What are regulations on use and management of payments for ecosystem services (PES) in Vietnam?

1. What are regulations on use and management of payments for ecosystem services (PES) in Vietnam?

Article 127 of Decree 08/2022/ND-CP stipulates use and management of payments for ecosystem services (PES) in Vietnam as follows:

1. The ecosystem service provider is entitled to decide to use PES after discharging financial obligations to the State as prescribed by law.

2. If the entity specified in Article 122 of this Decree is the wildlife sanctuary management board or organization assigned to manage, protect, maintain and develop the ecosystems as prescribed by law, after deducting reasonable costs of preserving, maintaining and developing the ecosystems as prescribed in clause 3 of this Article, the remaining PES shall be transferred to the provincial environment protection fund or VEPF if the local authority has yet to establish a provincial environment protection fund for the purposes of coordination and protection, maintenance and development of other ecosystems within the province.

3. Reasonable costs of preserving, maintaining and developing ecosystems include:

a) Cost of organizing the implementation of the PES scheme;

b) Payments for the party preserving, maintaining and developing ecosystems under a package contract;

c) Cost of inspection, supervision, production of statistics on, inventory and assessment of ecosystems;

d) Cost of ecosystem restoration;

dd) Payments for the authorized environment protection fund specified in point c clause 5 of this Article;

e) Other expenditures directly serving preservation, maintenance and development of ecosystems as prescribed by law.

4. The authorized environment protection fund shall make a plan for collection and use and estimate of expenditures of management of PES by the authorization method as follows:

a) Check the accuracy of the area at which ecosystem services are provided; make a list of ecosystem service providers;

b) Consolidate plans to make PES of ecosystem service users;

c) Prepare a plan for collection and use of PES; estimate of expenditures on management of PES in the fourth quarter every year; submit them to the Minister of Agriculture and Rural Development (if the authorized environment protection fund is the VEPF) or to the provincial People’s Committee (if the authorized environment protection fund is the provincial environment protection fund) for decision;

d) Notify the plan for collection and use of PES to the ecosystem service provider as prescribed by law.

5. The determination and coordination of PES for ecosystem service providers made with authorization shall be carried out as follows:

a) Before March 31, according to PES actually collected in the previous year and result of determination of the area eligible for payment, the director of the authorized environment protection fund shall determine the PES made to the ecosystem service providers in the previous year so as to coordinate and make PES to the ecosystem service providers;

b) Before April 15, the authorized environment protection fund shall notify the ecosystem service provider of the PES;

c) The authorized environment protection fund is entitled to deduct no more than 10% of the total PES made with authorization to serve the activities specified in clause 6 of this Article.

6. The deducted amounts for the authorized environment protection fund shall be used to provide for additional expenditures on operation of the authorized environment protection fund in direct support of ecosystem service payment under the guidance of the Ministry of Finance.

7. MONRE shall promulgate form of a consolidated plan to make PES of ecosystem service users; form of a plan for collection and use of PES; form of an estimate of expenditures on management of PES; form of a notification of PES issued by the authorized environment protection fund to the ecosystem service provider prescribed in points b and c clause 4, points a and b clause 5 of this Article.

2. What are rights and obligations of ecosystem service providers in Vietnam?

Article 128 of Decree 08/2022/ND-CP stipulates rights and obligations of ecosystem service providers as follows:

1. Reserve the right to request ecosystem service users to pay for ecosystem services according to this Decree and other relevant regulations of law.

2. Have the obligation to use PES for their intended purposes specified in clauses 1, 2 and 3 Article 127 of this Decree.

3. Have the obligation to maintain the area at which ecosystem services are provided and ensure quality of provided ecosystem services under regulations of law and signed PES contracts.

4. Have obligation to formulate their internal PES schemes as prescribed in clauses 4 and 5 Article 124 of this Decree before entering into contracts with ecosystem service users; send 01 scheme to the provincial specialized environmental protection authority for supervision and management purposes.

5. Exercise other rights and obligations as prescribed by law.

3. What are rights and obligations of ecosystem service users in Vietnam? 

Article 129 of Decree 08/2022/ND-CP stipulates rights and obligations of ecosystem service users in Vietnam as follows:

1. Be informed of the maintenance, protection and development of ecosystems within areas where ecosystem services are provided and results thereof; be informed of the area and status of ecosystems assessed by ecosystem service providers.

2. Be entitled to participate in the process of formulating a plan for, carrying out, inspecting and supervising protection and development of ecosystems within areas where ecosystem services are provided.

3. Request an ecosystem service provider to adjust PES in case where it fails to adhere to the signed contract in terms of the area or status of the ecosystem for which the ecosystem service users has made respective payments.

4. Sign contracts and declare PES payable to the authorized environment protection fund in case of making PES with authorization.

5. Take legal responsibility for the accuracy of information provided as the basis for determining the level of PES.

6. Make PES sufficiently and by the deadline specified in the signed PES contract.

7. Participate in protecting ecosystems in areas where ecosystem services are provided; take measures to prevent and control impacts of production and business activities on ecosystems and take responsibility for restoration of ecosystems if they are affected.

8. Be notified by the authorized environment protection fund of results of payment for ecosystem services made with authorization to ecosystem service providers in case of making PES with authorization.

Best Regards!