Improving livelihoods and promoting forest protection awareness through the ERPA policy

A “supporting pillar” for local people

Many years ago, the family of Mrs. Le Thi Thuy Dung (41 years old, a resident of La Tung village, A Luoi 4 commune), relied solely on the forest for their livelihood, such as collecting firewood and harvesting non-timber forest products. Over the past two years, however, Ms. Dung has taken part in the ERPA (Emission Reductions Payment Agreement) program in Hue City, and her life has gradually changed.

“Since receiving ERPA payments, my family has gained additional income and our living conditions have improved. It’s not a huge amount, but it’s stable. We can afford our children’s education, buy extra rice and medicine. More importantly, we now have a clearer understanding of the role forests play in our lives and the surrounding environment. Today, protecting the forest is not only our responsibility but also our own benefit,” Mrs. Dung shared.

After the district-level administrative reorganization, A Luoi highland now consists of five communes, inhabited mainly by ethnic minority communities, with many poor and near-poor households. Thanks to the support of the ERPA program, village communities here have been gradually overcoming difficulties.

For example, the A Luoi Protection Forest Management Board has contracted La Tung village to manage and protect forests over the past two years, with an allocated area of 141.43 hectares in 2024 and 117.4 hectares in 2025.

According to Mr. Ho Sy Khu, head of La Tung village, the community consists of 20 members divided into four groups of five people each. In 2024, the village received more than VND 42 million from ERPA payments and VND 50 million for livelihood support. In 2025, the village received a first installment advance of over VND 28 million, along with another VND 50 million in livelihood support.

The village also prepares annual plans for forest patrols and protection. After two years of implementing forest protection contracts, residents have shown strong consensus and support, clearly understanding the benefits of their role in forest management. As a result, for many years, there have been no cases of land encroachment or illegal exploitation of forest products in the village.

Mr. Van Than, Director of the A Luoi Protection Forest Management Board, stated that in 2025, A Luoi received ERPA payment allocations totaling over VND 4.2 billion. To date, the Board has contracted forest protection to 15 village communities covering an area of 1,786.80 hectares and has disbursed over VND 1 billion. In addition, the Board has provided VND 750 million for livelihood support, over VND 36 million to the People’s Committees of communes, and more than VND 1.9 billion for silvicultural measures.

“The unit has implemented forest protection contracts with village communities in accordance with regulations, regularly and systematically monitoring and inspecting the fulfillment of contract terms. Overall, the contracted communities have performed well in forest protection, keeping proper records and documentation. In the coming period, the Board will continue to closely coordinate with local authorities and relevant organizations to enhance the effectiveness of forest protection through ERPA payments, continue implementing livelihood support programs, and help increase residents’ income while ensuring forest conservation,” Mr. Than said.

Sustainable forest conservation

In recent years, Hue City has placed significant attention on forest protection and forestry development. Through the implementation of various mechanisms, policies, programs, and projects, these efforts have helped enhance the value of forests, create jobs, increase residents’ incomes, and protect the ecological environment and national security. Currently, the forest coverage rate across Hue City has reached 57.18%.

Notably, Hue City is among the provinces in the North Central region participating in the ERPA pilot program with the World Bank (WB). The total area of natural forest receiving emission reduction payments in the city exceeds 205,500 hectares. From 2023 to 2025, the Ministry of Agriculture and Environment allocated Hue City a total budget of over VND 135.97 billion to implement the program.

Mr. Nguyen Tat Tung, Director of the Hue City Forest Protection and Development Fund, stated that the agreement marks an important step in piloting the financial mechanism for transferring CO2 emission reduction results, helping to mobilize international resources for forest protection and promoting sustainable development. At the same time, this is an emission reduction payment activity based on forests' carbon absorption and storage results, moving toward a comprehensive implementation of forest environmental service payments.

In 2024, Hue City disbursed VND 42.96 billion out of the planned VND 43.78 billion, achieving 98.1% of the target. Nearly 99.4% of this amount was paid to over 600 forest owners, including communities, households, commune-level People’s Committees, and organizations. As of July 2025, Hue City has disbursed approximately VND 49.85 billion out of the planned VND 54.87 billion for 2025, reaching 95% of the target. All payments are made cashlessly, through bank accounts, the ViettelPay e-wallet, or public postal services, ensuring transparency, convenience, and accessibility, especially for ethnic minority communities in remote areas.

“Having additional ERPA funds has enabled forest-owning organizations to strengthen their forest protection teams through contracts with communities living near the forests, while also providing resources for forest development activities such as enrichment planting, assisted natural regeneration, and nurturing, thereby improving the quality of natural forests. Meanwhile, the forests managed by communities (nearly 31,000 hectares) have helped raise public awareness about forest conservation, improve living environments, and influence concrete actions by residents to protect ecosystems, preserve natural resources, and reduce activities that harm the forest environment,” said Mr. Tung.

After three years of implementing ERPA (2023–2025), Hue City has disbursed VND 123 billion, including over VND 15.5 billion paid to more than 550 communities, household groups, and individual households; VND 5 billion paid to 57 recipients such as commune People’s Committees and organizations entrusted with state-managed forests; and over VND 102.6 billion paid to 11 forest-owning organizations.

$ 1 = VND 26.166 - Source: Vietcombank.