Assessing Impacts of Payment for Forest Environmental Service Policy in Hoa Binh Province, Vietnam

The policy of payment for forest environmental services (PFES) has been implemented in Vietnam since 2011 and in Hoa Binh province since 2013. This policy has had certain impacts on improvement of local people living standard as well as on forest protection and development. Based on secondary and primary information collected in Mai Chau district, Da Bac district and Hoa Binh city, this paper analyzes the economic, social and environmental impacts of PFES on the forestry sector in general and forest owners in particular. The study showed that although money that was received from PFES by households was very small in their overall income, revenue of Commune People’s Committees communities was so large that it could help them to purchase equipment for forest protection and development. Thanks to PFES, forest area and forest cover rate of Hoa Binh province have been markedly increased.