PFES) USAID Green Annamites December 2018

PHOTO CREDIT: MINHPHUONG/SNV

TRAINING ON BEST PRACTICES FOR EFFECTIVE USE OF REVENUES FROM PAYMENTS FOR ENVIRONMENTAL SERVICES (PFES) USAID Green Annamites December 2018

This document was produced for review by the United States Agency for International Development Vietnam Mission (USAID/Vietnam). It was prepared by ECODIT for the USAID Green Annamites Activity.

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ACKNOWLEDGEMENTS

This report was prepared by SNV–Netherlands Development Organization (SNV), a subcontractor to ECODIT for the USAID Green Annamites Activity, Task Order Number AID-440-TO-16-00001 under the REPLACE IDIQ No. AID-OAA-I-14-00002. It presents the methods and results of trainings conducted by SNV on effective use of PFES revenues in the period May–October 2018.

DISCLAIMER This report is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of ECODIT and do not necessarily reflect the views of USAID or the United States Government.

TABLE OF CONTENTS 1. INTRODUCTION 1 1.1. USAID GREEN ANNAMITES ACTIVITY 1 1.4 PURPOSE OF THIS REPORT 1 2. BACKGROUND ON PFES IN VIETNAM 1 2.1 NATIONAL PFES POLICY 1 2.2 PFES IN THUA THIEN HUE PROVINCE 3 3. PFES TRAINING PROGRAM 4 3.1 DEVELOPMENT OF THE TRAINING PROGRAM 4 3.2 PRE-TRAINING NEEDS ASSESSMENT 4 3.3 TRAINING TOPICS 4 3.4 TRAINING MATERIALS 4 3.5 TRAINING LOCATIONS AND TRAINEES 5 3.6 CHARACTERISTICS OF TRAINEES 5 4. STUDY TOUR 6 4.1 STUDY TOUR AGENDA AND PARTICIPANTS 6 4.2 LESSONS LEARNED DURING THE STUDY TOUR FROM PFES IMPLENTATION IN THANH HOA PROVINCE 6 4.3 PLANS FOR APPLYING LESSONS LEARNED IN THUA THIEN HUE PROVINCE 7 5. EVALUATION OF TRAINING EFFECTIVENESS 8 5.1 EVALUATION METHODS 8 5.2 EVALUATION RESULTS 8 5.2.1 PRE- AND POST-TRAINING SELF ASSESSMENT RESULTS 8 5.2.2 MULTIPLE CHOICE TEST RESULTS BEFORE AND AFTER TRAINING 9 6. IMPACTS OF THE TRAINING PROGRAM 10 6.1 MORE EFFECTIVE USE OF PFES REVENUES 10 6.2. TRANSPARENT SYSTEM OF MANAGEMENT AND ACCOUNTING 10 6.3 IMPROVED CAPACITY TO PLAN PFES REVENUE USE 11 6.4. APPLICATION OF LESSONS LEARNED 11 6.5. STRENGTHENED GENDER PARTICIPATION IN PFES REVENUE USE 11 7. CONCLUSIONS AND RECOMMENDATIONS 11 7.1. CONCLUSIONS 11 7.2. RECOMMENDATIONS 12 ANNEXES 13 ANNEX 1: PRE-TRAINING ASSESSMENT QUESTIONNAIRES 13 ANNEX 2: TRAINING AGENDA 1 ANNEX 3: NAMES AND CONTACT INFORMATION OF TRAINING PARTICIPANTS 1 ANNEX 4: STUDY TOUR AGENDA 11 ANNEX 5: NAMES AND CONTACT INFORMATION FOR PARTICIPANTS IN STUDY TOUR TO THANH HOA PROVINCE 13 ANNEX 6: POST-TRAINING ASSESSMENT QUESTIONNAIRES 14 ANNEX 7: SOME PHOTOS FROM TRAININGS AND STUDY TOUR 17

ACRONYMS

FPD Forest Protection and Department MARD Ministry of Agriculture and Rural Development PFES Payment for Environmental Forest Services PFPDF Provincial Forest Protection and Development Fund PMU Project Management Unit PPC Provincial People's Committee VND Viet Nam Dong VNFF Vietnam Forest Protection and Development Fund

LIST OF EXHIBITS

EXHIBIT 1: TRAINING LOCATIONS AND TRAINEES ...... 5 EXHIBIT 2: CHARACTERISTICS OF TRAINEES ...... 5 EXHIBIT 3: APPLICATION OF LESSONS LEARNED IN THUA THIEN HUE ...... 7 EXHIBIT 4: RESPONSES TO PRE AND POST TRAINING SELF ASSESSMENTS ...... 8 EXHIBIT 5: PERCENT OF TRAINEES INDICATING “COMPLETE/CLEAR KNOWLEDGE AND CAN APPLY IT EFFECTIVELY” BEFORE AND AFTER PFES TRAINING...... 9 EXHIBIT 6: RESULTS OF MULTIPLE CHOICE TEST BEFORE AND AFTER TRAINING ...... 9

LIST OF BOXES

BOX 1: DIFFERENT TYPES OF PFES IN VIETNAM ...... 2 BOX 2: USE OF PART OF PFES REVENUE FOR REVOLVING FUND...... 10

1. INTRODUCTION

1.1. USAID GREEN ANNAMITES ACTIVITY The USAID Green Annamites Activity assists the provinces of Thua Thien Hue and Quang Nam to protect the region’s forests and globally significant biodiversity, while also helping poor ethnic minority communities in and around forested areas to diversify and improve their livelihoods. The Project includes three interrelated components to: 1) improve low emission land use practices, 2) strengthen biodiversity conservation, and 3) increase resilience for vulnerable communities in the two provinces.

1.4 PURPOSE OF THIS REPORT This report describes a Green Annamites training program and study tour for the province of Thua Thien Hue, implemented by SNV, to build capacity on the use and management of revenues from the program for Payment for Environmental Forest Services (PFES).The training program was managed, coordinated and monitored by SNV, USAID Green Annamites, the province’s Forest Protection and Department (FPD), the Provincial Forest Protection and Development Fund (PFPDF), and the Green Annamites Project Management Unit (PMU) via consultation meetings, emails, and phone calls.

2. BACKGROUND ON PFES IN VIETNAM

2.1 NATIONAL PFES POLICY Forest ecosystems support biodiversity, provide clean freshwater, prevent soil erosion and provide many other important environmental services that help build community resilience. Vietnam was one of the first countries to develop a national policy to help fund protection of these services. Vietnam’s PFES program is a breakthrough strategy, not only in concept but also through the design, construction, issuance, and implementation of business policy for the country’s forestry sector.

In January 2008, the Government issued Decree 05/2008/ND-CP to establish the national Vietnam Forest Protection and Development Fund (VNFF) to mobilize and receive non-budget resources to manage, protect, and develop forested land. In October 2008, the Government issued Decision 380 on a “Pilot Policy on Payment for Forest Environmental Services.” After successfully piloting PFES in Son La and Lam Dong provinces between 2008 and 2010, the Government issued Decree No. 99/2010/ND-CP September 24, 2010 for a nationwide “Policy on Payment of Forest Environmental Services.” On November 2, 2016, the Government issued Decree No. 147/2016/ND-CP to amend and supplement a number of articles of the 2010 decree.

VNFF administers Vietnam’s PFES policy under the Ministry of Agriculture and Rural Development. Box 1 outlines the forest environmental services, PFES users and payment levels of Vietnam’s current PFES program. PFES users (those who pay for forest services) include hydropower facilities, water supply companies, and ecotourism businesses. VNFF receives PFES payments and distributes the payments to PFPDFs, which provide payments to PFES providers. Providers include owners of forests providing environmental services and the organizations, households, individuals, and local communities that implement forest protection contracts. Since its inception, PFES has been supporting livelihood improvements among poor ethnic minorities who receive PFES payments for helping to protect forests, while also assisting forestry companies to maintain their production in the

1 | PFES TRAINING REPORT USAID.GOV context of Government requirements to halt natural forest timber harvesting, helping to reduce violations.

BOX 1: DIFFERENT TYPES OF PFES IN VIETNAM

Three types of forest environmental services have been included in the PFES program since 2011: • Land protection services that limit erosion and sedimentation of lakes, reservoirs and river/stream beds. • Forest ecosystem services that regulate and maintain production of freshwater for environmental, economic, and social uses. • Natural landscapes and biodiversity conservation services of forest ecosystems for tourism. PFES users who pay for these services include: • Hydropower plants, which pay for land protection services at a rate of 36 VND per kWh of commercial electricity. • Water utilities, which pay for the regulation and maintenance of freshwater by forest ecosystems at a rate of 52 VND per m3 of commercial water. • Ecotourism business, which pay for landscape protection and biodiversity conservation by forests for tourism services at a rate of 1% - 2% of revenue. Source: Decree No. 147/2016 / ND-CP on PFES policy

On average, the VNFF mobilizes over 1.3 trillion Viet Nam Dong (VND) (US$55.3 million) each year from PFES fees for forest protection in the watersheds of hydropower and water supply companies.1 The money collected has contributed to forest protection as well as Vietnam’s socio-economic development by:

• Managing and protecting 5.87 million hectares (ha) of forests each year, accounting for 42% of the country’s total forest area.2

• Contributing a sustainable source of financing for forest protection, reducing pressure on state budgets. Since 2011, PFES has contributed 16-18% of investments in Vietnam’s forestry sector.3

• Supporting forestry companies to stop exploiting natural wood.

• Increasing incomes of over 410,000 poor households, mostly belonging to ethnic minorities, helping to build sustainable livelihoods. The average annual PFES payment is over 2 million VND per household per year.

• Promoting the socialization of forestry, helping to fund forest management and protection activities by forest owners in the context of restrictions on the exploitation of timber from natural forests, and supplementing funding for forest management boards of national parks and protected areas. This has included 208 special-use and protection forest management boards; 81 forestry companies; 467 People's Committees at the commune level; 195 other forest owners,

1 https://english.vov.vn/society/vietnam-to-collect-over-us100-mln-from-forest-environment-services-in-2018- 385621.vov 2 https://english.vov.vn/society/vietnam-to-collect-over-us100-mln-from-forest-environment-services-in-2018- 385621.vov 3 https://english.vov.vn/society/vietnam-to-collect-over-us100-mln-from-forest-environment-services-in-2018- 385621.vov

USAID.GOV PFES TRAINING REPORT 2 including police units, soldiers, business enterprises and research centers; and 115,138 forest owners that are individuals, households and communities.

By the end of 2017, Vietnam had established 44 PFPDFs to distribute PFES revenues, of which 38 have stabilized their operations. MARD estimates that Vietnam will collect about 2.5 trillion VND (US$106.4 million) in PFES payments in 2018.4 During the first quarter alone, PFES revenues amounted to 504 billion VND, 149% higher than the same period in 2017. The increase is due in large part to adjustments in PFES policy in Decree No. 147/2016/NĐ-CP.

2.2 PFES IN THUA THIEN HUE PROVINCE The Thua Thien Hue PFES policy has been implemented since the beginning of the national PFES program in 2011. Since that time, PFES has contributed to the effective management and protection of more than 150,000 ha of forest and raised local incomes in 45 communes in six districts and towns in the province. According to the Thua Thien Hue PFPDF, currently there are 46 PFES communities and 37 household groups that receive about 3.210 million VND of PFES revenues for a combined area of 10.362,19 ha of protected forest area in the province.

In 2014, Thua Thien Hue became the first province to implement PFES payments through the banking system. This approach is being implemented by people, communities, household groups, families, forestry companies, and forest owners, and is applauded by state organizations. Making PFES payments via the banking system reduces costs, increases efficiency, ensures higher levels of security, and provides simpler procedures, increasing the amount of interest from bank deposits.

On July 19, 2018, Thua Thien Hue Provincial People's Committee (PPC) issued Decision No. 1595/QD-UBND "On Approving the Plan for Collection and Payment of Environmental Services in Thua Thien Hue Province in 2018." The estimated total amount of the province’s PFES revenue in 2018 was VND 56,042,435,370. In 2018, 36,439,191,064 VND was collected from hydropower generating units and 2,419,164,311 VND from water utilities. These facilities are located in five watersheds: Ta Trach-Thuong Lo hydropower watershed, Huong Dien-A Roong hydropower watershed, Binh Dien hydropower watershed, and A Luoi hydropower watershed. In these five watersheds, the Huong Dien-A Roong hydropower area covers 48,347.90 ha and the amount of the 2018 PFES payment was more than 16 billion VND.

The 2018 PFES payments (after deduction of management costs and contingency expenses) will be distributed among the following service providers:

• 9 forest owners that are state organizations: 37,271,319,000 VND.

• 577 forest owners that are communities, household groups, and households: 8,706,570 VND.

• 4 district Forest Protection Units: 3,647,855 VND.

4 https://english.vov.vn/society/vietnam-to-collect-over-us100-mln-from-forest-environment-services-in-2018- 385621.vov

3 | PFES TRAINING REPORT USAID.GOV 3. PFES TRAINING PROGRAM

3.1 DEVELOPMENT OF THE TRAINING PROGRAM Under contract to USAID Green Annamites, SNV’s consultant team implemented a training program for Thua Thien Hue on best practices for effective use of PFES revenues. Developing and implementing the training program involved six key activities conducted from May to October 2018:

Activity 1: Implement an assessment to re-confirm training needs, training targets and training materials.

Activity 2: Develop training modules.

Activity 3: Elaborate training materials and presentations.

Activity 4: Implement 5 training courses in Phong Dien, Phu Loc and Nam Dong districts.

Activity 5: Carry out a study tour for training champions to Thanh Hoa province.

Activity 6: Complete consultancy reports.

3.2 PRE-TRAINING NEEDS ASSESSMENT The consultant team conducted a pre-training needs assessment on the status of PFES revenue use and management in Thua Thien Hue Province. The needs assessment included a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis. Annex 1 provides the questionnaires used for the assessment.

3.3 TRAINING TOPICS Training modules focused on knowledge and skills related to the use and management of PFES revenues, and included topics tailored to the needs of the target communities based on findings of the pre-training needs assessment. Training topics included:

• Skills on planning, report writing.

• Finance management.

• Skills on meeting organization and facilitation.

• Skills on finance bookkeeping.

• Skills on decision making and negotiation and gender integration.

3.4 TRAINING MATERIALS Training materials were based on the current status of PFES revenue use and management in the target communities and the needs of PFES community/household management boards. The consultant team ensured that the training materials would be consistent with related trainings in the province. During the process of developing the training materials, the consultant team referred to

USAID.GOV PFES TRAINING REPORT 4 iPFES Guidelines issued by VNFF and the system of financial bookkeeping currently used by PFES community/household management boards.

3.5 TRAINING LOCATIONS AND TRAINEES Between August and September 2018, five trainings were conducted in Phong Dien, Phu Loc, and Nam Dong districts for a total of 169 individuals. Exhibit 1 provides training locations and the type and number of participants in each training. Annex 2 provides the training agenda, and Annex 3 gives the names and contact information of the trainees by district.

EXHIBIT 1: TRAINING LOCATIONS AND TRAINEES

DISTRICT TRAINEE GROUPS NUMBER OF TRAINEES

Phong Dien PFES Community Management Boards, Commune People’s 34 Committee, forest rangers

Phu Loc PFES Community Management Boards, Commune People’s 24 Committee, forest rangers

Nam Dong PFES Community Management Boards, Commune People’s 38 Committee, forest rangers

Nam Dong PFES Community Management Boards, Commune People’s 41 Committee, forest rangers

Nam Dong PFES Management Boards of Household Groups, forest 32 rangers and Nam Dong sub-DARD

3.6 CHARACTERISTICS OF TRAINEES Exhibit 2 presents the percentage breakdown of key characteristics of the 169 trainees. Only about 8% of trainees were 20 to 30 years of age, while most trainees (70%) were between 30 and 50 years of age. Trainees were 90.5% male and 9.5% female. About 60% of trainees completed primary school and 39% completed secondary school. Only 1% of the trainees completed post-secondary education. About half of the trainees had received training in financial topics within the past three years.

EXHIBIT 2: CHARACTERISTICS OF TRAINEES Characteristic Percent Age (Years) 20-29 7.94% 30-39 32.54% 40-49 38.10% 50-59 21.43% Gender Male 90.5% Female 9.5% Highest Level Of Education Completed Primary 60.14% Secondary 38.46% Post-Secondary 1.40% Training In Past Three Years General knowledge on finance 50.35% Budget planning 58.27% Financial bookkeeping 7.10% Source: Pre-Training Assessment

5 | PFES TRAINING REPORT USAID.GOV 4. STUDY TOUR

4.1 STUDY TOUR AGENDA AND PARTICIPANTS Following the trainings, the consultant team led a study tour for 20 trainees to learn about a successful PFES program in Thanh Hoa Province. Annex 5 provides the agenda for the study tour, and Annex 6 lists the names and contact information for participants. The consultants selected the trainees for the study tour to ensure that:

• The number of people by district was proportional to the number of communes participating in the trainings.

• The selected participants were competent, enthusiastic and capable of communicating for their community.

• There were participants from all participating communes.

• Priority was given to capable groups and communities that allocate PFES for livelihood development.

• To share experiences on PFES payments and to facilitate discussion during the study tour, the consultant team also invited representatives from the Thua Thien Hue FPD and PFPDF.

4.2 LESSONS LEARNED DURING THE STUDY TOUR FROM PFES IMPLENTATION IN THANH HOA PROVINCE Trainees reported that they learned a number of important lessons from the study tour of PFES implementation in Than Hoa Province:

Lesson 1: In order to effectively manage and use PFES revenue for livelihood development loans, community contribution to the fund is essential. One of the main concerns of the community in Thua Thien Hue province is that the amount of PFES is not significant and is difficult to use to secure livelihood development loans. It is also difficult to repay livelihood development loans with PFES revenue alone. However, with the community contribution to the livelihood development fund, the fund availability for loans will be increased and the loan receivers will be more responsible for return (since they borrow from the community fund). In order to implement this method, the community should agree on the regulations on management and use of the fund.

Lesson 2: The community should plan, manage and monitor the use of PFES revenue. In order to ensure democracy, publicity and transparency in the management and use of PFES money, the community should be involved in the planning, management and monitoring of the PFES program. The results of using PFES should be presented to the community and supporting documents should account for all PFES spending.

Lesson 3: Activities using PFES revenue should aim for forest protection and development and livelihood improvements. Activities using PFES money should aim for forest protection and development and livelihood improvements. This complies with government regulations on the use of PFES money. One of the concerns of the participants from Thua Thien Hue Province is that it is difficult to obtain reimbursement for some PFES expenses by the community. For example, the province has not been reimbursed for some PFES infrastructure investments, such

USAID.GOV PFES TRAINING REPORT 6 as the purchase of light bulbs for residential areas. However, the experience from Thanh Hoa Province shows that this expenditure category qualifies for reimbursement provided that it serves forest protection and development. This is important information related to regulations on the use of PFES money for communities to discuss with the FPDF in Thua Thien Hue Province.

Lesson 4: Appropriate book keeping approaches are required in low literacy communities. Thanh Hoa Province found that a useful bookkeeping method for communities with low literacy is to use a stamp to calculate the amount received and a three-digit combination lock case to ensure the money is under strict control. This limits the records needed and can facilitate microfinance management in low literacy communities.

Lesson 5: Payment made to representatives of communities is an effective method of payment management in remote areas. It is costly and time consuming for payments in remote areas to be made according to the regulations of the Government. The selection of representatives by the communities and the management and use of PFES money based on community consensus is an effective approach for the payment, management and use of PFES money. This approach could be applied in Thua Thien Hue province.

4.3 PLANS FOR APPLYING LESSONS LEARNED IN THUA THIEN HUE PROVINCE Lessons learned from the study tour were discussed among the participants, and they made a number of recommendations for application of these lessons to Thua Thien Hue Province, as outlined in Exhibit 3 below.

EXHIBIT 3: APPLICATION OF LESSONS LEARNED IN THUA THIEN HUE

LESSONS LEARNED APPLICATION IN THUA THIEN HUE

Lesson 1: Community contribution to a • Organize community meeting to discuss possibility of Community Microfinance Fund (PFES community contribution to a Community Micro Finance Revolving Fund) is essential in order to Fund (for PFES Revolving Fund). effectively manage and use PFES revenue for livelihood development loans. • Identify and agree upon regulations for community PFES Revolving Fund. • Use part of PFES revenues for revolving fund, and consider management by Youth Union or Women’s Union.

Lesson 2: The community should plan for, • Organize community meeting on PFES revenue use after manage and monitor the use of PFES receiving information letter about total PFES revenue for revenue. year. • Report PFES revenue use quarterly.

Lesson 3: Activities using PFES revenue • Discuss and reach agreement with the Thua Thien Hue FPD should aim for forest protection and Fund on spending objectives for forest development and livelihood protection/development and community livelihood activities, improvements. such as village street lights. • Ensure that PFES revenues are planned for forest protection/development and community livelihood activities.

Lesson 4: Appropriate bookkeeping • Consider such approaches for ethnic minority groups in approaches are required in low literacy Nam Dong and A Luoi districts. communities.

Lesson 5: Payments made to • Recommend that Thua Thien Hue FDP Fund applies this representatives of communities is an lesson in areas with a large number of PFES households but effective method of payment management low PFES revenue, in order to achieve an effective PFES in remote areas. payment process and PFES use.

7 | PFES TRAINING REPORT USAID.GOV 5. EVALUATION OF TRAINING EFFECTIVENESS

5.1 EVALUATION METHODS To measure knowledge and skills on the use and management of PFES revenues following the trainings, the consultant team applied two evaluation methods: i) pre- and post-training self assessments, and ii) pre- and post-training multiple choice questionnaires. Annex 1 provides the pre- training self-assessment forms and multiple choice questions, and Annex 7 provides the post-training versions. Results of the evaluations are discussed below.

5.2 EVALUATION RESULTS

5.2.1 PRE- AND POST-TRAINING SELF ASSESSMENT RESULTS Exhibit 4 below presents results of the trainees’ self-assessments before and after the training. The ratings included:

1=Do not have knowledge 2=Limited knowledge 3=Have basic knowledge but cannot apply effectively 4=Have complete/clear knowledge but still have difficulties when applying 5=Have complete/clear knowledge and can apply it effectively

EXHIBIT 4: RESPONSES TO PRE AND POST TRAINING SELF ASSESSMENTS

PRE TRAINING ASSESSMENT (%) POST TRAINING ASSESSMENT (%) KNOWLEDGE AND SKILLS 1 2 3 4 5 1 2 3 4 5

Skills on planning and report writing 23.78 27.27 15.38 16.08 17.48 1.39 9.03 7.64 21.53 60.42

Roles of finance in livelihood and community development 19.57 18.84 28.26 18.12 15.22 1.40 9.09 9.79 22.38 57.34

Skills on meeting organization 13.38 18.31 30.28 18.31 19.72 4.17 2.78 12.50 27.08 53.47

Skills on finance management and book keeping 16.31 21.99 21.28 25.53 14.89 2.10 5.59 5.59 18.18 68.53

Skills on decision 19.85 16.91 25.74 23.53 13.97 1.39 6.25 9.72 25.69 56.94 making and negotiation; and gender integration

Source: Pre training assessment and post training evaluation forms

The consultant team also considered whether trainees believed the training improved their proficiency in these five areas. Exhibit 5 compares the percentage of trainees who indicated they

USAID.GOV PFES TRAINING REPORT 8 “have complete/clear knowledge and can apply it effectively” on each the five types of knowledge and skills before and after the training. Results indicate trainees experienced significant increase in knowledge and skills in all five areas following the PFES training (ranging from a 33% to 54% increase).

EXHIBIT 5: PERCENT OF TRAINEES INDICATING “COMPLETE/CLEAR KNOWLEDGE AND CAN APPLY IT EFFECTIVELY” BEFORE AND AFTER PFES TRAINING.

PERCENT OF TRAINEES KNOWLEDGE AND SKILLS PRE TRAINING POST INCREASE TRAINING

Skills on planning and report writing 17.48 60.42 42.93

Roles of finance in livelihood and community development 15.22 57.34 42.13

Skills on meeting organization 19.72 53.47 33.75

Skills on finance management and book keeping 14.89 68.53 53.64

Skills on decision making and negotiation; and gender integration 13.97 56.94 42.97

Source: Pre- and post-training assessments.

5.2.2 MULTIPLE CHOICE TEST RESULTS BEFORE AND AFTER TRAINING The consultant team also used a multiple choice test with five questions to evaluate potential changes in PFES knowledge and skills before and after the training. Exhibit 6 provides results of this assessment. Before training, 21.28% of trainees were unqualified (defined as having two or less correct answers). After training, none of the trainees had less than two correct answers, and the percentage of trainees with correct answers on all five questions increased significantly, from nearly 27% of participants before the training to over 47% after the training.

EXHIBIT 6: RESULTS OF MULTIPLE CHOICE TEST BEFORE AND AFTER TRAINING

PERCENT OF TRAINEES

NO. OF CORRECT ANSWERS BEFORE TRAINING AFTER TRAINING

None 2.13 0

1 8. 51 0

2 10,64 0

3 24,11 24.31

4 27,66 28,47

5 26,95 47,22

Source: Pre- and post-training assessments.

9 | PFES TRAINING REPORT USAID.GOV 6. IMPACTS OF THE TRAINING PROGRAM

6.1 MORE EFFECTIVE USE OF PFES REVENUES PFES management boards for communities and household groups plan to develop regulations to manage and use PFES revenues based on guidelines of the consultant team. The most significant achievement after trainings is an agreement to use part of PFES revenues for community livelihood activities (see Box 2). This agreement is an important change in the attitude of trainees about the link between sustainable livelihood activities and forest protection and development.

BOX 2: USE OF PART OF PFES REVENUE FOR REVOLVING FUND

Before trainings, about 10 communities and household groups used a part of their PFES revenues for a revolving fund. After training, 100% of participating communities and household groups agreed to spend a part of their PFES revenues for a revolving fund to develop their livelihood activities.

After training in Nam Dong district, 24 household groups agreed to use 69 million VND of PFES revenues for livelihood activities through the revolving fund. This is nearly 20% of total PFES revenues in 2017. Xuan Phu village, Huong Phu commune agreed to spend 4.5 million VND for livelihood activities, about 64% of the total. Tan My village, Phong My commune, Phong Dien district will allocate 45 million VND from their 2017 PFES revenues to a PFES revolving fund; seven households were granted loans totaling 21 million VND.

Source: Financial and work plans elaborated by communities and household groups during the trainings.

All communities and household groups agreed to contribute a portion of PFES revenues to a contingency fund for unforeseen activities, such as forest fire rescue. During the study tour, participants learned that this was done successfully in Thanh Hoa Province.

6.2. TRANSPARENT SYSTEM OF MANAGEMENT AND ACCOUNTING During the trainings, the consultants resolved some issues relating to PFES revenue management by communities/household groups that were identified during the inception visit (e.g., those keeping a large pile of cash at home or who lack monthly record keeping). To address this issue, the trainings provided a system for PFES revenue management and accounting. The system is suitable for the current situation and capacity of local communities and household groups in Thua Thien Hue Province.

Another problem that communities and household groups face is how to complete financial papers for purchasing activities, where the sellers could not provide official invoices. The consultant team provided detailed guidelines to overcome this problem. For example, there are alternative documents if a community/household group purchases something from a small shop without an official invoice, including a “Receipt of Money,” “List of Purchased Goods,” and “Copy of Seller Identity.” Communities and household groups appreciated this guidance.

USAID.GOV PFES TRAINING REPORT 10 6.3 IMPROVED CAPACITY TO PLAN PFES REVENUE USE Since 2014, work plans and financial plans for PFES revenue use have been prepared by forest rangers from FPD divisions, not communities and household groups. The trainings provided communities/household groups with techniques, experience and skills for participatory planning of PFES revenue use. One of the group exercises was to develop a financial plan for 2018 PFES revenue based on the newest information from the Thua Thien Hue PFPDF. The proposed financial plans are more suitable for the actual needs of the communities/household groups and requirements of government regulations. Trainees now understand the importance of their participation in the PFES revenue planning process.

6.4. APPLICATION OF LESSONS LEARNED PFES disbursement made to individual households via a community representative is effective. This method could be considered In Thua Thien Hue, although the current number of households receiving PFES revenue is not very high.

One of the best approaches in Thanh Hoa province is implementation of community forest protection contracts by the Natural Reserve Areas and Management Boards of Protection Forests. This will help to increase community income and improve forest management. USAID Green Annamites has concluded that Thua Thien Hue province should apply this experience. This was also requested by trainees who are living close to forest areas allocated to State forest owners.

6.5. STRENGTHENED GENDER PARTICIPATION IN PFES REVENUE USE The importance of gender equity in families, communities, and forestry activities was discussed during the trainings. As a result, trainees have increased awareness of gender equity and have made a commitment to encourage the participation of women in the planning and management of PFES revenue use. Trainees agreed that it is important to i) increase participation of women in yearly planning meetings on PFES revenue use; ii) create room for women’s voice in management and use of PFES revenue in the family; iii) encourage women to participate in PFES activities in their communities/household groups. 7. CONCLUSIONS AND RECOMMENDATIONS

7.1. CONCLUSIONS The consultant team achieved the objective of the training program to strengthen capacity on effective use and management of PFES revenues by communities and household groups in the districts of Phong Dien, Phu Loc and Nam Dong in Thua Thien Hue Province. The training program included five two-day training courses on skills for i) planning and report writing; ii) finance; iii) meeting organization and facilitation; iv) bookkeeping; and v) decision making, negotiations and gender integration.

The knowledge and skills for effective PFES revenue use learned during the trainings and study tour are suitable to apply in Thua Thien Hue Province. The PFES management boards of communities and household groups have agreed to: i) adopt the participatory planning method, ii) spend a part of PFES revenue for livelihood activities, iii) use accounting books and financial management papers, and iv) provide stakeholders with quarterly and yearly reports on PFES revenue use.

11 | PFES TRAINING REPORT USAID.GOV Training materials, target groups and training locations met training objectives and community needs. The training provided communities and household groups the capacity to develop plans for effective use of their PFES revenues, and trainees have committed to applying their new knowledge and skills to their PFES work.

7.2. RECOMMENDATIONS Quarterly or Annual Work Plans: The current provincial administrative procedures requiring 30 working days for approval of PFES projects could impact progress in applying consultancy recommendations. It is recommended that Green Annamites PMU seek approval from the PPC for annual or quarterly work plans

Extend Training to A Luoi District: During the inception visit, PFPDF suggested that the training be extended to A Luoi district because of the large number of PFES providers that are communities and household groups. According to the PFPDF, PFES revenue in A Luoi in 2017 was 4,122,073,200 VND, about 59.9% of total PFES revenue for communities and household groups in Thua Thien Hue Province. A Luoi has 27 communities (36.5% of the provincial total) and 170 household groups (84.2% of the total), and therefore it is important to increase the capacity of the district’s ethnic minority forest owners to effectively manage and use PFES revenues.

Train Trainees to Become Trainers: The benefits of the training program will be more sustainable if the core group of 20 trainees who participated in the study tour are trained to become trainers on PFES revenue use and management. This would be help extend the PFES knowledge and experience that they gained during the Green Annamites training program to other communities and household groups in the province.

Conduct Regular Monitoring, Evaluation and Learning: FPD and PFPDF should carry out regular monitoring and evaluation of the use of PFES revenues in communities and household groups that receive training, and make any adjustments in the training that may be warranted.

Establish More Communal FPD Funds: As of March 2018, about 30 communal forest protection and development funds have been established in Thua Thien Hue province. In principle, this kind of local fund could be very effective for PFES investments in forest protection and livelihood development.

USAID.GOV PFES TRAINING REPORT 12 ANNEXES

ANNEX 1: PRE-TRAINING ASSESSMENT QUESTIONNAIRES To design the method and content of the training course on “Training in Best Practices on Effective Use of PFES Revenues in Thua Thien Hue province” in accordance with your abilities and needs, we sincerely hope you provide the correct information by filling the following form. Thank you very much!

Part I. Personal information 1. Full name: ...... Gender:  Male  Female 2. Age:...... Ethnic group:...... 3. Level of education:  Higher  High school  Secondary school  Primary school  Other...... 4. Address/Unit:......

Part II. Information for assessing the needs of improving abilities and skills

1. List the number of the training courses that you have participated in and implemented in the last 3 years: No. Training content The number of courses

1 General knowledge about finance/money 2 Planning to use money 3 Recording the management of money

2. Self-assessment of your knowledge and skills Self-assessment Knowledge/skill 1 2 3 4 5 Planning, development and reporting skills The role of financial resources in the livelihood and community development Meeting facilitation skills Bookkeeping and financial management skills Negotiation and decision-making skills; and gender- sensitive practices Note: 1: Do not have knowledge, 2: Have limited knowledge, 3: Have basic knowledge but cannot apply it effectively, 4: Have complete/clear knowledge but still have difficulties when applying, 5: Have complete/clear knowledge and can apply it effectively

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TEST Score:

Time limit: 7 minutes

Full name:

Address: Position: Date:

Please tick at the box ☐ next to only one answer which you think is correct.

Question 1. The PFES (DVMTR) should be used for:

☐ (A) Protecting and developing forest

☐ (B) Improving living standard of community

☐ (C) Protecting and developing forest and improving livelihoods of community

Question 2. The process of planning on using PFES is: ☐ (A) Community discusses the plan together --> Submit the plan to the People’s Committee of the commune for approval ☐ (B) Receiving information about PFES from the provincial FPDF --> The Board of Management of PFES makes a draft plan--> Community discusses to approve the plan --> Submit the plan to the People’s Committee of the commune for approval. ☐ (C) The Board of Management of PFES makes a draft plan--> Community discusses to approve the plan --> Submit it to the People’s Committee of the commune for approval. Question 3. The community's PFES management documents include: ☐ (A) Revenue and expenditure book; cash book; forest patrol record book

☐ (B) document; forest patrol record book; loan management book

☐ (C) Receipt and expense document; forest patrol record book

Question 4. The basis for distributing PFES for each item of expenditure is: ☐ (A) Expenditure in the previous year and the needs of the community this year.

USAID.GOV PFES TRAINING REPORT 14 ☐ (B) The amount of the expected PFES of the community received in this year.

☐ (C) Both of the above answers are correct.

Question 5. PFES revenues management by community and households should: ☐ (A) An action and financial plan is made Village PFES Revenues Management Unit ☐ (B) An action and financial plan for village PFES revenues should be reported to community ☐ (C) Village PFES Revenues should be divided to each household or community groups

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ANNEX 2: TRAINING AGENDA

TIME CONTENT METHOD PERSON IN CHARGE

THE FIRST DAY

7h30 – 9h30 Introduction to people, objectives, programs and rules of Pre-course Trainees the training course. assessment form Pre-course assessment. Presentation The role of financial resources in the livelihood and Group discussion community development. Group discussion on SWOT in management and use of PFES. Presentation on the results of the discussion

9h30 – 9h45 Break

9h45 – 11h30 Introduction to the statute on managing and using PFES. Presentation Training class Guidelines on procedures and methods for organizing Practice village meetings to develop the statute. Group discussions on statute on receiving, managing and using PFES Presentation on the results of group discussion.

11h30 – 13h45 Break and lunch time

13h45-15h30 Introduction on some forest enrichment models by PFES. Presentation Trainees Introduction on plan of using PFES of communities/ Discussion household groups. Procedures and methods of planning for use of PFES. Discussion on planning for use of PFES in 2018

15h30-15h45 Break

15h45 – 17h00 Methods and skills on organizing community/household Presentation Trainees and group meeting to approve the use of PFES. trainer Modeling Practicing community/household group meeting to approve the use of PFES. Discussion

1 | PFES TRAINING REPORT USAID.GOV THE SECOND DAY

7h30-9h30 Models of finance fund in the community. Presentation Trainees and trainer Method of mobilizing capital and using PFES to provide loans Group discussion for livelihood development.

Group discussion on how to mobilize financial resources in the community Regulations on lending with PFES Completing the loan application file of a household

9h30 – 9h45 Break

9h30-11h30 System of management of PFES of the communities/ household Presentation groups. Group discussion Practice on making document to manage PFES Practicing with the System of document and document management of data of PFES of expenditure of PFES. communities/ household groups Financial report and analysis of financial report on PFES

11h30 – 14h00 Break and lunch time

13h45-15h30 Gender and gender equality in managing and using financial Presentation Trainees and resources and making decisions for the community. trainer Group discussion Discussion on the current status of men and women involved in managing and using money in households. Discussion on the development of objectives and measures to ensure gender equality in managing and using of PFES in households.

15h30-15h45 Break

15h45 – 17h00 Method of communicating with the community about the The representative Trainees and purposes and management and use of PFES. of each group trainer practices with the Practice on communicating with the community about PFES. chosen method. Unifying the plan on supporting local community on managing Prepared exercise and using PFES in the coming time. Presentation Final assessment. Ending the course.

USAID.GOV PFES TRAINING REPORT 2 ANNEX 3: TRAINING PARTICIPANTS In Phong Dien district

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USAID.GOV PFES TRAINING REPORT 2 In Phu Loc district

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In Nam Dong district

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ANNEX 4: STUDY TOUR AGENDA

TIME CONTENT METHODS LOCATION RESPONSIBILITIES

26th Sep

6h00 - 16h00 From Hue to Thanh Hoa Car Lunch on the way

Plenary discussion: Discussion Hotel in Thanh SNV Hoa - Study tour agenda 17h00 - 18h00 - Study tour regulations - Others

18h00 Dinner and accommodation in Thanh Hoa

27th Sep

800-11h00 Study tour to Yên Nhan commune, Discussions Yen Nhan Yen Nhan commune Thường Xuân district: commune Experience sharing on PFES revenue management and use with Commune People Committee Experience sharing on livelihood activities by PFES revenue with local communities and household groups of Lửa village Visit some households having good livelihood in Lửa village

11h00-13h30 Lunch

14h00 - 17h00 Study tour to Van Xuan commune, Discussions Van Xuan Van Xuan commune Thuong Xuan district commune Experience sharing on PFES revenue management and use with Commune People Committee Experience sharing on livelihood activities by PFES revenue with local communities and household groups of Hang Cau village Visit some households having good livelihood in Hang Cau village

18h00 Dinner and accommodation in Thanh Hóa Thanh Hoa

11 | PFES TRAINING REPORT USAID.GOV 28TH SEP

8h00 - 9h30 Work with Thanh Hoa FPD and FPD Presentation FPD office FPD and FPD Fund Fund Discussions Experience sharing

10h00 - 12h00 Workshop on experience sharing on Presentations FPD office FPD and FPD PFES revenue use Fund Discussions Group presentations on study tour results Planning for experience and lessons learned application in Thua Thien Hue Recommendations to state organizations and Green Annamites Study tour evaluation

12h00 - 14h00 Lunch

14h00 - 17h00 Move from Thanh Hoa to Quang Binh Car Quảng Bình

18h00 Dinner and Accommodation in Quang Binh

29th Sep

8h00 - 16h00 Move from Quang Binh to Thuan Thien Car Hue and districts

USAID.GOV PFES TRAINING REPORT 12 ANNEX 5: PARTICIPANTS IN STUDY TOUR TO THANH HOA PROVINCE NO NAME GENDER ADDRESS PHONE PHONG ĐIỀN DISTRICT 1 Đỗ Đình Khang M BQL cộng đồng thôn Tân Mỹ, 0935299121 Phong Mỹ 2 Hồ Thị Mỹ F BQL cộng đồng thôn Phước 01234925501 Thọ, Phong Mỹ 3 Nguyễn Văn Dũng M BQL cộng đồng thôn Công 0905009465 Thành, Phong Sơn 4 Lê Văn Lục M BQL thôn Hạ Long, Phong Mỹ 01254594426 5 Lê Văn Hoàng M BQL thôn Tân Lập, xã Phong 0983502094 Xuân 6 Đào Hưng M BQL thôn Vinh Phú, xã Phong 0905710190 Xuân PHÚ LỘC DISTRICT 1 Trần Tuất M BQL cộng đồng Thủy Dương, 0935866745 xã Lộc Tiến 2 Trần Văn Mua M BQL cộng đồng Thủy Yên 01202667864 Thượng, xã Lộc Thủy 3 Nguyễn Chi M Cộng đồng Lam Đông, xã Lộc 01639848835 Hòa 4 Huỳnh Mạnh Đăng M BQL cộng đồng thôn Thủy 0935214059 Cam, xã Lộc Thủy NAM DONG DISTRICT 1 Trần Văn Minh M BQL cộng đồng thôn Ka Dăng, 01698501506 xã Hương Sơn 2 Nguyễn Lai M BQL cộng đồng thôn Phú Ninh, 0989002853 xã Hương Giang 3 Ra Pát Rìa M BQL cộng đồng thôn A Mứt, xã 01675489172 Hương Sơn 4 Nguyễn Hồng Nghiêm M BQL cộng đồng thôn 2, xã 0977844307 Hương Hữu 5 Phạm Văn Pên M BQL cộng đồng thôn 4, xã 0965309971 Thượng Quảng 6 Hồ Đức Kiến M BQL cộng đồng thôn A Tin, xã 01677850276 Thượng Nhật 7 Ngọc Thị Đào F BQL cộng đồng thôn 5, xã 01295052210 Thượng Long 8 Trần Văn Biên M BQL cộng đồng thôn Dỗi, xã 01227417727 Thượng Lộ 9 La Hữu Viên M Nhóm cộng đồng tại thôn 6, xã 0948558950 Thượng Quảng 10 Hồ Văn Chiu M Nhóm cộng đồng tại thôn Mụ Năm, xã Thượng Lộ Thừa Thiên Huế province 1 Ngô Văn Minh M Nam Đông FPD 2 Trương Đình Thuận M Thua Thien Hue FPD Fund

13 | PFES TRAINING REPORT USAID.GOV ANNEX 6: POST-TRAINING ASSESSMENT QUESTIONNAIRES To assess the training course on “Training in Best Practices on Effective Use of PFES Revenues in Thua Thien Hue province” and to learn by experiences to improve future training courses, the organizers would like to receive the comments from the participants through this assessment form.

Full name (may not write):...... Gender:  Male  Female

A. ASSESSMENT OF THE TRAINING COURSE RESULTS

(Circle only one answer) 1. HOW DO YOU THINK ABOUT THE CONTENT OF THE TRAINING COURSE? 1. Unnecessary 2. Necessary 3. Very necessary

2. HOW DO YOU FEEL ABOUT THE TRAINING COURSE? 1. Absolutely unsatisfied 2. Partly satisfied 3. Completely satisfied 4. Satisfied than expected

3. HOW DO YOU FEEL ABOUT THE FOLLOWING CONTENTS? (Circle a level corresponding to each content)

Level of satisfaction No. Content (0= Absolutely unsatisfied and 5= Absolutely satisfied) 1 Trainer’s knowledge and experience 1 2 3 4 5 2 Trainer’s presentation skill 1 2 3 4 5

3 Trainer’s abilities to answer questions 1 2 3 4 5

4 Training materials 1 2 3 4 5 5 Training place 1 2 3 4 5 6 Organizational and logistical work 1 2 3 4 5

B. SELF-ASSESSMENT Self-assessment of your knowledge and skills on managing PFES: Self-assessment Knowledge/skill 1 2 3 4 5 Planning, development and reporting skills The role of financial resources in the livelihood and community development Meeting facilitation skills Bookkeeping and financial management skills Negotiation and decision-making skills; and gender- sensitive practices

USAID.GOV PFES TRAINING REPORT 14 Note:

1: Do not have knowledge 2: Have limited knowledge 3: Have basic knowledge but cannot apply it effectively 4: Have complete/clear knowledge but still have difficulties when applying. 5: Have complete/clear knowledge and can apply it effectively

C. YOUR RECOMMENDATIONS TO IMPROVE THE QUALITY OF THE TRAINING COURSES IN THE FUTURE

………………………………………………………………………………......

Thank you very much!

Score: TEST Time limit: 7 minutes

Full name:

Address: Position: Date:

Please tick at the box ☐ next to only one answer which you think is correct.

Question 6. The PFES (DVMTR) should be used for:

☐ (D) Protecting and developing forest

☐ (E) Improving living standard of community

☐ (F) Protecting and developing forest and improving livelihoods of community

Question 7. The process of planning on using PFES is:

15 | PFES TRAINING REPORT USAID.GOV ☐ (D) Community discusses the plan together --> Submit the plan to the People’s Committee of the commune for approval ☐ (E) Receiving information about PFES from the provincial FPDF --> The Board of Management of PFES makes a draft plan--> Community discusses to approve the plan --> Submit the plan to the People’s Committee of the commune for approval. ☐ (F) The Board of Management of PFES makes a draft plan--> Community discusses to approve the plan --> Submit it to the People’s Committee of the commune for approval. Question 8. The community's PFES management documents include:

☐ (D) Revenue and expenditure book; cash book; forest patrol record book

☐ (E) document; forest patrol record book; loan management book

☐ (F) Receipt and expense document; forest patrol record book

Question 9. The basis for distributing PFES for each item of expenditure is: ☐ (D) Expenditure in the previous year and the needs of the community this year.

☐ (E) The amount of the expected PFES of the community received in this year.

☐ (F) Both of the above answers are correct.

Question 10. PFES revenues management by community and households should: ☐ (D) An action and financial plan is made Village PFES Revenues Management Unit ☐ (E) An action and financial plan for village PFES revenues should be reported to community ☐ (F) Village PFES Revenues should be divided to each household or community groups

USAID.GOV PFES TRAINING REPORT 16 ANNEX 7: SOME PHOTOS FROM TRAININGS AND STUDY TOUR

Photo: Group exercises

Photo: Presentation skills

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Photo: Study tour participants at Hang Cáu village

Photo: Experience sharing in Thanh Hoa study tour

USAID.GOV PFES TRAINING REPORT 18