National Forest Programme Country Case Vietnam Workshop Enhancing the NFP process of Kenya Nairobi, 28 – 30 June 2005

Some basic facts Land area km 2 Population 80.9 million, growth rate 1,2%, density 244 / km 2, 75% in rural areas, 25 million depending directly on forest Forest area 12 million ha (2004 est.) Demand for forest products: about 4 million m 3 p.a. roundwood, >30 million m 3 p.a. fuelwood, bamboo, rattan, other products Logging quota in natural forest m 3 p.a. (2004) Contribution of forest sector to GDP about 1% Export value forest sector: >1 bln USD (2004) of a total export value of 20 bln 80% of processed timber imported Employment (est.) in processing industry, many more in forest production

Some history and milestones 1975 end of Vietnam War, reunification of North and South Since December 1986 Doi Moi Policy: opening up, shift from subsidy- based, centrally planned control towards market economy 1988 Land Law (revised in 1993, 1998): boost in agricultural production 1991 Forest Protection and Development Law 1992 new Constitution, further emphasis on renovation 1992 VFAP concluded, emerging donor support 1993 revised Land Law: forest land allocation programme started 1993 New forest policy orientation, “Regreening“ Programme Five Million Hectare Reforestation Programme launched 1999 Donor-Government Partnership for the 5MHRP launched 2001 Forest Sector Development Strategy FSDS MoA for Forest Sector Support Programme FSSP & Partnership 2003 revised Land Law allows land allocation to communities 2004 new Forest Law allows community-based forest management

How did that affect forest area?

Vietnam’s National Forest Programme … what is it? Five Million Hectare Reforestation Programme (5MHRP) National Forest Development Strategy ( ) The new National Forest Strategy ( ) Law on Forest Protection and Development 2004 Policy reforms

let’s have a look … at Vietnam’s major programme in the forest sector: The Five Million Hectare Reforestation Programme

The Five Million Hectare Reforestation Programme – Main objectives environmental: Establishing and restoring 2 million ha of protection forests and 3 million ha of production forests to increase the forest cover to 43% by 2010, to ensure environmental protection requirements economic: Ensuring the forest products supply for development (every year 15 million m3 of timber and 20 million steres of fuel wood), thereby reducing the pressure on natural forests social: Poverty alleviation, hunger eradication and development of rural mountainous areas, by creating forestry-related employment for 2 million people, increasing the income of people living in forest areas

The Five Million Hectare Reforestation Programme – Main strategies Encourage household forestry and community forestry, mainly by land allocation Provide financial support for management of protection forests and special use forests, and favourable loans for development of production forests Adopt benefit-sharing policies to encourage people in implementation of the programme Strengthen capacities through training and extension activities Encourage joint-ventures and foreign investment in plantation forest by tax benefits and land use rights, especially in remote areas Provide technical support and conduct technology transfer, with state-owned forest enterprises as the main forces

The Five Million Hectare Reforestation Programme – achievements/constraints 2 million ha of improved forest management or rehabilitation, mainly in protection and special use forests, but performance for production forests lagging behind Plantation development, but technical problems and partly poor performance Policy reforms, but slow implementation Involvement of local people in forest management, but land allocation still slow, extension services weak Private entrepreneurship emerging, but still dominance of State Enterprises in forest sector

What about the nfp principles … How are they being addressed in the Vietnamese context ?

National sovereignty and country leadership … in the Vietnamese context: High Government commitment and donor coordination  launching of 5MHRP by National Assembly, PM decision, endorsed by 9 th Party Congress  Donor coordination through FSSP: all contributions refer to the 5MHRP

Consistency with national policy and international commitments … in the Vietnamese context: policy reforms and integration of international commitments  Reference to sustainable development processes, MDGs and environmental conventions (CBD NBSAP, UNCCD NAP refer to forest sector and 5MHRP) … but  no assessment of IPF/IFF proposals for action yet  Policy reforms slow

Integration with the sustainable development strategies of the country … in the Vietnamese context: Forests part of national SD Strategy  Forest sector priority area of national SD Strategy (Agenda 21)  Integration of forest sector strategies into Socio-economic Development Plan ( ) … but  allocation of budget an issue

Partnership and participation, participatory mechanisms in which all interested parties are involved … in the Vietnamese context: Stakeholder involvement  Involvement of local people  Mobilisation of all forces  Government-Donor partnership for the 5MHRP … but not all are equal…  Still dominance of State over private sector  Representation of stakeholders groups an issue

Holistic and intersectoral approaches … in the Vietnamese context: Linkage to other programmes and strategies  5MHRP considered one of the key programmes for poverty alleviation in rural areas  5MHRP linked to other sectors  Forests important in National Environment Strategy … but  industry / infrastructure development is a priority

Decentralisation and empowerment of regional and local government structures … in the Vietnamese context: bottom-up & top-down  Decentralisation process on-going, decentralised forest strategies (Province, district) … but  Devolution of budget and decision- making still slow  Forest management still centrally controlled (planning, logging quota)  Provinces “deviate” from SFM, have their own priorities

Consistency with the constitutional and legal frameworks of each country … in the Vietnamese context: Policy and institutional reform:  New Land Law, Forest Law  changes of constitution ?  Policy development by testing on the ground … but  implementation mechanisms, guidelines still to be developed  Slow reform of State Forest Enterprises

Recognition and respect for customary and traditional rights … in the Vietnamese context: dealing with ethnic minorities  Community forestry and recognition of ethnic minorities … but in practice  Dominance of Kinh  Resettlement schemes  Land conflicts  customary rights often not compatible with modern legal practices and concepts

… in the Vietnamese context: land allocation  Long term user rights (50 years, renewable)  land use planning combined with land allocation  Land Use Certificates can be inherited, sold, mortgaged, … … but  LA process slow, still not concluded for all forest areas Secure land and forest tenure arrangements

… in the Vietnamese context: institutional structures for the 5MHRP and the FSSP & P  5MHRP Steering Committee, linkage with other sectors  Reporting to highest level (NA)  FSSP & P coordination mechanisms  Conflict resolution in the field … but  No adequate representation of all stakeholders  Transparency often lacking Establishment of effective co-ordination mechanisms and conflict-resolution schemes

Forest sector – recent trends Forest cover has increased, however, there is still continued degradation of natural forests Main causes: –Forest land encroachment –Conversion of forest to agricultural land –Unsustainable and illegal harvesting (>50%) –Infrastructure development –Forest fires Forest processing industry with emerging potential, boosting exports, but lack of raw material and high import prices, need to invest in up-to-date equipment and capacity building

Forest sector – recent trends FSSP & Partnership developing, aiming at convergence of donor support and Government funding Trust Fund for Forests TFF established Revision of Programme 661 and National Forest Development Strategy  update with recent policy changes  harmonise with other strategies, e.g. Poverty Alleviation Strategy (CPRGS) Public Administration Reform (PAR), decentralisation  formulation of National Forest Strategy ( ) Development of financing instruments:  medium-term financial frameworks and medium-term expenditure frameworks for the Ministry  forest sector financing study Elaboration of Forest Monitoring and Information System FOMIS

Thank you