Forest land allocation to households and communities marks a profound change in the way that forests are managed in Viet Nam. Forest sector socialization through allocation of land to households, communities, forest companies and Protection Forest Management Boards could have a large impact on landscape integrity and the provision of environmental services and environmental integrity, biodiversity conservation and sustainable development. Previously as much as 40% of the forest land was managed by State Forest Enterprises but their conversion into Forest Company businesses and Protection Forest Management Boards will free up much land for allocation to households. There is an urgent need to examine how best this land and its forest resources can be used to maintain environmental integrity and provide sustainable livelihoods for communities dependent on them. Policies are needed to ensure that environmental needs are understood at the appropriate scale of land use.

The poverty levels in communities that depend directly on forest resources are higher than in other communities. With its Forest Sector Strategy 2006-2020 the Government of Viet Nam aims to reduce the poverty of these communities. This will depend on creating alternative livelihood opportunities, mainly through the better use of forest resources and forest products. Recognizing that forests provide considerable benefits to communities living outside the forests, the Vietnamese government has established the 5 Million Hectare Reforestation Programme to increase the area of forested land, improve the livelihoods of households dependent on forests and improve forest conservation.

The land ownership and management system in the Vietnamese forest sector is undergoing major changes under the National Forest Strategy of ‘socialization of the forest sector'. A major objective of the socialization process is to reduce poverty in communities dependent on forest land for their livelihoods. Households will be given greater access to the forest resources, which will open up more livelihood opportunities, and tenure over some of the forest lands for production and protection.

This project will explore the effect of the current policies and practices in the forest sector on livelihood strategies, land use and benefit sharing: does allocation of land work for reducing poverty? Suggestions for improvement will be made.

A key component of the Viet Nam Forest Sector Strategy is the socialization of the sector. This involves decentralizing forest management to the provincial, district and commune levels, the privatization of forest land ownership and allocation of land to households, communities and companies, and poverty alleviation for people living in and dependent on forest land.

The major challenge facing the forest sector is how to carry out these reforms in accordance with the National Strategy in a way that is both equitable and ensures the sustainability of the forest resource, the conservation of its biodiversity and its ability to provide environmental services. This will need appropriate policy instruments and processes across all levels of governance.