Vietnam’s Payment for Forest Environmental Services (PFES) system, designed with support from USAID, is the country’s most important financial mechanism to mobilize resources for forest conservation. It engages individuals and communities to sustainably manage and protect their forests by providing compensation for their efforts. PFES seeks to maintain and enhance the forest systems’ environmental services, such as maintaining clean water for domestic uses, hydro-electric power generation, and industrial water consumption. USAID is now working with the Ministry of Agriculture and Rural Development (MARD) to expand and strengthen the PFES system. On August 17, USAID and MARD organized a workshop for representatives of NGOs, the private sector and governments of Thanh Hoa, Nghe An, Ha Tinh and Lao Cai provinces to discuss experiences in collecting payments for industrial water consumption. Workshop participants presented critical information on the results of industrial water PFES pilots in their four provinces with MARD.

So What? USAID is supporting Vietnam’s effort to implement a groundbreaking policy approach that will expand domestic resource mobilization. Practical experiences shared during this workshop will help MARD design a national decree to regulate payments for industrial water services nationwide.