Lam Dong taps massive forest carbon potential

According to the Lam Dong Forest Protection Department, the province’s total planned forestry land now exceeds 1.16 million hectares, accounting for nearly half of the region's total natural area.

Of this, 1.13 million hectares are forested, with the 2024 forest coverage rate maintained at an impressive 46.72%. This massive scale creates a continuous ecological corridor, linking critical core zones such as Bidoup-Nui Ba National Park, Ta Dung, and the Lang Biang World Biosphere Reserve with coastal protection forest belts.

This rich biodiversity and dense forest cover serve as the scientific foundation for determining potential carbon reserves. Carbon absorbed and sequestered within trees and forest soil has become a "green asset" with direct economic value. Amid surging global demand in the carbon credit market, these assets can be converted into commercial commodities through international exchange mechanisms. This represents a golden opportunity for the province to protect the environment while generating robust financial resources to reinvest in local economic development.

The province's determination to transform this potential into a competitive advantage is evidenced by its strong performance in forest planting and protection. For the 2021–2025 period, Lam Dong recorded a breakthrough by planting over 80.6 million trees, exceeding the Prime Minister’s target by more than 113%. This achievement is equivalent to reforesting over 65,589 hectares of bare land and mobilizing more than 408 billion VND in socialized capital. These figures serve as concrete evidence of the locality’s management capacity and its efforts to build a "carbon bank," fostering confidence among domestic and international green investors.

Regarding future strategy, Le Thanh Son, Deputy Director of the Lam Dong Department of Agriculture and Environment, noted that the merger has created a unified forest resource of unprecedented scale. The province is currently preparing technical dossiers to participate more deeply in major emission reduction agreements while accelerating the certification of carbon credits for planted forests. The objective is to generate billions in revenue, creating sustainable livelihoods for residents and forest owners. As the economic value of carbon is realized, local communities will have more incentive to transition from small-timber to large-timber forestry, enhancing greenhouse gas absorption and voluntarily protecting biodiversity.

Beyond the direct value of carbon credits, these vast forest areas—managed under international standards, provide a foundation for low-carbon ecotourism models. Linking major tourism hubs like Da Lat and Phan Thiet with nature reserves is expected to attract green investment and foster the development of high-end, environmentally responsible resort chains.

The establishment of the new Lam Dong Province has opened a new era in the utilization of forest resources. This is not only a breakthrough in converting ecological advantages into economic ones but also a concrete action by the locality to contribute to Vietnam's commitment to achieving Net Zero emissions by 2050.

The operationalization of this potential is underpinned by Decree 119, which officially took effect in August 2025. This landmark legislation establishes the legal foundation for Vietnam’s domestic carbon market, with a pilot carbon trading exchange expected to launch on the Hanoi Stock Exchange (HNX) by late 2025. Under this roadmap, the Ministry of Agriculture and Environment will allocate forest emission reduction quotas to specific localities, allowing provinces like Lam Dong to formally commercialize their sequestration capacity. Experts estimate that at a conservative starting price of 5 USD per credit, the forestry sector could generate hundreds of millions of USD annually, though prices in mandatory markets could eventually reach 40 to 60 USD.

Lam Dong has already been selected for high-profile international pilot projects. A notable example is the "AZ Forest" initiative, a 50 million USD investment by AstraZeneca. This project aims to restore landscapes by planting 22.5 million trees across Lam Dong and Son La provinces, integrating agroforestry models to provide sustainable livelihoods for over 17,000 farming households. Such partnerships are transforming forest protection from a conservation cost into a high-value service industry.

Following the merger formalized under Resolution 60-NQ/TW, the new Lam Dong Province has become Vietnam’s largest administrative unit, spanning over 24,000 square kilometers. This consolidation does more than just aggregate land; it merges Lam Dong’s high-tech agricultural expertise with the coastal logistics and renewable energy potential of the former Binh Thuan. By creating a unified ecological and economic corridor, the province is positioning itself as a national leader in the transition to a low-emission economy, ensuring that 86.9% of carbon revenue is channeled directly back to forest owners and local communities to foster long-term environmental stewardship.