In 2010, the Vietnamese government initiated the Payment for Forest Environmental Services (PFES) program to conserve forests and improve local livelihoods. While some researches have demonstrated the effectiveness of PFES, other studies reported inappropriate implementation and distribution at the initial stage. This study aimed to examine how PFES was implemented, and explore the challenges of forest protection efforts faced by the local people under PFES. Thua Thien Hue province was the first province to adjust the distribution of payments according to the type and quality of the forest using the K-coefficient. We conducted in-depth interviews with relevant staff and officials and organized focus group discussions with local people in seven payment areas in the province. The findings showed that the K-coefficient applied in this study was composed of four elements: forest condition (K1), forest function (K2), forest origin (K3), and the difficulty of forest protection (K4). However, forest condition (K1) was the only factor that could increase the efforts of the local people toward forest conservation. The capacity of the staff played an essential role in PFES distribution for local people. Additionally, establishing the relevant institutions and encouraging participation at the local level can increase forest conservation effectiveness. However, there is a lack of regulations for dealing with violations under the current rules. In conclusion, this study recommends expanding the range to calculate payouts, thereby increasing remuneration and motivation for the local people to be involved in forest conservation.

In 2010, Vietnam implemented the payment for forest environmental services (PFES) program that was expected to bring additional income to local people and improve the efficiency of forest protection. However, factors affecting the motivation to participate in PFES have rarely been examined. The objectives of this study were to (1) identify factors that influence local people’s participation in PFES, (2) examine how local people participating in the PFES program were involved in decision-making in the Thua Thien Hue Province, and (3) assess PFES impact on local people. We conducted a field survey of 32 households at the study site. We found no difference in the access to PFES between poor and non-poor households. Participation in PFES was considered a reward for labor work in forests and a means to compensate for the legal rights of participants. Local people could participate at many stages of PFES implementation; however, they were only passive spectators with regards to PFES management. Two-thirds of the participants did not participate in decision-making regarding PFES distribution. We conclude that the efficiency of future PFES programs may be increased by enabling and stimulating the participants to take a more active part in the process of PFES management and distribution.