VIETNAM TROPICAL FOREST AND BIODIVERSITY ANALYSIS (FAA 118 &119) Report for Country Development Cooperation Strategy (CDCS): 2020-2025

July 2019; final revised December 2019

This document was produced by and for the United States Agency for International Development. It was prepared by staff of the USAID Bureau for Asia, U.S. Forest Service, and USAID/ TEAM COMPOSITION AND ACKNOWLEDGEMENTS: The team was led by the Forestry and Climate Change Specialist of the USAID Asia Bureau’s Office of Technical Services and composed of the US Forest Service Pacific Southwest Regional Wildlife Ecologist, the US Forest Service International Programs Vietnam Program Specialist, USAID/Vietnam Environment and Social Development Office Team Lead, USAID/Vietnam Environment and Social Development Office Senior Environment Advisor, USAID/Vietnam Program Development Office Program Specialist, and US Forest Service International Programs Vietnam In-Country Coordinator. We were assisted by and gratefully acknowledge the valuable contributions of La Thi Huyen Nga, USAID/Vietnam Program Development Office Administrative Assistant and Bui Phuong Thuy, USAID/Vietnam Environment and Social Development Office Administrative Assistant for their administrative and logistical support, as well as the leadership guidance of Mission Director Michael Greene and Deputy Mission Director Craig Hart, Program Development Office Director Jeremiah Carew and Deputy Director Christine Gandomi, Environment and Social Development Office Director Chris Abrams, and the many stakeholders from all levels of government, academe, civil society, and local communities with whom we met. A very special thank you goes to our colleagues from the Ministry of Agriculture and Rural Development who accompanied us throughout the field portion of the analysis and contributed immeasurably to the successful conduct of the analysis, and to the team from the Institute of International Education who worked around many schedules to arrange a large number of meetings in a short time frame.

FRONT COVER PHOTO CREDITS: Nguyen Manh Phuc; VietnamWildlife.org

DISCLAIMER: This report is made possible by the support of the American people through the United States Agency for International Development (USAID). The authors’ views expressed in this report do not necessarily reflect the official positions of USAID, the U.S. Forest Service, or the United States Government.

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VIETNAM TROPICAL FOREST AND BIODIVERSITY ANALYSIS (FAA 118 & 119) Report for Country Development Cooperation Strategy (CDCS): 2020-2025

July 2019; final revised December 2019

Todd R. Johnson, Team Leader Forestry and Climate Change Specialist Environmental Security & Resilience team Office of Technical Services, USAID/Asia Bureau Sarah Sawyer, Lead Author Regional Wildlife Ecologist Pacific Southwest Region U.S. Forest Service Julie Hundersmarck, Vietnam Country Program Manager International Programs Office U.S. Forest Service Khuong Tran Chinh, Climate Change Specialist Environment and Social Development Office USAID/Vietnam Scott Bartos, Environment Officer Environment and Social Development Office USAID/Vietnam Dung Pham Thi Le, Development Program Specialist Program Development Office USAID/Vietnam Huynh Van Thuong, Vietnam Country Program Coordinator International Programs Office U.S. Forest Service

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ACRONYMS

ADB Asian Development Bank ADS Automated Directive System (USAID) CBD Convention on Biological Diversity CDCS Country Development Cooperation Strategy CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora CMS Convention on Migratory Species CWT Countering Wildlife Trafficking FAA Foreign Assistance Act, as amended FAO Food and Agriculture Organization of the United Nations FRA Forest Resources Assessment [periodic global review of the state of the world’s forests and their attributes] GDP Gross Domestic Product GNI Gross National Income GVN Government of the Socialist Republic of Viet Nam Ha Hectare [10,000 square meters or 2.47 acres] HDI Human Development Index IBAT Integrated Biodiversity Assessment Tool ILAT Illegal Logging and Associated Trade IUCN International Union for the Conservation of Nature IUU Illegal, Unregulated and Unreported (fishing) KBA(s) Key Biodiversity Area(s) km2 Square Kilometers [1 km2 = 100 hectares or 247 acres] MARD Ministry of Agriculture and Rural Development MEA(s) Multilateral Environmental Agreement(s) METT Management Effectiveness Tracking Tool MKBA(s) Marine Key Biodiversity Area(s) MoNRE Ministry of Natural Resources and Environment MPA(s) Marine Protected Area(s) NGO(s) Non-Governmental Organization(s) PA(s) Protected Area(s) PFES Payments for Forest Environmental Services UNESCO United Nations Educational, Scientific, and Cultural Organization UNFCCC United Nations Framework Convention on Climate Change USAID United States Agency for International Development

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I. TABLE OF CONTENTS ACRONYMS ...... IV EXECUTIVE SUMMARY ...... VII A. INTRODUCTION ...... VII B. STATUS OF FORESTS AND BIODIVERSITY ...... VII C. PRINCIPAL THREATS AND DRIVERS OF DECLINING QUALITY ...... VII D. PRIORITY ACTIONS FOR FOREST AND BIODIVERSITY CONSERVATION ...... VIII E. OPPORTUNITIES FOR CONTRIBUTING TO STRATEGIC PRIORITIES ...... VIII I. INTRODUCTION ...... 1 A. PURPOSE OF THE ANALYSIS ...... 1 B. METHODOLOGY FOR THE ANALYSIS ...... 1 II. VIETNAM CONTEXT FOR CONSERVATION ...... 2 A. BIOPHYSICAL SETTING ...... 2 1. Climate and its dynamics ...... 2 2. Major ecosystem types ...... 3 B. SOCIOECONOMIC CONTEXT ...... 3 C. GOVERNANCE CONTEXT ...... 4 D. POLICY AND LEGAL FRAMEWORK ...... 5 1. International agreements ...... 5 2. National laws, policies, and strategies ...... 6 E. GOVERNMENT AGENCIES AND THEIR RESPONSIBILITIES ...... 8 1. Ministry of Natural Resources and Environment ...... 8 2. Ministry of Agriculture and Rural Development ...... 9 3. Other ministries with conservation responsibilities ...... 10 F. PROTECTED AREAS SYSTEM ...... 10 III. STATUS AND TRENDS OF FORESTS AND BIODIVERSITY ...... 11 A. TROPICAL FORESTS OF VIETNAM ...... 11 1. Major forest types...... 11 2. Status and trends ...... 11 B. BIODIVERSITY OF VIETNAM ...... 13 1. Terrestrial ecosystems ...... 14 2. Coastal and marine ecosystems ...... 16 3. Endangered species...... 17 IV. THREATS TO FORESTS AND BIODIVERSITY ...... 19 A. PRINCIPAL THREATS ...... 19 1. Land use change and habitat conversion ...... 19 2. Illegal hunting and wildlife trafficking ...... 20 3. Illegal logging ...... 20 B. DRIVERS AND ENABLERS OF THREATS TO FORESTS AND BIODIVERSITY ...... 20 1. Drivers ...... 20 2. Enablers ...... 21 V. ACTIONS NECESSARY FOR CONSERVATION IN VIETNAM ...... 22 A. PRIORITY ACTIONS IDENTIFIED BY THE GOVERNMENT ...... 22 1. Direct interventions ...... 22 2. Enabling interventions ...... 23 B. PRIORITY ACTIONS IDENTIFIED THROUGH THE ANALYSIS ...... 23 1. Develop functional models for co-management of natural resources ...... 23 2. Improve information systems and their use for evidence-based decisions ...... 24 3. Diversify options for sustainable economic models ...... 26 4. Strengthen application of legal frameworks at subnational levels ...... 26 5. Build capacity among public and private managers at landscape scales ...... 26 6. Strengthen incentives toward more sustainable wood supply chains ...... 27

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7. Engage civil society organizations and private sector in conservation ...... 27 VI. EXTENT TO WHICH USAID/VIETNAM MEETS THE NEEDS IDENTIFIED ...... 28 A. OVERVIEW OF CURRENT AND PLANNED USAID PROGRAMS IN VIETNAM ...... 28 1. Enabling business environment and private sector development ...... 29 2. Addressing war legacies ...... 29 3. Protecting the environment ...... 29 4. Improving health ...... 30 B. OPPORTUNITIES FOR USAID PROGRAMMING IN VIETNAM TO CONTRIBUTE TOWARD CONSERVATION OF FORESTS AND BIODIVERSITY ...... 30 1. Economic competitiveness increased ...... 30 2. Prevention and control of infectious diseases increased ...... 31 3. Environmental security increased ...... 31 VII. CONCLUSIONS AND RECOMMENDATIONS ...... 32 VIII. ANNEX 1: PEOPLE CONSULTED ...... VIII:1 IX. ANNEX 2: FOREIGN ASSISTANCE ACT OF 1961, AMENDED SECTIONS 118 AND 119 .. IX:1 A. SEC. 118. [22 U.S.C. 2151P–1] TROPICAL FORESTS...... IX:1 B. SEC. 119.[22 U.S.C. 2151] ENDANGERED SPECIES.—...... IX:3 X. ENDNOTES ...... X:1

II. TABLE OF FIGURES Figure 1 Physical relief map of Vietnam ...... ix Figure 2: Tectonics of southeast Asia ...... 2 Figure 3: Topography of Vietnam ...... 2 Figure 4: Population pyramid of Vietnam (estimated 2019) ...... 3 Figure 5: Administrative map of Vietnam ...... 4 Figure 6: Temple in Trang An Landscape Complex ...... 6 Figure 7: Total forest cover in Vietnam (2014-2018) ...... 11 Figure 8: Area of production forest in Vietnam (2014-2018)...... 11 Figure 9: New planted forests in Vietnam 2005-2017 by forest use-type ...... 12 Figure 10: Elements in the Vietnam Timber Legality Assurance System ...... 13 Figure 11: Bengal florican (Houbaropsis bengalensis) ...... 14 Figure 12: Water pollution in Vietnam ...... 15 Figure 13: Quang Binh is home to hundreds of limestone karst caves ...... 15 Figure 14: Dugong (Dugong dugon) near Phu Quoc island, Kiên Giang province ...... 16 Figure 15: Crown-of-thorns starfish (Acanthaster planci)...... 17 Figure 16: Critically Endangered Tonkin snub-nosed monkey (Rhinopithecus avunculus) ...... 18 Figure 17: Snares removed by protected area patrol staff in habitat ...... 18 Figure 18: Programmatic gradations toward integrating conservation into development programs ...... 28

III. TABLE OF TABLES Table 1: Major multilateral environmental agreements with Vietnam’s participation ...... 5 Table 2: Eight major river basins of Vietnam ...... 14 Table 3: Area of coral reefs in Vietnam’s coral regions (2014 data) ...... 16 Table 4: Summary of extinction risk assessment results for Vietnam ...... 17 Table 5: Direct conservation actions identified in the Vietnam National Biodiversity Strategy ...... 22

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EXECUTIVE SUMMARY This document is the report of an analysis required by law to be conducted by USAID as input to its periodic review and preparation of country strategies. USAID/Vietnam is undertaking such a strategic planning process and therefore analyzed the current status of and threats to the country’s tropical forests and biological diversity, identified actions necessary to conserve forests and biodiversity, and in this report highlights the extent to which the strategy can address those actions.

A. INTRODUCTION Forests and other natural resources contribute significantly to the economy of Vietnam and the health and wellbeing of its population. Recognizing the importance of its natural capital for sustainable growth, the Government of Vietnam (GVN) has enacted a legal framework for conservation of forests and biodiversity, including environmental protection, land use, water resources, and fisheries. Many GVN programs are working to slow the pace and scale of forest and biodiversity degradation.

B. STATUS OF FORESTS AND BIODIVERSITY Forest area of Vietnam was estimated to be 14.5 million hectares, or 44% of the total land area in 2018, with roughly 4.1 million hectares of plantations. Generally, forest cover is increasing, with the most rapid growth being in production forests. Forest quality, however, is widely described as decreasing; that is, there is a trend of highly-diverse natural forests being displaced or degraded, with a loss of plant and animal biodiversity in those forests. Vietnam is ranked as the 16th most biodiverse country in the world, as complex topography and varied climate results in a wide variety of terrestrial and freshwater ecosystems that support a great diversity and endemism of species. However, much of Vietnam’s biodiversity remains unknown, with a huge gap in knowledge of terrestrial and especially marine biodiversity. Despite this lack of information, it is widely reported that biodiversity in Vietnam is in precipitous decline; the country is a victim of the “empty forest syndrome” where forest cover remains, but the wildlife it supports is disappearing.

C. PRINCIPAL THREATS AND DRIVERS OF DECLINING QUALITY Most of the threats and drivers identified have not changed from those identified in previous analyses. The principal threats remain land-use change or habitat conversion (through smallholder encroachment, commercial agribusiness, and infrastructure development) and degradation of ecosystems through poaching, illegal wood cutting, and invasive alien species.

FOREST AND HABITAT CONVERSION: Economic pressures to convert forest land to other uses remain high. Poverty, migration, and a lack of livelihood opportunities in rural areas continue to drive small- holder conversion of forests to agriculture. Infrastructure developments – generally for roads or hydro- electric generation – convert or fragment habitat and increase access to areas that previously were less accessible. The large and growing wood product industry puts increasing demand on timber production, leading to conversion of natural forest to production forest and short-rotation plantations. Generally, land conversion poses the most severe threat in buffer zones, especially in areas outside of Special Use Forests such as National Parks.

POACHING AND ILLEGAL TRADE: In addition to habitat conversion, Vietnam faces and extensive threat to its biodiversity from illegal hunting, wildlife trafficking, and logging. Vietnam is a significant consumer of wildlife, particularly wild meat, and especially in urban areas. Widespread poaching helps to meet this demand. Recent advances in snaring techniques using bicycle wires have increased the efficiency of wildlife hunting. At the same time, Vietnam is a major transit route and regional supplier of wildlife products, ranking fourth globally in wildlife trafficked through air transport. Southeast Asia is a hub for wildlife trade, with Vietnam’s illegal wildlife trade generating estimated annual revenues of US$67 million.

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The illegal cutting of wood for timber and fuel was reported in about half of all consultations, yet no reliable data exist on the extent of this phenomenon. Much of the illegal logging focus in recent years has been on Vietnam’s role as an importer of illegal timber to supply its burgeoning furniture industry. Vietnam’s high demand for raw material to feed its booming furniture industry poses risks to timber exporting countries as far away as the Democratic Republic of the Congo (cf. Illegal logging on pg 20).

D. PRIORITY ACTIONS FOR FOREST AND BIODIVERSITY CONSERVATION Synthesizing information from consultations and review of scientific literature and stakeholder reports, the team identified the following as priority actions necessary for further conservation in Vietnam: 1. Develop functional co-management models that provide resource tenure clarity, expand options for rural livelihoods, mobilize domestic resources, and improve natural resource governance. 2. Improve systems for data and information and its credibility for use – to include methods and tools for data gathering, compilation, analysis, and application for evidence-based decisions. 3. Diversify options for sustainable economic models for rural livelihoods, commercial enterprises, and key macroeconomic sectors; to include addressing rapid declines in environmental health. 4. Increase application of clear, unambiguous legal frameworks, especially to the “last mile” users, with a focus on implementing guidance and interpretation of laws and regulations for working level staff. 5. Build natural resource management capacity and coordination among public and private managers and their staff, particularly at sub-national levels (province, district, commune) and landscape scales. 6. Strengthen and more widely apply incentives toward more sustainable wood supply chains, perhaps linked to the Voluntary Partnership Agreement process being led by the European Union.

E. OPPORTUNITIES FOR CONTRIBUTING TO STRATEGIC PRIORITIES Congress requires USAID to address in its country strategic planning the extent to which Mission programs can contribute toward the necessary actions listed above. Opportunities that align with U.S. and Vietnamese strategic priorities while also contributing toward conservation include the following: 1. Support improved environmental governance in a context of fast economic growth among small and medium enterprises (SMEs), and their linkages to global value chains. Promoting sustainable SMEs through consideration of sustainable use of natural resources and protection of natural environment, has potential to help Vietnam achieve its goal to become an upper middle income country in an environmentally responsible way. 2. Support environmental awareness at all levels of education to encourage sustainable management of the environment and natural resources. 3. Adopt and implement a risk management approach to customs and specialized inspection agencies to prevent and curb wildlife trafficking across borders. 4. Strengthen provincial leaders’ abilities related to environmental management and safeguards, law enforcement, and improved environmental governance at the provincial level. 5. Expand biodiversity and sustainable landscapes programming to the extent feasible into additional areas of high conservation value. 6. Capitalize on the success of the Payment for Forest Environmental Services (PFES) program to more fully link local residents’ payments to conservation performance at nationwide scale. 7. Support and engage civil society organizations and private sector entities in conservation. This may entail helping local CSOs to attain legal recognition of their roles and conservation responsibilities. This “extent to which” also needs to factor in U.S. foreign policy priorities and the national development priorities of Vietnam. The relevant U.S. foreign policy priorities for this strategic planning period are the Indo-Pacific Strategy and the Journey to Self-Reliance. Vietnamese development priorities are described in the Socio-Economic Development Strategy for the Period of 2011-2020.

viii Vietnam Tropical Forest & Biodiversity Analysis – 2019

Figure 1 Physical relief map of Vietnam Source: Perry-Castañeda Library Map Collection, University of Texas at Austin

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I. INTRODUCTION This document is the report of an analysis conducted by USAID to assess the actions needed in Vietnam to conserve tropical forests and biological diversity, and the extent to which the current or proposed activities of USAID/Vietnam could meet the needs identified by the analysis. The last Vietnam Tropical Forest and Biodiversity assessment was completed in 2013. That analysis1 was conducted by the Global Environmental Management Support project, consisting of a team from Sun Mountain International and Cadmus Group, Inc. in collaboration with the International Union for Conservation of Nature, Vietnam. The report from that analysis summarized information on Vietnam’s forests and other ecosystems, identified nine causes of ecosystem degradation and loss of biodiversity, and recommended eight priority actions for improving environmental governance, in-situ conservation, and financing of the actions. The degree to which those recommendations have been undertaken by USAID/Vietnam during the current CDCS implementation period will be described later in this report.

A. PURPOSE OF THE ANALYSIS The results reported in this document are intended to guide USAID/Vietnam in taking tropical forests and biodiversity concerns into consideration for its programs under a Country Development Cooperation Strategy (CDCS) (2020-2025)2. The strategy is being formulated to provide overall strategic direction to the partnership of the United States and Vietnam during the CDCS period and reflects U.S. and Vietnamese policy directions. Sections 118 (Tropical Forests) and 119 (Endangered Species) of the Foreign Assistance Act (FAA) of 1961, as amended, require USAID to complete this country analysis as part of formulating country strategies, in recognition of the critical roles that tropical forest ecosystems, and biological diversity in all ecosystems, play in facilitating sustainable development. This analysis also is intended to comply with policy guidelines under mandatory reference ADS 201mav.

B. METHODOLOGY FOR THE ANALYSIS Methods for the analysis included a comprehensive review of scientific literature, recent reports, and other documents from a host of national and international organizations, as well as relevant decrees, circulars and reports issued by the Government of Vietnam (GVN), which were kindly shared by GVN counterparts; consultations with national and provincial officials of GVN agencies with responsibility for conservation and management of Vietnam’s natural resources; and interviews with experts from civil society, research institutions, and other relevant organizations. After a week of meetings and interviews in , the team split into two groups for field consultations in the provinces of Quảng Ninh, Thanh Hóa, Quảng Trị, Thừa Thiên-, Quảng Nam, and Lâm Đồng.i These included meetings with representatives from provincial Departments of Agriculture and Rural Development and Provincial Forest Protection Departments, plus visits to Cat Tien National Park, Bi Dup Nui Ba National Park, Bac Huong Hoa Nature Reserve, and Xuan Lien Nature Reserve. The two groups then reconvened as a team for further meetings in DaNang and a synthesis session to outline our collective conclusions related to the extent to which Vietnam’s forests and biodiversity have increased or declined, along with forming consensus on the primary threats and drivers of those changes and the priority actions needed for conservation. A full list of those with whom we met is in Annex 1. Given the complexity of Vietnam’s cultural, political, legal and institutional landscapes, the team decided to focus on important issues and evidence-based trends in producing a report that is as accurate as was feasible within time limitations. We accept responsibility for any misinterpretation of inputs generously provided by those with whom we consulted, or of documents we read.

i The provinces are written in this first instance using their proper Vietnamese names; hereafter, we use anglicized spellings.

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II. VIETNAM CONTEXT FOR CONSERVATION This section frames the context for the analysis, providing a brief introduction for readers unfamiliar with Vietnam. The overview includes endnotes with hotlinks for those who want additional details on any of the aspects of the national context. The section covers five categories of overview: biophysical setting, socioeconomic context, governance context, legal framework, and GVN institutional roles.

A. BIOPHYSICAL SETTING The Socialist Republic of Vietnam makes up the eastern boundary of the Indochina peninsula in south-east Asia (Figure 1), extending 1,650 km between 8˚10’ and 23˚24’ degrees North latitude and between 102˚09’ and 109˚30’ East longitude.3 It is 600 km across at its widest point in the north and 50 km at its narrowest, in the central province of Quảng Bình, and bordered on the north and west by China, , and . Most of the country south of the Black River (Song Da) sits on the Gondwana-derived Indochina continental block,4 while areas north of the Song Da sit on the South China Block (Figure 2).5 Vietnam’s topography consists of a mountainous north bisected by the Red River and its delta, a spine along the western border with Laos (Annamite Range or Dãy Figure 2: Tectonics of southeast Asia Trường Sơn) and a narrow coastal Source: Wang et al. 2016 plain, culminating in the Central Highlands plateau (Tây Nguyên) on the Cambodia border, and the River delta in the south (Figure 3). The highest point is Fansipan (Phan Xi Păng) at 3,143 m in Sapa, Lao Cai province close to the China border. Elevations in the northeast, northwest, and Annamites typically are 500-2,500 m, with the Central Highlands having only a few peaks of 2,000 m or more. Only 20-25% of Vietnam is flatland.6 Underlying basalt, granite, karst, and sedimentary rocks produce coal, cement, chromite, phosphate, gold, iron ore, and other mineral resources.7

1. CLIMATE AND ITS DYNAMICS Vietnam’s climate is generally tropical monsoonal yet varies with latitude and topography. Temperatures in the northern mountains Figure 3: Topography of Vietnam average 10-16° C in winter months and 22-27.5°C in summer Source: de Queiroz et al. 2013 months, while the southern provinces have a more narrow range of 20-30°C throughout the year.8 Rainfall varies widely between 600- 5,000 mm average annual total in different parts of the country. Most areas average 1,400-2,400 mm per year, with northern and mountain areas receiving more than the south. As much as 90% of rain comes during the monsoons, occurring in the north and south from May–October, and in central regions from September–January.9 An average of 6-8 typhoons make landfall each year, accompanied by heavy rains and flooding, high tides and increased storm surges.10

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Climatic changes observed include increased temperatures, especially in northern Vietnam. The World Bank’s Climate Change Knowledge Portal notes that between 1971-2010, the rate of temperature increase in Vietnam was “almost twice the rate of global warming over the same period.”11 The Ministry of Natural Resources and Environment (MoNRE) published a 2016 report noting a 1°C increase per decade in daily high and low temperatures. 12 Paradoxically, the incidence of drought increased even as overall also increases.13 This may be explained by fewer rainfall events of higher intensity. The occurrence of late-season typhoons has also been observed to increase, especially in the south,14 where sea level rise is encroaching into the Mekong delta.15 The Climate Change Annex to the CDCS provides more detail on expected climatic changes and impacts on the USAID investment portfolio.

2. MAJOR ECOSYSTEM TYPES The diverse topography, geology, and climate in Vietnam and the elongated and narrow shape of the country lead to a diversity of ecosystem types and moderately high levels of endemism.16 Vietnam is part of the Indo-Burma biodiversity hotspot – one of 30 areas with irreplaceable yet threatened biodiversity. In its most recent Vietnam National Biodiversity Strategy, MoNRE recognizes 14 terrestrial17 and six marine18 eco-regions. Within its total natural land area of 330,591 km2,19 Vietnam’s lowland forests are characterized by high plant species diversity, while upland forests provide important habitat for many animal species.20 Freshwater ecosystems cover more than 10,000 km including rapidly-flowing mountain streams, meandering rivers, swamps, riparian grasslands, and underground streams.21 Wetland systems have relatively high levels of aquatic biodiversity and are critical habitats for migratory birds. Freshwater biodiversity is under severe threat; an estimated 99% of Vietnam’s natural wetlands have been lost.22 A multitude of lagoons, mangroves, beaches, tidal flats and sandbars stretch along Vietnam’s 3,260 km of coastline23 and its approximately three thousand islands.24 Mangroves are concentrated in the Red River and Mekong Deltas,25 while beaches and dunes are found in the central coastal areas. Vietnam’s marine ecosystems include diverse coastal and offshore habitats, including coral reefs.26 The exclusive economic zone is estimated to be approximately one million square kilometers.27

B. SOCIOECONOMIC CONTEXT Vietnam is a country in transition, both economically and demographically. Official results of the 2019 census show a population of 96.2 million people, growing at 1.14% per year.28 This population is among the most rapidly ageing in Asia;29 life expectancy at birth is 75 years,30 the median age of 32 increased by nearly 10 years since 2000,31 and the ageing index is 43.3 – meaning that there are 43 persons older than 60 for every 100 persons younger than 15.32 These dynamics – low population growth rate along with increasing life expectancy, median age, and ageing – are a result of Vietnam’s economic progress over the past three decades. As the economy industrializes, both birth rates and death rates decline, producing a Stage 3 demographic transition (see Figure 4) toward stability.33 Population density is 290 people/km2, with less than 35% urbanization,34 putting high demands on natural Figure 4: Population pyramid of Vietnam resources and the country’s land base. (estimated 2019) The International Monetary Fund credits macroeconomic stability, declining public debt, lower costs of doing business, reduced corruption, and a healthier, better-educated workforce as factors leading to “rapid, inclusive growth that averaged 6.6 percent per annum during 2014–18 and reached a 10-year high of 7.1 percent in 2018.”35 The World Bank estimates Gross National Income (GNI) per capita in

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2018 at $2,400,36 a nearly six-fold increase since 2000.37 Vietnam is a lower middle-income country whose population living below the national poverty line has been halved in the past decade.38 Human Development Index (HDI) data show a steady increase since 1990, with a 2018 value of 0.694 – ranking Vietnam 116th in the world.39 Improvement was driven by increases in per capita GNI along with gains in life expectancy, years of schooling, and other HDI components. According to the World Bank, almost all of the population uses electricity as their main source of lighting, and access to clean water is 70% in rural areas and 95% in urban areas.40 The Gini Index for Vietnam was 35.5 in 2016,41 indicating reasonable economic equality. The agriculture sector – including forestry and fisheries – is estimated to have contributed 15% to GDP in 2017, while employing 40% of the labor force.42

C. GOVERNANCE CONTEXT The Socialist Republic of Vietnam is a single-party constitutional republic governed by the Communist Party of Viet Nam whose General Secretary heads the Politburo. The GVN is composed of an elected unicameral legislature (National Assembly), whose members elect the President as Head of State. The Prime Minister leads the government. The independent judiciary consists of courts, tribunals and procuracies. There are 58 provinces and five municipalities in eight administrative regions (Figure 8), with 712 districts43 and nearly 10,000 communes providing local governance. Transparency International’s annual corruption perceptions index ranks Vietnam 117th of 180 countries for 2018, with a score of 33 – a very slight improvement from 2017. The country has taken steps in recent years to address a challenge that is “widespread throughout the country”44 yet it persists in the health, education, construction, and land management sectors, including in relation to natural resources and extractive industries.45 Forest governance in Vietnam has shifted in the years since independence from a primary focus on industrial timber exploitation in the 1970s and 1980s to forest protection and conservation beginning in the 1990s as the country ranked among those with both the highest deforestation rates and reforestation rates.46 A logging ban was introduced on natural forest and large tracts of forest areas were re-designated from production to protection. In total, about two million hectares of production forest became protected forest earmarked for biodiversity conservation and watershed protection.47 The GVN identified Forest Management Boards with a new forest protection mandate in key areas throughout the country. Yet, even with a new focus on reforestation and protection, outstanding problems in the forestry sector have persisted. In October 2018, the GVN and the European Union signed a voluntary partnership agreement (VPA) on forest law enforcement, governance and trade (FLEGT). The goal of the agreement is to use a timber legality assurance system and FLEGT licensing to verify timber imported into the EU from Vietnam as being legally and sustainably harvested.48 In addition to promoting trade in legal timber, the VPA addresses Figure 5: Administrative map of Vietnam Source: VectorStock.com/24999183 the causes of illegality by improving forest governance.

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Though Vietnam has clearly committed to improving forest governance and combating illegal logging, the Environmental Investigation Agency estimates that at least 178,119 m3 of illegally logged and traded Cambodian timber worth $75.8 million crossed the border to Vietnam during the 2017-18 logging season.49 Given that Vietnam “imports timber from more than 80 countries for processing and re- export…control of imported timber to ensure it is legally harvested is a key part the timber legality assurance system Vietnam is developing.”50

D. POLICY AND LEGAL FRAMEWORK This section describes international and national laws that are most relevant to this analysis, as well as the key government agencies responsible for their implementation.

1. INTERNATIONAL AGREEMENTS According to the International Environmental Agreements Database, Vietnam has taken action on 246 Agreements (including treaties, amendments, and protocols) consisting of: 21 signatures; 62 ratifications, accessions, successions, or similar; and 232 active or tacit entries into force. Table 1 shows the major agreements that are related to this analysis.

Table 1: Major multilateral environmental agreements with Vietnam’s participation Most recent report or MEA Name Vietnam MEA description other official (chronology) participation submission [date] Convention on Wetlands The Ramsar Convention provides the framework for Ratified 20 Sep 1988 COP 13 National Report of International national action and international cooperation for the [01 Mar 2018] Importance Especially as conservation and wise use of wetlands and their Waterfowl Habitat (1971) resources. Convention for The The World Heritage Convention links the concepts of Ratified 19 Oct 1987 State of Conservation Protection of The World nature conservation and the preservation of cultural Eight locations inscribed Report for Ha Long Bay, Cultural and Natural properties and recognizes how people interact with on World Heritage List [30 Nov 2013] Heritage (1972) nature, and the need to preserve the balance (five Cultural, two State of Conservation between the two. Natural, one Mixed) Report for Phong Nha-Ke Bang National Park, [28 Jan 2019] Convention on CITES aims to ensure that international trade in Acceded 20 Jan 1994 Biennial Report 2015- International Trade in specimens of wild animals and plants does not 2017 Endangered Species of threaten their survival Wild Fauna and Flora (1973) United Nations UNCLOS is a comprehensive regime of law and order Acceded 27 Apr 2006 No regular reporting Convention on the Law of in the world's oceans and seas establishing rules required the Sea (1982) governing all uses of the oceans and their resources. Convention on the Control The Basel Convention aims to protect human health Acceded 13 Mar 1995 Electronic reporting of Transboundary and the environment against adverse effects of system national report Movements of Hazardous hazardous wastes, including household waste and for 2015 [16 Apr 2017] Wastes and Their Disposal incinerator ash. [N.B.: covers marine plastics] (1989) United Nations Framework UNFCCC aims to cooperatively consider how to limit Signed 11 Jun 1992 Third National Convention on Climate average global temperature increases and the Ratified 16 Nov 1994 Communication (revised) Change (1992) resulting climate change, and to cope with whatever Kyoto Protocol (ratified [20 Apr 2019] impacts were, by then, inevitable. 25 Sep 2002) Second Biennial Update Agreement Report [n.d. 2017] (ratified 3 Nov 2016) Nationally Determined Contribution [03 Nov 2016] Reference Levels for Redd+ Results Based Payments (modified) [Dec 2016]

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Most recent report or MEA Name Vietnam MEA description other official (chronology) participation submission [date] Convention on Biological CBD has three objectives: conservation of biological Signed 28 May 1993 Vietnam National Diversity (1992) diversity; sustainable use of the components of Ratified 16 Nov 1994 Biodiversity Strategy to biological diversity; and fair and equitable sharing of Cartagena Protocol (21 2020, Vision to 2030 [17 benefits arising out of utilization of genetic resources. Jan 2004) Dec 2015] Nagoya Protocol (23 Fifth National Report [20 Apr 2014) Aug 2014] United Nations UNCCD links environment and development to Acceded 25 Aug 1998 Seventh Performance Convention to Combat sustainable land management, specifically arid, semi- Review and Assessment Desertification (1994) arid and dry sub-humid areas, known as drylands. of Implementation System [n.d. 2018] Stockholm Convention on The Convention seeks to protect human health and Ratified 22 Jul 2002 Electronic Reporting Persistent Organic the environment from chemicals that remain intact in System of the Stockholm Pollutants (2001) the environment for long periods, become widely Convention (3rd report) distributed geographically, accumulate in the fatty [21 Apr 2017] tissue of humans and wildlife, and have harmful impacts on human health or on the environment. Sources: United Nations Information Portal on Multilateral Environmental Agreements (InforMEA);51 and International Environmental Agreements Database52 Nine sites in Vietnam with a total surface area of 120,549 hectares have been officially designated as Wetlands of International Importance (Ramsar sites). [cf. Freshwater ecosystems overview below]. In addition to the two UNESCO World Heritage sites listed in Table 1 (Ha Long Bay and Phong Nha-Kẻ Bàng National Park), others include the Tràng An Landscape Complex mixed natural and cultural site (Figure 6), known for boat tours into its caves as well as temple complexes and Hoa Lu, the imperial capital city of northern Vietnam in the 10th and 11th centuries. The CITES roster of national legislation by each of 183 member states lists Vietnam under Category 1 – meaning that national legislation generally meets all four requirements for implementing CITES. Some of the CITES Appendix 1 species (international trade Figure 6: Temple in Trang An Landscape Complex is permitted only in exceptional circumstances) are discussed Source: Le Lien; ©Trang An below in the section on Endangered species.

2. NATIONAL LAWS, POLICIES, AND STRATEGIES Vietnam’s legal framework for conservation and management of natural resources begins with the apex legal document: The Constitution of the Socialist Republic of Vietnam. Specifically, Article 43 states that “[e]veryone has the right to live in a clean environment and has the duty to protect the environment.”

Article 63 1. The State has a policy to protect the environment; to manage and effectively and stably use natural resources; to protect nature and biodiversity; to take initiative in prevention and resistance against natural calamities and respond to climate change. 2. The State encourages all acts of protection of the environment, development and use of new energy and recycled energy. 3. Organisations and individuals who cause environmental pollution, deplete natural resources and weaken biodiversity shall be strictly dealt with and must be responsible for remedy and compensation for damage.

Article 63 [cf. text box] elaborates on the rights and duties of the State, organizations, and individuals. A series of laws and policies have been promulgated to implement these constitutional mandates. Those

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most directly relevant to this analysis are described next, while the 2013 analysis contains a full listing of laws, policies, decrees, and resolutions in effect at that time.

A) LAW ON BIODIVERSITY (20/2008/QH12) The 2008 Law on Biodiversity codifies Vietnam’s efforts to conserve biodiversity and promote more sustainable development, including provisions on the rights and obligations of organizations, households, and individuals in furthering those efforts. While nearly all provisions in the law are relevant for this analysis, some particularly noteworthy articles include those mandating the sharing of proceeds from exploitation of biodiversity; assuring funding for ecosystem research, biodiversity information databases, and conservation planning; and detailing management systems for different types of protected areas. MoNRE is provided the authority and responsibility to manage biodiversity on behalf of the State, while other ministries and agencies also bear responsibility within their remits; Peoples’ Committees perform these functions at subnational levels.

B) LAW ON ENVIRONMENTAL PROTECTION (55/2014/QH13) Ratified in June 2014, with effect from January 2015, the Law on Environmental Protection provides regulatory authority and powers to MoNRE and other relevant agencies for strategic environmental assessments, environmental impact assessments, remediation, and 10-year environmental planning. The Provincial Peoples’ Committees are responsible for executing these in each province. The law also has provisions specific to extraction and utilization of natural resources, including minerals; pollution of waters (inland and marine), air, or land and soils; and specific types of economic activities such as import facilities, export-processing zones, agriculture and aquaculture, energy production, transport, medical and pharmaceutical facilities, tourism, and other economic sectors. Provisions of the law particularly relevant for this analysis include a mandate to “[c]onserve the biological diversity; extract and use natural resources in a proper and economical manner; develop green and renewable energy”53 and respond to climate change through reduction in greenhouse gasses. In addition, there are prohibitions on obtaining, trading or consuming endangered, protected, or rare species; use of “mass-killing equipment, devices and methods;”54 and off-season or excess hunting.

C) LAW ON MARINE & ISLAND RESOURCES & ENVIRONMENT (82/2015/QH13) A distinct Law on Marine and Island Resources and Environment was ratified in June 2015, with effect from July 2016. This law supplements and complements the Law on Environmental Protection through its emphasis on integrated management of marine, coastal, and island ecosystems in Vietnam.

D) LAW ON FORESTRY (16/2017/QH14) Vietnam’s Law on Forestry (2017), which took effect in January 2019, reflects the GVN’s commitment to improved forest governance. In particular, among other provisions, the new law: • Restricts conversion of natural forests, elevates the importance of national forest planning, and calls for stricter management of the conversion process by allowing logging of natural forests solely in the context of sustainable forest management; • Strengthens legal provisions on forest environmental services and further codifies payments for those services (e.g., carbon services, industrial water use, etc.); • Improves efforts to promote commercial investment in forestry through  Allowing equity stakes in State Forest Enterprises and converting 500,000 ha from SFE to household ownership  Clarifying processes for identifying forest owners, users, and others with forest tenure rights; and  Supporting the control of trade in forest products through Vietnam’s VPA.

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In addition, the law “regulates violations in wildlife trafficking,” expanding the government’s ability to prosecute traffickers and consumers of wildlife products. A Country Forest Note by the World Bank details the implications of some of these provisions and outlines how GVN and Bank will proceed in collaborating toward implementation of the new law.

E) LAW ON FISHERIES (18/2017/QH14) A new Law on Fisheries (2017) also took effect in January 2019, repealing the Law on Fisheries Resources Protection (2003). This law applies to Vietnamese or foreign organizations and individuals engaged in fishery activities in any national waters, as well as Vietnamese engaged in commercial fishing outside the maritime boundary. Noteworthy provisions include inter alia that: • Commercial fishing “shall not exhaust aquatic resources and affect biodiversity”55 while using scientific analysis to determine harvestable volumes; • Fishery activities will adapt to climate change, prevent and control aquatic epidemics and natural disasters, and ensure food safety; • Investment in fisheries will be encouraged through new policies on research and breeding, port and anchorage construction, processing for value addition, and use of new technologies; and • Procedures will be developed for co-management of fishery resources, aquaculture operations, aquatic ecosystems research, and commercial fishing within maritime boundaries The Law on Fisheries also prohibits illegal fishing, including within marine protected areas (MPAs).

E. GOVERNMENT AGENCIES AND THEIR RESPONSIBILITIES This section describes the most important agencies responsible for conservation and management of forests and biodiversity in Vietnam. Generally, national-level agencies are responsible for setting plans and overseeing implementation by relevant levels of government depending on the particular aspect of management. For example, national agencies serve as official advisors to GVN on the international conventions, manage protected areas encompassing two or more provinces, and operate research and training centers. Provincial authorities are responsible for implementing national policies and plans within their jurisdictions. People’s Committees at all levels are charged with implementing state management of biodiversity “within the ambit of their tasks and powers.”56

1. MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT MoNRE is the state agency tasked with national-level administration of laws and policies related to land, water, geology and minerals, environment, hydrology and meteorology, climate change, survey and mapping, and marine waters and islands. MoNRE is also responsible for the management of natural ecosystems aside from forests, including development and management of natural conservation areas in wetlands and limestone ecosystems. Key MoNRE agencies for environment and conservation are:

A) VIETNAM ENVIRONMENT ADMINISTRATION The Vietnam Environment Administration (VEA) oversees on behalf of GVN implementation of the Law on Environmental Protection and the Law on Biodiversity. Subunits of VEA are responsible for specific functions, including the Institute of Science for Environment Management; Institute of Strategy, Policy on Natural Resources and Environment; and the Biodiversity Conservation Agency. The Director General of VEA serves as National Focal Point for the Convention on Biological Diversity, and the Basel and Stockholm conventions, while the Deputy Head of the Ecology Division of VEA serves as National Focal Point for the Ramsar convention.

B) BIODIVERSITY CONSERVATION AGENCY As part of the Vietnam Environment Administration, the Biodiversity Conservation Agency (BCA) is responsible for biodiversity conservation policy and planning. BCA leads development of the National

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Biodiversity Strategy, and develops regulations and other instruments for implementing the CBD in Vietnam such as a system for identifying and classifying areas of high conservation value, setting criteria for biodiversity offsets, and monitoring biodiversity. The agency also leads the development of a national biodiversity database and a program for improving wetland management.

C) OTHER RELEVANT MONRE AGENCIES DEPARTMENT OF METEOROLOGY, HYDROLOGY AND CLIMATE CHANGE generates information and advice in matters related to meteorology and hydrology. It generates weather forecasts, issues early warning advisories, and manages and coordinates activities related to climate change and ozone layer protection. The department is the focal point for UNFCCC and the Montreal Protocol on protection of the ozone layer. Its affiliates include the Viet Nam Meteorological and Hydrological Administration (member of the World Meteorological Organization) and the Institute of Meteorology, Hydrology and Climate Change.

DEPARTMENT OF WATER RESOURCES MANAGEMENT is responsible for management of water resources and river basins, including preparation of a national master plan; classifying water sources and their levels of pollution or other aspects of overall condition of aquifers, rivers, and other water resources; compilation of national reports on water resource statistics; implementing actions to avert and combat pollution, deterioration, or depletion of water; and planning and management of inter-provincial river basins, among other duties.

DEPARTMENT OF ENVIRONMENTAL APPRAISAL AND IMPACT ASSESSMENT is responsible for implementing Vietnam’s environmental impact assessment system.

VIET NAM ADMINISTRATION OF SEA AND ISLANDS leads conservation planning for marine environments.

2. MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT The Ministry of Agriculture and Rural Development (MARD) performs state management functions to develop agriculture and rural areas sustainably, protect natural resources (lands, water and forests) and formulate policies and programs that link agriculture, forestry, fisheries, and irrigation or other water services with rural development for 60 million rural Vietnamese. MARD implements this mandate through national, provincial and district-level implementation entities. At provincial level, Departments of Agriculture and Rural Development (DARDs) are the key agencies responsible for implementing national policies and programs within their respective jurisdictions. The Ministry also is responsible for implementation of CITES in Vietnam, serving as the Management Authority. Under MARD, several line agencies and institutions work on conservation of forests and biodiversity:

A) VNFOREST The Vietnam Administration of Forestry (VNFOREST) has overall responsibility for management and development of forests, including recommending to MARD policies, decrees, ordinances, or resolutions as necessary to perform their functions; formulating long-term strategies and plans for management of state forestland; developing norms, standards, regulations, and processes for implementing policies and laws related to national forests; designating Special Use Forests (SUFs); directly managing National Parks; and serving as the lead technical agency for forest conservation and development, wildlife protection and other functions as assigned by the Minister within legal authorities. The Director of VNFOREST is a Vice Minister of MARD, and oversees ten departments, six National Parks, and the Forest Inventory and Planning Institute (FIPI). FIPI conducts forest inventories, zoning, and surveys, including hosting the statistical database; develops national and local plans for forest protection and utilization; conducts research and assessments on biodiversity, conservation, and forest protection; and performs other functions such as providing consultancy services. One of FIPI’s responsibilities is providing technical support for investment and management planning for SUFs throughout Vietnam.

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The Forest Protection Department is a dependent unit of VNFOREST that leads efforts on prevention, detection, and suppression of forest fires among other duties.

B) DIRECTORATE OF FISHERIES Another agency under MARD relevant for this analysis is the Directorate of Fisheries (D-FISH), which is responsible for national-level management of fisheries, including management and development of marine and inland water protected areas, and protection of aquatic species and ecosystems of conservation concerns. D-FISH consists inter alia of departments responsible for aquaculture, capture fisheries, fisheries resources surveillance, and aquatic resources conservation and development.

3. OTHER MINISTRIES WITH CONSERVATION RESPONSIBILITIES A) MINISTRY OF PLANNING AND INVESTMENT Responsible for national-level planning and investment including that for environmental protection, biodiversity conservation and protected areas.

B) MINISTRY OF FINANCE Responsible for overall financial management including the development of the State budget, taxes, fees and other revenues sources, coordinating monetary and fiscal policy, overseeing government accounts, etc. The Ministry therefore is responsible for the financial aspects of environmental protection, biodiversity conservation and protected area, including financing of the Vietnam Conservation Fund and Vietnam Environment Fund. The Ministry also has oversight of the GVN scheme on payments for forest environmental services (PFES) and activities related to the financial aspects of the UNFCCC’s Reducing Emissions from Deforestation and forest Degradation (REDD) initiative.

F. PROTECTED AREAS SYSTEM As of 2018, Vietnam had 172 terrestrial protected areas (PAs), covering 2.3 million ha (6.8% of total land area) in SUFs, and five operational marine protected areas (MPAs) covering almost 210,000 ha of marine islands and waters.57 Vietnam also has two World Natural Heritage Sites: Hạ Long Bay and Phong Nha- Ke Bang National Park; ten ASEAN Heritage Parks; and nine biosphere reserves: Can Gio Mangrove (75,740 ha; City), Dong Nai (969,781 ha; Dong Nai province), Cat Ba Islands (26,241 ha; Hai Phong City), Red River Delta (137,261 ha; Thai Binh, Nam Dinh and Ninh Binh province), Kien Giang (1,188,104 ha; Kien Giang province), Western Nghe An (1,303,285 ha; Nghe An province), Mui Ca Mau (371,506 ha; Ca Mau province), Cu Lao Cham-Hoi An (33,146 ha; Hoi An province), and Langbiang (275,439 ha; Lam Dong province). In addition, Vietnam has 63 important bird areas covering 1,691,920 ha and 115 key biodiversity areas (KBAs).58 As of 2012, only 35% of KBAs are protected.59 Protected areas administration is based on ecosystem type; those within terrestrial, inland water and marine ecosystems fall under the remit of MARD while MoNRE is responsible for protected areas in wetland ecosystems, including wetlands listed under the Ramsar Convention. Management of protected areas is decentralized to the appropriate level (provincial or district people’s committees). Responsibility for individual protected areas rests with respective management boards, except for MARD management of six national parks whose boundaries span more than one province. This decentralized management and division of tasks has encountered overlaps and shortcomings, requiring a need for establishment of one single PA management unit in Vietnam.60 Other than GVN agencies, conservation NGOs active in Vietnam include the Vietnam Association for Conservation of Nature and Environment (VACNE), the Vietnam Forestry Science and Technology Association, Center for Natural Resources and Environmental Studies, Education for Nature-Vietnam, PanNature, and international NGOs such as Asian Turtle Program, BirdLife International, Fauna & Flora International, International Union for Conservation of Nature, People Resources and Conservation Foundation, Wildlife Conservation Society, World Wide Fund for Nature, and others.

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III. STATUS AND TRENDS OF FORESTS AND BIODIVERSITY This section of the report will cover updates on the current state of Vietnam’s forests and biodiversity ecosystems since the 2013 analysis.

A. TROPICAL FORESTS OF VIETNAM

1. MAJOR FOREST TYPES MARD Circular No. 34/2009/TT-BNNPTNT describes the criteria for classifying forests in Vietnam by use or purpose into three categories: protection forests, production forests, and special use forests or SUFs. Protection forests are used to protect ecosystem services, mitigate the impact of extreme events and avoid environmental degradation, such as soil erosion and desertification. Use of protection forests is restricted to the collection of non-timber forest products (NTFPs), forest enrichment, and other non- intrusive activities. Production forests are used for commercial timber production (e.g., acacia and paper pulp) and non-timber activities such as rubber production. SUFs are designated for the conservation of ecosystems or species, as well as for research. SUFs form the majority of Vietnam’s protected areas. Forest cover types are broadleaf (evergreen, deciduous, or semi-deciduous), needle-leaf, or mixed broadleaf and needle-leaf forests, as well as bamboo forests and palm forests.61

2. STATUS AND TRENDS Forest area of Vietnam was estimated to be about 14.5 million ha,62 or 44% of total land area in 2018, with roughly 4.1 million ha of plantations.63 This is an increase from 39% reported in 2013.64 Generally, forest cover is increasing across the country (Figure 7), with rapid recent growth in production forests (Figure 8). Annual forest cover change between 2010 and 2015 was about +0.9%. However, forest quality is widely described as decreasing; that is, there is a trend of highly-diverse natural forests being displaced or degraded, with a loss of plant and animal biodiversity in those forests.

Figure 7: Total forest cover in Vietnam (2014-2018) Figure 8: Area of production forest in Vietnam (2014-2018)

Data from General Statistics Office published by Open Development Vietnam show that the vast majority of growth in planted forests since 2005 has been in production forests rather than protection forests or SUFs (Figure 9).

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250

200

150

100

50 Thousands of hectares 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Production forest Protection forest Special Use forest

Figure 9: New planted forests in Vietnam 2005-2017 by forest use-type Source: T. Johnson; data from Open Development Vietnam website

Two noteworthy trends in management of Vietnam’s forests are the payment for forest environmental services (PFES) program of the GVN and the timber legality assurance system under development to comply with terms of a voluntary partnership agreement (VPA) negotiated with the European Union as part of its Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan of 2003.

A) PAYMENT FOR FOREST ENVIRONMENTAL SERVICES Vietnam formally institutionalized its PFES in 2010 with Decree 99, covering watershed protection, carbon sequestration, forest hydrological services, and other environmental services derived from forest protection and conservation.65 According to the Vietnam Forest Protection and Development Fund, a unit of MARD which manages the program, the “PFES policy aims to improve forest quality and quantity, increase the forestry sector’s contribution to the national economy, reduce the State’s financial burden for forest protection and management, and improve social well-being.”66 The basics of the program are that users of environmental services pay into the VNFF an agreed price to contribute toward upstream conservation of services provision, with the funds distributed to forest owners – individuals, households, communities or organizations who hold forested land titles – who are suppliers of forest environmental services.67 While there has been uneven progress in different provinces regarding distribution methods for the payments,68 recent work by USAID’s Vietnam Forests and Deltas (VFD) program has been piloting electronic payment systems in collaboration with MARD, VNFF, and telcom provider Viettel.69 VFD has been supporting PFES development in selected provinces since 2012, and reports that more than $400 million has been mobilized by the national system70 operating in 41 provinces.71 In addition to work on e-payments, VFD is supporting MARD to develop a carbon-PFES through which “Vietnam’s largest emitters (coal-fired power plants and cement producers) will help finance reforestation and forest protection programs that absorb some of their emissions.”72 The World Bank also is planning new investments to support PFES, including support for a “carbon window.”73 A recent article in the journal Sustainability provides more details on the national PFES system and an assessment of the livelihood and environmental impacts of the program.

B) TIMBER LEGALITY ASSURANCE SYSTEM Another trend in Vietnam’s forest management is ongoing development of a timber legality assurance system (VNTLAS) to comply with terms of a voluntary partnership agreement (VPA) negotiated with the European Union as part of its Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan of 2003. The Government of Vietnam and the EU began negotiating a VPA in November 2010 and ratified the VPA in May 2019. A VPA is a legally-binding trade agreement meant to ensure that timber and timber products exported to the EU come from legal sources, and forms a key part of EU Timber

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Regulation implementation, similar to how Lacey Act amendments in the U.S. prohibit importation of illegally harvested forest products. Over the next several years, Vietnam will develop its VNTLAS “to ensure that its timber and timber products come from legal sources and comply with relevant laws relating to importation, exportation, harvesting, processing and trade.”74 Described as the core of the VPA, the VNTLAS will consist of seven elements: a legality definition; compliance verifiers; supply chain controls at timber source, processing or intermediate stages, and export facility; a compliance verification system; FLEGT licensing for shipments; internal (i.e., GVN) inspections; and independent (i.e., third-party) evaluation of operational integrity. Figure 10 provides a graphic illustration of these elements.

Figure 10: Elements in the Vietnam Timber Legality Assurance System Source: FLEGT VPA Vietnam According to team consultations with the EU Delegation to Vietnam conducted for this analysis, one of the most important provisions of the VNTLAS is that it will apply to imported wood products that are processed in Vietnam. For example, the furniture industry has been criticized for importing illegal timber from Cambodia, Laos, Gabon, and elsewhere for processing into furniture that is then exported to the U.S., EU and other markets. Those imports, processing facilities, and exports would now be subject to the VNTLAS provisions.75 This is already providing the impetus for GVN to look at rapidly scaling up the proportion of feed stock into the furniture industry that is produced domestically.

B. BIODIVERSITY OF VIETNAM Though not considered a mega-diverse country due to lower levels of endemism, Vietnam is ranked the sixteenth most biodiverse country in the world by Mongabay.76 The complex topography and climate (cf. Biophysical setting) produces a wide variety of terrestrial and freshwater ecosystems that support a diversity of species. According to the Vietnam National Biodiversity Strategy, more than 49,000 species have been identified, consisting of 19,200 terrestrial and aquatic plants, 10,500 terrestrial animals, 1,600 freshwater fish and invertebrates, 10,750 marine species, and 7,500 microorganisms. 77

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1. TERRESTRIAL ECOSYSTEMS In addition to its tropical forest ecosystems, Vietnam has important grasslands, freshwater wetlands, lakes and rivers, and cave ecosystems.

A) GRASSLANDS Natural grasslands are one of Vietnam’s most threatened ecosystem types, because of pressure to convert them to agricultural land.78 Southern provinces in the Mekong Delta region have seen once-extensive grasslands79 reduced to a small handful of areas such as seasonally flooded grasslands of Tram Chim National Park (Dong Thap province), Cat Tien National Park (parts of Dong Nai, Lam Dong and Binh Phuoc provinces), the Ta Nang-Phan Dung trekking route between Lam Dong and Binh Thuan provinces, and pink grass meadows around (Lam Dong province). The Bengal florican (Figure 11) is critically endangered due to loss of Figure 11: Bengal florican (Houbaropsis bengalensis) habitat as grasslands dwindle. Source: © Dhritiman Mukherjee

B) FRESHWATER ECOSYSTEMS Vietnam’s freshwater ecosystems are as diverse as other ecosystem types, consisting of rivers, lakes, hot springs, seasonally flooded grasslands and forests, and mineral waters.80 The country’s geography lends itself well to a proliferation of rivers, with a drier mountainous ridge to the west and east-southeast- facing slopes draining into the sea.81 An inventory by the Department of Water Resources Management counted more than 2,360 rivers longer than 10 km and eight major river basins with catchments larger than 10,000 km2 each.82 These eight basins drain 77% of the country’s land area (Table 2) and the two largest – the Red River (Hong-Thai Binh) and Mekong – have 45% of Vietnam within their catchments. The Mekong basin is the largest user of water for agricultural production, while the Red River basin has the highest industrial usage with almost half of the country’s total water use by industry.83

Table 2: Eight major river basins of Vietnam Total area of Area of basin within % of basin % of Vietnam Total annual flow River Basin basin (km2) Vietnam (km2) within Vietnam within basin (billion m3)b

Mekong 795,000 63,600 8% 19% 475.0

Red River-Thai Binh 155,000 85,250 55% 26% 135.0

Dong Nai 44,100 37,485 85% 12% 37.0

Ma-Chu 28,400 17,608 62% 5% 18.0

Ca 27,200 17,680 65% 5% 23.5

Ba 13,900 13,900 100% 4% 9.5

Ky Cung-Bang Giang 11,220 10,547 94% 3% 9.4

Thu Bon 10,350 10,350 100% 3% 20.1

TOTAL 1,085,170 256,420 - 77% 727.5 Sources: FAO AQUASTAT; b: IGES-WEPA N.B. One billion cubic meters of flow = 264 billion gallons = approximately enough to fill 5.3 billion standard-sized bathtubs FAO AQUASTAT lists only two natural lakes in Vietnam: Lake Ba Be (Bac Kan province) and Lake Ho- Tay or West Lake in Hanoi.84 The former is the largest lake in the country at 4.5 km2 surface area and the centerpiece of Ba Be National Park. The limestone cave complex surrounding the lake is a popular

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tourist attraction, with the lake itself also a Ramsar site. West Lake is slightly smaller with a surface area of 4.13 km2. Most freshwater “lakes” in the country are actually man-made reservoirs, with seven having storage capacity larger than one km3 of the total 800 medium and large dams and reservoirs; 1,967 store at least 0.2 km3 of water. Most of these reservoirs are multipurpose, being used for hydropower, flood control, navigation, irrigation, and fisheries.85 Other Ramsar sites include Xuan Thuy Natural Wetland Reserve (Nam Dinh province; 12,000 ha), Bau Sau Wetlands (Dong Nai; 13,759 ha), Tram Chim National Park (Dong Thap; 7,313 ha), Con Dao National Park (Ba Ria-Vung Tau; 19,991 ha), Mui Ca Mau National Park (Ca Mau; 41,862 ha), U Minh Thuong National Park (Kien Giang; 8,038 ha), Lang Sen Wetland Reserve (Long An; 4,802 ha), and Van Long Wetland Nature Reserve (Ninh Binh; 2,736 ha) Vietnam’s water resources are severely stressed from overuse, pollution, and climate change. The Water Environment Partnership in Asia (WEPA) found that “freshwater withdrawals for agriculture account for up to 95% of total” annual freshwater withdrawals, even as water demand is increasing for domestic and industrial use.86 Ninety-five percent of urban centers lack standard treatment for domestic waste-water, and an estimated one million m3/day of untreated industrial effluent is discharged directly into lakes and rivers (Figure 12) – 400 Olympic swimming pools daily of pollutants Figure 12: Water pollution in Vietnam and toxins from the mining, metallurgy, paper, and food processing Source: Diana Nguyet Nguyen industries, along with raw sewage and medical waste. Analyses by the Ministry of Health and MoNRE found 200,000 new cancer diagnoses each year to be linked in part to contaminated water, and 9,000 average annual deaths are attributable to poor water and sanitation conditions. MoNRE rated the Cau and Nhue-Day rivers through Hanoi and the Dong Na through as “severely polluted” by sewage, ammonia, and bacteria; many urban waterways were deemed suitable only for navigation uses.87 Hanoi’s rivers may be biologically dead. Lakes and reservoirs are faring even worse. Many lakes near urban areas are reported to be wastewater depositories that have lost their ecosystem functions of circulation and self-cleansing.88 The lakes exhibit eutrophication – where algae growth reduces oxygen available to fish and other aquatic life. Elsewhere, mining, industrial, and agricultural effluents negatively impact bird, fish, and insect populations.89 A national strategy on wetland management and conservation was approved in 2003,90 and the Law on Water Resources (2012) aims to prevent water pollution and to monitor water resources quality.

C) CAVE ECOSYSTEMS Vietnam’s cave ecosystems are globally renowned. One of the country’s World Heritage sites – Phong Nha-Ke Bang National Park – holds 104 km of caves and underground rivers in a varied limestone karst ecosystem. The complex includes dry caves, terraced caves, suspended caves, dendritic caves, and intersecting caves with high biodiversity (more than 2,700 species of vascular plants and 800 vertebrate species) and many endemic species (400 plant species endemic to Vietnam and 38 animal species endemic to the Annamite range).91 Recent news reports call Quang Binh “the world’s hot new caving destination” for its richness of caves in 450-million-year-old limestone deposits (Figure 13). Three of the world’s four largest caves are in Quang Binh, including 200m-tall and 5km-long Son Doong cave, the world’s largest. According to the BBC “new” caves are discovered each year. Figure 13: Quang Binh is home to hundreds of limestone karst caves Source: ©Kim I Mott

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2. COASTAL AND MARINE ECOSYSTEMS Within Vietnam’s one million km2 exclusive economic zone, marine ecosystems include lagoons, bays, tidal flats, estuarine mangrove forests, coral reefs, seagrass beds, coastal and offshore islands, deep water seabeds.92 These are found within six ecological zones: the Gulf of Tonkin, Central Coast, South-Central Coast, South-Eastern Coast, South-West Coast (Gulf of Thailand), and high seas offshore. MoNRE has determined that mangrove forests, seagrass beds and coral reefs have the highest levels of biodiversity and of conservation values.93

A) MANGROVE FORESTS MoNRE has identified 94 species of mangrove occurring in Vietnam94 and describes them as a “green shield”95 against storm surges and coastal erosion. The 2013 analysis described mangroves as among ecosystems in decline, losing 13,000 ha in the previous 20 years to only 60,000 ha by 2011.96 MoNRE reports mangroves occupying 408,500 ha in 1943 but declining to 83,288 ha by 2003.97 Citing data from MARD, the 6th National Report to the Convention on Biological Diversity, published in 2019, shows a more recent trend upward. The area of mangroves increased to 213,142 ha in 2017 due to reforestation and afforestation efforts after a low of only 57,211 ha in 2015.98 Three of the country’s nine Ramsar sites harbor mangrove ecosystems: the Xuan Thuy Natural Wetland Reserve in the Red River delta, Mui Ca Mau National Park on the southwestern coast in the Gulf of Thailand, and the Con Dao National Park archipelago of 14 islands 80 km off the southern coast. In addition, five of the nine UNESCO Biosphere Reserves include mangroves: Can Gio, Cat Ba, Kien Giang, Mui Ca Mau, and Red River Delta. The protection and restoration efforts have slowed degradation.99

B) SEAGRASSES Coastal lagoons hold more than 75% of all seagrass beds in Vietnam, composed of 14 species and serving as home to 1,000-1,500 marine creatures.100 The iconic species of seagrass ecosystems is the Dugong (Figure 14), listed as Vulnerable on the IUCN Red List. Seagrass ecosystems are in decline all along the coast, with losses of 40-60% in many locations. Tam Giang – Cau Hai lagoon in Thua Thien Figure 14: Dugong (Dugong dugon) near – Hue province saw its seagrass beds reduced by 60% between 1999 Phu Quoc island, Kiên Giang province and 2012101 as fish and shrimp aquaculture rapidly expanded in one of Source: Dugong Travel Phu Quoc Co., Ltd the largest lagoons in Asia (22,000 ha; 60 km long).102 Recent analyses found 18,130 ha of seagrass beds in Vietnam, with 2,858 ha of that in the Gulf of Tonkin103 and much of the remaining ~15,000 ha along the southern and southwestern coastal lagoons, bays, and islands.104

C) CORAL REEFS Three of Vietnam’s four identified coral regions have undergone assessments on extent of distribution and species composition.105 The Institute of Marine Environment and Resources (part of the Vietnamese Academy of Science and Technology) found the extent of coral reefs to be 14,130 ha in 2008-2010, while a later study in 2014 puts the total area at 13,355 ha,106 two-thirds of which is in MPAs (Table 3).

Table 3: Area of coral reefs in Vietnam’s coral regions (2014 data) Coral Reef region # of locations assessed # of MPAs Total reef area (ha) Area in MPAs (ha) Gulf of Tonkin (western portion) 7 6 2,722 2,722

Central coastal zone and islands 10 7 9,096 5,262

Southern and western coastal zones and islands 4 2 1,537 1,195

TOTAL 21 15 13,355 9,179 Source: MoNRE 2019b (data from Nguyen and Vo, 2014)

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The number of recorded coral species is somewhat higher in the more southerly reef regions where warmer waters and lower pollution levels provide richer conditions for species diversity. For example, 350 species of hard coral were recorded in Bay (Khanh Hoa province along the central coast), while the highest number of species in the Tonkin Gulf region was 171 in Ha Long-Cat Ba.107 Nationwide, 444 coral species have been recorded in Vietnam, including 378 species of hard coral. In addition, 2,100 species of marine fauna populate reef habitats, including 763 reef fish, 700 molluscs, 250 crustaceans, and 100 echinoderms (sea stars, sea urchins, sand dollars, etc.). These highly bio-diverse ecosystems are declining, however, in extent and quality. A recent project led by the Institute of Oceanography surveyed the condition of 200 coral reefs along Vietnam’s coast and found that nearly one-third have “low coral cover” while only 1% had high coral cover.108 This was described as a 30% decline over the last decade. Causes of the degradation include destructive fishing methods, overexploitation, sedimentation, environmental pollution, bleaching events, and outbreaks of coral pests such as sea urchins, sponges, and Figure 15: Crown-of-thorns starfish crown-of-thorns sea stars (Acanthaster planci) that feed on coral polyps (Acanthaster planci) (Figure 15). Predatory sea star outbreaks rapidly deplete living corals, Source: David Burdick/NOAA leaving behind rubble that is then overgrown by turf algae.109

3. ENDANGERED SPECIES Many of Vietnam’s keystone species have gone extinct while others are on the brink of extinction. Specifically, the Javan Rhinoceros became locally extinct in Vietnam in 2010 when the last known individual was killed by poachers in Cat Tien National Park,110 and the Southern River Terrapin no longer exists in the wild.111 Vietnam’s wild tiger population was reported in 2016 to consist of only five individuals.112 Other flora and fauna also are considered to be nearing extinction in Vietnam according to the IBAT Alliance – a partnership among BirdLife International, Conservation International, International Union for Conservation of Nature (IUCN), and the United Nations Environment Programme - World Conservation Monitoring Centre (UNEP-WCMC) established to develop and apply the Integrated Biodiversity Assessment Tool (IBAT) online, open-access database of conservation information. IBAT recently published a country profile on Vietnam. One of the sections of the IBAT Country Profile describes Species Assessed for Extinction Risk, wherein Vietnam is reported to have 632 threatened species (i.e., assessed to be Critically Endangered, Endangered, or Vulnerable) out of 5,078 species assessed (Table 4).113

Table 4: Summary of extinction risk assessment results for Vietnam Critically Total Total Taxonomic group # of species Endangered Vulnerable Endangered threatened (#) threatened (%) Vertebrates 3,071 43 94 139 276 8.99% Mammals 298 14 20 22 56 18.79% Birds 835 10 15 21 46 5.51% Reptiles 232 9 19 21 49 21.12% Fishes 1,517 8 18 56 82 5.41% Amphibians 189 2 22 19 43 22.75% Invertebrates 1,111 13 28 111 152 13.68% Corals 408 0 4 83 87 21.32% Molluscs 269 9 13 8 30 11.15% Crustaceans 98 0 1 6 7 7.14% Others (insects, spiders, etc.) 336 4 10 14 28 8.33%

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Critically Total Total Taxonomic group # of species Endangered Vulnerable Endangered threatened (#) threatened (%) Plants 873 37 66 101 204 23.37% Angiosperms (flowering plants) 812 33 57 86 176 21.67% Gymnosperms (conifers, cycads) 61 4 9 15 28 45.90% TOTAL 5,055 93 188 351 632 12.50% Source: adapted from IBAT Country Profile – Vietnam N.B.: data presented do not include 21 species of ferns, one species of green algae, and one species of lichen Table 4 shows summary statistics on species at risk of extinction or extirpation (localized extinction). Biodiversity risk potential is greatest among plants, related to the earlier discussion about monoculture planted forests replacing natural ecosystems. Nearly half of all conifers and cycads assessed are at high risk. The most vulnerable classes of vertebrates are mammals, amphibians, and reptiles – all under severe stress from “industrial scale poaching” as described in consultations for this analysis, where snares are laid across kilometers of ridgeline to catch anything that happens across it. In marine Figure 16: Critically Endangered Tonkin snub- nosed monkey (Rhinopithecus avunculus) environments, corals have nearly three times as many species Source: © Tilo Nadler threatened compared to other classes of invertebrates. 114 Critically Endangered primates include three gibbons, three langurs, and the Tonkin snub-nosed monkey (Figure 16), that is endemic to northern Vietnam and notable for tail length nearly twice its body height. Overall, 47 endemic species in Vietnam are classified as Critically Endangered (8.7% of all endemic plants and animals), including 12 vertebrates (4.75% of total), 13 invertebrates (8.02% of total), and 22 plants (17.74% of total); similar proportions are seen for 66 endemic species classified as Endangered except among amphibians, where 38% of all endemic species are endangered.115 Vietnam’s wild elephant population is reported to have fallen from around 2,000 in 1990 to only 100-150 in 2019, a figure conservationists say is not viable to ensure their survival.116 Balanced against the extinction risks for Vietnam is the ongoing discovery of new species. MoNRE reports that 208 animal species and 136 plants were scientifically described in peer-reviewed journals for the first time between 2014 and September 2018.117 The Vietnam National Biodiversity Strategy, published in 2013, also states that in the period 2006-2011, more than 100 species were discovered and scientifically described for the first time. These include orchids, reptiles, fish, and mammals.118 However, much of Vietnam’s biodiversity remains unknown. A huge gap exists in overall knowledge of terrestrial and especially marine biodiversity.119 The team learned during consultations that data are not available on ecosystem components and their actual status or even basic ecology. Even absent complete information, it is known that biodiversity in Vietnam faces a precipitous decline.120 Vietnam is reported to be a victim of “empty forest syndrome” used to describe areas where forest cover remains, but the biodiversity it supports is disappearing. A major reason for this phenomenon is a proliferation of inexpensive snares (Figure 18) that indiscriminately capture any wildlife that happen across the path.121 This can include Figure 17: Snares removed by protected area patrol staff in saola habitat the critically endangered Saola (Pseudoryx nghetinhensis), a relative of Source: Global Wildlife Conservation blog; antelopes and cattle only discovered in 1992 and possibly the world’s photo by William Robichaud most endangered large mammal.

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IV. THREATS TO FORESTS AND BIODIVERSITY The 2013 assessment team identified “the root cause for the precipitous loss of biodiversity and tropical forest degradation in Vietnam as the country’s dysfunctional environmental governance system in the context of a rapidly evolving national and global economy.”122 They proposed eight priority action areas, including “clarify[ing] the national, legal, and institutional framework with a bearing on forests and biodiversity conservation;” “help[ing] Vietnam strengthen environmental law enforcement;” and “help[ing] Vietnam put in place measures to control the illegal national and international trafficking of plant and animal species.”123 This 2019 analysis builds on that previous analysis, to determine the extent to which Vietnam’s forests and biodiversity have increased or declined, along with the primary threats and drivers of those changes and the priority actions, since the last assessment period. It also highlights opportunities for USAID/Vietnam specifically to support efforts to address identified threats and drivers.

A. PRINCIPAL THREATS Most of the threats and drivers identified have not changed from those identified in previous analyses. The principal threats remain land-use change or habitat conversion (through smallholder encroachment, commercial agribusiness, and infrastructure development) and degradation of ecosystems through large- scale poaching, illegal wood cutting, and invasive alien species. Underlying these threats is the persistent and pervasive threat that climate change poses to the people and resources of Vietnam, which ranks among the ten most vulnerable countries globally in the long- term Climate Risk Index for the period 1998-2017. Degraded forests function as a risk multiplier.

1. LAND USE CHANGE AND HABITAT CONVERSION According to the consultations conducted for this analysis, economic pressures to convert forest land to other uses remain high. Poverty, migration, and a lack of livelihood opportunities in rural areas continue to drive smallholder conversion of forests to agriculture. The disconnect in time and space between the immediate need to convert forest land for localized subsistence and the longer-term, broader-scale benefit of maintaining natural forests into the future, exacerbates the threat of smallholder conversion. Pressure to expand infrastructure to support a growing population and growing economy generally leads to larger scale habitat conversion or degradation. Infrastructure development, generally for roads or hydroelectric generation, converts habitat, fragments habitat, and increases access to areas that were previously less accessible. Hydropower dam development alters the natural flooding cycles of rivers; affects sedimentation, erosion, temperature, and nutrient loading; converts and floods terrestrial habitat; dries wetland habitat; and enables water transport to access previously remote areas.124 Clear cutting of forests for infrastructure development is also used to feed the wood products industry, encouraging extraction of timber beyond what is absolutely necessary. The large and growing wood product industry puts increasing demand on timber production, leading to conversion of natural forest to production forest and short-rotation plantations. Rubber, cashew, and plantations also push forest conversion. Land conversion is generally seen to pose the most severe threat in buffer zones, especially outside of Special Use Forests such as National Parks. In addition, a global database that tracks the downgrading, downsizing and degazettement of protected areas (known as PADDDtracker) records eight instances of downsizing or downgrading events in Vietnam over the last 30 years, totaling 38,142 ha of which 94% of that area was removed from nature reserves or national parks.125 The exact causes of the downsizing events are unknown, but the majority of such instances globally are related to industrial scale resource extraction and/or development. However, in Quang Nam and Thua Thien Hue provinces, upgrading to higher tier of conservation and expanding existing protected areas have been taking place.

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2. ILLEGAL HUNTING AND WILDLIFE TRAFFICKING Many of those interviewed for this analysis described Vietnam as a significant consumer of wildlife, particularly wild meat, and especially in urban areas. To meet this demand, poaching is widespread. MoNRE described illegal hunting as the most severe threat to Vietnam’s biodiversity, even more than forestland and wildlife habitat conversion.126 While legal farming of certain species (e.g., sun bears) has been developed in an attempt to relieve pressure on wild populations, even farming poses a threat to wildlife. Illegal products from wild populations can be passed off as legally farmed products127 and most consultations regarding poaching highlighted a market (and social) preference for wild-caught vs. farmed animal products. Conversion and occupation of land adjacent to wildlife habitat, as described above, increases hunting access and potential for human-wildlife conflict resulting in killing of individuals seen as a threat. Further, recent advances in snaring techniques, using bicycle wires, have increased efficiency of wildlife hunting.128 At the same time, Vietnam is a major consumer, transit route and regional supplier of illicit wildlife products, ranked alongside China as the destination for 92% of illegal trade in pangolins, the third highest destination for elephant ivory, and the top destination globally for rhino horn.129 The international NGO Environmental Investigation Agency found that criminal syndicates from Vietnam are major players in intra-Asian and transcontinental illegal wildlife trade, especially of ivory, pangolins, and rhino horns.130

3. ILLEGAL LOGGING The illegal cutting of wood for timber and fuel was reported in about half of all consultations, yet no reliable data exist on the extent of this phenomenon. Most of the illegal logging focus in recent years has been on Vietnam’s role as an importer of illegal timber from other countries, to supply its burgeoning furniture industry. MARD officials told the analysis team that the industry was worth $9 billion in 2018 and that the GVN target was for the industry to reach $11 billion in annual value by 2020. If estimates from Chatham House in 2014 that 20% of all imported timber is harvested illegally remain accurate, this implies that as much as $2 billion worth of finished products are sourced from illegal harvests. Earlier investigations showed that in just one year (2014) Vietnam imported enough Siamese rosewood (Dalbergia cochinchinensis) from Laos and Cambodia to threaten survival of the species.131 In 2016, the Government of Lao PDR issued Prime Ministerial Order 15 to ban all exports of logs and sawn wood. This led to a 75% decline in log exports to Vietnam and China (less so for rosewood),132 followed by increased pressure on Cambodian forests as a replacement.133 Vietnam’s furniture industry now sources illegal timber from as far away as the Democratic Republic of Congo.134 The environmental and human rights NGO Global Witness sees potential, though, for the VPA to “signal a new era” for the industry.

B. DRIVERS AND ENABLERS OF THREATS TO FORESTS AND BIODIVERSITY

1. DRIVERS Underlying drivers of the threats described above include high population density and localized growth rates exceeding the national 1.1% p.a.; rural poverty and limited livelihood opportunities; unsustainable economic growth models; and climate change, especially for near-term effects in coastal zones. While the national poverty rate hovers around 7%, the rate is much higher (>40%) in rural and ethnic minority communities. A lack of livelihood opportunities, compounded by insecure land-tenure, drives threats to forests and biodiversity in these areas. Around 21% of the population reported reduction of their perennial cropping land (while other land remain relatively the same) since 1990, mainly due to conversion to non- agricultural uses (expansion of industrial zones, urbanization, and public works), and to a certain extent the sale of land to pay off debt.135 Social and political marginalization, distance from markets, and lack of information and funding limit economic options for rural communities and increase their reliance on the natural resources around them.

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In addition to high population densities and poverty, unsustainable economic growth models are also driving threats to forests and biodiversity. One example of an unsustainable economic model is the huge mismatch between wood supply and demand for furniture and related sectors. Economic growth goals emphasize economic integration and capital investment, often encouraging allocation of large areas of land to commercial entities. Additionally, lack of market prices for some natural resources, and particularly the ecosystem services they provide, means that the true cost of conversion and exploitation is greatly undervalued.136 When combined with weak land-tenure structures, pressure to increase commercial landholdings both discourages local people from investing in sustainable land management and decreases the long-term resource stewardship necessary for conservation. More broadly, trade, tourism, construction, industry, and other macro-economic sectors are reported to routinely ignore or bypass environmental and social safeguards.

2. ENABLERS Enablers of the threats and drivers described above include fragmented and inconsistent or contradictory governance frameworks for conservation; inconsistent or weak enforcement of environmental laws, policies and regulations; generally low capacity for conservation actions, especially at sub-national levels; inadequate application of technological tools for conservation; weak systems for collecting and managing biodiversity data; and very low appreciation for the need to conserve natural capital assets as a foundation for sustainable economic growth. Forest and biodiversity conservation reportedly suffer from many laws and institutions with overlapping mandates and a lack of cross sectoral clarity and cooperation. For example, local level activities such as ecotourism within a protected area are overseen by departments of tourism, finance, agriculture and rural development, and natural resources and the environment, each with different mandates and no common understanding nor common unified message about requirements and goals for such activities. Further complicating matters is a lack of clarity on how to implement national policies locally and incomplete feedback loops between policy making and implementation. Weak and inconsistent implementation and enforcement of environmental laws and regulations also enable the threats and drivers. This includes weak application of laws, limited and differing understanding of the objectives and value of various laws and policies, inconsistent or weak punishments when laws are enforced, perverse incentives, and inconsistent monitoring. Low capacity and awareness at all levels further enable threats and drivers, including understaffing (e.g., of protected areas), limited training and technical capacity of staff, limited tools and technology available to facilitate conservation work, limited finances and budgets, and a lack of information and/or data upon which to base management decision- making. Further, the high financial value of the natural resources’ sector makes it particularly susceptible to corruption, including bribery, fraud, and conflicts of interest.137 Weak or nonexistent systems for collecting, managing, and sharing biodiversity data, and a lack of use of biodiversity data in decision- making further compounds the issues created by weak governance and enforcement. The combination of inconsistent and contradictory governance frameworks, weak and varying enforcement, lack of information, and low overall capacity and awareness provides a challenging context in which to address the threats to conservation of forests and biodiversity in Vietnam.

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V. ACTIONS NECESSARY FOR CONSERVATION IN VIETNAM As noted earlier, the FAA sections 118 and 119 have two legally binding requirements for all USAID strategy documents (see 0). The first of these is a description of actions necessary to achieve conservation and sustainable management of tropical forests (118) and to achieve conservation of biodiversity (119). Based on the team’s review of GVN and other documents and reports to multilateral environmental agreements, as well as key informant interviews with national and provincial officials, researchers, and conservation practitioners, the following emerged as critical actions necessary for conservation of forests and biodiversity in Vietnam:

A. PRIORITY ACTIONS IDENTIFIED BY THE GOVERNMENT In the Vietnam National Biodiversity Strategy to 2020, Vision to 2030 document, MoNRE identifies five direct (task content) and six enabling (solutions for implementation) interventions it will undertake in order to achieve its national biodiversity targets, which also align with Aichi Biodiversity Targets agreed under the CBD. The national strategy articulates eight objectives for Vietnam’s conservation of marine and terrestrial biodiversity: (1) identify the main causes of biodiversity loss; (2) resolve conflicts between conservation and development; (3) conserve protected areas of high ecological importance; (4) enhance conservation at ecosystem, species, and genetic levels; (5) conserve genetic resources through research and indigenous knowledge; (6) manage and control invasive alien species; (7) fairly and equitably share benefits from biodiversity and ecosystem services; and (8) study the role of biodiversity in responding to climate change.138 The GVN’s overall vision to 2030 is that “[b]iodiversity shall be conserved and used sustainably, bringing major benefits to the citizenry and contributing significantly to the country’s socio- economic development”139 with a target of restoring 25% of degraded natural ecosystems. Furthermore, in its nationally determined contributions submitted to the UNFCCC, Vietnam has set an “unconditional” target of 45% forest cover by 2030 as part of reducing its greenhouse gas emissions intensity per unit of GDP by 8% overall.140 The GVN clearly envisions forests and biodiversity as playing important roles in mitigating climate change and in supporting adaptation to impacts of climate change.141 Promoting sustainable forest management to increase carbon sequestration and other environmental services while conserving biodiversity and its associated livelihoods for forest-dependent people is one of the key interventions identified to mitigate climate change. Protection and restoration of forests – including coastal mangroves – is also identified as a key component of Vietnam’s adaptation to impacts of climate change.142

1. DIRECT INTERVENTIONS The five tasks identified in the National Biodiversity Strategy are summarized in Table 5. These are called direct interventions because they entail actively undertaking conservation actions. The actions are described in detail, including numeric targets for many of them, in the Strategy document.

Table 5: Direct conservation actions identified in the Vietnam National Biodiversity Strategy Conservation action Component actions Conservation of natural • Consolidate and complete the system of natural protected areas ecosystems • Conservation of ecosystems of national and international importance Conservation of wildlife and • Preventing the decline of threatened wildlife species, particularly endangered, rare and precious endangered, rare and precious species prioritized for protection species • Conservation of native plant varieties, livestock and wild relatives of precious, rare species • Develop and enhance effectiveness of biodiversity conservation units [ex-situ, such as zoos] Sustainable use, fair and equitable • Sustainable use of ecosystems access, and sharing of benefits • Sustainable use of species and genetic resources derived from ecosystems and • Establish a mechanism for managing access to genetic resources, sharing benefits, protection, biodiversity and traditional knowledge of genetic resources

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Conservation action Component actions Control activities that have • Control activities considered to be unsustainable or causing environmental pollution such as negative impacts on biodiversity conversion of land and water surface area use and agricultural practices • Control illegal hunting, trade and consumption of wild fauna and flora • Control, halt and prevent the damage caused by invasive alien species; and enhance biosafety management of genetically modified organisms Biodiversity conservation in the • Identification of climate change impacts on biodiversity and promote biodiversity conservation as context of climate change a means to actively respond to climate change • Development of biological corridors to increase connectivity among forest ecosystems and critical biodiversity areas to adapt to climate change • Implementation of forest regeneration program using methods and approaches such as biodiversity conservation, enhancing carbon stock, and adaptation and mitigation of climate change Source: MoNRE 2015 pp. 94-104

2. ENABLING INTERVENTIONS Enabling interventions are those that improve the policy, regulatory, budgetary, human capital, or other institutional or systemic characteristics in order to enable direct conservation actions to have a higher likelihood of achieving their objectives. These are identified in the National Biodiversity Strategy as “solutions for implementation”143 and include: (1) changing behavior and awareness of state management organization and communities towards biodiversity conservation and sustainable use; (2) improving the legislative and institutional systems and strengthening the capacity of law enforcement; (3) strengthening the integration of biodiversity conservation in policy development; (4) promoting scientific research and application of modern technology; (5) increasing financial resources for biodiversity conservation; and (6) promoting integration and international cooperation. The Strategy document details the specific actions MoNRE planned to undertake, and the Sixth National Report to the United Nations Convention on Biological Diversity provides the most recent update on progress achieved.

B. PRIORITY ACTIONS IDENTIFIED THROUGH THE ANALYSIS Synthesizing all the input to this analysis, and the teams’ experience working on conservation of forests and biodiversity in Vietnam and elsewhere in the region, we have identified the following priority actions necessary. These are organized in a systemic manner to address the underlying root cause of ongoing declines described in this report: governance systems do not prioritize the long-term health of natural capital as highly as near-term economic growth. Our hope is that these actions will be undertaken to encourage more sustainable utilization of natural capital assets as part of longer-term economic health.

1. DEVELOP FUNCTIONAL MODELS FOR CO-MANAGEMENT OF NATURAL RESOURCES The development of functional systems of natural resource co-management can contribute significantly to poverty alleviation,144 one of the Drivers of threats to Vietnam’s forests and biodiversity described earlier. Further, weak governance and lack of capacity were both identified as Enablers of the threats summarized in this analysis. Licensed community-based forest management can reduce the effects of these enablers as inhibitors of success. Besides alleviating poverty, natural resource co-management can also facilitate clarification of resource tenure, expand options for rural livelihoods, mobilize domestic resources, and improve natural resource governance systems. Many of these potential advantages of co-management and/or community management are codified in the Law on Forestry (2017), recognizing that such management systems have shown promise both in Vietnam and in other countries in the region. Based on consultations and experience, at least three elements are considered necessary for successful implementation of co-management. These are:

A) SECURE RIGHTS OF ACCESS AND USE OVER FOREST RESOURCES The government of Vietnam has made great strides in community-based forest management, particularly through forest land allocation and transfer of forest tenure rights to communities. By the end of 2009,

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local communities held tenure rights to 26% of total forest area in the country, either as individual households, household groups, or in village collectives.145 Land tenure security is an important first step in successful co-management; however, tenure rights alone do not confer economic benefits to people if local authorities and communities do not have the capacity to implement legal stipulations (see action 5 below), nor if they lack access to markets and forest ecosystem services.146 In fact, tenure may not be required for successful co-management as long as rights of resource access and use are clearly defined.

B) VIABLE ECONOMIC MODELS FOR BUSINESS AND LIVELIHOODS Where local economies and livelihoods may experience limitations due to protected area regulations or other conservation measures, successful co-management models include targeted revenue development (e.g., through some combination of payment for ecosystem services, small-enterprise development, tourism opportunities, etc.), integrated development approaches (e.g., irrigation, agricultural intensification tools, health and education access, market access), and direct links to conservation (e.g., sustainable harvest of NTFPs to make marketable products). Such approaches need to address issues of equity among participants, efficiency, and effectiveness with income generation being directly linked to metrics of conservation success. Further, the link between the activities and the conservation of forests and biodiversity must be explicit and well-understood by all parties involved, and monitored over time. Generated revenues should remain in the local economy and reinforces the sustainable landscape management objectives of the project.147

C) CLEAR GOVERNANCE STRUCTURES FOR CO-MANAGEMENT Vietnam has successful examples of co-management components and integrated development activities that provide useful insights for the development of functional co-management models. Integrated rural development and conservation project areas, such as buffer zones around Cat Tien National Park, successfully reduced illegal activities by 50%.148 The co-management pilot in Tram Chim National Park facilitated groups to develop their own natural resource management plans using a set of local guidelines from park authorities and provided a platform for negotiating these plans with a review committee. This process led to increased understanding of the benefits of conservation, acceptance of conservation measures, and reduced conflict through improved relationships.149

2. IMPROVE INFORMATION SYSTEMS AND THEIR USE FOR EVIDENCE-BASED DECISIONS As noted earlier, much of Vietnam’s biodiversity remains unknown. Effective planning, enforcement, and adaptive management all require good information. Poor data and limited access to data hinder effective decision-making, and prevent civil society and other stakeholders from engaging in policy processes.150 For example, one NGO noted that even the most basic research on local climate change impacts was lacking, which makes finding a solution impossible. Remedying this situation entails three steps in the information “value chain”: closing data gaps, improving data systems, and accelerating the use of evidence in decision processes by natural resource managers at all levels.

A) IMPROVE QUANTITY AND QUALITY OF DATA Data collection and storage systems exist, but they are not widely shared or used. For example, VNFOREST’s FORMIS (Forest Management Information System) gathers data on land area, forest type, forest coverage, and land use change over time. More broadly, Vietnam became an Associate Country Participant of the Global Biodiversity Information Facility (GBIF) in 2017151 and a Center for Biodiversity conservation and Endangered Species (CBES) was established as a not-for-profit research organization in 2019 by the Vietnam Union of Science and Technology Associations to conduct collaborative research projects. These systems still do not, however, provide a clear and comprehensive picture of Vietnam’s biodiverse areas and resources. Improved methods and tools for data gathering are needed, according to GVN, NGO, and academic respondents during consultations. In particular, standardized data protocols and

24 Vietnam Tropical Forest & Biodiversity Analysis – 2019 training of field staff intended to use the tools would help close the existing data gaps, as would more emphasis on highly-skilled specialists through advanced university degree programs. While insufficient capacity, particularly of protected area staff, was identified during consultations as a key enabler to the threats summarized in this analysis, more efficient and strategic use of available resources and manpower can be made with better information.

B) STRENGTHEN SYSTEMS FOR DATA ANALYSIS AND DISSEMINATION The most recent FORMIS data set available is from 2013, and few functioning data layers are populated on the online portal accessible for use by other agencies and organizations. More complete information is critical to the development of thorough and reliable environmental and social impact assessments, leading to increased public participation and ultimately better-informed decision making. Updated data also are critical in the adaptive management cycle to revise implementation after decisions have been made. Functional and updated systems are needed for compiling, analyzing, and sharing information on the current state of forests and biodiversity in Vietnam. One key element of this, according to consultation results, is ongoing updates and analysis. A current lack of monitoring is preventing an effective adaptive management cycle. For example, industrial water users currently pay into the PFES program based on an estimate of how much water they will use. However, there is no monitoring to determine how much water they actually use, and adjust payment accordingly to improve the PFES program. Another need is for transparent dissemination of data and other information such as results of analyses, especially but not exclusively to other government units with management responsibility. Information sharing could increase data transparency across sectors, which in turn could build on existing platforms to increase communication and efficiency. Information sharing and transparency, financial and political support for monitoring, and expanded use of technology will all be necessary to develop and apply the needed information for natural resource decision-making in Vietnam.

C) INCREASE APPLICATION FOR EVIDENCE-BASED DECISIONS Greater transparency in information and decision-making can reduce the likelihood of nefarious motives driving decisions. Broader participation by all legitimate stakeholders in land use or fisheries planning opens opportunities for both increase transparency and credibility, but also better management by introducing different perspectives on the best way to achieve shared objectives. For example, spatial data on illegal activities and patrol efforts can direct limited staff to key areas for monitoring and outreach. With the rise of social media, data sharing and transparency can be more effective than ever in mobilizing change and promoting accountability as well as increasing adaptive management processes based on evidence of what works or not in field management. Better information more widely available also can strengthen public support for government objectives. Consultations with various NGOs in and Hanoi revealed a new focus on information sharing and community building through social media posts, campaigns and photo sharing. The networks some of these NGOs have built are reaching large numbers of people who may not have been previously aware of the environmental contexts of endangered and trafficked species near their communities. Green Viet NGO, based in Da Nang, has raised the profile of the endangered Red shanked douc langur by organizing trips through the school system and on social media for community members to visit their habitat in the Son Tra Mountain, while Education for Nature Vietnam NGO has waged social media campaigns to put pressure on local governments to respond to new and on-going wildlife trafficking cases. These case studies represent a shift in the way biodiversity information has historically been shared between Vietnamese organizations and the communities in which they work.

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3. DIVERSIFY OPTIONS FOR SUSTAINABLE ECONOMIC MODELS Another enabling condition that facilitates and exacerbates the threats to forests and biodiversity is the limited opportunity for sustainable economic growth that does not rely on depleting, degrading, and converting natural capital. Rural livelihood activities, small and medium enterprises (SMEs), and larger commercial operations all have too few examples of successful businesses that do not contribute toward the observed declines in environmental health described earlier in this report. Diversifying livelihood options, at all scales, will be critical to the success of sustainable development models and improved environmental governance. This diversification could target rural and urban opportunities, and linkages between the two, as well as small, medium, and large-scale enterprises. Improving environmental governance in the context of fast economic growth of SMEs, in particular, and links to global value chains may have a disproportionate effect on conservation in Vietnam. Sustainable SMEs have potential to help Vietnam achieve its goal to become an upper middle income country, but only insofar as they also consider the sustainable use of natural resources and protection of the natural environment. Another area of focus could be key macroeconomic sectors that either (a) have high potential for strong reinvestment in natural capital – such as the furniture industry and its raw material suppliers – or are particularly problematic for environmental health (e.g., mining, infrastructure, heavy industry).

4. STRENGTHEN APPLICATION OF LEGAL FRAMEWORKS AT SUBNATIONAL LEVELS Government ministries, departments, and staff consulted for this analysis suggested a number of key actions associated with improving the legal framework for conservation and its application. These included: (1) revising the existing legal framework to reducing overlapping or confusing mandates, especially between central and provincial or district levels; (2) increasing consistency across laws and policies to reduce contradictions and/or loopholes; (3) improving institutional coordination across organizations, ministries, and departments; (4) strengthening understanding of local applications of national strategies (e.g., the green growth strategy); (5) improving communication and information sharing among provinces and districts; and (6) ensuring that messaging and direction are unified and consistent across ministries or departments and across scales from central to local. The outcome of this set of actions objective should be to increase application of clear, unambiguous legal frameworks, especially to the “last mile” users, with a focus on implementing guidance and interpretation of laws and regulations for working level staff at all levels.

5. BUILD CAPACITY AMONG PUBLIC AND PRIVATE MANAGERS AT LANDSCAPE SCALES Our consultations and literature review suggest that local government officials currently have insufficient capacity and tools to meet many of their mandates and objectives including: to deliver awareness raising campaigns, to support local people in forest management, to facilitate participatory processes, to enforce and implement protection measures and laws, to complete appropriate environmental impact assessments, to foster public relations, and to monitor natural resources and effectiveness of protective measures. Likewise, forest owners – as defined and applied in the Law on Forestry of 2017 – reportedly lack basic understanding of how their actions affect and are affected by actions of their state or private neighbors. This inhibits implementation of desired impact achievement at landscape scales. An example of a key area for capacity building and coordination is enforcement of wildlife poaching and trafficking regulations. Actions are most effective when there is collaboration between agencies with responsibility for wildlife (e.g., environment police, forest protection departments, protected area management boards, etc.), other agencies (e.g., police, border security and customs, tax and trade authorities), and NGOs with specialist knowledge and information (e.g., Education for Nature, Vietnam). While demand reduction is the most important solution to the threat of wildlife crime, work on

26 Vietnam Tropical Forest & Biodiversity Analysis – 2019

enforcement and legal aspects is also critical, and each of these aspects of a holistic solution will require long-term commitments, multipronged approaches, capacity, and collaboration.152 Further, training in identification of species is needed in many instances to increase staff capacity for effective enforcement.

6. STRENGTHEN INCENTIVES TOWARD MORE SUSTAINABLE WOOD SUPPLY CHAINS Promoting initiatives which seek to combat illegal logging and associated timber is necessary if Vietnam is to achieve a more sustainable wood supply chain. The topic of illegal logging came up in many of our consultations, though government officials were hesitant to dive deeply into the topic or provide any specific information about the extent of the problem. The GVN has shown a strong commitment to forest governance and creating a sustainable wood supply chain through its signing of the VPA and ongoing development of the VNTLAS, as well as the 2017 Forestry Law. Efforts seeking to bolster the TLAS creation and execution, including the capacity building needs assessment phase that will take place after the TLAS has been codified into law, could have a positive effect on reducing Vietnam’s illegal timber imports and exports.

7. ENGAGE CIVIL SOCIETY ORGANIZATIONS AND PRIVATE SECTOR IN CONSERVATION GVN hopes to achieve its goals of an effective VNTLAS that further strengthens the wood products industry and other economic sectors, improves livelihoods for rural forest owners, increases public support for effective enforcement of environmental laws, and reverses the declines in overall environmental health. In order to succeed, more active engagement will be needed from the wider citizenry. Civil society organizations are already seeing increased interest and mobilization around issues related to air and water quality, fish and other food safety, and a middle class turn against consumption of trafficked wildlife products such as shark fin soup and pangolin meat. The long-term stability of Vietnamese society may depend in part on how well the state apparatus recognizes and embraces this dynamic as it relates to their credibility and legitimacy. Similarly, private sector companies hoping to access North American, European, and other markets for their products are rapidly recognizing that customers in those markets increasingly demand that the products they purchase meet environmental and social standards. The VNTLAS is an example of this, and other examples cover sectors from garments to minerals to seafood. In order for Vietnam to avoid the “middle income trap” of stagnating before reaching high-income country status, private sector entities need to be more responsive to consumer sentiments, which also are becoming more prominent for domestic consumers on issues of food safety, water quality, and equitable access to the benefits of economic growth. Engaging corporate sector actors in conservation can generate positive reputations as competition for customers becomes more intense. One concrete example of what this may look like is to enroll companies in a carbon-PFES, where they are helping to finance forest conservation based on the emissions profile of their operations.

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VI. EXTENT TO WHICH USAID/VIETNAM MEETS THE NEEDS IDENTIFIED The second requirement under FAA sections 118 and 119 is for all country strategy documents to include analysis of “the extent to which the actions proposed for support by the Agency meet the needs thus identified.” This section of the report describes some opportunities for USAID/Vietnam to either directly or indirectly address the conservation actions necessary as identified in the previous section. In practice, integrating conservation actions into all sectors of USAID development programming has evolved into a gradation-based approach (Figure 19) to how an operating unit may contribute toward meeting the Congressional intent of fostering sustainable management and conservation of tropical forests and biodiversity.

Opportunistic co- Proactive co- Direct threat Do no harm benefits benefits reduction

• Do no harm: Programs do not contribute to exacerbating threats [legally required minimum]; • Opportunistic co-benefits: Programs take advantage of indirect ways to reduce threats that were unintended yet emerged during implementation; • Proactive co-benefits: Programs seek out indirect ways to contribute toward reduction of threats as part of implementation, yet without conservation being an explicit, measurable objective; • Direct threat reduction: Programs are designed with an explicit objective of reducing threats or otherwise contributing to biodiversity conservation; usually accomplished with earmarks funds

Figure 18: Programmatic gradations toward integrating conservation into development programs

USAID programs by law cannot contribute toward or exacerbate direct threats to conservation identified in the analysis, whether intentionally or not. Preventing unintended exacerbation of threats is one of the primary reasons for requiring the FAA 118/119 analysis as part of each CDCS. It is often possible, and encouraged, for program designs to either take advantage of opportunities that emerge or to actively look for ways to integrate conservation into health, education, economic growth, governance or other sectoral programs. Examples include selecting sub-sectors that reduce land conversion when targeting economic growth programs, encouraging investments in enterprises with zero-deforestation pledges and operations, adding environmental education into curriculum development, or mobilizing youth to advocate for more transparent governance of a country’s natural capital assets.

A. OVERVIEW OF CURRENT AND PLANNED USAID PROGRAMS IN VIETNAM Vietnam plays a significant role in Southeast Asia’s growth and development and is a priority for the U.S. Government's foreign policy in the region. Vietnam’s efforts to open the economy to global trade and investment have contributed to high and sustained rates of economic growth over the last two decades. Despite Vietnam’s dramatic economic transformation into a lower middle-income country in 2010, a variety of development challenges threaten continued inclusive economic growth and hamper Vietnam’s continued integration into the global economy. USAID aims to help Vietnam overcome these barriers and develop a prosperous, self-reliant, and independent Vietnam that contributes to international security; engages in free, fair and reciprocal trade; and respects human rights and the rule of law.153 USAID programs in Vietnam bolster continued development by strategically focusing resources where they are needed most – to strengthen economic governance; expand access to quality higher education;

28 Vietnam Tropical Forest & Biodiversity Analysis – 2019 control transmission of HIV/AIDS and address threats to global health security; improve the welfare of persons with disabilities; and address environmental challenges, including biodiversity conservation, dioxin contamination, environmental health, and natural disasters. In Vietnam, USAID has contributed approximately $1.153 million for humanitarian assistance and development activities since 2000. This assistance will help Vietnam in its march toward self-reliance and becoming an upper-middle income country by 2035.

1. ENABLING BUSINESS ENVIRONMENT AND PRIVATE SECTOR DEVELOPMENT USAID supports Vietnam’s efforts to strengthen the country’s legal and regulatory framework to promote investment, economic growth, and rising income. In response to Vietnam’s priorities, USAID’s strategy includes improving local regulatory and institutional quality to support private sector development, as well as strengthening the capacity of provincial leaders to improve economic governance. USAID's support to trade facilitation activities will help GVN to honor its international commitments on trade, including environmental safeguards. USAID partners with GVN, the private sector and other stakeholders to implement effective trade facilitation and improve small and medium sized enterprise (SME) integration into global value chains, and support digital economy, including e- government. USAID programs aim to modernize higher education systems, including improving the quality and effectiveness of education, and teaching and learning of key skills necessary to ensure a strong, high quality workforce. USAID programs promote GVN’s capacity to increase energy efficiency in high energy use sectors and public and private investment in and piloting of renewable energy technologies. USAID programs also aim to leverage domestic resources to accommodate the increasing demand for energy and promote energy efficiency in Vietnam. These efforts support the Indo-Pacific Strategy's trade and competitiveness pillar by leveling the playing field and will contribute to Vietnam’s long-term vision of achieving upper-middle-income status.

2. ADDRESSING WAR LEGACIES The Bien Hoa Airbase has been referred to as the largest environmental “hotspot” due to high dioxin concentrations remaining decades after the . At the GVN’s request, USAID conducted an environmental assessment for Bien Hoa Airbase and planned a large-scale project to clean up Agent Orange/dioxin-contaminated soil and sediments at this hotspot. The project involves the removal of pollution or contaminants from environmental media to reduce the negative impact on human health and the environment. In addition, the USAID program has provided better direct assistance to address medical and social needs that help to improve the quality of life of people with disabilities (PWDs) in provinces that were heavily sprayed with Agent Orange. In partnership with local organizations, USAID expands rehabilitation services and other social support for PWDs. The USAID program to train rehabilitation practitioners and build effective rehabilitation systems aims to improve the quality of physical, occupational and speech therapies available for PWDs. USAID has also supported local governments to ensure equal opportunities for PWDs and influence public policies that affect their lives.

3. PROTECTING THE ENVIRONMENT Vietnam has experienced rapid economic growth and has risen to the status of a lower middle-income economy in the last decade. While many positive changes have been achieved, development has come with environmental costs, including degradation of natural resources, severe water pollution, and illegal trade in wildlife. USAID interventions in biodiversity conservation, combating wildlife trafficking, and disaster risk reduction support Vietnam in its efforts to foster a more sustainable development path. USAID helps Vietnam protect its globally significant biodiversity by safeguarding a future for unique and endangered species that are currently threatened by land use change, intense poaching, and wildlife crime. The USAID program supports efforts to strengthen wildlife law enforcement and prosecution, improve and harmonize legal frameworks for conservation, and reduce consumer demand for illegal wildlife and wildlife products. USAID works directly with local governments and citizens in targeted

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provinces to strengthen biodiversity conservation, improve land use practices to reduce deforestation and restore degraded landscapes, and increase resilience of vulnerable communities. The USAID program also supports efforts to improve environmental health, including air quality and environmental pollution in some target localities.

4. IMPROVING HEALTH Under the President’s Emergency Plan for AIDS Relief (PEPFAR), USAID works in collaboration with the GVN at the national, provincial and district levels in support of goals identified in the National HIV/AIDS Strategy. Together with civil society and non-governmental organizations, USAID helps to achieve epidemic control by delivering prevention, care and treatment services, and advocating for policies that will improve sustainability, improve access to quality of HIV/AIDS services, and strengthen the overall health system. USAID also works with the private sector interested in providing HIV goods and services to contribute to the national HIV response. In addition, in close collaboration with the GVN and civil society organizations, USAID provides funding and technical support to prevent, detect, and respond to avian and pandemic influenza and other emerging pandemic threats. The program has supported strengthening the country’s systems to effectively address these and other emerging and transnational health threats in both humans and animals. USAID has also supported the Vietnam National Tuberculosis Program through innovative approaches and tools to strengthen Vietnam’s capacity to address the threats from emergence of drug-resistant tuberculosis.

B. OPPORTUNITIES FOR USAID PROGRAMMING IN VIETNAM TO CONTRIBUTE TOWARD CONSERVATION OF FORESTS AND BIODIVERSITY USAID/Vietnam is currently preparing its CDCS, offering the ideal opportunity to integrate conservation-oriented objectives into the mission’s portfolio. The strategic results framework contains one proposed development objective (DO) that explicitly includes priority actions for conservation and improved environmental security. USAID/Vietnam is working to effectively determine contributions toward natural resources management and endangered species protection, potential opportunities for USAID to contribute to tropical forest and biodiversity conservation, consistent with Mission program goals and objectives, through strategic objectives other than environment. This process integrates environmental, social, and economic factors to bring about economic development that enhances conservation actions. Some proposed priority areas imply a role for activities to conserve tropical forests and biodiversity. The following sections put significant emphasis on identification of conservation opportunities within the Mission‘s portfolio.

1. ECONOMIC COMPETITIVENESS INCREASED Fast economic growth without the necessary safeguards of an effective framework for environmental governance is a root cause of tropical forest and biodiversity loss and degradation. There is opportunity for USAID/Vietnam to directly address the dysfunctional environmental governance in a context of fast economic growth of SMEs, and their linkages to global value chains. Sustainable SMEs have potential to help Vietnam achieve its goal to become an upper middle-income country, but only insofar as they also consider the sustainable use of natural resources and protection of natural environment. The program should promote environmental awareness as part of all levels of education to encourage sound, sustainable environmental and natural resource management for SMEs, especially those involved in manufacturing related products such as wooden furniture or forest products, as they are linking into the global economy. The Trade Facilitation Program (TFP) could adopt and implement a risk management approach to customs and specialized inspection agencies with respect to preventing and curbing wildlife trafficking across borders. TFP could train customs officers and the business community on trade facilitation and customs issues, including effective enforcement of wildlife trafficking and related policies and regulations.

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In addition, there is potential for the USAID’s program to improve the capacity of provincial leaders by incorporating awareness of forest and biodiversity conservation and strengthened environmental management and law enforcement capacity in the training program to promote stronger environmental governance at the provincial level. The current and new program should aim to improve energy efficiency, indirectly reducing the pressures on biological resources. In addition, savings of public resources from subsidies for inefficient energy management may free up revenues that could be used for other public purposes such as conservation. The economic competitiveness DO has an opportunity to shift from the “Do no harm” end of the spectrum (Figure 19) toward opportunistic and/or proactive co-benefits for conservation. The current draft intermediate results (IRs) proposed for the new CDCS period include work on the business enabling environment, building human capital through modernizing higher education institutions, and increasing private sector participation in infrastructure developments. These proposed IRs present opportunities to encourage responsible corporate citizenship, close the knowledge gaps on biodiversity and other ecological sciences, and incentivize high-quality infrastructure investments that include social and environmental safeguards.

2. PREVENTION AND CONTROL OF INFECTIOUS DISEASES INCREASED Under this draft DO, the most relevant IR is one related to controlling emerging health security threats. These can include zoonotic diseases; epidemics of malaria, dengue, chikungunya, and other mosquito- borne infectious diseases; or bioaccumulation of environmental toxins in water, fish, and other parts of the human food systems. Creative and innovative opportunities are thereby present for coordinating and collaborating across conservation and health portfolios, where higher levels of environmental health translate directly into higher levels of human health. For example, many zoonotic diseases originate with human consumption of wildlife. A coordinated information campaign could approach this issue through both anti-poaching actions of conservation programs and health systems actions discouraging people from consuming wild animal products. Likewise, better data on toxins in the food supply can be instrumental in generating political will to enforce pollution laws, which in turn reduce one of the threats to aquatic and agricultural biodiversity. These would generate proactive co-benefits for human health and biodiversity.

3. ENVIRONMENTAL SECURITY INCREASED The programming areas addressing environmental protection include: (1) Biodiversity conservation and forest protection; (2) Countering wildlife trafficking; (3) Addressing environmental health/pollution; and (4) Enhancing disaster risk reduction. USAID/Vietnam’s current program includes a number of activities designed to improve the capacity of communities to conserve biodiversity and forests, including the Vietnam Forests and Deltas and the Green Annamites programs that place biodiversity protection at the center of sustainable resilience. There is also an opportunity for USAID/Vietnam to expand its portfolio into additional biodiversity-rich areas. The success of the PFES schemes is building into a nationwide effort by GVN to galvanize resilience with increased opportunities for local residents. The new CDCS offers opportunity for joint efforts by the government and non-governmental stakeholders to address the crucial emerging environmental health issues, including air quality and water pollution. The proposed strategy has the potential to contribute significantly and positively to the country’s conservation agenda for tropical forests and biodiversity. This draft DO is where USAID/Vietnam has the greatest opportunity for direct threat reduction. On the assumption that direct biodiversity programming (and funding) will continue into the next CDCS period, three of the four proposed IRs provide meaningful scope to address each of the principal threats described earlier. Those draft IRs are:

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• Declines in wildlife populations and amount of forest degradation reduced • Vietnamese leadership increased in combating wildlife trafficking • Collective action accelerated for reducing environmental pollution These incorporate nearly all of the Necessary Actions identified above and each could contribute toward reducing or removing not only the threats, but also affect the drivers and enablers.

VII. CONCLUSIONS AND RECOMMENDATIONS Rather than repeat the discussions from above or recommend that all of the Actions Necessary be implemented, a very brief synopsis is presented here. Overall, the status and trends for forests and biodiversity in Vietnam are a mix of good news and bad news. Forest cover increases through plantations are resulting in “green deserts” devoid of wildlife. Overfishing of the seas has declined because they are so depleted and polluted. Rapid economic growth is producing a long list of environmental health concerns. Green growth strategies are sitting on shelves. Arguably, the most impactful actions that USAID/Vietnam could take at a strategic level over the next five years would be to identify, test, promote, and/or demonstrate business and economic models that potentially can deliver positive externalities – or at least reduce negative ones. The GVN and Vietnamese society are slowly recognizing that privatizing benefits and socializing costs is not a sustainable model on economic, social, or environmental bases. Supporting and accelerating this nascent trend contributes to self-reliance, demonstrates a clear choice for US comparative advantage, and incorporates each of the key pillars of the Indo-Pacific Strategy and its USAID implementation plans. Another set of high-impact actions that align with USAID/Vietnam strategic priorities is to strengthen broad civil society engagement in forest and biodiversity conservation. This could include support to local NGOs already engaged in this area, facilitating a wider platform for coordinated activities to achieve scale, building on successful social media and other communications channels, and magnifying local efforts toward effective national outreach. These actions potentially could directly address a Journey to Self-Reliance country roadmap indicator where Vietnam is not yet as strong as its peers.

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VIII. ANNEX 1: PEOPLE CONSULTED USAID/VIETNAM Michael Greene, Mission Director Craig Hart, Deputy Mission Director Jeremiah Carew, Director, Program Development Office Christine Gandomi, Deputy Director, Program Development Office Christopher Abrams, Director, Environment and Social Development Office Corina Warfield, Deputy Director, Environment and Social Development Office

USAID ACTIVITIES Saving Species David Lawson, Chief of Party

Vietnam Forests and Deltas Brian Beane, Chief of Party

USAID Green Annamites Daniel Lopez, Chief of Party Do Dang Teo, Deputy Chief of Party Ong Dinh Bao Tri, Monitoring and Evaluation Specialist Nguyen Van Tri Tin, Biodiversity Conservation Lead

GOVERNMENT OF VIETNAM Ministry of Agriculture and Rural Development Department of Biodiversity Conservation Forest Protection and Development Fund Forest Protection Department Management Board for Forestry Projects Vietnam Administration of Forestry

Ministry of Natural Resources and Environment Biodiversity Conservation Agency

PROVINCIAL GOVERNMENT AGENCIES Thanh Hoa Department of Agriculture and Rural Development of Thanh Hoa Province Thanh Hoa Province Forest Protection Department Xuan Lien Nature Reserve Staff

Quang Tri Department of Agriculture and Rural Development of Quang Tri Province Quang Tri Province Forest Protection Department

Thua Thien Hue Department of Agriculture and Rural Development of Thua Thien Hue Province Thua Thien Hue Province Forest Protection Department

Vietnam Tropical Forest & Biodiversity Analysis – 2019 ANNEX 1 – VIII:1

Quang Nam Department of Agriculture and Rural Development of Quang Nam Province Quang Nam Province Forest Protection Department

Lam Dong Department of Agriculture and Rural Development of Lam Dong Province Lam Dong Province Forest Protection Department Cat Tien National Park Staff Bidoup Nui Ba National Park Staff

ACADEME Vietnamese Academy of Forest Sciences

CIVIL SOCIETY AND OTHER ORGANIZATIONS World Wildlife Fund International Union for the Conservation of Nature World Agroforestry Center Center for International Forestry Research PanNature Centre for Marine Life Conservation and Community Development Delegation of the European Union to Vietnam Education for Nature Vietnam Green Viet

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IX. ANNEX 2: FOREIGN ASSISTANCE ACT OF 1961, AMENDED SECTIONS 118 AND 119

A. SEC. 118. [22 U.S.C. 2151P–1] TROPICAL FORESTS. (a) IMPORTANCE OF FORESTS AND TREE COVER.—In enacting section 103(b)(3) of this Act the Congress recognized the importance of forests and tree cover to the developing countries. The Congress is particularly concerned about the continuing and accelerating alteration, destruction, and loss of tropical forests in developing countries, which pose a serious threat to development and the environment. Tropical forest destruction and loss— (1) result in shortages of wood, especially wood for fuel; loss of biologically productive wetlands; siltation of lakes, reservoirs, and irrigation systems; floods; destruction of indigenous peoples; extinction of plant and animal species; reduced capacity for food production; and loss of genetic resources; and (2) can result in desertification and destabilization of the earth’s climate. Properly managed tropical forests provide a sustained flow of resources essential to the economic growth of developing countries, as well as genetic resources of value to developed and developing countries alike.

(b) PRIORITIES.—The concerns expressed in subsection (a) and the recommendations of the United States Interagency Task Force on Tropical Forests shall be given high priority by the President— (1) in formulating and carrying out programs and policies with respect to developing countries, including those relating to bilateral and multilateral assistance and those relating to private sector activities; and (2) in seeking opportunities to coordinate public and private development and investment activities which affect forests in developing countries.

(c) ASSISTANCE TO DEVELOPING COUNTRIES.—In providing assistance to developing countries, the President shall do the following: (1) Place a high priority on conservation and sustainable management of tropical forests. (2) To the fullest extent feasible, engage in dialogues and exchanges of information with recipient countries— (A) which stress the importance of conserving and sustainably managing forest resources for the long-term economic benefit of those countries, as well as the irreversible losses associated with forest destruction, and (B) which identify and focus on policies of those countries which directly or indirectly contribute to deforestation. (3) To the fullest extent feasible, support projects and activities— (A) which offer employment and income alternatives to those who otherwise would cause destruction and loss of forests, and (B) which help developing countries identify and implement alternatives to colonizing forested areas. (4) To the fullest extent feasible, support training programs, educational efforts, and the establishment or strengthening of institutions which increase the capacity of developing countries to formulate forest policies, engage in relevant landuse planning, and otherwise improve the management of their forests. (5) To the fullest extent feasible, help end destructive slash-and-burn agriculture by supporting stable and productive farming practices in areas already cleared or degraded and on lands which inevitably will be settled, with special emphasis on demonstrating the feasibility of agroforestry and other techniques which use technologies and methods suited to the local environment and traditional agricultural techniques and feature close consultation with and involvement of local people.

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(6) To the fullest extent feasible, help conserve forests which have not yet been degraded, by helping to increase production on lands already cleared or degraded through support of reforestation, fuelwood, and other sustainable forestry projects and practices, making sure that local people are involved at all stages of project design and implementation. (7) To the fullest extent feasible, support projects and other activities to conserve forested watersheds and rehabilitate those which have been deforested, making sure that local people are involved at all stages of project design and implementation. (8) To the fullest extent feasible, support training, research, and other actions which lead to sustainable and more environmentally sound practices for timber harvesting, removal, and processing, including reforestation, soil conservation, and other activities to rehabilitate degraded forest lands. (9) To the fullest extent feasible, support research to expand knowledge of tropical forests and identify alternatives which will prevent forest destruction, loss, or degradation, including research in agroforestry, sustainable management of natural forests, small-scale farms and gardens, small-scale animal husbandry, wider application of adopted traditional practices, and suitable crops and crop combinations. (10) To the fullest extent feasible, conserve biological diversity in forest areas by— (A) supporting and cooperating with United States Government agencies, other donors (both bilateral and multilateral), and other appropriate governmental, intergovernmental, and nongovernmental organizations in efforts to identify, establish, and maintain a representative network of protected tropical forest ecosystems on a worldwide basis; (B) whenever appropriate, making the establishment of protected areas a condition of support for activities involving forest clearance of degradation; and (C) helping developing countries identify tropical forest ecosystems and species in need of protection and establish and maintain appropriate protected areas. (11) To the fullest extent feasible, engage in efforts to increase the awareness of United States Government agencies and other donors, both bilateral and multilateral, of the immediate and long-term value of tropical forests. (12) To the fullest extent feasible, utilize the resources and abilities of all relevant United States Government agencies. (13) Require that any program or project under this chapter significantly affecting tropical forests (including projects involving the planting of exotic plant species)— (A) be based upon careful analysis of the alternatives available to achieve the best sustainable use of the land, and (B) take full account of the environmental impacts of the proposed activities on biological diversity, as provided for in the environmental procedures of the Agency for International Development. (14) Deny assistance under this chapter for— (A) the procurement or use of logging equipment, unless an environmental assessment indicates that all timber harvesting operations involved will be conducted in an environmentally sound manner which minimizes forest destruction and that the proposed activity will produce positive economic benefits and sustainable forest management systems; and (B) actions which significantly degrade national parks or similar protected areas which contain tropical forests or introduce exotic plants or animals into such areas. (15) Deny assistance under this chapter for the following activities unless an environmental assessment indicates that the proposed activity will contribute significantly and directly to improving the livelihood of the rural poor and will be conducted in an environmentally sound manner which supports sustainable development:

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(A) Activities which would result in the conversion of forest lands to the rearing of livestock. (B) The construction, upgrading, or maintenance of roads (including temporary haul roads for logging or other extractive industries) which pass through relatively undegraded forest lands. (C) The colonization of forest lands. (D) The construction of dams or other water control structures which flood relatively undegraded forest lands.

(d) PVOS AND OTHER NONGOVERNMENTAL ORGANIZATIONS.—Whenever feasible, the President shall accomplish the objectives of this section through projects managed by private and voluntary organizations or international, regional, or national nongovernmental organizations which are active in the region or country where the project is located.

(e) COUNTRY ANALYSIS REQUIREMENTS.—Each country development strategy statement or other country plan prepared by the Agency for International Development shall include an analysis of— (1) the actions necessary in that country to achieve conservation and sustainable management of tropical forests, and (2) the extent to which the actions proposed for support by the Agency meet the needs thus identified.

(f) ANNUAL REPORT.—Each annual report required by section 634(a) of this Act shall include a report on the implementation of this section.

B. SEC. 119.[22 U.S.C. 2151] ENDANGERED SPECIES.— (a) CONGRESSIONAL FINDINGS AND PURPOSES.—The Congress finds the survival of many animal and plant species is endangered by overhunting, by the presence of toxic chemicals in water, air and soil, and by the destruction of habitats. The Congress further finds that the extinction of animal and plant species is an irreparable loss with potentially serious environmental and economic consequences for developing and developed countries alike. Accordingly, the preservation of animal and plant species through the regulation of the hunting and trade in endangered species, through limitations on the pollution of natural ecosystems, and through the protection of wildlife habitats should be an important objective of the United States development assistance.

(b) REMEDIAL MEASURES.—In order to preserve biological diversity, the President is authorized to furnish assistance under this part, notwithstanding section 660, to assist countries in protecting and maintaining wildlife habitats and in developing sound wildlife management and plant conservation programs. Special efforts should be made to establish and maintain wildlife sanctuaries, reserves, and parks; to enact and enforce anti-poaching measures; and to identify, study, and catalog animal and plant species, especially in tropical environments.

(c) FUNDING LEVEL.—For fiscal year 1987, not less than $2,500,000 of the funds available to carry out this part (excluding funds made available to carry out section 104(c)(2), relating to the Child Survival Fund) shall be allocated for assistance pursuant to subsection (b) for activities which were not funded prior to fiscal year 1987. In addition, the Agency for International Development shall, to the fullest extent possible, continue and increase assistance pursuant to subsection (b) for activities for which assistance was provided in fiscal years prior to fiscal year 1987.

(d) COUNTRY ANALYSIS REQUIREMENTS.—Each country development strategy statement or other country plan prepared by the Agency for International Development shall include an analysis of—

Vietnam Tropical Forest & Biodiversity Analysis – 2019 ANNEX 2 – IX:3

(1) the actions necessary in that country to conserve biological diversity, and (2) the extent to which the actions proposed for support by the Agency meet the needs thus identified.

(e) LOCAL INVOLVEMENT.—To the fullest extent possible, projects supported under this section shall include close consultation with and involvement of local people at all stages of design and implementation.

(f) PVOS AND OTHER NONGOVERNMENTAL ORGANIZATIONS.—Whenever feasible, the objectives of this section shall be accomplished through projects managed by appropriate private and voluntary organizations, or international, regional, or national nongovernmental organizations, which are active in the region or country where the project is located.

(g) ACTIONS BY AID.—The Administrator of the Agency for International Development shall— (1) cooperate with appropriate international organizations, both governmental and nongovernmental; (2) look to the World Conservation Strategy as an overall guide for actions to conserve biological diversity; (3) engage in dialogues and exchanges of information with recipient countries which stress the importance of conserving biological diversity for the long-term economic benefit of those countries and which identify and focus on policies of those countries which directly or indirectly contribute to loss of biological diversity; (4) support training and education efforts which improve the capacity of recipient countries to prevent loss of biological diversity; (5) whenever possible, enter into long-term agreements in which the recipient country agrees to protect ecosystems or other wildlife habitats recommended for protection by relevant governmental or nongovernmental organizations or as a result of activities undertaken pursuant to paragraph (6), and the United States agrees to provide, subject to obtaining the necessary appropriations, additional assistance necessary for the establishment and maintenance of such protected areas; (6) support, as necessary and in cooperation with the appropriate governmental and nongovernmental organizations, efforts to identify and survey ecosystems in recipient countries worthy of protection; (7) cooperate with and support the relevant efforts of other agencies of the United States Government, including the United States Fish and Wildlife Service, the National Park Service, the Forest Service, and the Peace Corps; (8) review the Agency’s environmental regulations and revise them as necessary to ensure that ongoing and proposed actions by the Agency do not inadvertently endanger wildlife species or their critical habitats, harm protected areas, or have other adverse impacts on biological diversity (and shall report to the Congress within a year after the date of enactment of this paragraph on the actions taken pursuant to this paragraph); (9) ensure that environmental profiles sponsored by the Agency include information needed for conservation of biological diversity; and (10) deny any direct or indirect assistance under this chapter for actions which significantly degrade national parks or similar protected areas or introduce exotic plants or animals into such areas.

(h) ANNUAL REPORTS.—Each annual report required by section 634(a) of this Act shall include, in a separate volume, a report on the implementation of this section.

ANNEX 2 - IX:4 Vietnam Tropical Forest & Biodiversity Analysis – 2019

X. ENDNOTES

1 de Queiroz, JS; D Griswold, DT Nguyen, and P Hall. 2013. Vietnam Tropical Forest and Biodiversity Assessment: US Foreign Assistance Act, Section 118/119 Report. Sun Mountain International and Cadmus Group, Inc. report to USAID/Vietnam. Hereinafter referred to as “the 2013 analysis” or “de Queiroz et al. 2013” 2 USAID/Vietnam is preparing this CDCS per revised Automated Directive System (ADS) chapter 201.3.2. The previous CDCS, approved in November 2013, covers the period 2014-2019. 3 GVN. n.d. Overview on Vietnam geography. Socialist Republic of Viet Nam Government Portal at http://chinhphu.vn/portal/page/portal/English 4 Lepvrier, C, VV Nguyen, H Maluski, TT Phan, and VV Tich. 2008. Indosinian tectonics in Vietnam. Comptes Rendus Geoscience 340: 94-111. https://doi.org/10.1016/j.crte.2007.10.005 5 Wang, S, Y Mo, C Wang, and P Ye. 2016. Paleotethyan evolution of the Indochina Block as deduced from granites in northern Laos. Gondwana Research 38: 183–196. https://doi.org/10.1016/j.gr.2015.11.011 6 GVN. n.d. Op cit. 7 Kušnír, I. 2000. Mineral resources of Vietnam. Acta Montanistica Slovaca 5(2): 165-172. 8 MoNRE. 2019a. Third National Communication of Vietnam to the United Nations Framework Convention on Climate Change. Ministry of Natural Resources and Environment, Socialist Republic of Viet Nam. Also see USAID. 2017. Climate Change Risk Profile Vietnam. Available on ClimateLinks. And: World Bank Climate Change Knowledge Portal. Vietnam country profile. 9 Ibid. 10 USAID. 2017. Op cit. Prepared under Climate Change Adaptation, Thought Leadership and Assessments Task Order # AID-OAA-I-14-00013 11 World Bank CCKP. Op cit. 12 Thuc, T; VT Nguyen, TLH Huynh, VK Mai, XH Nguyen, and HP Doan. 2016. Climate Change and Sea Level Rise Scenarios for Viet Nam - Summary for Policymakers. Ministry of Natural Resources and Environment. 13 MoNRE. 2019a. Op cit. 14 Ibid. 15 Thuc et al. 2016. Op cit. 16 Endemic species are those with geographic distribution restricted to a particular area or region, that is: found nowhere else. 17 MoNRE. 2015. Vietnam National Biodiversity Strategy to 2020, vision to 2030. Ministry of Natural Resources and Environment, Socialist Republic of Viet Nam. National Biodiversity Strategy and Action Plan (NBSAP) v.3. submitted to the Secretariat of the Convention on Biological Diversity 17 December 2015. Pp. 15-17 18 Idem. Pp. 20-22. 19 Idem. Pg. 15. 20 Carew-Reid, Jeremy, Josh Kempinski and Alison Clausen. 2010. Biodiversity and Development of the Hydropower Sector: Lessons from the Vietnamese Experience – Volume I: Review of the Effects of Hydropower Development on Biodiversity in Vietnam. ICEM – International Centre for Environmental Management, Prepared for the Critical Ecosystem Partnership Fund, Hanoi, Viet Nam. 21 Carew-Reid, Kempinski, & Clausen. 2010. 22 Carew-Reid, Kempinski, & Clausen, 2010 23 MoNRE. 2015. Op cit. pg. 20 24 No citation provided by USFS 25 No citation provided by USFS 26 No citation provided by USFS 27 MoNRE. 2015. Op cit. pg. 20 28 Nhân Dân Online. 2019. Vietnam’s population reaches over 96.2 million, ranking 15th in the world: 2019 census. Published 11 July 2019 29 HelpAge Global Network. 2019. Ageing population in Vietnam. 30 World Bank. 2019a. World Development Indicators: Vietnam Country Profile. 31 UN DESA. 2019. World Population Prospects 2019. United Nations Department of Economic and Social Affairs, Population Division. 32 Nguyen, C. 2016. The Ageing Trend and Related Socio-Economic Issues in Vietnam. MPRA Paper No. 81825 33 Glover, D. 2014. Stage 3 of the Demographic Transition Model. PopEd Blog of PopulationEducation.org 34 Nhân Dân Online. 2019. Op cit. 35 IMF. 2019. Five Charts Explain Vietnam's Economic Outlook. Staff summary of Country Report No. 19/235. 36 GNI per capita (formerly GNP per capita) is the gross national income, converted to U.S. dollars using the World Bank Atlas method, divided by the midyear population. GNI is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad. Using the purchasing power parity method, Vietnam’s per capita GNI in 2018 was $7,030. More details available on the World Bank website. 37 World Bank. 2019. Op cit. 38 Ibid. 39 United Nations Development Programme. 2018. Human Development Indices and Indicators: 2018 Statistical Update – Vietnam. 40 World Bank. 2019b. The World Bank In Vietnam: Overview 41 World Bank. 2019c. GINI index (World Bank estimate) – Vietnam. 42 CIA. 2019. Vietnam: Economy overview. The World Factbook. 43 CityPopulation. 2019. Vietnam Administrative Divisions: Provinces and Districts. 44 Martini, M. 2012. Overview of corruption and anti-corruption in Vietnam. Anti-Corruption Helpdesk, Transparency International. 45 Ibid. 46 McElwee, P. 2016. Forests Are Gold: Trees, People and Environmental Rule in Vietnam. University of Washington Press, Seattle. 47 Nguyen, D. 2001. Vietnam Forestry Sector: 1945–2000.

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48 EU FLEGT Facility. n.d. Background: The Vietnam-EU Voluntary Partnership Agreement. Website hosted by the European Forest Institute 49 EIA. 2018. Serial Offender: Vietnam’s Continued Imports of Illegal Cambodian Timber. London: Environmental Investigation Agency. 50 EU FLEGT Facility. Op cit. 51 InforMEA. n.d. United Nations Information Portal on Multilateral Environmental Agreements, an initiative of the United Nations, UN Environment Programme, Food and Agriculture Organization of the United Nations, UNESCO, United Nations Economic Commission for Europe, United Nations Economic Commission for Latin America and the Caribbean, and ECOLEX. Accessed 29 May 2019. 52 Data from Ronald B. Mitchell. 2002-2019. International Environmental Agreements Database Project (Version 2018.1). Accessed: 29 May 2019 53 Socialist Republic of Vietnam. 2014. Law on Environmental Protection. Law No.: 55/2014/QH13; Article 5(3). Promulgated by the National Assembly on 23 June 2014. English translation available on FAO Ecolex. 54 Idem. Article 7(2). 55 Socialist Republic of Vietnam. 2017. Law on Fishery. Law No.: 18/2017/QH14; Article 5(2). Promulgated by the National Assembly on 21 November 2017. English translation available on FAO Ecolex. 56 Socialist Republic of Vietnam. 2008. Law on Biodiversity. Law No.: 20/2008/QH12; Article 6(4). Promulgated by the National Assembly on 13 November 2008. English translation available on FAO Ecolex. 57 MoNRE. 2019b. Sixth National Report to the United Nations Convention on Biological Diversity. Ministry of Natural Resources and Environment, Socialist Republic of Viet Nam. Pg. 191. 58 BirdLife International, IUCN and UNEP World Conservation Monitoring Centre. 2019. IBAT Country Profile for Viet Nam, Version 2019/1. 59 Tordoff, A; M Baltzer; J Fellowes; J Pilgrim; & P Langhammer. 2012. Key Biodiversity Areas in the Indo-Burma Hotspot: Process, Progress and Future Directions. Journal of Threatened Taxa 4(8): 2779-2787. https://doi.org/10.11609/JoTT.o3000.2779-87 60 Unclear if this is USFS opinion or can be cited to a published source. 61 MARD. 2009. Circular No.34/2009/TT-BNNPTNT of June10, 2009, on criteria for forest identification and classification. Official Gazette Issue Nos11-12/Jun,2009. pp. 32-33 62 World Bank. 2019. Forest Country Note – Vietnam. World Bank, Washington, DC. pg. 3 63 Ibid. 64 de Queiroz, et al. 2013. Op cit. 65 VNFF. 2014. Payments for forest environmental services (PFES) in Vietnam: Findings from three years of implementation. Vietnam Forest Protection and Development Fund (VNFF), published with support of the Center for International Forestry Research (CIFOR) and the Greater Mekong Subregion Core Environment Program or the Asian Development Bank (ADB). pg. 1 66 Idem. pg.4 67 Idem. pg.1 68 Pham, TT; GY Wong; ND Le; and M Brockhaus. 2016. The distribution of payment for forest environmental services (PFES) in Vietnam: Research evidence to inform payment guidelines. CIFOR Occasional Paper no. 163. Center for International Forestry Research (CIFOR), Bogor, Indonesia. pg. 4. 69 USAID. 2019. USAID Promotes Financial Inclusion While Expanding Vietnam’s Forest Protection. Blogpost on USAID/Vietnam website. 14 Feb 2019. 70 Murray, L. 2019. What You May Not Know About Vietnam. Blogpost on Winrock International website. 11 Mar 2019. 71 World Bank. 2019. Op cit. pg. 31 72 Murray. 2019. Op cit. 73 World Bank. 2019. Op cit. pg. 65 74 EU FLEGT Facility. 2019. EU and Vietnam ratify agreement on illegal logging and trade in legal timber. News item published 13 May 2019 75 Article 13 of the VPA states that “Using the VNTLAS, Viet Nam shall verify the legality of timber products exported to non-Union markets and timber products sold on domestic markets, and shall verify the legality of imported timber products using the system developed for implementing this Agreement.” 76 Butler, R. 2016. The top 10 most biodiverse countries. Blogpost on Mongabay website; 21 May 2016. The Mongabay ranking “takes a simplified approach, creat[ing] a weighted index using five groups of animals — amphibians, birds, fish, mammals, and reptiles — and one group of plants — vascular plants. Each country is ranked by its percentage of species in each group relative to the total global number of species for each group.” 77 MoNRE. 2015. Op cit. pp. 23-24 78 Vietnam Birding. n.d. Bird Habitats. 79 Sterling, EJ; MM Hurley; and DM Le. 2006. Vietnam: A Natural History. With illustrations by Joyce A. Powzyk. New Haven: Yale University Press. Pg. 363 80 MoNRE. 2019b. Op cit. pg. 70 81 Open Development Vietnam. 2018. Rivers and lakes. Blogpost 03 Aug 2018. 82 FAO. 2016. Vietnam: Water Resources. AQUASTAT website. Food and Agriculture Organization of the United Nations (FAO). 83 IGES. 2018. Outlook on Water Environmental Management in Asia 2018. Water Environmental Partnership in Asia (WEPA) Secretariat, Institute for Global Environmental Strategies (IGES). pg. 122 84 FAO. 2016. Op cit. 85 Ibid. 86 IGES. 2018. Op cit. pg. 122 87 Idem. pp. 123-125 88 MoNRE. 2019b. Op cit. pg. 90 89 Idem. pp. 95-96 90 FAO. 2016. Op cit. 91 WHC and IUCN. 2018. Report on the Joint WHC/IUCN Reactive Monitoring Mission to Phong Nha-Ke Bang National Park (11-20 July 2018). World Heritage Centre, UNESCO and International Union for Conservation of Nature. pp. 14-15 92 MoNRE. 2019b. Op cit. pg. 100

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93 MoNRE. 2015. Op cit. pg. 22 94 This figure is presumed to include mangrove associates, given that scientists have identified only 73 “true mangrove” species globally. See Spalding, M; M Kainuma; & L Collins. 2010. World Atlas of Mangroves. Earthscan. Table 1.1 95 MoNRE. 2015. Op cit. pp. 24 and 35 96 de Queiroz, et al. 2013. Op cit. pp. 9 and 60 97 MoNRE. 2019b. Op cit. pg. 60 98 Ibid. 99 Veettil, BK; RD Ward; XQ Ngo; TTT Ngo; & HG Tran. 2019. Mangroves of Vietnam: Historical development, current state of research and future threats. Estuarine, Coastal and Shelf Science Vol 218: 212-236. 5 March 2019. https://doi.org/10.1016/j.ecss.2018.12.021 100 MoNRE. 2019b. Op cit. pp. 61-63 101 Ibid. 102 Phap, TT and LTNThuan. 2002. Tam Giang Lagoon aquatic systems health assessment. p. 225-234. In: J.R. Arthur, M.J. Phillips, R.P. Subasinghe, M.B. Reantaso and I.H. MacRae. (eds.) Primary Aquatic Animal Health Care in Rural, Small-scale, Aquaculture Development. FAO Fish. Tech. Pap. No. 406. 103 MoNRE. 2019b. Op cit. pg. 62 104 Nguyen, HD; XH Nguyen; HT Pham; and TL Nguyen. 2000. Seagrass Beds along the Southern Coast of Vietnam and Their Significance for Associated Flora and Fauna. Collection of Marine Research Works, 2000, X: 149-160 105 The fourth identified region – Hoang Sa and Truong Sa, or Paracel Islands and Spratley Islands, respectively – cannot be assessed at this time given ongoing disputes over ownership; both archipelagos in the are disputed territories claimed by other countries. 106 MoNRE. 2019b. Op cit. pp. 63-67 107 Idem. Table 4; pp. 64-65 108 MoNRE. 2019b. Op cit. pp. 65-67 109 Kayal, M; J Vercelloni; T Lison de Loma; P Bosserelle; Y Chancerelle; S Geoffroy; C Stievenart; F Michonneau; L Penin; S Planes; and M Adjeroud. 2012. Predator Crown-of-Thorns Starfish (Acanthaster planci) Outbreak, Mass Mortality of Corals, and Cascading Effects on Reef Fish and Benthic Communities. PLoS ONE 7(10): e47363. https://doi.org/10.1371/journal.pone.0047363 110 WWF. 2011. Extinction of the Javan Rhinoceros (Rhinoceros sondaicus) from Vietnam 111 Horne, B.D., Chan, E.H., Platt, S.G. & Moll, E.O. 2019. Batagur affinis. The IUCN Red List of Threatened Species 2019 112 Vietnamnet – Vietnam has only five tigers in the wild (https://english.vietnamnet.vn/fms/environment/155019/vietnam-has-only-five-tigers-in- the-wild.html) 113 IBAT Alliance [BirdLife International, IUCN and UNEP World Conservation Monitoring Centre]. 2018. IBAT Country Profile for Viet Nam, Version 2018/5. Table 1. Available at: http://www.ibat-alliance.org/ibat-conservation 114 Ibid. 115 Idem. Table 3 116 https://www.animalsasia.org/us/media/news/news-archive/animals-asia-re-affirms-commitment-to-saving--endangered-wild-elephants- now-the-government-must-do-the-same.html 117 MoNRE. 2019b. Op cit. pg. 122 118 MoNRE. 2015. Op cit. pp. 10 and 26 119 Sterling, et al. 2006. Op. cit. pg. 20 120 IBAT Alliance. 2018. Op cit. Figure 1 121 Long, B; T Gray; A Lynam; T Seng; W Laurance; L Scotson; W Ripple. 2017. Reversing “Empty Forest Syndrome” in Southeast Asia. National Geographic Voices, 8 February 2017. pp. 1-6 122 de Queiroz, et al. 2013. Op cit. pp. viii and 52 123 Ibid. 124 European Commission. 2018. Larger than Tigers: Inputs for a strategic approach to biodiversity conservation in Asia – Regional reports. #4: Greater Mekong (pp. 292-389) Brussels, Belgium: European Commission, Directorate-General for Communication. pg 326 125 Conservation International and World Wildlife Fund. 2019. PADDDtracker.org Data Release Version 2.0 (May 2019). Arlington, VA: Conservation International. Washington, DC: World Wildlife Fund. DOI: 10.5281/zenodo.3371733 126 MoNRE. 2019b. Op cit. pg. 124 127 European Commission. 2018. Op cit. pg. 343 128 Long et al. 2017. Op cit. 129 UNODC. 2016. World Wildlife Crime Report: Trafficking in protected species 2016. New York: United Nations Office of Drugs and Crime. 130 EIA. 2018a. Exposing the Hydra: The growing role of Vietnamese syndicates in ivory trafficking. Environmental Investigation Agency. 13 Sept 2018 131 EIA. 2016. Red Alert: How fraudulent Siamese rosewood exports from Laos and Cambodia are undermining CITES protection. Environmental Investigation Agency. 24 June 2016 132 Phuc, XT; NB Treanor; and K Canby. 2017. Impacts of the Laos Log and Sawnwood Export Bans: Significant reductions in the exports to major markets of Vietnam and China in 2016. Forest Trends Report Series: Forest Policy, Trade, and Finance. April 2017. 133 EIA. 2018b. Serial Offender: Vietnam’s continued imports of illegal Cambodian timber. Environmental Investigation Agency. 31 May 2018. 134 Global Witness. 2018. Vietnam's High Risk Timber Trade: Lessons from the Democratic Republic of Congo. Briefing / Dec. 18, 2018 135 Nguyen Viet, Tim McGrath, and White Pamela. 2006. Agricultural Land Distribution in Vietnam: Emerging Issues and Policy Implications. MPRA Paper No. 25587. http://mpra.ub.uni-muenchen.de/25587/ 136 UNDP. 2008. Tackling corruption, Transforming Lives: Accelerating Human Development in Asia and the Pacific. United Nations Development Programme, Colombo. 137 Ibid. 138 MoNRE. 2015. Op cit. pg. 13 139 Idem. pg. 93

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140 Socialist Republic of Vietnam. 2016. Intended Nationally Determined Contribution of Viet Nam. Submitted to UNFCCC Secretariat 03 Nov 2016. pg. 4 141 Socialist Republic of Vietnam. 2016. Op cit. pp. 6 and 10. 142 Ibid. 143 MoNRE. 2015. Op cit. pp. 107-110 144 Nguyen, QT and T Sikor. 2011. Five Reasons for Promoting Community Forest Management. pp. 33-38 In: Sikor, T and QT Nguyen, eds. 2011. Realizing Forest Rights in Vietnam: addressing issues in community forest management. RECOFTC – The Center for People and Forests. Bangkok, Thailand. 145 Nguyen, QT and T Sikor. 2011. Forest Land Allocation: An overview of policy framework and outcomes. pp. 5-13 In: Sikor, T and QT Nguyen, eds. 2011. Op cit. 146 Sikor, T and QT Nguyen. 2011. Remaining Issues and the Way Forward. pp. 48-56 In: Sikor, T and QT Nguyen, eds. 2011. Op cit. 147 European Commission. 2018. Op cit. 148 No citation provided by USFS 149 Sikor, T and QT Nguyen, eds. 2011. Op cit. 150 European Commission. 2018. Op cit. 151 MoNRE. 2019b. Op cit. pg. 23 152 European Commission. 2018. Op cit. 153 This section and its sub-sections are excerpts from the USAID/Vietnam website

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