Vietnam updates disbursement rate for ERPA advance payments

A race against the clock

To conclude disbursements for the North Central region under the Emission Reductions Payment Agreement (ERPA), there are only six months remaining. This places significant strain on forest owners. As a result, the Vietnam Forest Protection and Development Fund recently convened a meeting with the Ha Tinh FPDF to address any remaining bottlenecks and to encourage the appropriate authorities to provide forest owners with guidance on how to accelerate disbursements for the 2023 - 2024 period and to create a financial plan for 2025 in accordance with the law.

Out of the VND 36.1 billion approved plan, over VND 15.4 billion of the 2023 ERPA fund has been disbursed to beneficiaries as of May 31, 2025. Out of an approved VND 44.9 billion for 2024, roughly VND 11.6 billion has been disbursed. In relation to the 2025 allocation, the Fund has assembled pertinent departments to finalize the dossier for submission to the Provincial People's Committee, according to a representative of the Ha Tinh FPDF.

Mr. Nguyen Hong Linh, Vice Chairman of the Ha Tinh Provincial People's Committee, signed a decision on June 25, 2025, to modify the previously approved financial plans for 2024 and the ERPA fund allocations for 2023 and 2024 in order to expedite disbursement, ensure the efficient use of ERPA funds, and meet the program's timely payment objectives, according to the same official. This decision has resulted in a 100% increase in the advance disbursement rate, from 50%.

The amendment modifies Point a, Clause 3, Article 3 of Decision No. 302 dated January 26, 2024, and Point a, Clause 2, Article 3 of Decision No. 2445 dated October 23, 2024, as follows: The Provincial Forest Protection and Development Fund shall immediately disburse 100% of the planned funds to the beneficiary units upon the approval of the financial plan by the Provincial People's Committee. “The final settlement will be conducted in accordance with the most recent regulations", the Decision stipulated.

It is essential to underscore that the ERPA fund is and will continue to be a significant factor in ensuring the livelihoods of forest-adjacent communities, despite the fact that the program is presently in the pilot phase. It also provides financial resources to localities and community organizations to construct and enhance rural infrastructure and acquire forest protection equipment, thereby aiding in the attainment of new rural development goals.

Enhanced monitoring through information technology, increased patrols, and ERPA support have enabled forest owners, particularly institutional ones, to adopt a more proactive approach to fire prevention, forest regeneration, forest growth, and the development of sustainable forest management plans in the province. This has facilitated the protection and development of the forest. Forest quality has improved, forest management has seen noticeable improvements, and sustainable forestry development objectives are more effectively realized as a result.

There is no need to delay

The Huong Son Forestry and Services One-Member LLC promptly finalized the documentation necessary for the Department of Agriculture and Environment to evaluate and approve the design and cost estimates for natural forest enrichment in Son Hong Commune, Huong Son District, following the approval of the 2023–2024 financial plans by higher authorities.

The Department had already reviewed the design, according to Mr. Tran Trung Anh, the company's Deputy Director. He also stated that the bid documents were being properly prepared. Implementation will proceed quickly to guarantee completion by 2025 following the selection of a contractor.

"Our immediate objective is to implement silvicultural enrichment on over 76 hectares in Son Hong Commune, utilizing green ironwood (lim xanh) trees. Once they reach maturity, these trees will seamlessly integrate into the existing natural forest, thereby augmenting land use value, reducing forest degradation, increasing forest carbon stock, and improving protective capacity.

The ERPA fund has the potential to significantly assist businesses in the management of natural forests, the establishment of sustainable livelihoods, and the increase of incomes for households and organizations engaged in forest management, protection, and development in the future", stated Mr. Trung Anh.

Major forest owners, including the Huong Khe Protection Forest Management Board, Vu Quang National Park, and the Ke Go Nature Reserve Management Board, have proactively prepared the requisite documentation, fieldwork arrangements, and seedling procurement to commence implementation immediately upon the completion of the required steps, in accordance with the ERPA Agreement. This approach avoids the risk of program delays by waiting for others.

The current forest cover in Ha Tinh Province is more than 304,900 hectares, with over 74,000 hectares of special-use forest, 110,300 hectares of protection forest, and 130,600 hectares of production forest. The approved financial plan encompassed more than 201,700 hectares of natural forest in 2023, and the figure will exceed 199,000 hectares in 2024.

* USD 1 = VND 25.920 (Source: Vietcombank)