciduous broadleaf moist forest

7. Melaleuca forest ecosystem: Locates mainly in 7 provinces of the Mekong river delta, distributes at the height under 2m above the sea level , which is different from region to region in terms of inundated regime and duration (3 to 9 months each year). This ecosystem is formed at waterlogged conditions, thus only some high adaptation species can survive, resulting in simple structure of species composition and layering.

Coniferous forest
8. Bamboo forest ecosystems: Bamboo ecosystems in Viet Nam are diverse with more than 133 species. Main ecosystems are Bambusa procera, Dendrocalamus barbatus, Indosasa/Acidosasa, Schizostachyum, Bambusa balcoa. Bamboo distributes thoughout the country, of which the largest area are Central Highlands, North Central, Northeast, Southeast and Northwest regions. Bamboo forests are formed within the secondary succession.

Melaleuca forest
Viet Nam Forestry | 8

Bamboo forest

CLASSIFICATION OF FORESTS BY FUNCTIONS

Total land area planned for forestry is 16.24 mil ha, divided into 3 forest categories as following: land planned for development of special-use forests: 2,199,342 ha, accounting for 13.5%; for development of protection forests: 5,552,328 ha, making up 34.2%; and for development of production forests: 8,495,823 ha, equivalent to 52.3%. Forest land distributes mainly in hilly and mountainous areas of the country, where 25 mil. people, including 12 mil. ethnic minority people, are living together with low educational level, back-warded farming practices, slow economic development, and difficult living conditions.

Special-use forest is the forest type established with the aims at preserving natural resources, forest ecosystem standards of the country, genetic sources of forest fauna species, scientific research, protecting historical sites, beauty spots served as tourisms in combination with ecological environment protection. Special-use forest includes: National Parks; Nature conservation areas (including Nature Reserves, Species and Landscape conservation areas); Landscape protection areas (including historical, cultural sites and beauty spots) and scientific experimental and research areas.

Special-use forest in Dau Doi U Minh Ha Ca Mau Protection forest is determined primarily to serve the purpose of protecting and enhancing the capabilities on regulation of water sources, soil conservation, erosion control and desertification prevention, contributing to mitigate natural disasters, climate control, ensuring ecological balance and environmental security. Protection forests include: 1) watershed protection forests, 2) wind- and sand-shielding protection forest; 3) Wave-breaking protection forest; 4) Environment protection forests. Some provinces also have boundary protection forests. Production forests are mainly used for manufacturing and trading of timber, NTFPs in combination with some protection and conservation functions. Production forests include natural production ones restored by zoning for natural regeneration and planted forests. Besides, basing on average standing volume in each hectare of natural forests, they are also classified as rich, medium, and poor forests; plantation production forests include plantations (post-harvesting afforestation and reforestation forests) and seed forests including natural and plantation forests which are selected, transformed and certified. Forests, especially natural forests, have many functions such as production, protection, conservation of biodiversity, gene resources conservation, recreation, relaxation and creating a better living environment for humans and wildlife animals. Therefore, forests must be managed on multi-purpose and multi-function basis to maximize the utilization of forest benefits.

Protection forest on Thac Ba Hydro-Power Plant

Viet Nam Forestry | 9

MAIN ACHIEVEMENTS OF 2006-2010 FIVE-YEAR PLAN

Total forest area increased from 12.87 mil. ha in 2006 to 13.26 mil. ha in 2009 and is expected to increase up to 13.45 mil. ha in 2010;
Harvesting volume increased from 3.2 mil. m3 of timber in 2006 to 3.8 mil. m3 in 2009 and expected to increase up to 4.95 mil. m3 in 2010, of which plantation production occupied 90%.

Annual newly planted forest area increased from 157,080 ha in 2006 to 236,780 ha in 2009 and replanted and newly planted forest areas of 300.000 ha each year is definitely feasible. Contract-based allocation of forest for protection following 661 Project achieved average of 2.6 mil. ha out of nearly 8 mil. ha of protection and special-use forests in the period of 2006 - 2010, accounting for 172% as planned.

Zoning for regeneration in Ca Mau National Park

The number of planted scattered trees achieved more than 200 mil. trees per year, contributing to create remarkable timber materials and firewood sources for rural areas (equivalent to 100,000 ha of plantations). Industrial gross output of timber and NTFP processing industry increased from 60,059 bil. VND in 2005 to 116,685 bil. VND in 2009 at current price, accounting for 194% of the output in 2005.

Export value of sectoral products increased from $1.56 mil. US in 2005 to $2.8 bil. US in 2008 and expected to increase up to $3.4 bil. US in 2010 (average increase of 20% each year) and be considered as one of top five products with the highest export value in Viet Nam. The furniture of Viet Nam has been exported to nearly 100 countries and regions worldwide, particularly to the markets of United States, European Union, and Japan.

Viet Nam Forestry | 10

MAIN ACHIEVEMENTS OF 2006-2010 FIVE-YEAR PLAN

The sector has developed many breakthrough policies such as the policy on payment for forest environmental services (Degree No.99/2010/ND-CP); policy on supporting planted production forest development (Decision No.147/2007/QD-TTg); Degree on organization and management of special-use forest system (Degree No. 117/2010/ND-CP) etc.

The quality of plantation has been improved gradually, of which many scientific progress and achievement have been applied, especially in seed selection, breeding, multiplication on tissue culture basis, contributing to improve the quality of forest plantation, i.e. some provinces achieved the productivity of 15 20 m3 per ha each year. Disadvantages showed in the limitations on number of planted tree species, which are mainly Acacia mangium, Hybrid Acacia, Acacia auriculiformis, Eurcaliptus, Pine.

Acacia Plantation forest in Thac Ba Lake (Yen Bai Province)

Viet Nam has a quite complete system of 164 special-use forests with 2 mil. ha, including 30 National parks, 58 Nature Reserves, 11 species conservation areas, 45 historical, cultural and environmental forests and 20 scientific research and pilot sites, in which 4 National Parks were recognized as ASEAN heritages (Hoang Lin, Ba Be, Chu Mom Ray and Kon Ka Kinh). Some National Parks were recognized as World Heritage, such as Phong Nha Ke Bang and Bai Tu Long under the Ha Long Bay Heritage. Many National Parks are core zones of 7 UNESCO Biosphere Reserves. Viet Nam also has 2 RAMSAR areas, including respectively Xun Thu of Xuan Thuy National Park and Bau Sau of Cat Tien National Park.

Policy on payment for forest environmental services (Degree No. 99/2010/ND-CP) and Decision 380/2008/Q-TTg on piloting payment for forest environmental services (PFES) have carried out PFES payments for local communities and households involving in forest protection. PFES will be implemented in the whole country from 2011 and to be important revenues for forest management and protection, increasing sectoral gross output of environmental services. As of February 2010, after 2 years of FPES implementation, 7 hydropower plants and clean water supply companies have committed to address payments of 234.4 bil. VND in 2009, particularly 300 mil. VND achieved from tourism companies in Lam Dong province.

Mangrove forest in Can Gio Ho Chi Minh City

Viet Nam Forestry | 11

DEVELOPMENT ORIENTATION OF FOREST SECTOR TO 2020

Development viewpoints Integrate the management, protection, and appropriate utilization of resources, starting from afforestation and reforestation, to the harvesting, processing of forest products, environmental services, ecotourism, etc. Development orientation for 3 forest types and forest land

Protection forest: review and rearrange national protection forest

system with the area of approximately 5.68 million ha. improve forest quality and biodiversity values. areas of forest for industry.

Special use forest: maintain existing special-use forest system and Production forest: focus on establishment of concentrated raw material
Key development orientations for management, protection, development & utilization of forest

Make significant contributions to

economic growth, poverty reduction and environmental protection.

Sustainable management, utilization

and development of forests are the foundation for forestry development.

Forest management: establishment of the national permanent forest

estate.

Forest protection, nature and biodiversity conservation: focus on

improve awareness on forest protection and development.

Base on speeding up and making

more profound policies related to socialization of forestry activities, and attracting investment resources for forest protection and development.

Forest development: focus on planning, classifying and having

development plans for 3 forest categories (special-use, protection and production forests). competitive advantages, environmental services and major markets, such as United States, European Union and Japan.

Forest utilization, processing & trade: focus on products of high

Viet Nam Forestry Development Strategy 2006-2020 This strategy was approved by the Prime Minister on 5th February 2007. It includes 5 programs which are then concretize in projects. The strategy is implemented in 3 five-year plans and annual work plans.

Strategy implementation and M&E M&E system has been developed based on the log frame of the Strategy with 72 indicators. Up to now, the forest sector has published the Forest Sector

Baseline Report 2005 and Forest Sector Progress Report 2006-2010.

Five programs of VFDS 2006-2020

Viet Nam Forestry | 12

VFDS 2006-2020 M&E Model

FIVE-MILLION HA REFORESTATION PROJECT

Objectives To reforest 5 million hectares of forest (2 million ha of protection and special-use forest, 3 million of production forest); protect existing forest areas to increase the forest coverage up to 40%, contributing to ensure environmental security, mitigation of natural disasters, improving water regeneration, preservation of genetic sources and biodiversity. To effectively use the areas of bare land and denuded hills and create more jobs for laborers, contributing to poverty reduction, sedentary cultivation, income generation for rural and mountainous people, stabilizing politics society, defense, security, especially in border areas. To provide material timber for production of paper, artificial board, meeting demands for timber, firewood, and other forest products for domestic consumption and export, together with the development of forest product processing industry, to make forestry become an important economic sector, contributing to socio economic development in the mountainous areas. Achievements Phase 1 (1998-2005), after 8 years of implementation of the 5 Million Hectares Reforestation Project, about 1.3 million ha of forests have been planted in the whole country, contributed to increase the forest coverage in Viet Nam up to 37% (increased 3.8% as compared to that of 1999). Viet Nam is recognized with great efforts in plantation and considered as one of 10 countries in the world with the largest plantation area. This is an important progress because the forest area in Viet Nam reduced continually before the project. Phase 2 (2006-2010) following the Resolution 73 of the Eleventh National Assembly, the project has carried out: contracting about 2.5 million ha for protection, achieving 167% of the planned target; protection and special use forest plantation achieved 253,264 ha, reaching 101% as planned, production plantation obtained 887,365 ha, accounting for 115% against the plan. Zoning for regeneration achieved 922,768 ha, making up 115% against the plan, in which new zoning areas reached 519,768 ha while continually zoned areas were 403.000 ha.

Transport of seedlings for plantation in Ninh Thuan

Mangrove forest plantation in Soc Trang

More jobs have been created, of which within the project 661, 4.657 million jobs were created with the forestbased income generated at levels of under 25%, 25-50% and over 50% of total household income, equivalent to 2.85 times increase as compared with 2005. The amount of plantation harvesting provided sufficiently materials for artificial board industry, pit props, firewood, major part for pulp and a minor one for export-based woodchip production. But the sector has not met demands for large timber for wood processing for export and domestic consumption (currently each year approximately 1 billion USD spent for wood material import).

Viet Nam Forestry | 13

ORGANIZATION AND INSTITUTION

Viet Nam Administration of Forestry (VNFOREST) was established at the Decision 04/2010/Q-TTg, dated 25th of January 2010, by the Prime Minister. VNFOREST is an agency under the Ministry of Agriculture and Rural Development, performs the function of advising and assisting the Minister of Agriculture and Rural Development in state management and implementing tasks of state management on forestry in the country, managing and instructing public service activities under the VNFOREST management scope. Forest Protection Department is an agency under VNFOREST, performs the function of advising and assisting VNFOREST Director General in implementing state management on forest protection, ensuring legal enforcement on forest protection, development and forest product management under the management scope of VNFOREST. Forest Inventory and Planning Institute is a public service unit under VNFOREST, performs functions on basic inventory of forest resources, planning, survey, design of forests and forestry land in the whole country and managing and developing Viet Nam Forest Resource Museum. FIPI serves on state administration demands of VNFOREST. Provincial Sub-Department of Forestry under the Department of Agriculture and Rural Development, functions state administration tasks on forestry development. Provincial Sub-Department of Forest Protection under the Department of Agriculture and Rural Development, functions state administration tasks on forest protection and biodiversity conservation.

Milestones in organization of forest sector 1954 1975: General Dept. of Forestry 1976 1994: Ministry of Forestry

Forest sector organizational structure

1995 2009: Dept. of Forestry and Dept. of Forest Protection 2010 to present: Viet Nam Administration of Forestry

FOREST PROTECTION AND DEVELOPMENT LAW, which was passed by the XI National Assembly of the Socialist Republic of Viet Nam at its 6th session on December 3, 2004, takes effect on April 1st 2005, replaces the 1991 Law on Forest Protection and Development. This Law provides for the management, protection, development and use of forests, and forest owners rights and obligations. This Law applies to State agencies, domestic organizations, households and individuals, overseas Vietnamese as well as foreign organizations and individuals involved in forest protection and development in Viet Nam. Viet Nam Forestry | 14

ORGANIZATION AND INSTITUTION

LAW ON BIODIVERSITY was passed on November 13, 2008, by the XII National Assembly of the Socialist Republic of Viet Nam at its 4th session, takes effect on July 1, 2009 This Law provides for the biodiversity conservation and sustainable development; rights and obligations of organizations, households and individuals in the biodiversity conservation and sustainable development. This Law applies to organizations, households and individuals in the country, overseas Vietnamese, foreign organizations and individuals carrying out activities of or related to the biodiversity conservation and sustainable development in Viet Nam. LAND LAW was passed by Legislature XI of the National Assembly of the Socialist Republic of Vietnam at its 4th session on 26th November 2003, takes effect on the 1st of July 2004. This Law governs the powers and responsibilities of the State as representative of the ownership of land by the entire people for uniform administration of land and the regime for administration and use of land; and the rights and obligations of land users. This Law shall apply to (1) State bodies exercising rights and discharging responsibilities as representative of the ownership of land by the entire people and carrying out the task of uniform State administration of land; (2) Land users; and (3) Other entities involved in the administration and use of land. Among various legal documents on forestry, the DECREE ON THE POLICY FOR PAYMENT FOR ENVIRONMENTAL SERVICES is a breakthrough. It was issued by Government of Viet Nam on September 24th, 2010 and takes effects from January 1st, 2011. This decree regulates the policy for payment for forest environmental services in Viet Nam, including: 1) Types of environmental service that the users pay to the suppliers subject to this Decree. 2) Suppliers and users of forest environmental services. 3) Management and use environmental services. of the payment from forest

4) Rights and obligations of suppliers and users of forest environmental services. 5) Responsibilities of state management agencies at various levels and of different sectors in implementing payment for forest environmental services. The provisions of this Decree shall apply to state agencies; organizations, households, individuals, village communities in the country; Vietnamese residing overseas, foreign organizations and individuals with operations relating to supply, use, and payment for forest environmental services and management of the payment from forest environmental services.

Viet Nam Forestry | 15

CHALLENGES

Population growth, limited cultivation land and inefficient land uses put constant pressures on forests for expansion of agricultural land and for industrial development such as food crops, industrial crops, settlements, infrastructure (hydropower, mining, roads etc.);

Increasing demands for timber and NTFPs put pressure on forest resources and the environment particularly on natural forests. The current demands for forest products exceed the sustainable supply from the forests.

In 2010 total timber harvesting is 4.8 mill m3 only and most is plantation forest timber compared to the timber demand of 14 million m3 and the timber import of 4 - 5 million m3 per year approximately. Limited competitiveness of forest production and wood processing: International integration not only an opportunity, but also a great challenge for the forest product processing industry and trade of forest products. The competition will be more critical in the future in both international and domestic markets

Projection of demands of timber for Viet Nam Domestic and export timber Large timber for industry and civil construction Small timber used for export wood based panels and wood chips Small timber for pulp production Pitprops

Mill. M3 2015 18.62 10.2 2.9 5.2 0.16 2020 22.1 12.0 1.7 8.2 0.2

The economic, social and environmental importance of forests and forest sector have not been comprehensively, objectively and fairly evaluated, which have affected the formulation of investment and development policies of the sector. Lack of supporting policies of the Government especially financial policies and mechanism makes difficult for sector development. Low quality plantation forests: Small scale at household level and extensive farming system lead to their low productivity. Most of planted forest harvests are less than 70 m3/ ha in 6-7 years rotation. Moreover, monoculture (mainly Acacia and Eucalyptus species) and low investment are main constraints for big timber production in particular large timber production.

The inadequacies between the requirements for fast comprehensive and sustainable development and the restricted resources of the forest sector (e.g. human resources, infrastructure, funding for long forest tree rotation, management capacity etc.) made slow forest sector development. Low quality natural forests caused by overharvesting, shifting cultivation and forest fire in recent decades: Most of natural forest areas are poor and young regenerated forests and are being targets for conversion to food, industrial crops and industrial development as well as for illegal logging.

Viet Nam Forestry | 16

SOLUTIONS
Institution Continuing allocation of planted production forest land to the poor and landless households; Scaling up models for community forest management mainly for natural forests of all three forest categories; Development of long-term investment policies for special use and protection forests and supporting investment policy for planted production forests especially for big timber production; Development of investment policy to support renovation of technologies and equipment for wood processing companies including supporting industry; Scaling up the PES mechanism based on Degree 99/NDCP to national level and piloting REDD+ to support local people to protect the forests; Government should invest to build up forest infrastructure for the prioritized raw material supply forest areas (forest roads and forest fire protection); Capacity building for forestry staff and farmers especially at commune and village levels though forestry extension system. Forest protection and conservation Enhancing collaborative forest management between forest management units, CPCs and local communities in forest management and protection; Allocating more responsibilities and benefits in forest management & protection to CPCs and local communities; Strengthening the cooperation of all law enforcement agencies particularly FPD for better supporting local people and authorities in forest protection & conservation. Forest Utilization Promoting multi-use forest management and sustainable harvesting according approved forest management plans; Encouraging processing companies invest in big timber species planting in form of joint venture to reduce timber import gradually and to enable legal timber/ timber products for export; Encouraging development of supporting industry and domestic timber market; Promoting building up and broadcasting trademarks of timber product to international markets; Encouraging development of NTFP conservation and production and processing for diversification of household economy. Viet Nam Forestry | 17 Forest management Establishing permanent national forest estate as basis for meeting sustainable social, economic and environmental objectives of the sector; Carrying out a comprehensive and periodical forest inventory to compartment level as basis for forestry planning and forest land allocation leases; Carrying out sustainable and multi-use forest management planning & implementation for forest management units and feasible forest protection and development plans for administrative levels; Establishing provincial or inter-provincial General Corporations of Forestry focusing on big timber planting, forest products processing and business. Forest Development Focusing more on big timber species planting with leading role of state forest companies for meeting the big timber demands for export industry in two next decades; Strengthening the forest production forms of household, service cooperatives, state forest companies and joint venture for future sustainable forest management and timber certification; Strengthening the research in selecting high yield species for big timber planting including technology transfer from other countries.

INTERNATIONAL COOPERATION IN FORESTRY

International commitments, treaties, conventions and organizations relevant to the forest sector signed by Viet Nam: Convention on special important wetland as the residence of the water birds (Ramsar), 1989 Convention on International Trade of Endangered Extinction Species (CITES), 1994 United Nation Frame Convention on Climate Change (UNFCCC), 1994 Convention on Biodiversity (CBD), 1994 United Nation Convention on Combat Desertification (UNCCD), 1998 United Nations Forum on Forests (UNFF) FAO Committee of Forestry (COFO) FAO Asia Pacific Forestry Commission (APFC) ASEAN Senior Official of Forestry (ASOF), 1995 International Network on Bamboo and Rattan (INBAR), 1999 Asia- Pacific Community Forestry Training Center (RECOFTC), 1999 Asian Forestry Partnership (AFP), 2004 Asian Social Forestry Network (ASFN), 2005 Asia-Pacific Network for Sustainable Forest Management and Rehabilitation (APFNet), 2008

Multilateral and Bilateral cooperation For a long time, Viet Nam has maintained a close relationship and cooperation with many countries and development partners for forest conservation and sustainable forest management. Donor community, such as WB, ADB, KfW, GIZ, JICA, Finland, Switzerland, Netherlands, Norway, etc., continues support Viet Nams forestry sector in the coming years to implement the Viet Nam Forestry Development Strategy (2006 2020) and deal with climate change issue. To further expand bilateral cooperation, MARD signed MoU with Korean Forest Service in 1999 and then State Forestry Administration of P.R. China in 2010.

Viet Nam Forestry | 18

INTERNATIONAL COOPERATION IN FORESTRY

Forest Sector Support P artnership (FSSP )
The Forest Sector Support Partnership (FSSP, or the Forestry Partnership, previously known as the Forest Sector Support Program and Partnership, FSSP&P) is a partnership among the Government of Viet Nam, represented by the Ministry of Agriculture and Rural Development (MARD), and international partners, such as donors, multilateral agencies, and international nongovernmental organizations. The FSSP is the platform for policy dialogue, collaboration and coordination among the forest sector stakeholders or partners.

FSSP M ain Functions

Coordination: maximize partners activities and resources used for VFDS 2006-2020 implementation; Policy dialogue and advisory: provide MARD, VNFOREST and Partnership Steering Committee with ideas and recommendations on crucial issues; Monitoring and evaluation: consolidate and M&E system for FSSP and the whole forest sector; Information and communication: update and share information on activities of partners and sector;

FSSP Institutional Structure 2011-2015

Reducing Emissions from Deforestation and Forest Degradation (REDD +) Initiative Since the 2007 Climate Change Conference in Bali that recognized forests contribution to climate change mitigation the Government of Viet Nam (GoV) has been moving rapidly to formulate and implement the REDD Program Framework for the country. In 2008, Viet Nam is one of nine countries identified for country programming under UN-REDD programme, and was also one of the first countries to receive approval for a Readiness Project Identification Note (R-PIN) under the World Banks Forest Carbon Partnership Facility (FCPF). Viet Nam REDD Network and Working Group established in 2009. Supporting these two institutions, 5 Sub technical Working Groups established, including: Measuring-Reporting-Verification (MRV)/ Reference Emission Level (REL), Benefit sharing, Governance, Local Implementation, and Capacity Building. National REDD strategy (under development): The UNREDD Viet Nam Programme is currently assisting MARD in the drafting of the National REDD Strategy. The Strategy will outline the policies of the Government of Viet Nam with regards to REDD and specify how it will be implemented by the government agencies at national and provincial levels. Forest Law Enforcement, Governance and Trade (FLEGT) Initiative The European Union FLEGT Action Plan provides a number of measures to exclude illegal timber from markets, to improve the supply of legal timber and to increase the demand for responsible wood products. Viet Nam actively participated in FLEGT Program especially in FLEGT Asia Program. In May 2010, Viet Nam officially announced to start formal negotiations for a FLEGT Voluntary Partnership Agreement between Viet Nam and the EU, with the hope of concluding the negotiations with a signed VPA by the end of 2012. The aim of these negotiations between Viet Nam and the EU will be the conclusion of a cooperative agreement that would create conditions for Viet Nams timber producers to improve their position on the EU market and increase their ability to adapt to EU market requirem ents with respect to legality of timber.

Viet Nam Forestry | 19

VIET NAM ADMINISTRATION OF FORESTRY

No 2, Ngoc Ha Street, Ba Dinh District, Ha Noi, Viet Nam Tel: 84.4.38438792 Fax: 84.4.38438793 Website: http://dof.mard.gov.vn

This booklet is funded by JICA

Pictures and figures used in this booklet are from colleagues and agencies inside and outside the forest sector.
Viet Nam Forestry | 20