*5.1.2.1 Forest environmental services suppliers – Forest owners*

PFES suppliers are forest owners (households, organizations, and individuals) in Ba Be district. Accordingly, Ba Be district currently has a total of 44,762.20 ha of forest


#### **Table 5.**

*Characteristics of forest owners who are households in the PFES program.*

allocated to different forest owners, including Ba Be National Park manages 7478.90 ha (16.71%), Ba Be Forest Enterprise manages 1190.60 ha (2.66%), households/individuals manage 18,783.40 ha (41.96%), village communities manage 6641.90 ha (14.84%) and the remaining 10,667.50 ha (23.83%) has not yet been contracted, so it is temporarily managed by the People's Committees of communes [24]. Forest management forms in Ba Be district are quite diverse, including state management (Ba Be National Park, People's Committees of communes), state enterprises (Ba Be Forest Enterprise), community management (Community/villages), and private management (Households/individuals) (**Table 5**).

### *5.1.2.2 Users of Forest environmental services*

Tuyen Quang Hydropower Company and Chiem Hoa Hydropower Plant are users of the water source on Nang River basin to produce electricity and are identified as PFES users (Forest environmental services purchasers). However, they do not directly deal with forest owners but entrust the responsibility to the Vietnam Fund for Forest Protection & Development to do the transaction. In this program, neither the forest environmental service provider (Forest Owners) nor the forest environmental service user (Hydropower Plants/Companies) is the one to decide on the price paid, but the government is the one to decide this pay rate.

#### *5.1.3 Payment mechanism*
