Viet Nam

Viet Nam is ranked 16th among the Earth’s most biodiverse countries and is one of the ten richest centres of biodiversity in the world. As such, biodiversity is an important contributor to economic development in Viet Nam.

For example, since 2010 the number of international tourists visiting the country, with nature being a vital attraction, has grown three-fold from 5 million to more than 15 million in 2018. Nature is also an integral part of everyday life and livelihoods in the country.

Viet Nam is listed as having the highest marine biodiversity in the world as well, with more than 11,000 marine species of which 6,000 are zoo benthic species, 2,038 are fish species, 225 are crustacean species, 15 are snake species, 12 are marine mammal species, 5 are sea turtle species, 43 are sea bird species, 653 are seaweed species, 657 are zooplankton species, 14 are seagrass species and more than 400 are coral species. Those species are living in over 20 typical ecosystems of high biological productivity having crucial roles in primary productivity of the whole marine waters of Viet Nam.

Despite the important status, biodiversity is declining.

Ecological systems are affected and overexploited, and the species extinction rate is increasing. For example, despite an attempt to reduce the negative impact on habitats and marine populations by controlling harmful fishing techniques used in Vietnamese seas, the Dugong has not been seen in Vietnamese seagrass areas since 2016, likely due to habitat degradation and over-hunting.

Although biodiversity brings direct benefits to humans and the environment and contributes to the national sustainable development strategy, Viet Nam is also experiencing rapid biodiversity loss due to population growth, overexploitation of natural resources, illegal logging, and the expansion and intensification of agriculture. 

The objectives of BIOFIN in Viet Nam are to support the country to assess the current financial flows to biodiversity protection, develop appropriate mechanisms to improve financial sustainability and assist in the implementation of the updated National Biodiversity Strategy and Action Plan. For these and other reasons, conserving natural marine and land habitats and maintaining or, where possible, enhancing their connectedness remain high priorities for the country, in order to reduce the ongoing impoverishment of the country’s biodiversity.

Key Results

BIOFIN has introduced new, innovative ways of protecting biodiversity in Viet Nam. First the time ever, Viet Nam carried out a review of expenditures spent on biodiversity that helps the policy makers to have a better understanding of the gaps in biodiversity finance.

BIOFIN has leveraged the public investment for biodiversity conservation in Cuc Phuong National Park. With novel thinking and approaches provided by BIOFIN, the National Park’s nature museum has transformed to provide its services for academia and the public, creating new income sources for the park.
BIOFIN has also brought the concept of result-based budgeting (RBB) in biodiversity conservation, by piloting the RBB in Sao La protected area to enhance the efficiency and effectiveness of forest protection activities.

Finance Solutions
Key Documents
Expenditure Review (BER)

The BER was completed with inputs from various sources at both the national and provincial level, such as: the Ministry of Agriculture and Rural Development (MARD), the Ministry of Natural Resources and Environment (MONRE), the Ministry of Science and Technology (MOST), Provincial Departments of Agriculture and Rural Development (DARDs), Provincial Departments of Natural Resources and Environment (DONREs), National Parks (NPs), Nature Reserves (NRs), etc. All collected data and information was analyzed following the guidance provided in the BIOFIN Workbook (2016). Two consultation workshops were also organized, to collect comments and feedback from relevant stakeholders and interested parties, which were used to frame this final report and its recommendations.

Needs Assessment (FNA)

Based on current biodiversity expenditure as presented in the BER, and the suite of strategies and actions based on Viet Nam’s NBSAP and other key national strategies as presented in the PIR, BIOFIN Viet Nam is currently assessing the financial needs (costing) of Viet Nam in order to implement national biodiversity strategies and plans towards achieving the Aichi Targets and national biodiversity objectives, as well as addressing the financial gap associated with the FNA.

Finance Plan (BFP)

The BFP is the culmination of the BIOFIN process, incorporating all the information, evidence, and recommendations set out in the preceding three reports as well as taken from consultations with stakeholders. By presenting an analysis of a set of finance solutions and technical proposals to fill the identified gaps in biodiversity finance, as well as the economic and business case for their implementation, the BFP will serve as a comprehensive guide map for the expansion and amelioration of Viet Nam’s approach to biodiversity finance that encompasses all sectors of society. The draft BFP proposes a list of different financial solutions which will be selected at a later date based on consultations with relevant ministries, provinces, and protected areas.