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Payment

Payment for keeping mangrove forests

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Mangrove forests in the Mekong Delta play a vital role in coastal protection, erosion control, biodiversity maintenance, carbon sequestration, and supporting the livelihoods of millions. However, the region's mangrove coverage has declined significantly over decades due to aquaculture conversion, infrastructure development, timber extraction, and climate change impacts. In response, the Government of Vietnam has implemented various policies to encourage communities and organizations to protect and maintain mangroves through Payments for Forest Environmental Services (PFES) and other financial support programs.

Key Policies

1. Payments for Forest Environmental Services (PFES) Applied to Mangroves

Decree No. 156/2018/ND-CP (dated November 16, 2018), detailing the implementation of the 2017 Law on Forestry, expanded the scope of PFES to include forest carbon sequestration and retention, coastal erosion prevention, and the provision of spawning grounds and food sources for aquatic species. This serves as a critical legal framework for coastal provinces in the Mekong Delta—such as Ca Mau, Bac Lieu, Soc Trang, Tra Vinh, Ben Tre, Tien Giang, and Kien Giang—to pay households and communities for mangrove protection. Notably, Decree No. 91/2024/ND-CP (amending Decree 156) updated regulations on payment beneficiaries, rates, and fund management mechanisms, facilitating easier application in coastal mangrove areas.

2. Sustainable Forestry Development Program (2021–2025)

Decision No. 809/QD-TTg (dated July 12, 2022) approved the Sustainable Forestry Development Program for 2021–2025, prioritizing the planting and restoration of coastal forests, with a focus on the Mekong Delta. The program provides direct state budget support for households and communities under forest protection contracts, with rates ranging from 400,000 to 600,000 VND/ha/year (depending on local conditions). Additionally, it encourages integrated silvo-aquaculture models, allowing residents to practice aquaculture under the mangrove canopy provided they maintain the regulated minimum forest cover.

3. Pilot Program for Mangrove Carbon Credits

This represents one of the most breakthrough policies in recent years. Decree No. 06/2022/ND-CP on greenhouse gas emission reduction and ozone layer protection, along with Decree No. 08/2022/ND-CP, established the legal framework for a carbon market in Vietnam. Given that mangroves can sequester carbon 3 to 5 times more effectively than terrestrial forests, they are primary candidates for carbon credit issuance. Pilot projects in Ca Mau and Kien Giang, supported by the World Bank, UNDP, and various NGOs, allow forest keepers to receive payments based on the volume of carbon sequestered, creating a sustainable income stream beyond traditional subsidies.

4. Project on Coastal Forest Protection and Development
to Respond to Climate Change

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Decision No. 1662/QD-TTg (dated October 4, 2021) approved a project to protect existing coastal forests and plant 20,000 hectares of new forest by 2030. Financial support includes forest protection contract fees, seedling subsidies, and livelihood transition support for households moving from extensive aquaculture to sustainable silvo-aquaculture models.

Image: Tra Su Cajuput Forest, Mekong Delta, Vietnam

5. International Cooperation and ODA Projects

International projects—notably those funded by GIZ (Germany), JICA (Japan), and KOICA (South Korea)—support mangrove conservation payments in the Mekong Delta. These initiatives provide direct financing, capacity building, and remote sensing technology for forest monitoring, while developing ecosystem-based sustainable livelihood models.

Evaluation and Recommendations

The policy system for mangrove conservation payments in the Mekong Delta is relatively comprehensive, ranging from PFES and state budgets to new market mechanisms like carbon credits. However, challenges remain: forest protection payments are low compared to aquaculture income, failing to incentivize conservation; the mangrove carbon market is not yet fully operational; and local capacity for carbon measurement is limited. Furthermore, inter-agency coordination between forestry, fisheries, and environmental sectors is not yet effective.

To enhance policy efficiency, it is essential to increase payment rates to match local opportunity costs and accelerate the carbon market to access international finance. Integrating remote sensing and GIS for forest monitoring, while scaling successful silvo-aquaculture models, will ensure a balance between mangrove conservation and sustainable livelihoods for coastal communities in the Mekong Delta.

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