Unlocking bottlenecks in forest environmental services payments

ĐBP - In 2025, the Điện Biên provincial Forest Protection and Development Fund disbursed VND 245.5 billion in forest environmental services (FES) payments via bank accounts to forest owners across the province.

To implement the disbursement plan, the Fund coordinated with transaction offices of the Vietnam Bank for Social Policies, as well as local communes, wards, and relevant units, to organize seven rounds of communication, guidance, and support for forest owners in completing procedures and opening bank accounts. As a result, an additional 2,407 forest owners opened bank accounts to receive FES payments. By April 2026, 7,087 out of 7,540 forest owners in the province had opened accounts, accounting for 93%.

The provincial Forest Protection and Development Fund works with Thanh Nưa commune to resolve issues in forest environmental service (FES) payments.

Encouraging forest owners to open bank accounts is one of the measures taken by the provincial Fund to address outstanding FES payments from previous years. Despite multiple efforts to accelerate annual disbursement, more than VND 1 billion from 2024 remains unpaid.

The difficulties in FES payment largely stem from disputes and overlaps in forest land areas. In some communes, inconsistencies exist between forest allocation decisions and maps, as well as between allocation decisions and the identification documents of forest owners. In some cases, the same forest owner is recorded under different names in different allocation plans, such as Plan No. 388/KH-UBND dated February 20, 2013, and Plan No. 2783/KH-UBND dated September 20, 2019.

In addition, some forest owners have passed away or are no longer residing in the locality; relevant documentation, decisions, and forest allocation maps have not been fully handed over to the Fund, making it impossible to disburse outstanding payments. Further challenges arise as some forest owners decline to receive FES payments due to small allocated forest areas and correspondingly low payment amounts.

Forest management and protection play a crucial role in the province’s socio-economic development. This is both the responsibility and obligation of local people and communities living near forests. The FES payment policy serves as an incentive for households and communities to actively participate in forest protection. However, existing obstacles have prevented the Fund from fully resolving outstanding payments from 2024.

Thanh Nưa commune still has 1,682.5 hectares of forest yet to be allocated to forest owners.

 

According to the provincial Fund, as of April 2026, 544 forest owners remain ineligible for FES payments, including 453 who have not yet opened bank accounts. From April 13 to 16, 2026, the Fund continued to work with and hold discussions in five localities: Điện Biên Phủ, Thanh Nưa, Mường Luân, Xa Dung, and Phình Giàng. Challenges in FES payment implementation were discussed and solutions identified to facilitate the disbursement of outstanding funds.

Mai Hương, Director of the provincial Fund, stated: “To effectively implement the FES payment policy, following the merger of communes, we have advised the Department of Agriculture and Environment to develop plans to address local difficulties. In cases of discrepancies in forest owners’ names, commune level People’s Committees will resolve them within their authority. Overlapping forest areas are now limited, and we propose that local authorities convene meetings with forest owners to reach consensus. Minutes of agreement issued by commune authorities will serve as a basis for payment. For forest owners who have not yet opened accounts, the Fund will invite them to commune offices or send staff directly to their homes to assist with account registration.”

Thanh Nưa commune has 5,006.053 hectares of forest providing FES, managed and protected by 541 forest owners. To date, 89 forest owners have not opened accounts to receive payments; three cases involve overlapping forest plots, and 12 community forest owners have discrepancies in their names. Additionally, 1,682.5 hectares of forest remain unallocated. On April 13, 2026, the Fund worked with the commune authorities to address these issues and agreed on solutions.

Nguyễn Trọng Dương, Vice Chairman of Thanh Nưa commune People’s Committee, said: “Having fully grasped the issues in FES payments for local residents and communities, the commune will issue necessary decisions to correct forest owners’ names. For overlapping forest areas between villages, meetings will be organized to resolve the issues comprehensively. We will also review unallocated forest areas to identify owners and coordinate with relevant parties to encourage account opening. Thanh Nưa aims to resolve all FES payment issues by June 30, 2026.”

The provincial Forest Protection and Development Fund works with Điện Biên Phủ ward to address obstacles in FES payments.

Điện Biên Phủ Ward has 1,421.9 hectares of forest providing FES, of which 952.4 hectares have been allocated, while 469.49 hectares remain unallocated. There are still 40 forest owners who have not opened accounts. Some owners have passed away or no longer reside locally, while others have declined payments. To address these issues, the Fund and ward authorities have agreed on solutions.

Đỗ Ngọc Tú, Vice Chairman of Điện Biên Phủ ward People’s Committee, noted: “The ward has a relatively small forest area. To resolve FES payment issues, we will work directly with forest owners to complete necessary procedures, including inheritance procedures for deceased owners. For cases where owners decline payments, the land may be reclaimed and reassigned to communities for management. Relevant departments will be directed to fully address outstanding issues so that residents can receive overdue payments.”

According to the Fund’s plan, in 2026, it will disburse VND 228 billion in FES payments to forest owners across the province. Payments are typically made in June each year. Therefore, in April 2026, the Fund intensified fieldwork in areas with outstanding payments to coordinate in resolving issues. Addressing outstanding FES payments is a key task prioritized by the Điện Biên provincial Fund in 2026, aiming to ensure the rights of forest owners while promoting sustainable forest protection and development across the province.

Minh Giang
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