This CIFOR Occasional Paper assessed opportunities and challenges in mobilizing finance to implement the Vietnam Forestry Development Strategy (VFDS) for 2006-2020. After 10 years of VFDS implementation, the forestry sector has witnessed many achievements

The Vietnam Forestry Development Strategy (VFDS) is one of the country’s most important plans for the forestry sector. The strategic directions, objectives and solutions within it differ from time to time, depending on the political goals and perspectives of the moment, as well as the role that the forestry sector plays in Vietnam’s overall socio-economic development. Regardless of such changes, inheriting lessons learned, developing the next strategy off the back of the experience gained from solving previous challenges, and taking advantage of opportunities, are always the top priorities of the Government of Vietnam. This report is the result of a collaboration between the Center for International Forestry Research (CIFOR) and the Vietnam Administration of Forestry (VNFOREST); it is intended to provide VNFOREST with input as they develop the new strategy. Based on secondary document research and stakeholder interviews, the report reviews achievements and challenges in the implementation of VFDS 2006–2020, as well as provides recommendations for policy makers to consider in the process of developing the new strategy. Research results show that, by 2020, Vietnam had exceeded a number of the goals set out in VFDS 2006–2020, including: (i) accelerating the growth of production value in the sector; (ii) increasing the export value of wood and forest products; (iii) increasing domestic wood production; and (iv) planting protection forest (PTF) and special-use forests (SUF). However, the forestry sector still faces many challenges when it comes to other key performance indicators, such as: (i) increasing the area of production forests (PDF) with certification of sustainable forest management (SFM); (ii) increasing large-diameter timber production; (iii) increasing revenue for forest environmental services (FES); (iv) securing forest and forest land for the purposes of allocation and leases; (v) reducing the number of poor households in forestry areas; and (vi) increasing the rate at which forestry workers are trained. Although some anticipated targets were not achieved, others were exceeded, for example: forest cover; reforestation after logging; reduction of forest protection violations; and scattered tree planting. That these goals were achieved or exceeded is the result of strong political commitment, policies trend-matching the market, improvements in central and local management capacity, the active support of international donors, and the involvement of civil society and the private sector. That some targets were not achieved is due to the challenges of implementing policy effectively, efficiently and equitably at grassroots level, lack of resources and funding, and some ambitious goals and targets not being realistic in the current economic, political and market contexts. Addressing these challenges requires a new approach and more effective economic, social and technical solutions. Development of VFDS 2021–2030 and the 2050 vision needs to consider the implementation achievements and challenges of the previous policy, as well as how to align with global trends, and balance these with the current political, economic and social development context in Vietnam. The direction of the new strategy must also be considered in the context of international requirements, to facilitate the mobilization of domestic and foreign financial resources to help modernize the industry, as well as enhance the forestry sector’s role and value in terms of poverty reduction, sustainable economic development and ensuring sustainable forest ecosystems.

In Vietnam, mangrove forests have been threatened by economic pressures and climate change. This report aims to analyze both opportunities and constraints for mangrove protection and management in Vietnam.The study found that local people appreciate the role that mangroves play in providing income, an attractive landscape and shelter from climate change related floods and storms. Many communities would be willing to contribute between USD 2-20 per year to a trust fund so as to protect their forests. A large number of policies and projects promote mangrove conservation activities. This has helped strengthen law enforcement, raised local awareness of the role and importance of maintaining forests, and restricted the conversion of mangroves to other economic activities. Government policies and development projects also provide capacity building, training and seedlings for mangrove reforestation activities at the studied sites. Additionally, new incentives such as payment for forest environmental services (PFES) are emerging as a potential source of finance to support mangrove protection and development in the future. Collective action for mangrove protection is widely recognized and promoted among study sites. People have self-organized strikes and protests to oppose converting mangroves to other economic purposes.Many policies and projects offer social and economic incentives for mangrove protection. However, they are impeded by insecure tenure, land grabbing, elite capture, inequitable benefit-sharing, and unclear responsibilities among government agencies at central, provincial and multilateral levels. Access to information on both policies and projects is difficult for local people. The monitoring and evaluation systems, incentives and disincentives designed by policies and projects have low enforcement and compliance. Policies and projects strongly emphasize and create incentives to replant mangrove forests, rather than to maintain and conserve existing mangrove forest areas. Incentives are also designed to compensate local labor costs for replanting mangrove or patrolling activities, rather than addressing the direct drivers of deforestation and degradation.Protecting mangroves requires a policy shift in land-use planning to address the drivers of mangrove deforestation and degradation. These drivers, in turn, respond to national and provincial economic development agendas, which focus on aquaculture expansion and migration. Cross-sectoral coordination also needs to be further enhanced to improve effectiveness in law enforcement. Enhancing local participation in mangrove forest protection and development requires a gender-sensitive approach and enabling conditions, such as well-enforced policies, accountable and transparent benefit-sharing, and inclusive decision making.

REDD+ must be transformational. REDD+ requires broad institutional and governance reforms, such as tenure, decentralisation, and corruption control. These reforms will enable departures from business as usual, and involve communities and forest users in making and implementing policies that a ect them. Policies must go beyond forestry. REDD+ strategies must include policies outside the forestry sector narrowly de ned, such as agriculture and energy, and better coordinate across sectors to deal with non-forest drivers of deforestation and degradation. Performance-based payments are key, yet limited. Payments based on performance directly incentivise and compensate forest owners and users. But schemes such as payments for environmental services (PES) depend on conditions, such as secure tenure, solid carbon data and transparent governance, that are often lacking and take time to change. This constraint reinforces the need for broad institutional and policy reforms. We must learn from the past. Many approaches to REDD+ now being considered are similar to previous e orts to conserve and better manage forests, often with limited success. Taking on board lessons learned from past experience will improve the prospects of REDD+ e ectiveness. National circumstances and uncertainty must be factored in. Di erent country contexts will create a variety of REDD+ models with di erent institutional and policy mixes. Uncertainties about the shape of the future global REDD+ system, national readiness and political consensus require  exibility and a phased approach to REDD+ implementation.

The Covid-19 pandemic has aggravated the tension between large development needs in infrastructure and scarce public resources. To alleviate this tension and promote a strong and job-rich recovery from the crisis, Africa needs to mobilize more financing from and to the private sector.

Constructive critique. This book provides a critical, evidence-based analysis of REDD+ implementation so far, without losing sight of the urgent need to reduce forest-based emissions to prevent catastrophic climate change. REDD+ as envisioned

Developing countries need additional, cross-border capital channeled into their private sectors to generate employment and growth, reduce poverty, and meet the other Millennium Development Goals. Innovative financing mechanisms are necessary to make this happen. 'Innovative Financing for Development' is the first book on this subject that uses a market-based approach. It compiles pioneering methods of raising development finance including securitization of future flow receivables, diaspora bonds, and GDP-indexed bonds. It also highlights the role of shadow sovereign ratings in facilitating access to international capital markets. It argues that poor countries, especially those in Sub-Saharan Africa, can potentially raise tens of billions of dollars annually through these instruments. The chapters in the book focus on the structures of the various innovative financing mechanisms, their track records and potential for tapping international capital markets, the constraints limiting their use, and policy measures that governments and international institutions can implement to alleviate these constraints.