The Vietnam Administration of Forestry (VNFOREST) aims to collect 2.8 trillion VND (121.7 million USD) from forest environmental services this year.
According tzo VNFOREST Deputy Director Pham Van Dien, forest carbon sequestration and emission reduction services, a new feature of 2021, will add between 300 to 500 billion VND to the sector’s annual income from environmental services.
Last year, the revenue from those services stood at 2.56 trillion VND, meeting 91 percent of the yearly target
The number fell short of expectation due largely to severe water shortage taking place at large hydropower reservoirs between the fourth quarter of 2019 and the second quarter of 2020, said the Vietnam Forest Protection and Development Fund (VNFF). The shortage affected business performance of hydro power companies.
In addition, complicated developments of the COVID-19 pandemic locally and globally last year directly impacted businesses employing these services.
The fund added revenues from forest environment services supported 226 forest management boards and 138,000 forest owners, while creating incomes for 81 forestry companies and livelihoods for more than 172,000 families in mountainous areas.
According to Dien, forest environmental services income are now mainly sourced from hydropower plants and firms producing clean water.
Experts recommended collecting environment service fees from other sources like ecotourism businesses, industrial production establishments, and aquaculture facilities./.
- Vietnam's wood exports decrease as inflation increases
- Vietnam's wood industry: Lower growth rate than expected
- Russia-Ukraine conflict adversely impacts Vietnamese wood industry
- Russia-Ukraine war impacts wood industry
- Vietnam sets ambitious $20 billion wood export target for 2025
- Timber industry urged to go digital amid long-term impacts of COVID-19
- Fearing anti-dumping lawsuits, VN wooden furniture firms diversify markets
- Vietnam factories rethink 'sleepover' approach to stopping COVID