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Land Use Analysis Project Activity 2.83 for the Project: Developing a piloting model on payments for coastal wetland ecosystem services in Mui Ca Mau National Park in the context of climate change contributing to poverty reduction in local community

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Page 1: Background report 2.83 Land Use Analysis - Fores · Abbreviation! ES! ecosystemservice! NP! nationalpark! PES! payment!for!ecosystemservice! PFES! payment!for!forest!ecosystemservice!

       

Land  Use  Analysis    

Project  Activity  2.83  for  the  Project:  Developing  a  piloting  model  on  payments  for  coastal  wetland  ecosystem  services  in  Mui  Ca  Mau  National  Park  in  the  context  of  climate  change  contributing  to  poverty  reduction  

in  local  community      

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 THIS DOCUMENT IS SPONSORED BY

     Project  sponsored  by  The  Swedish  International  Development  Cooperation  Agency  in  Vietnam    Project  Partners    Biodiversity  Conservation  Agency,  Vietnam  Environment  Administration,  Ministry  of  Natural  Resources  and  Environment,  Vietnam  Research  Center  of  Forest  and  Wetlands,  Vietnam  Forum  for  Reforms,  Entrepreneurship  and  Sustainability,  Sweden        This  report  prepared  by  Daxam  Sustainability  Services,  Sweden  May  2013    Citation  BCA,  FORES,  FORWET  2013,  Land  Use  Analysis,  Stockholm,  Sweden      Project  Team  Ulrika  Stavlöt  Ana  P  Aponte  Scott  Cole  Linus  Hasselström  Daniel  Engström  Stenson    Nguyen  The  Dong  Huynh  Thi  Mai  Nguyen  Chi  Thanh  Nguyen  Tuan  Phu  Nguyen  Tien  Dung  Le  Huu  Phu        

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Contacts  Biodiversity  Conservation  Agency,  Vietnam  Environment  Administration,  Ministry  of  Natural  Resource  and  Environment  Management  No  10,  Ton  That  Thuyet  Street,  Cau  Giay  district,  Hanoi,  Vietnam  Tel.:  +  84  4  37956868  Ext.3108    Forum  for  Reforms,  Entrepreneurship  and  Sustainability  Bellmansgatan  10  118  20  Stockholm,  Sweden  Tel:  +46  08  45  22  660  

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Table  of  Contents  1.  Land  use  in  Viet  Nam  ..........................................................................................................................  5  

1.2.  Land  reforms  ................................................................................................................................  6  

1.3.  Land  distribution  ..........................................................................................................................  6  

1.3.1.  Forestland  distribution  ..........................................................................................................  7  

1.3.2.  Wetland  distribution  .............................................................................................................  8  

1.3.3.  Wetland  use  and  PES  .............................................................................................................  8  

1.3.4.  Customary  wetland  use  practice  in  Mui  Ca  Mau  NP  .............................................................  9  

2.   Laws  and  regulations  .....................................................................................................................  11  

2.1.  Forestland  legislations  ...............................................................................................................  11  

2.1.   Wetland  legislations  ...............................................................................................................  12  

2.2.   PES  and  land  and  natural  resource  use  legislations  ................................................................  13  

3.   Lesson  learned  from  pilot  PES  in  Vietnam  and  land  use  issues  .....................................................  14  

3.1.   Legislation  limitation  ..............................................................................................................  15  

3.2.   HHs’  land  tenure  and  landholding  area  ..................................................................................  15  

3.3.   Exclusion  of  poor  HHs  .............................................................................................................  15  

3.4.   Multiple  intermediaries  in  PES  process  ..................................................................................  16  

3.5.   Strong  state  involvement  in  PES  process  ................................................................................  16  

3.6.   Application  of  PES  for  state  management  problem  ...............................................................  17  

References  ............................................................................................................................................  18  

 

   

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Abbreviation  

ES   ecosystem  service  

NP   national  park  

PES   payment  for  ecosystem  service  

PFES   payment  for  forest  ecosystem  service  

LUR   land  use  right  

HH   household  

SOFEs   state  owned  forest  enterprises  

PDF   production  forest    

PTF   protection  forest  

SUF   special  use  forest  

MONRE   Ministry  of  Natural  Resources  and  Environment  

MARD   Ministry  of  Agriculture  and  Rural  Development  

CAPI   Coalesce  Authority,  Power  and  Influence  

 

Purpose:    Study  existing  situation  of  land  use  right  and  wetland  natural  resource  use  right  of  local  stakeholders  under  legal  regulations  and  local  traditional  custom  in  Mui  Ca  Mau  National  Park  (NP)  for  the  construction  of  a  pilot  PES  scheme.  

 

1.  Land  use  in  Viet  Nam  Stated  by  current  Law  on  Land  (2003),  all  lands  and  natural  resources  that  come  from  lands  in  Vietnam  belong  to  the  population  and  the  State  has  the  administration  power  over  them  on  behalf  of  the  population.  State  can  grant  citizens  and  organizations  the  right  to  use  lands  (LUR)  for  a  limited  period  (20  years  for  agriculture  lands  and  50  years  for  forestlands).  Holders  of  the  LUR  can  sell,  lease,  exchange,  inherit,  transfer,  mortgage  LUR  and  receive  compensation  when  lands  are  taken  back  by  the  State  but  they  do  not  own  lands  or  decide  how  lands  are  used  (Vietnamese  Law  on  Land  2003,  USAID  2012,  To  et  al.  2012,  Ta  2011).    In  this  report,  the  term  land  use  refers  to  both  to  the  use  of  lands  and  natural  resources  that  come  from  lands.      

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1.2.  Land  reforms  Land  and  natural  resource’s  distribution  in  Vietnam  has  gone  through  major  reforms  as  summarized  in  table  1.    Table  1:  Reforms  on  land  and  natural  resource  governance      Period   Major  reform  

 1954   • Feudal  government:  private,  commune  and  government  land  

ownerships  and  land  tax  policies.  • French  colony  government:  private  land  ownership,  nation-­‐wide  

land  tax  system.      (Phung,  general  department  of  land  administration1)  

1954-­‐1975     • The  Democratic  Republic  of  Vietnam  in  the  north:  collectivization;  state  ownership  of  all  lands  and  natural  resources.    

• The  Republic  of  Vietnam  in  the  south:  ownership  right  granted  to  land  tenants  (USAID  2013,  Ta  2011)  

1975-­‐1986   • Collectivization  and  central  planning  economy:  the  state  ownership  of  all  lands  and  natural  resources  was  extended  to  southern  Vietnam  as  well.    

Post  1986   • Allocation  of  land  use  rights  to  individuals,  HHs  and  organizations  

• LUR  can  be  sold,  transferred,  mortgaged,  inherit  and  leased.  • Decentralization  of  land  management  to  provincial  and  district  

authorities.      Individuals,  HHs  or  organizations  can  acquire  LUR  by  3  major  ways:    

• State  grants  the  allocation  of  LUR  to  individuals,  HHs  or  organizations.  • States  rents  the  land  to  individuals,  HHs  or  organizations.  • LUR  can  be  obtained  through  lease,  purchase,  transfer,  exchange,  charity  and  

inherit.    

1.3.  Land  distribution  This  section  discusses  the  distribution  of  forestland  and  wetland  since  the  PES  project  location  is  situated  in  the  mangrove  forest  wetland  national  park  in  Mui  Ca  Mau.      Since  the  Law  on  Land  1987,  land  in  Vietnam  is  classified  according  to  use  purpose:  agriculture,  forest,  resident,  special  use  and  un-­‐used  land.  Specific  laws  in  agriculture  

                                                                                                                         1  http://diachinh.net/vi/about/  Assessed  06032013  

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and  forest  sector  legislate  further  land  classification.    According  to  the  Law  on  Forest  Protection  and  Development  (2004),  forestlands  are  classified  in  3  main  categories:        

• Production  forest  (PDF):  for  production  of  timber  and  non-­‐timber  products.      • Protection  forest  (PTF):  for  watershed  protection,  protection  from  soil  erosion  

and  desertification  and  climate  regulation.    • Special  use  forest  (SUF):  for  natural  conservation,  biodiversity,  species  

resources,  scientific  research,  history  and  cultural  conservation,  and  eco-­‐tourism.  National  parks  are  under  this  category,  so  as  the  rehabilitation  areas  within  the  parks.      

1.3.1.  Forestland  distribution  Before  1990  State  managed  all  forestlands  through  state  owned  forest  enterprises  (SOFEs).  The  SOFEs  operated  and  logged  timber  products  for  sale.  In  1986,  as  a  result  of  economic  reform,  the  state  started  the  process  to  decollectivize  land;  households  can  be  contracted  to  protect  forestlands  and  use  poor  quality  lands  with  no  forest  cover,  via  contracting  agreements  between  SOFEs  and  HHs  (McElwee  2012,  ICRAF  Vietnam  2012,  USAID  2013).  From  2004,  communities  and  organizations  can  also  be  granted  the  LUR  for  forestlands.  Currently,  the  State  allows  multiple  users  of  forestlands  with  multiple  tenure  rights  to  classified  forestland  categories,  as  illustrated  in  table  2.      Table  2:    Distribution  of  forestland  use  rights  in  Vietnam    Users   Tenure  rights  

  Assess   Use   Management   alienation   Exclusion     Production  

forest  (PDF)    

Protection  forest  *  (PTF)  

Special  use  forest  (SUF)  

PDF   PTF   SUF   PDF   PTF   SUF   PDF   PTF   SUF   PDF   PTF   SUF  

State  organizations  

x   x   x   x   x     x   x   x   x   x     ?   ?   ?  

Business  organizations  

x   x     x   x     x       x       ?   ?   ?  

Communities   x   x     x   x     x   x           ?   ?   ?  HHs/individuals   x   x     x   x     x       x       ?   ?   ?  Peoples  committee  at  the  commune  level  (**)  

x   x           x   x           ?   ?   ?  

Source:  ICRAF  Vietnam,  2012,  Westholm  et  al.  2011  *  The  use  right  of  protection  forests  (PTF)  is  limited  to  a)  the  extraction  of  non-­‐timber  products  and  timber  by-­‐products  in  natural  forests,  and  b)  selected  timber  products  in  planted  forests.  **  Only  has  temporary  management  right  of  the  forest  areas  that  are  not  yet  allocated.    Tenure  rights:    

• Assess:  the  right  to  enter  the  area    • Use:  the  right  to  obtain  resources  e.g.  timber,  firewood.    In  the  case  of  Mui  Ca  Mau  

NP,  HHs  who  lease  the  land,  can  conduct  agroforestry  and  extensive  aquaculture  (Vietnam  Law  on  Land  2003).  

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• Management:  the  right  to  regulate  internal  use  patterns  or  transform  the  resource    

• Alienation:  the  right  to  sale  or  lease  of  the  land    • Exclusion:  the  right  to  decide  who  can  or  cannot  use  the  resource    

   

1.3.2.  Wetland  distribution  Wetlands  in  Vietnam  are  classified  into  two  broad  categories,  in  terms  of  land  use:  coastal  wetland  (mostly  mangrove  forests)  and  inland  wetland  (Monre  2004,  Torell  et  al  2003).  Mui  Ca  Mau  National  Park  is  coastal  wetland  and  is  under  the  special  used  forest  category  (SUFs).    

According  to  the  Law  on  Forest  Protection  and  Development  2004,  the  State  has  the  power  to  decide  how  much  and  how  long  the  SUFs  will  be  allocated  or  leased  but  it  does  not  specify  further.  The  State  also  decides  if  the  SUFs  are  taken  back  or  change  the  SUFs’  use  category.    

The  provincial  peoples  committee  exercises  the  State’s  power  to  allocate,  lease  and  take  back  SUFs  to  and  from  state  and  business  organizations  while  the  district  people’s  committee  has  these  power  to  HHs,  individuals  and  communities.    

SUFs  are  only  allocated  to  organizations,  in  the  case  of  national  park,  it  is  the  NP  management  board-­‐a  government  appointed  agency.  The  NP2  then  can  lease  SUFs  to  HHs  living  in  the  rehabilitation  areas  via  a  contracting  agreement.  In  this  case,  HHs  do  not  receive  secure  tenure  in  term  of  LUR  (Vietnam  Govt.  Decree  #  181/2004/NĐ-­‐CP,  2004).  

According  to  the  leasing  contract,  HHs  will  receive  a  designated  area  in  the  SUFs  for  a  designated  period  of  time  to  conduct  forest  protection  and  some  economic  activities  (such  as  tree  planting,  aquaculture  and  agroforestry).  HHs  receive  remuneration  for  their  protection  work  and  can  earn  a  certain  percentage  of  the  income  generated  from  their  economic  activities.  The  NP  decides  the  area,  the  contract  period  and  the  remuneration  based  on  the  regulation  on  forestland  leasing  issued  by  Forestry  Ministry-­‐now  MARD.  The  financial  resources  for  this  contracting  work  comes  from  State  budget,  bank  loans  and  international  aid  funds  and  will  be  allocated  annually  to  the  NP.  The  contract  must  be  registered  at  the  local  people’s  committee  (Vietnam  Govt.  Decision  #  202/1994/QD-­‐TTg,  1994).  

In  the  case  of  leasing,  SUFs  can  be  leased  to  business  organizations  to  protect  the  landscape  and  conduct  eco-­‐tourism  business.  These  organizations  must  pay  an  annual  leasing  fee.    

1.3.3.  Wetland  use  and  PES    Land  tenure  has  important  implication  to  the  successful  implementation  of  PES  since  PES  often  requires  long  term  investment  decision  (McElwee,  2012).  In  the  case  of  Mui  Ca  Mau  NP,  the  fact  that  HHs  do  not  have  secure  tenure  might  create  a  significant  challenge                                                                                                                            2  Only  state  owned  forest  ‘owner’  organization  can  lease  forestland  to  HHs  (Circulation  #  06  18/6/1994).  

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to  the  design  of  PES  that  involve  them.  The  question  is  a  creative  PES  structure  that  does  not  depend  on  land  secure  tenure.  One  should  not  count  on  institutional  change  in  land  tenure  in  Vietnam  in  the  near  future,  given  complex  history  of  land  distribution  in  the  country.    

1.3.4.  Customary  wetland  use  practice  in  Mui  Ca  Mau  NP  HHs  in  Mui  Ca  Mau  NP  received  a  contract  for  Forest  Protection  and  Reforestation  in  1998.  Those  contracts  will  finish  in  December  2013.  With  this  contract  the  HH  gains  the  right  to  use  the  land  as  follow:  

• 50%  for  reforestation  • 21%  for  forest  protection  • 29%  for  agriculture,  forestry  and/or  aquaculture    

 As  a  compensation  for  the  work  protecting  the  forest,  HHs  do  not  need  to  pay  any  kind  of  taxes  for  the  use  of  the  land.    Table  3:  The  contract  defines  the  rights  and  responsibilities  of  the  parties  involved.    

Contract  for  forest  protection  and  reforestation  

Parties   Duties   Responsibilities  

Party  A:  Local  authority  

-­‐  Controlling,  guiding  Party  B  to  follow  faithfully  the  plans,  the  processes,  technical  norms  in  reforestation  and  forest  protection;  

-­‐  Suspending  or  cancelling  the  contract  and  forcing  to  compensate  for  the  damage  if  Party  B  breaks  the  contract;  

-­‐  Settle  the  soil  conflicts  within  Party  A’s  jurisdiction  or  transfer  to  the  authority;  

-­‐  Making  records  and  judging  under  the  Law  of  forest  protection  and  development.  

-­‐  Guiding  Party  B  to  follow  regulations  of  forest  management  and  the  project  (forest  contract);  

-­‐  Identifying  boundaries,  square  area,  current  status  of  the  area;  

-­‐  Popularizing  policies,  processes,  technical  norms;  organizing  stock  (seeding,  breeding,  …)  services;  and  transferring  forestry  engineering  to  Party  B;  

-­‐  Compensating  for  the  damage  in  case  of  Party  A’s  guilty.  

 

Party  B:  Households  

-­‐  To  be  allowed  combination  of  production  and  enterprise  on  area-­‐allotted;  

-­‐  To  be  taken  advantage  of  forestry  policies  such  as  funding  investment,  transferring  technique;  

-­‐  To  be  compensated  if  Party  A  

-­‐  To  be  responsible  for  forest  protection  to  critical  land,  protected  forests  and  strict  protection  zone,  special  use  forests  such  as  be  against  cutting  forest,  against  appropriating  land,  preventing  and  fighting  fire,  preventing  insects;  

-­‐  To  be  fully  responsible  for  funding  

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causes  damage;  

-­‐  To  be  received  70%  of  profit  as  the  projects  approved  after  deducting  expenses  and  taxes  (Critical  land,  protected  forests  and  strict  protection  zone,  special  use  forests  are  not  applied)    

-­‐  To  be  taken  advantage  of  own  products  from  the  combination,  but  not  damage  forest.  

-­‐  To  be  transferred  right  of  forest  use  to  other  as  the  date  expired.  

investment,  forest  area  allotted,  land  and  environment  protection;  

-­‐  Obeying  regulations  in  the  law  of  forest  protection  and  development,  and  regulations  in  management  of  protected  forest,  special  use  forest;  

-­‐  Complying  with  processes  faithfully  in  forest  protection  and  reforestation  which  Party  A  has  instructed  

-­‐  Compensating  Party  A  for  damage  that  is  caused  by  Party  B  

     

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2. Laws  and  regulations  2.1.  Forestland  legislations  Forestlands  in  Vietnam  is  subjected  to  different  laws,  including:  

• Law  on  Land  (1987,  1993,  amended  1998,  amended  2001,  2003,  proposal  amended  2013)    

• Law  on  forest  protection  and  development  (1991,  2004)  • Law  on  environmental  protection  (1993,  2005)  • Law  on  biodiversity  (2008)  

 Table  3:    Forestland  legislations  

 Legal  document   Main  contents  regarding  land  use  and  PES  

 Law  on  Land  1987  

• Land  use  rights  were  leased  and  granted  to  households  and  individuals  (Ta  2011)  

Law  on  Land  1993  

• SOFEs  granted  farmers  land  use  certificates  to  lease,  exchange,  inherit,  transfer  and  use  lands  as  collateral  (To  et  al.  2012,  Ta  2011)  

Law  on  Land  amended  1998  

• Long-­‐term  and  stable  use  of  lands  for  20  years  (Ta  2011)  

Law  on  Land  amended  2001  

• Land  use  right  titles  to  households  and  individuals  (LUR)  (Ta  2011)  

Law  on  Land  2003  

• Land  use  rights  (LUR)  is  made  ‘a  commodity  openly  traded  in  the  market’(Ta  2011).  Although  government  has  complicated  regulations  on  LUR  price  but  in  practice  the  price  is  established  according  to  supply-­‐demand  relationship.  This  triggers  increasingly  land  conflicts  in  society,  particularly  when  the  State  takes  back  the  land  and  compensates  LUR  holders  with  the  regulated  price  that  in  most  cases  is  far  lower  than  market  price.    

Law  on  Land  proposal  amended  2013  

• Agriculture  land  use  increases  from  20  to  50  years.  • Chairman  of  provincial  people’s  committee  can  decide  to  

change  land  use  category,  on  land  allocation  and  leasing  of  the  buffer  zone  of  SUFs  to  organizations  and  HHs  and  lease  SUFs  to  economic  organizations  for  eco-­‐tourism.  Previous  laws  gave  collective  decision  power  to  provincial  people’s  committee.  

Law  on  forest  protection  and  development  1991      

• Category  of  forest,  NP  belongs  to  SUFs.  • HHs  can  participate  in  forest  protection  via  forest  

protection  contract  in  poor  quality  forestlands  without  forest  cover.  (Do  et  al  2012)  

Law  on  forest  protection  and  development  

• Legal  forestland  use  rights  granted  to  HHs  • Communities  and  organizations  are  granted  forestland  use  

right.  

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2004   (Do  et  al  2012)  Law  on  environmental  protection  1993    

• User  pay  principle  (article  #7):  a  user  of  a  service  or  resource  pays  directly  for  the  amount  they  use.  

• Biodiversity  conservation  principle  Law  on  environmental  protection  2005  

• Regulations  on  environmental  tax,  environmental  fee,  establishment  of  environmental  protection  fund.  

• Allows  for  private  sector  to  bid  for  the  provision  of  certain  environmental  protection  services  (which  are  often  provided  by  state  entities    

Law  on  biodiversity  2008  

• Encourage  eco-­‐tourism  for  poverty  reduction  for  HHs  living  legally  in  the  conservation  area  and  sustainable  development  in  the  conservation  buffer  zone.  

• State  decides  the  establishment  of  national  conservation  zone  (including  NPs),  provincial  people’s  committee  decides  the  establishment  of  provincial  conservation  zone  (NPs)  

• Lands  in  conservation  zones  are  allocated  to  the  zone’s  state  management  organizations    

 

2.1. Wetland  legislations  Before  2003,  there  was  no  single  legislation  for  wetlands,  instead  wetlands  were  regulated  by  different  laws  and  regulations  which  cover  agriculture,  fishery,  forestry  and  environment  (Doan  2003).    In  2003,  the  first  government  decree  dedicated  to  regulate  the  conservation  and  sustainable  development  of  wetlands  was  introduced  in  Vietnam:  decree  #  109/2003/ND-­‐CP  (Decree  109).  The  decree  for  the  first  time  provides  a  more  specific  definition  of  wetlands  (see  table  4  below).  

Despite  the  single  legal  framework  introduced  in  2003,  the  institutional  management  of  wetlands  is  quite  unclear  and  in  some  cases  overlapping.  For  example  mangrove  forests  in  wetlands  are  regulated  both  by  Decree  109  and  the  Law  on  Forest  Protection  and  Development  2004;  the  water  surface  in  the  wetlands  is  under  the  Law  on  Water  Resources  (Doan  2003),  and  the  species  in  the  wetlands  are  covered  by  the  Law  on  Biodiversity  2008.  As  a  result,  multiple  government  agencies  are  in-­‐charge  of  management  of  wetlands,  for  example  MARD  and  MONRE  at  the  national  level;  department  of  land  administration,  department  of  fishery,  department  of  forestry  and  department  of  science  and  technology  and  environment  at  provincial  level  (Trinh  2003).    

Table  4:    Wetland  legislations  

Legal  document  

Main  contents  related  to  land  use  and  PES    

Government  Decree    #  109/2003/ND-­‐CP,  23  Sept  2003:  

• 1st  time  definition  of  wetlands:  ‘areas  which  possess  peculiar  ecological  systems  and  high  biodiversity,  have  function  of  maintaining  water  sources  and  ecological  balance,  have  national  and  international  significance’  (Source:  Govt  Official  Gazette  #159  28/09/2003)  

• Purpose:  increase  community  participation  in  wetland  

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Conservation  and  Sustainable  Development  of  Wetlands  

conservation  • Government  management  of  wetland  exploitation  activities  in  

agriculture,  aquaculture,  tourism,  transportation,  hydro  power,  irrigation.  

• MONRE  is  the  state  governing  agency  of  wetlands-­‐policy  making  and  monitoring  body.    MARD:  organizing  management  of  specialized  wetland  conservation  zones  

• Encourage  aquaculture  practices  that  are  environmental  friendly:  combination  of  industrial  aquaculture  with  eco-­‐aquaculture,  and  aquaculture-­‐fishery-­‐agriculture  model  

MONRE  circular  #  18/2004/TT-­‐BTNMT,  23  Aug  2004:  instruction  for  implementing  Govt  decree  2003  

• Classification  of  wetlands:  coastal  wetland  (including  mangrove  forest)  and  in-­‐land  wetland  

• Criteria  and  procedure  to  establish  wetland  conservation  zones  

• Conservation  zone  includes:  strict  conservation  area,  ecological  rehabilitation  area,  administration  area    

• Encourage  HHs  living  in  the  conservation  zones  and  buffer  zones  to  participate  in  ecological  protection  and  development  activities    

MONRE  decision  #  04/2004/QĐ-­‐BTNMT,  5  April  2004:  action  plan  for  wetland  conservation  2004-­‐2010  

• Overall  objective:  conservation  and  sustainable  development  of  wetlands  to  meet  socio-­‐economic  development,  poverty  reduction,  natural  resource  protection,  environment  and  biodiversity.    

• Objectives  to  2006:  Create  policy  to  include  community  participation3    

• Objectives  to  2010:      o Pilot  and  replicate  socio-­‐economic  effective  models  for  

sustainable  development  of  wetland    o Mobilize  private  resources  (xa  hoi  hoa)  for  

conservation  work    

2.2. PES  and  land  and  natural  resource  use  legislations  Two  major  documents  provide  legislative  principles  to  the  application  of  PES  in  Vietnam:    

• Government  decree  #  99/2010/NĐ-­‐CP,  2010  (PFES)-­‐PES  for  forests;    • Government’s  decision  #  126/QĐ-­‐TTg,  2012-­‐pilot  mechanism  to  share  benefits  in  

management,  protection  and  development  of  SUFs.    PFES  (Govt.  decree  #  99/2010/NĐ-­‐CP):  HHs  who  has  land  lease  contract  with  NPs  are  eligible  as  providers  of  forest  ecosystem  services  and  receive  payment  accordingly.    Pilot  PES  for  SUFs  (Govt.  decision  #  126/2012/QD-­‐TTg)    

                                                                                                                         3  Trang notes: cannot find such policy in existence    

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• Pilot  locations  include  Xuan  Thuy  NP  and  Bach  Ma  NP.  Mui  Ca  Mau  NP  is  not  included  in  this  decision.      

• Detail  list  of  ‘shared  benefits’  at  designated  SUFs,  for  example  exploitation  of  certain  forest  products  like  rattan,  bamboo,  honey,  wild  boars,  rats,  snake,  herb  medicine,  wild  oysters  and  shrimps,  oyster  aquaculture,  etc.  

• Village  community,  HHs  and  individuals  who  live  legally  in  the  designated  SUFs  and  their  buffer  villages  are  allowed  to  extract  natural  resources  identified  in  the  above  mention  list  via  a  mechanism  called  ‘benefit  sharing’.  

• The  plan  to  share  benefits  is  prepared  by  NP  management  board  and  the  PFES  management  council  (representatives  of  all  actors  in  PFES),  subjected  to  approval  of  MARD.  The  plan  should  identify  current  status  of  natural  resources,  list  of  shared  benefits,  amount,  period,  sharing  mechanism,  who  can  receive  the  shared  benefits,  management,  monitoring,  evaluation  of  the  extraction  of  natural  resources,  measurements  to  minimize  the  risk/impacts  due  to  extraction  process.    

• Participants  to  the  pilot  PES  for  SUFs  are:  NP  management  board,  village  community,  HHs,  individuals  who  live  legally  inside  the  SUFs  and  their  buffer  villages.    

• In  this  decision  there  is  no  article  which  mentions  land  use  of  SUFs.  There  are  however  annexes  that  list  specific  benefits  from  SUFs  to  be  shared  between  NP  management  boards  and  local  community  and  HHs.    

3. Lesso      

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4. Lessons  learned  from  pilot  PES  in  Vietnam  and  land  use  issues    There  are  numbers  of  articles  analyzing  land  use  in  Vietnam  in  regards  to  pilot  PES  mechanism.  The  following  lesson  learnt  are  drawn  from  the  author’s  analysis  of  various  land  legislations  and  from  the  two  major  studies  conducted  by  To  et  al.  (2012)  and  McElwee  (2012).  

4.1. Legislation  limitation    The  legal  statement  that  HHs  who  lease  SUFs  land  from  NP  cannot  get  the  LUF  provide  a  disincentive  to  invest  long  term  in  SUFs.    Decision  199  legislates  PES  for  forest  where  in  many  cases  HHs  are  providers  of  ESs.  Although  the  most  recent  legislation  decision  126  (2013)  regulates  the  ecosystems  in  mangrove  forest  in  SUFs  where  HHs  can  be  users  (aquaculture,  agroforestry)  of  ESs,  there  is  heavy  involvement  of  state  agencies  in  framing  the  PFES  (state  NP  management  board,  MARD).      In  the  case  where  HHs  are  both  providers  and  users  of  ESs  like  in  wetland  area,  the  synergy  between  decision  199  and  126  is  yet  known.  For  example,  under  decision  199,  ESs  users  pay  to  the  state  forest  protection  fund,  then  providers  receive  remuneration  from  this  fund.  Many  intermediaries  involve  in  the  distribution  of  this  fund.  On  the  other  hand,  decision  126  does  not  specify  the  payment  structure,  leaving  it  to  the  negotiation  between  representatives  of  HHs  and  NPs  but  the  payment  plan  must  be  approved  by  MARD.      

4.2. HHs’  land  tenure  and  landholding  area    In  the  PFES  pilot  in  Lam  Dong  province,  HHs  gained  only  short  term  benefit  since  they  signed  only  a  1  year  forest  protection  contract  with  State  forest  management  entity.  In  the  PFES  pilot  in  Son  La,  even  though  HHs  have  longer  land  tenure,  their  small  landholding  area  (average  2ha/HHs)  also  did  not  give  them  adequate  remuneration  that  can  motive  their  forest  protection  activity  (To  et  al.  2012,  McElwee  2012)    

4.3. Exclusion  of  poor  HHs  Pilot  PESs  require  formal  proof  of  land  holding,  for  example  LURs  or  formal  lease  contract  with  NPs  (in  the  case  of  SUFs)  can  exclude  poor  HHs  who  have  difficulty  to  gain  formal  land  access  (i.e.  newly  immigrated  or  HHs  living  in  buffer  zone)  or  have  land  access  via  customary  practice  (To  et  al.  2012).    There  is  currently  no  legal  acceptance  of  customary  practice  of  land  use  in  Vietnam  even  though  some  legislation  vaguely  state  that  community  should  be  encouraged  to  participate  in  forest  protection  but  does  not  say  how.  The  formal  land  use  legislation  

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that  give  land  use  right  to  individual,  HHs  or  organization  conflict  with  customary  practice,  particularly  in  the  uplands  where  members  of  the  community  share  access  to  the  forest  and  the  use  of  forest  resources.  In  the  case  of  dispute,  the  formal  land  distribution  legislation  wins  over  customary  practice  for  example  village  traditions  (To  et  al.  2012).    Further,  poor  HHs  are  viewed  as  lacking  sufficient  capability  (manpower  and  capital)  to  protect  the  forest  compared  to  wealthier  HHs,  which  is  another  reason  for  state  forest  management  entities  (like  NPs  or  SOFEs)  to  exclude  them  from  PES  programs  (McElwee  2012).        

4.4. Multiple  intermediaries  in  PES  process  In  the  pilot  PFES  in  Vietnam,  multiple  stakeholders  are  involved  in  the  PES  process,  for  example  the  ministries,  the  SOFEs,  provincial  and  district  authorities,  the  NP  management  board,  private  companies  and  the  HHs  who  often  have  a  weak  voice  in  this  setting.  The  result  is  that  multiple  and  complicated  institutions  were  created  to  satisfy  the  interest  of  these  parties,  for  example  the  payment  for  forest  protection  services  is  not  made  directly  to  the  providers,  instead,  it  is  paid  through  a  state  managed  forest  protection  fund  or  forest  protection  contract  has  to  be  verified  by  local  authorities.  As  a  consequence,  PES  transaction  costs  become  high  and  the  benefits  of  PES  to  HHs  is  reduced  significantly.      

4.5. Strong  state  involvement  in  PES  process  State  and  state-­‐associated  organizations  are  vested  power  to  decide  on  land  distribution  and  may  inadvertently  prevent  the  benefits  of  PES  from  reaching  the  local  population.  For  example,  although  the  State  allocates  or  leases  the  land  to  HHs,  they  have  the  ultimate  power  to  decide  how  the  land  will  be  used  and  if  and  when  the  land  is  taken  back.  HHs  that  are  allocated  forestland  for  forest  protection  still  have  to  seek  the  authority’s  permission  to  log  timber  or  to  cultivate  in  their  forestland  (Nguyen  et  al  2008).  State  SOFEs  still  control  a  large  amount  of  forestland  (83%  according  to  statistics  of  MARD  IN  2006).  HHs  are  frequently  allocated  or  leased  poor  quality  forestland  with  only  limited  forest  cover  (McElwee  2012).  This  can  create  a  problem  when  PES  is  applied  in  a  scenario  of  State-­‐ownership  (which  includes  the  resources  on  the  land)  because  HHs  have  invested  their  own  resources  in  terms  of  trees  planted.      Further,  even  though  PES  contracts  should,  in  theory,  be  voluntarily  negotiated  between  contracting  parties,  they  have  to  be  registered  at  the  local  committee  and  must  follow  the  standard  terms  and  conditions  stated  by  the  Ministries.      

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The  decentralization  of  land  allocation  and  the  leasing  of  land  to  provincial  and  district  authorities  without  proper  monitoring  systems  leads  to  corruption  and  rent-­‐seeking  activities,  which  further  marginalize  poor  HHs.    

4.6. Application  of  PES  for  state  management  problem  Finally,  the  application  of  PES  in  Vietnam  until  now  is  trying  to  solve  state  management  problems,  for  example  unequal  distribution  of  land  tenure  in  different  forest  categories,  poor  state  management  of  forest,  corruption  and  vested  interests  of  state  forest  management  agencies,  and  chronic  budget  shortfalls.  This  distorts  the  true  meaning  of  PES  which  aims  to  solve  market  externalities  (McElwee  2012).    

       

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