Since the 1990s, Vietnam has seen a reforestation trend leading to increases in plantation forest. Considerable efforts, such as the Five Million Hectares Reforestation Program, have been made to increase overall forest cover, but serious deforestation and extensive degradation remain. Therefore, the country is currently working to lower regional deforestation rates through a number of multilateral agreements and national policies that support REDD+ activities.
In November 2010, Vietnam presented its REDD Readiness Preparation Proposal (R-PP) to the World Bank’s Forest Carbon Partnership Facility (FCPF) to obtain support through the FCPF’s Readiness Fund. A National REDD+ Steering Committee was established in January 2011, and in June 2012 the Prime Minister of Vietnam approved the National REDD+ Action program. Later in 2012, the country began the UN-REDD Programme’s implementation phase, which aims to reduce emissions in six Vietnamese provinces
Vietnam's REDD+ financing landscape is set out below:
Donor governments account for approximately 45% of all REDD+ finance flowing to Vietnam between 2009 and 2012. Approximately 72% of donor government funding has been allotted to international NGOs and academia, while bilateral government to government agreements represent 25% of donor government transactions. Vietnamese NGOs and academia are scheduled to receive 2.7% of donor government funding.
Multilateral institutions support nearly all types of first recipients, but have directed 88% of their funding to multilateral implementing agents including the United Nations Development Programme (UNDP), United Nations Environment Programme (UNEP) and Food and Agriculture Organization (FAO). The remaining 12% of multilateral donor funds provides support to the Vietnamese government, as well as to international NGOs and consultancies.
The European Union represents a third donor sector. It committed more than US$800,000 to international NGOs and Vietnamese academic institutions.
The chart highlights the increasingly complex web of REDD+ financial flows in Vietnam—namely in the transactions between donors and first recipients. A majority of the donors are directing funds to more than one first recipient.
Three multilateral implementing agents received 48% of the total REDD+ funds committed to Vietnam from 2009 to 2012. Twelve international NGOs and academic institutions received 34% of total committed funds, which were primarily committed by donor governments and the European Union (EU). Seven Vietnamese NGOs and academic institutions received funding from both donor government agencies and the EU.
Financial flows between first and second recipients are much less complex, with funding going to two secondary recipients: the Research Center for Forest Ecology and Environment (RCFEE) and SNV-Vietnam.
A Portion of the USAID funding is provided via a regional program – LEAF, Lowering Emissions in Asia’s Forests – spanning six countries, namely Vietnam, Cambodia, Laos, Thailand, Papua New Guinea, and Malaysia. For the purpose of tracking REDD+ finance in Vietnam under this initiative, the total amount contributed by USAID to the LEAF program was divided equally among the six countries, representing an approximate amount of support received by Vietnam. REDDX will seek to provide further detail in subsequent data updates.
Between 2009 and 2012, cumulative commitments increased by 519% from US$11.7 million to US$72.4 million. This is primarily due to an exponential increase in commitments in 2012, mostly coming from the UN-REDD Programme and USAID. Cumulative disbursements increased at a fairly steady rate from 2009 to 2011. However, the overall disbursement percentage fell between 2011 and 2012 due to the large increase in commitments for multi-year grants.