Funding for REDD+ activities in Viet Nam is generally fragmented through diverse financial mechanisms, making it difficult for the Government of Vietnam to manage and use this support for REDD+ readiness in an effective manner. The major funding sources in Viet Nam are through the UN-REDD Viet Nam Phase II Programme and the governments of Norway, Japan, the United States, Germany and Finland. The UN-REDD Viet Nam Phase II Programme will be implemented with funding of USD 30 million from Norway. The project “Support for the REDD+ Readiness Preparation in Viet Nam” funded by the World Bank Forest Carbon Partnership Facility (FCPF) will be implemented from 2013-2015 with total investment of USD 4.4 million. USAID is supporting the Viet Nam Forests and Deltas Programme (VFD) with USD 26.5 million and also funds the regional Lowering Emissions in Asia’s forests (LEAF) Programme, of which approximately USD 3.5 million will be spent in Viet Nam.
The Japan International Cooperation Agency (JICA) is providing approximately USD 3.3 million for a study on REDD+ priority areas and is funding the Dien Bien Pilot Project. The Finnish Ministry of Foreign Affairs is providing USD 2.8 million for the National Forest Assessment, a joint programme worth approximately USD 3.3 million with the Food and Agriculture Organisation of the United Nations (FAO).
The national government is also contributing domestic funding for the implementation of the National REDD+ Programme, including for the operations of the Viet Nam REDD+ Office (VRO), the formulation of relevant policies and strategies, scientific research and studies, and the piloting of methodologies for a national forest monitoring system. Support is currently being provided through the Ministry of Agriculture and Rural Development (MARD) and other government agencies, provincial and district authorities, and through parastatal organisations. The current level of domestic financing for REDD+ is difficult to assess. However the Ministry of Finance aims to improve the monitoring of financial flows for REDD+ and VRO, with assistance from a group of independent experts. It has a plan to assess the quantity and effectiveness of financial support for REDD+ preparations in Viet Nam. This will be carried out in the second half of 2013 in order to provide reliable data on the provision and use of support from partners to promote closer cooperation and coordination among REDD+ partners, and to ensure effective and transparent use of funding.