Decree No. 180/2026/NĐ-CP on forest carbon sequestration and storage services is being viewed as a major milestone for the development of Vietnam’s forest carbon market.
With more than 1 million hectares of forested land, Gia Lai is considered well positioned to participate in this promising sector.
Reporters from Gia Lai Newspaper and Radio & Television spoke with Dr. Lai Thanh Hai, Deputy Director of the Vietnam Institute of Forest Science under the Ministry of Agriculture and Environment, about the opportunities and requirements for the province to effectively unlock the value of carbon resources from its forests.
* With more than 1 million hectares of forested land, what advantages does Gia Lai have in developing the carbon credit market?
Dr. Lai Thanh Hai. Photo: Provided by the interviewee
- As the lead of afforestation projects and a participant in several science and technology initiatives in Gia Lai since 2014, I have observed that the province has ideal natural conditions to become one of Vietnam’s leading suppliers of carbon credits, thanks to its exceptionally large forest area.
According to the Ministry of Agriculture and Environment’s 2025 national forest status report, Gia Lai currently has more than 1 million hectares of forested land. Of this, natural forests account for over 692,000 hectares, making the province home to the second-largest forest area in the South Central Coast and Central Highlands regions.
Under Decree No. 180/2026/NĐ-CP, the Gia Lai Provincial People’s Committee and local forest management boards will officially represent ownership of these carbon assets.
This provides a clear legal foundation, allowing local authorities and forest owners to confidently negotiate with multinational corporations and climate finance organizations to sign commercial agreements for carbon credit exchanges and transfers.
On May 19, 2026, the Gia Lai Provincial People’s Committee issued Decision No. 2144/QĐ-UBND establishing the Gia Lai Protection Forest Management Board under the Department of Agriculture and Environment. The move consolidated 29 existing protection forest management boards.
The streamlining of management and the establishment of a clearer legal framework have attracted numerous companies seeking cooperation in surveying and developing forest carbon credit and regenerative agriculture projects in Gia Lai.
These developments mark an important transformation in forest management, protection and development in major forest provinces such as Gia Lai, in line with the implementation of Decree No. 180/2026/NĐ-CP.
* Forest carbon credits are expected to create additional income from forests. What should be done to ensure these benefits reach those directly involved in forest protection?
- Allowing businesses to purchase forest carbon credits for emissions offsetting opens up substantial financial resources and encourages private investment in the forestry sector.
However, because much of Vietnam’s forest area is located in remote regions inhabited by ethnic minority groups and low-income communities, establishing a fair and transparent revenue-sharing mechanism is essential to avoid social inequality and ensure effective forest protection.
To prevent carbon credit revenues from being lost and to ensure that those responsible for protecting forests benefit directly, a comprehensive approach is required. This includes accelerating land and forest allocation, optimizing financial distribution mechanisms through trust funds, ensuring social safeguards and Free, Prior and Informed Consent (FPIC), and integrating biodiversity and under-canopy livelihood models.
In Gia Lai, the forestry sector is encouraging local communities to participate in forest protection contracts while developing medicinal plants, non-timber forest products and ecotourism activities beneath the forest canopy.
This approach helps create sustainable sources of income, reduces pressure from illegal logging and strengthens community incentives to protect forests.
Scientists survey silvicultural pilot models to improve the database for developing the forest carbon credit market in Gia Lai. Photo: Provided by the interviewee
* What preparations are needed for the forestry sector and forest owners to participate effectively in domestic and international forest carbon markets?
- International carbon markets operate under strict scientific standards. Carbon credits are recognized only when they satisfy requirements related to additionality, permanence, prevention of carbon leakage and accurate measurement.
To participate effectively, the forestry sector and forest owners need to urgently complete forest databases, establish emissions baselines and build Measurement, Reporting and Verification (MRV) systems that meet international standards.
At the same time, management capacity must be strengthened, public-private partnerships promoted, technology transfer facilitated and emissions reduction calculations strictly controlled to avoid duplication.
To translate theoretical potential into practical outcomes, particularly in key provinces such as Gia Lai, state management agencies and local authorities should prioritize several strategic measures.
These include issuing detailed implementing guidelines, accelerating pilot projects for provincial-level forest carbon trading, prioritizing investment in data and MRV infrastructure, expanding effective benefit-sharing models and intensifying communication and capacity-building efforts at the grassroots level.
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