Village Development Fund: Empowering Community-led Biodiversity Conservation in Central Annamites

Shifting to non-forest-based livelihoods has enabled families around Saola nature reserves to increase their income while actively contributing to biodiversity conservation by reducing pressure on nature reserves. 

For generations, communities living around protected areas (PAs) have depended on forests for their sustenance and protection. Many of these communities are impoverished and rely on the forest for essentials such as firewood, food, non-timber forest products, and livestock grazing. 

“Our family’s primary food source relies on farming, but more is needed. I also weave rattan fabric for sale to supplement my income, yet the profit is not much,” said Ms. Blup Thi Hang from A Luoi, a commune in the buffer zone of the Thua Thien Hue Saola Nature Reserve. “I rallied fellow women to venture into the forest, harvesting bamboo shoots and collecting snails to increase our earnings. The forest’s specialities were highly sought after.” 

However, it is also widely recognised that intensive dependence on forest resources may lead to degradation and ecological problems. 

Thua Thien Hue and Quang Nam Saola Nature Reserves

Located within the Central Annamites Landscape of Viet Nam, PAs in Quang Nam and Thua Thien Hue provinces were designated as Saola Nature Reserves in 2011 and 2013, respectively.  

These areas harbour a wealth of distinctive Asian biodiversity, spanning 2.2 million hectares of natural forests, 134 mammals and more than 500 bird species. It provides vital ecosystem services to more than 10 million people, including 7 million who depend on agriculture and forestry for their livelihoods. It is, therefore, imperative to protect the natural forest, support sustainable agriculture, and increase climate resilience. This ensures the landscape can continue to sustain both the communities and the biodiversity that depend on it. A conservation programme is now helping residents transition to opt for alternative livelihoods, reducing their dependence on forest resources and promoting sustainability.

Alternative livelihoods

The Village Development Facilities (VDFs), an initiative under WWF’s Carbon and Biodiversity Project phase II (CarBi 2), has emerged as a transformative tool for fostering sustainable livelihoods and forest conservation. Implemented in Thua Thien Hue and Quang Nam provinces, the VDFs are designed to achieve two main goals: efficiently managing resources to meet community needs and encouraging behavioural change toward forest conservation. Managed by the communities, the VDFs have already made notable impacts, directly benefiting over 700 households and enhancing the resilience of communities traditionally reliant on forest resources.

The VDFs are a crucial part of the CarBi 2 project, which aims to protect, restore, and promote the sustainable use of ecosystems in the Central Annamites. Building on the successes of phase I, CarBi 2 expands activities to address the region’s biodiversity threats while empowering local people, many of whom depend on natural resources for their livelihoods. A new feature of phase II is the establishment of VDFs to facilitate borrowing for income-generating agroforestry and alternative livelihood activities.

Seeds of change

For individuals like Hang, the VDFs have been life changing. “I heard from my village about the fund of CarBi 2. I hesitated about taking a loan as I was still determining my repayment capability.” Eventually, Hang borrowed US$200 from the fund and ventured into fish farming. 

“At first, many fish died; fortunately, the project provided fish farming training, helping me overcome this challenge. Consequently, I successfully repaid the loan, invested more in fish breeding, and improved the quality of living for my family,” added Hang.

Similarly, Mr A Lang Minh from Pho village, a remote area near Quang Nam Saola Nature Reserve, used the loan of US$ 400 to start livestock farming. “I bought a cow, which soon reproduced two calves. I sold one, repaid my loan, and now I expect another calf. VDFs have allowed me to earn a stable income without harming the forests,” he said.

Community-driven development

These cheerful stories illustrate the values of VDF’s programme, a model of self-reliance and communal governance. Various funding sources, in addition to the support from CarBi 2, such as Payments for Forest Environmental Services and contributions from the community and village authorities, have been mobilised to support village development and livelihood alternatives through village microfinance programmes.

WWF has provided ongoing capacity-building, equipping community management boards with financial management, accounting, and development planning skills. These efforts ensure transparency and effectiveness, fostering trust among stakeholders. “We’ve learned not only how to manage the fund but also how to monitor and report its use. This has greatly improved our confidence in managing communal resources,” Ms Nguyen Thi Xua, a member of A Xach VDFs Management Board in Nam Dong commune said. 

With 30 VDFs established and operated in 30 villages under CarBi 2, the VDFs pilot’s success has prompted the model’s expansion to additional villages, to be scaled up by the WWF – Velux partnership in 2025. WWF and local authorities are working closely with communities to replicate this model, ensuring that more villages benefit from sustainable development and conservation efforts. It is crucial to empower communities and promote their ownership, capacity building, and training for sustainable use of VDFs.

WWF’s innovative path forward

Looking forward, WWF envisions contributing to Viet Nam’s national biodiversity goals, which aim to expand and enhance the management effectiveness of the country’s natural heritage sites and PAs by 2030. A key strategy will be promoting other effective area-based conservation measures (OECMs) to extend conservation beyond traditional protected areas. Globally, over 6,000 OECM sites have been identified, including 178 in the Philippines, but Southeast Asian countries have yet to establish confirmed OECMs. WWF will work toward developing OECMs in Viet Nam, focusing on biodiversity credits, rewilding efforts, and enhancing ecosystem connectivity, to foster a sustainable future for both people and nature.