LUẬN văn THẠC sĩ strengthening the role of vietnam forest protection and development fund in the enforcement of the policy on payment for forest environmental services001

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 v ABSTRACT vi ACKNOWLEDGEMENT vii INTRODUCTION LITERATURE REVIEW Review some models of PES implementation in the world PES program in Costa Rica Programs targeting watershed services in China Payment for ecosystem services in Japan 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 26 2.3.1 Report on years of operations of forest protection and development funds and 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 29 RESEARCH METHODOLOGY 34 Data collection method 34 Methods of data processing and analysis 35 RESEARCH FINDINGS 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 44 DISCUSSION 47 Organization and human resource 48 Legal regulations and guidelines on PFES policy 49 PFES management and utilization 50 CONCLUSION AND RECOMMENDATIONS 52 Conclusion 52 Recommendations 52 References 55 i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABBREVIATIONS ADB BoD CBD CCICED CIFOR CITES CPC DARD ES EWS FCPF FES FONAFIFO iPFES MARD M&E MoF MPI MU NGO OECD PES PFES PFPDF PPC PPSA RAMSAR Asian Development Bank Board of Directors Convention on Biological Diversity China Council for International Cooperation on Environment and Development Center for International Forestry Research Convention on International Trade in Endangered Species Communal People’s Committee Provincial Department of Agriculture and Rural Development Environmental services Eco-compensation for Watershed Services Forest Carbon Partnership Facility Forest Environmental Services Fondo de Financiamiento Forestal de Costa Rica (National Forestry Financing Fund of Costa Rica) “Improving Payment for Forest Environmental Services” project Ministry of Agriculture and Rural Development Monitoring and Evaluation Ministry of Finance Ministry of Planning and Investment Management Unit Non-Governmental Organizations Organization for Economic Co-operation and Development Payment for environmental/ecosystem services Payment for Forest Environmental Services Provincial Forest Protection and Development Fund Provincial People’s Committee Pago por Servicios Ambientales (payment for ecosystem services program in Costa Rica) Convention on Wetlands ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com REDD+ SLCP UN UNCCD UNDP UN-REDD Programme VFDS VNFF VNFOREST WCS Reducing emissions from deforestation and forest degradation, conservation of existing forest carbon stocks, sustainable forest management and enhancement of forest carbon stocks Sloping Land Conversion Program United Nations United Nations Convention to Combat Desertification United Nations Development Programme The United Nations Programme on Reducing Emissions from Deforestation and Forest Degradation The Vietnam Forestry Development Strategy Vietnam Forest Protection and Development Fund Vietnam Administration of Forestry 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 Table 2.2 Payment level to partner producers 10 Table 2.3 Types of forest in Japan 11 Table 2.4 River basin between Vietnam and Cambodia 14 Table 2.5 Policies and strategies related to PES in Cambodia 14 Table 2.6 Total entrusted contracts as of Oct 2018 31 Table 2.7 The PFES collection as of Sep 2018 31 Table 4.1 Update changes in VNFF structure & operation 37 Table 4.2 PFES amount paid for forest owners in 2018 41 List of Figures Figure 2.1 FONAFIFO’s organization structure Figure 2.2 Programs of Kanazawa’s Five-Year Action Plan 13 Figure 2.3 Community-based ecotourism program in Cambodia 17 Figure 2.4 Milestones of developing PFES policy 19 Figure 2.5 Payment level for FES users 21 Figure 2.6 PFES distribution mechanism 22 Figure 2.7 PFES stakeholders 23 Figure 2.8 VNFF’s Organizational structure 25 Figure 2.9 Development of PFPDF quantity as of 2015 28 Figure 2.10 Status of FPDFs from 2009 - 2018 30 Figure 3.1 Subjects of survey and interview 35 Figure 4.1 Statistics of general evaluation on VNFF 43 Figure 4.2 Satisfaction rate 44 Figure 4.3 Stakeholders’ understanding about VNFF 45 Figure 4.4 VNFF’s activities in implementing PFES policy 46 Figure 5.1 VNFF MU Human resources 48 iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF ANNEXES Annex List of legal documents related to implementation of PFES policy 58 Annex List of handbooks on PFES policy implementation 62 Annex List of provincial forest protection and development fund 64 Annex Survey form for VNFF’s staff 66 Annex Survey form for provincial forest protection and development fund 72 Annex Survey form for VNFF’s users 77 Annex 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 Article 3, Decree no.99/2010/ND-CP dated 24 September 2010 of the Government on the policy on payment for forest environment services LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Annex Survey form for provincial forest protection and development fund SURVEY FORM THE ROLE OF VIETNAM FOREST PROTECTION AND DEVELOPMENT FUND (VNFF) IN THE ENFORCEMENT OF THE POLICY ON PAYMENT FOR FOREST ENVIRONMENTAL SERVICES (PFES) (Applied for Provincial forest protection and development fund) Introduction Thank you for your time to provide information of this survey This is one of the activities to collect data for the Master thesis of Public policy program of Vietnam Japan University, Vietnam National University Thesis title: Strengthening the role of Vietnam Forest Protection and Development Fund (VNFF) in the implementation of the policy on payment for forest environmental services Purpose of this survey is to collect information of the VNFF's role in implementing the PFES policy to be the basis of proposing recommendations for better policy enforcement A BACKGROUND Name of provincial forest protection and development fund: ………………………… Tel: ……………………………Email: ………… … …………… Total staff of provincial fund:………………………………………………………… B FOREST AREA AND FOREST OWNER OF RECEIVING PFES Total forest area in province (ha): …………………… Forest area providing PFES in province in 2018 (ha): ………… Total forest owner received PFES in 2018: Total forest owners receive PFES in 2018: Details of forest owners received/not receive FES in 2018 in province: No Forest owner Received PFES in 2018 Not receive in 2018 72 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Management board of protection forest Management board of special use forest State forest enterprises Other organizations Communal Committee Households, individuals Community People’s Reasons that forest owners has not receive PFES (more options can be selected): a Not define list of forest owners to be paid for FES b Not define forest boundary to be paid for FES c Having violations of forest protection and management d Central fund delays support / late transfer PFES e FES users delay PFES transferring f Forest owners refuse to receive PFES due to the payment level is low / not satisfy with Payment policy g Other causes, please clarify …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… C FES USER Forest environmental services conducted in 2018 include Hydropower production Clean water supply Tourism business Aquaculture 73 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Industrial production Carbon sequestration and stock Other: Number of FES users signed entrusted contract with provincial FPDFs in 2018: FES users in province includes: Hydropower company Clean water supply Tourism company Aquaculture facility Industrial production facility FES user paid/not pay for FES in 2018 FES user in 2018 Hydropower company Clean water supplier Tourism company Aquaculture facility Industrial production facility Paid for FES in 2018 Not pay for FES in 2018 Note Reasons that FES users not pay for FES (more than one option can be selected): a Do not sign PFES entrusted contract b Your organization has difficulties about: (i) finance (ii) apply science and technology (iii) personnel c Do not satisfy with PFES policy d Other causes, please clarify …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… D ROLE OF THE CENTRAL FUND 74 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com In your opinion, how does VNFF support for provincial fund to implement PFES policy Contents Good Average Poor Good Average Poor Provides guidelines to implement PFES policy Update PFES database on the system Provide communication on PFES policy Sign entrusted contract on PFES International cooperation Accounting and finance exercises Developing plan Report, check and supervise How you evaluate VNFF? Contents Direct contact (via phone and directly working) Indirect contact (in paper and email exchange) Capacity of VNFF’s staff Coordination mechanism between Central fund and provincial fund Coordination mechanism between central fund and FES users in province 75 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com In your opinion, which difficulties does VNFF have in support provincial fund to implement the PFES policy (please indicate)? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Do you have any proposal to strengthen the role of VNFF in implementing the PFES policy in province (please clarify) …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Do you have any comment for the survey? …………………………………………………………………………………………………………… Thank you for your cooperation and feedback! 76 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Annex Survey form for VNFF’s users SURVEY FORM THE ROLE OF VIETNAM FOREST PROTECTION AND DEVELOPMENT FUND (VNFF) IN THE ENFORCEMENT OF THE POLICY ON PAYMENT FOR FOREST ENVIRONMENTAL SERVICES (PFES) (Applied for FES USER) Introduction Thank you for your time to provide information of this survey This is one of the activities to collect data for the Master thesis of Public policy program of Vietnam Japan University, Vietnam National University Thesis title: Strengthening the role of Vietnam Forest Protection and Development Fund (VNFF) in the implementation of the policy on payment for forest environmental services Purpose of this survey is to collect information of the VNFF's role in implementing the PFES policy to be the basis of proposing recommendations for better policy enforcement A BACKGROUND Do you work for any FES users as below? Clean water supplier Hydropower company Tourism company Aquaculture facility Industrial production facility Do your company sign PFES entrusted contract? Yes No If yes, which one you sign contract with? VNFF FPDF of (province)…………… A INFORMATION OF PFES POLICY IMPLEMENTATION Please use the below grade to evaluate your knowledge of PFES policy: 1) Not understand 2) Basically understand 3) Fully understand 77 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com No Contents General information of PFES entrusted party and receipt party Principle of payment Declare, method and environmental services Rights and obligations of PFES entrusted party and receipt party Process of PFES management and utilization time of payment for forest In 2018, did your company pay for forest environmental services? Yes No Whether is PFES money calculated in the selling price to customers?? Yes No Reasons cause your late payment or no payment for forest environmental services: a Do not sign PFES entrusted contract b Your organization has difficulties about: (i) finance (ii) apply science and technology (iii) personnel c Do not satisfy with PFES policy d Do not receive enough guidelines in the implementation of PFES policy e Other causes, please clarify …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… C THE ROLE OF VNFF In your opinion, how does VNFF support for enterprises to implement PFES policy? Contents Good Average Poor 78 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Provides guidelines to implement PFES policy Update PFES database on the system Provide communication on PFES policy Sign entrusted contract on PFES International cooperation Accounting and finance exercises Developing plan Report, check and supervise How you evaluate VNFF? Contents Good Average Poor Direct contact (via phone and directly working) Indirect contact (in paper and email exchange) Capacity of VNFF’s staff Coordination mechanism between enterprises and VNFF In your opinion, which shortcomings does VNFF have while supporting enterprises to implement the PFES policy (please indicate)? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… What you propose to strengthen the role of VNFF in the implementation of PFES policy: 79 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Thank you for your cooperation and feedback! 80 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Annex Survey form for VNFF’s stakeholders SURVEY FORM THE ROLE OF VIETNAM FOREST PROTECTION AND DEVELOPMENT FUND (VNFF) IN THE ENFORCEMENT OF THE POLICY ON PAYMENT FOR FOREST ENVIRONMENTAL SERVICES (PFES) (For VNFF’s stakeholders) Introduction Thank you for your time to provide information of this survey This is one of the activities to collect data for the Master thesis of Public policy program of Vietnam Japan University, Vietnam National University Thesis title: Strengthening the role of Vietnam Forest Protection and Development Fund (VNFF) in the implementation of the policy on payment for forest environmental services Purpose of this survey is to collect information of the VNFF's role in implementing the PFES policy to be the basis of proposing recommendations for better policy enforcement A Background Please tell your gender: Male Female Please tell me, which of the following subjects you belong to: State agencies INGO, international partners Enterprises Domestic individuals and organizations Others Which fields have you worked with VNFF? State management Implement PFES project Implementing PFES policy Conduct non-activities of PFES Others, please give details How long have you work with VNFF? Less than 01 year 81 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com From 01 to less than years From 03 to less than years More than years B COORDINATION WITH VNFF How you understand about PFES policy: No Basic information of PFES Not Basically Fully understand understand understand Type of forests and type of forest environmental services PFES principles and type of payment Subjects and type of services must pay for forest environmental services Subjects to be paid for forest environmental services Management and utilization of PFES money Rights and obligations of FES users and providers How you know about Vietnam Forest protection and development: No Basic information Not Basically Fully understand understand understand Functions and tasks of VNFF VNFF’s structural organization Relationship between VNFF and provincial funds 82 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com No Basic information Not Basically Fully understand understand understand Financial source of VNFF Activities of using VNFF’s finance Activities of managing and implementing programs, projects and non-project activities conducted by VNFF Activities of managing and implementing programs, projects and non-project activities supported by VNFF Please give your satisfactory in working with VNFF: Idea Contents Strongly Disagree disagree No idea Agree Strongly agree LEADERSHIP Leader only care about his / her requirements Leaders always show clear leadership values and principles Leaders are people with visionary and have strategic vision Encouraging subordinators to work in an innovative way Always suggest solutions from various aspects WORKING ENVIRONMENT 83 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Open-minded environment and transparent 5 You are always supported by VNFF when encountering difficult problems Do you feel that VNFF lack of proactiveness in coordination VNFF provides trainings on necessary skills to take care of your current job VNFF gives a lot of opportunities for your career development Through the coordination with VNFF, you have many opportunities to work with partners VNFF creates effective finance and technical assistance for forestry sector In general, you satisfied when working with VNFF You wish to cooperate with VNFF for a long term You consider VNFF as a strategic partner You are willing to introduce VNFF to other partners VNFF has clear development plan VNFF always information target shares BENEFITS COOPERATION and relevant FROM Satisfaction 84 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com C THE ROLE OF VNFF How does VNFF implement PFES policy Content Good Average Poor Provides guidelines to implement PFES policy Update PFES database on the system Provide communication on PFES policy Sign entrusted contract on PFES International cooperation Accounting and finance exercises Developing plan Report, check and monitor In your opinion, how does VNFF cooperate with other agencies related to PFES policy? Stakeholders Ministries agencies and Good Average Poor ministerial Agencies under MARD Provincial FPDFs FES users International and domestic NGOs VNFF Board of Directors VNFF Control board 85 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com How you evaluate VNFF? Contents Good Average Poor Direct contact (via phone and directly working) Indirect contact via document and email exchange Professional capacity of VNFF’s staff Coorperation FPDFs with provincial Coorperation with FES users In your opinion, What difficulties does VNFF have when advising the PFES policy development and implementation (please indicate)? …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… What you propose to strengthen the role of VNFF in the implementation of PFES policy: …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… Do you have any comments on this survey? …………………………………………………………………………………………………………… Thank you for your cooperation and feedback! 86 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ... 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... Report on years of operations of forest protection and development funds and years of implementation of the PFES policy 26 Report on reviewing 10 years of organization and operation of forest protection. .. 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