Although still new, the fund is expected to become a "lever" to help localities protect the value of the capital's "green lungs".

New financial tools
Hanoi currently has nearly 27,100 hectares of forest and forestry land, distributed across 25 communes and wards. Many of these areas are protected and special-use forests, playing a crucial role in climate regulation, water resource protection, and biodiversity conservation in the urban core. However, for many years, forest management and protection have faced numerous difficulties due to limited state budget resources, while the need for reforestation, regeneration, fire prevention and control, and environmental protection of forests has grown significantly. Therefore, the establishment of the Hanoi City Forest Protection and Development Fund is considered a necessary step, creating a financial framework to mobilize additional social resources for the goal of sustainable forest development.
Mr. Nguyen Van Chuan (an official from the Hanoi Forest Protection and Development Fund) stated: “The fund has just been established, and its immediate focus is on developing operating regulations, revenue and expenditure procedures, and a database to support payments for forest environmental services. We hope the fund will be a transparent and stable financial tool, providing people and communities with additional resources to support their connection with the forest. When people can make a living from the forest, they will protect it better.”
According to Decree No. 156/2018/ND-CP, dated November 16, 2018, of the Government detailing the implementation of several articles of the Forestry Law, the entities required to pay for forest environmental services include: hydropower plants, clean water production facilities, ecotourism businesses, and industrial facilities using water from forest watersheds. This mechanism not only creates a stable source of revenue for the fund but also encourages organizations and businesses to be more aware of their responsibility to protect the environment during production and business activities. In addition to mandatory payments, the fund also receives sponsorships, aid, and voluntary contributions from domestic and foreign organizations and individuals, as well as support from the Central Forest Protection and Development Fund.
"We aim for all revenue and expenditure to be publicly and transparently disclosed, ensuring that the money reaches the hands of those who protect the forests," Mr. Nguyen Van Chuan informed.
Towards transparent and modern forest management.
As one of the areas with a large forest area in Hanoi, Ms. Nguyen Thi Huong Giang, Deputy Head of the Economic Department of Huong Son commune, said that the establishment of the Forest Protection and Development Fund is a correct policy and is of great interest to the people. Once the fund is operating stably, the funding for forest environmental services will help the community and households contracted to manage and protect the forest to have additional income, thus feeling secure and committed to the forest. Huong Son currently has more than 2,900 hectares of forest and forestry land, including 2,712 hectares of natural forest, 156 hectares of planted forest, and 56 hectares of non-forested area. All of it is special-use forest; with adequate support, forest protection will be much more proactive and effective.
In Trung Gia commune, according to the 2024 forest development plan, there are nearly 2,088 hectares of forest and forestry land, including more than 1,364 hectares of forest. According to Bui Thi Thuy Ngan, Head of the Economic Department of Trung Gia commune, for many years, forest management has mainly relied on the budget and the voluntary participation of the people. With the establishment of a fund, the payment for forest environmental services will create new incentives, encouraging people to participate more actively. At the same time, this will also provide the local government with additional resources to maintain forest patrols, tree planting, and fire prevention and control activities.
According to local authorities, the fund not only has financial significance but also helps change community awareness about the value of forests. When people understand that preserving forests also contributes to socio-economic development and environmental protection, conservation efforts will be more sustainable.
According to Bui Huy Khoi, Deputy Director of the Hanoi City Forest Protection and Development Fund, in the initial phase, the unit will coordinate with communes with forests to review the area, identify eligible recipients, and organize training and guidance on forest environmental service policies. "We hope that localities will proactively cooperate and work together so that the fund truly becomes a resource for the grassroots level, rather than just remaining a financial model on paper," Mr. Bui Huy Khoi said.
Despite being newly established, the Hanoi City Forest Protection and Development Fund has set a goal of quickly implementing foundational activities, prioritizing the development of a digital database on forest area, forest owners, and payment recipients to ensure transparency, accountability, and ease of monitoring.
From a local perspective, communes with forests have expressed their desire for the fund to be put into operation soon, providing them with additional funding to support forest protection forces, purchase fire prevention and fighting equipment, and organize awareness campaigns. Bui Thi Thuy Ngan, Head of the Economic Department of Trung Gia Commune, stated: “We hope the city will soon provide guidance on the payment mechanism so that communes can implement it. With a stable fund, forest protection efforts can be sustained in the long term.”
According to the Forest Protection Department (Hanoi Department of Agriculture and Environment), the establishment of the Forest Protection and Development Fund not only creates a new financial mechanism but also demonstrates the city's determination to develop a green, clean, and sustainable capital. The Fund will serve as a bridge between businesses, citizens, and the State in a joint effort to preserve forests. Every organization and individual can contribute – whether financially, through effort, or through a sense of responsibility – to protecting their own living environment. In particular, once the mechanism is perfected, the fund increases, and it operates stably, localities will have more resources to plant trees, regenerate forests, restore ecosystems, and contribute to increasing forest cover and reducing greenhouse gas emissions. Furthermore, this will be the foundation for Hanoi to fulfill its commitment to developing a green city, adapting to climate change, and aiming for net-zero emissions by 2050.
Source: https://hanoimoi.vn/ha-noi-huy-dong-nguon-luc-de-bao-ve-rung-723218.html







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