An analysis of payment modalities in Vietnam – Lessons learnt from ...

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An analysis of payment modalities in
Vietnam – Lessons learnt from 7
provinces
Hanoi, 11th November 2015
Pham Thu Thuy and...

Outline
 Background study/Research questions
 Methods
 Findings:
 Equity discourse
 Forms of payment: In-kind vs. In ...

Key research questions
 What is the current discourse on benefit sharing and PFES
payment in Vietnam ?
 Are PFES payment...

Methodology
 Literature review from lessons learnt on
PES benefit distribution both internationally
and nationwide
 Semi...

Current equity discourse under
PFES in Vietnam- Conflicting views
and discourse at different level
• Benefits should go to...

Are PFES payment made in-kind or
in cash ?
Provinces In-kind In- cash Combination of
in-kind and in-
cash
Son La x
Dien Bi...

Factors influencing in-kind vs. in cash
Factors In-kind In-cash Combination of in-
kind and in-cash
Distance to market
and...

Pros and cons of in-kind and in-cash
Advantages Disadvantages
In cash • Greater flexibility in the use of
resources
• Less...

Frequency of payment ?
Frequency of
payment
Ratio Rationale
Son La 1 100%
Dien Bien 2 50-50
Nghe An 1 100%
Lao Cai 2 10-90...

Paradox
PROVINCIAL FOREST
PROTECTION AND
DEVELOPMENT FUND
LOCAL COMMUNITIES
Small payment is okie
as long as it is paid
wh...

Paradox
PROVINCIAL FOREST
PROTECTION AND
DEVELOPMENT FUND
LOCAL COMMUNITIES
• Lack of incentives
• Inequity between
State ...

How the PFES payment is currently
distributed?
Province Distribute to
individual
households
Payment
through
cooperatives
P...

3Es in options of benefit distribution intra
communities
Options Effectiveness Efficiency Equity
Payments made to
forest p...

When to choose what BDS ?
Enabling conditions
Individual
households
HHs manage large area under PFES  sufficient revenues...

Factors for relevant BDS selection
 Size of payment
 Social motivation complement with existing financial
incentives
 H...

Conclusions and key messages
 Combination of both in cash and in kind could
leverage the impacts of PFES
 Fixed schedule...

We acknowledge the support from:
the Norwegian Agency for Development Cooperation (Norad), the Australian
Department of Fo...

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