*5.1.3.1 Cash flow*

Annually, based on the output of electricity produced, Tuyen Quang Hydropower Company and Chiem Hoa Hydropower Plant contributed money to the Fund for Protection and Development of Vietnam with the unit price of 20 VND/KWh (Decision 99/2010/ND-CP), this payment has increased to 36 VND/ KWh from 2018 (According to Decree 156/2018/ND-CP). The total amount of contribution was retained by the fund 0.5% as a management fund, and the remaining 99.5% of the amount was transferred to the Bac Kan Forest Protection and Development Fund. The Bac Kan Forest Protection and Development Fund was entitled to 5% of the management fee and 10% of the contingency fund (total of 15%), the remaining 85% of the amount was transferred directly to the forest owners (**Figure 2**). This form of payment is called indirect because the payment must be through a third party, the Forest Protection and Development Fund, at all levels.

#### *5.1.3.2 Price paid*

The rate of payment to forest owners under the PFES program was calculated according to the following formula:

$$\text{Total Payments} = \mathbb{S}^\* \mathbb{P}^\* \mathbb{K} \tag{2}$$

*Integrated Effect of the Payment for Forest Environmental Services (PFES) in Vietnam DOI: http://dx.doi.org/10.5772/intechopen.112900*

**Figure 2.** *Cash flow in the Ba Be PFES program.*

*In Which:*

