Nearly 7,000 forest owners in Dien Bien to receive forest service payments

Alongside broader socio-economic development goals, the province has identified forest protection and management as a central, long-term priority. According to provincial data, more than 434,647 hectares of forest are currently under strict management through coordinated measures, including public awareness campaigns, contracting forest protection to households and communities, and assigning clear responsibilities to individual forest owners.

Local governments have intensified outreach efforts, encouraging residents to sign forest protection commitments at the grassroots level. Planted forest areas under care have reached 848 hectares, fulfilling 100 percent of the annual plan, while natural regeneration efforts are being implemented as scheduled to restore and improve forest quality. Enforcement agencies have also stepped up patrols and inspections to detect and address violations of forestry laws, helping maintain existing forest coverage.

Forest environmental service payment policies have played a visible role in sustaining and expanding forest cover across Dien Bien.

Building on these protection efforts, the policy of Payments for Forest Environmental Services (PFES) continues to prove effective, serving as a key financial mechanism that incentivizes communities to remain engaged in forest stewardship. As of March 11, 2026, total PFES revenue collected within the province exceeded VND 5.6 billion, while disbursements reached nearly VND 8 billion. These funds are distributed to forest owners, households, and communities contracted to protect forests, contributing to improved incomes, particularly in economically disadvantaged areas.

The PFES policy in Viet Nam was institutionalized under Decree No. 99/2010/ND-CP, later updated by Decree No. 156/2018/ND-CP, and is overseen nationally by the Viet Nam Forest Protection and Development Fund under the Ministry of Agriculture and Environment. According to the fund, PFES has generated tens of trillions of dong nationwide over the past decade, becoming a cornerstone policy linking environmental protection with sustainable rural livelihoods.

A notable development in Dien Bien is the shift toward cashless payments. To date, 6,916 out of 7,443 forest owners, approximately 93 percent, have opened bank accounts to receive PFES payments. This transition reduces transaction time and travel costs while ensuring transparency and accountability in fund distribution. It also represents a significant step in applying digital transformation within the forestry sector, in line with the government’s broader national digitalization agenda.

Communication efforts have been expanded through village and hamlet meetings, helping residents better understand both the benefits and responsibilities associated with PFES participation. As awareness improves, so too does community engagement in forest protection, contributing to the stability of forest areas across the province.

In Muong Nhe commune, home to some of Dien Bien’s largest forest areas, local participation has become increasingly proactive. A contracted forest protection household representative noted that bank transfers have replaced time-consuming cash collection, allowing quicker access to funds and greater financial autonomy. The additional income, he said, has strengthened the family’s commitment to safeguarding forest resources.

Evidence from across Viet Nam suggests that when financial benefits are delivered promptly and transparently, community accountability in forest protection rises significantly. PFES, therefore, functions not only as a livelihood support mechanism but also as a driver of community-based forest governance.

Looking ahead, the Dien Bien Forest Protection and Development Fund will continue working with local authorities to assist remaining forest owners in opening bank accounts, aiming to fully implement cashless PFES payments province-wide. At the same time, oversight and monitoring will be strengthened to ensure payments reach the correct beneficiaries and comply with regulations, thereby improving the efficiency of forest-derived financial resources.

The transition to non-cash PFES payments delivers tangible benefits for local people while reinforcing transparency and policy effectiveness. More broadly, it lays a critical foundation for sustainable forest management and development in Dien Bien - aligning local practices with national strategies and international commitments on climate change mitigation, including Viet Nam’s pledge to achieve net-zero emissions by 2050 under the United Nations Framework Convention on Climate Change.

Viet Nam’s Payments for Forest Environmental Services (PFES) policy is regulated under Decree 99/2010/ND-CP and updated by Decree 156/2018/ND-CP of the Government. The program is implemented nationwide by the Vietnam Forest Protection and Development Fund, under the Ministry of Agriculture and Environment. According to official reports from the fund, PFES has generated tens of trillions of dong over more than a decade, providing direct income to millions of forest-dependent households. The policy requires users of forest ecosystem services, including hydropower, clean water, and tourism operators, to pay for forest protection, linking conservation with sustainable livelihoods.