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Vietnam

Huge areas of virgin forests in Vietnam have been cleared since the 1970s. As a result, soils eroded and people suffered from flooding or lack of water, depending on the season, as the soils in the forests could hardly absorb rain. This also had a negative impact on agriculture, from which most of the Vietnamese live in the countryside.

Vietnam has been reforesting continuously since the mid-1990s, which has increased forest cover again across the country. KfW Development Bank has been involved in the Vietnamese forest sector since 1995, especially in North and Central Vietnam, and since the end of 2012 also in the coastal protection of the Mekong Delta. To date, 100,000 families have benefited from the project.

On average, they earn 30% more income, which is particularly beneficial for the children's education. The savings account approach proved to be particularly successful: the farmers are allowed to use all wood and by-products. This land use right is documented for the families in the land register, the so-called "Red Book". In return, they undertake to reforest and to sustainably cultivate the areas entrusted to them - the land remains state-owned. As compensation, they receive a “green savings book” which, depending on the type of forest, guarantees them savings of up to US $ 250 per hectare of successfully reforested or cultivated area. This earns interest and the balance is paid out over six to nine years.

Project information - Forest protection (PDF, 227 KB, not accessible)

Project information - Sustainable urban transport (PDF, 144 KB, not accessible)