TFF – Trust Fund for Forests

The Trust Fund for Forests (TFF) was established through an Official letter 850/CP-NN dated 23rd June 2004. At the same time four bilateral donors (Finland, the Netherlands, Sweden and Switzerland) signed a Memorandum of Understanding (MOU) with the Ministry of Agriculture and Rural Development (MARD), which committed them to pool their ODA contributions in support of Vietnam’s forest sector during an initial three year transition phase of the TFF.

What is the TFF?

The Trust Fund for Forests (TFF) is a financing mechanism for pooling donor contributions and ensuring these are used effectively to address sector priorities within agreed policy frameworks, such as the National Forest Development Strategy.

What is the mission statement of the TFF?

Vietnam’s Trust Fund for Forests will provide a grant facility to support pro-poor and sustainable approaches to forest management and a transition towards a comprehensive sector wide approach for development and cooperation in the forest sector.

What are the TFF’s goals and objectives?

The overall goal of the fund is consistent with that of the existing National Forest Development Strategy – “The sustainable management of forests and the conservation of biodiversity to achieve: a) protection of the environment, b) improved livelihoods of people in forest dependent areas, and c) enhanced contribution of forestry to the national economy.”

The TFF has four specific objectives:

  • Aligning ODA support more closely with the agreed priorities identified in the FSSP framework
  • Improving poverty targeting of ODA support to the forest sector, consistent with the CPRGS
  • Harmonizing aid delivery from ODA to the forest sector and reducing transaction costs on GoV
  • Supporting a transition towards a sector wide approach to ODA support in the forest sector

The TFF’s organizational structure

The organizational structure of the TFF consists of a Board of Directors (BoD) and a TFF Management Unit (TFF MU). The BoD is chaired by MARD’s Vice Minister responsible for the forest sector; members include leaders of MARD’s International Cooperation Department, Planning Department, Finance Department, representatives from other relevant departments of MARD together with a representative from TFF donors. The BoD performs an executive function and is responsible for decisions on operations, orientation and annual income and expenditure of the TFF.

The TFF Management Unit is responsible for managing and operating the TFF in accordance with the directions approved by the BoD. During the initial transition phase, the Forest Sector Support Partnership Coordination Office (FSSP CO) acts as the TFF MU. Beyond this, during a full implementation phase, it is intended that the TFF will be fully institutionalized within MARD.

Address: The Trust Fund for Forests (TFF)

Ministry of Agriculture and Rural Development

3rd floor, A8 Building, 10 Nguyen Cong Hoan, Ba Dinh, Hanoi

Contact: Nguyen Chien Cuong (Mr.): Tel: 04 7629412, ext. 108

TFF financing

The Governments of Finland, Netherlands, Sweden and Switzerland contribute non-refundable ODA funds to the TFF. Germanyprovides support through provision of technical assistance for development and operation of the TFF.

Funds provided by the four donors are un-earmarked allowing them to be used to support programs, projects and non-project activities to implement agreed priorities of the FDS. As of 31st December 2007 in total approximately Euro 13.5 million in un-earmarked commitments have been made by the donors for the transition phase. In addition Finland provides earmarked funds totalling Euro 4.2 million, which co-finance the Forest Sector Development Project.

Support from TFF

The TFF provides support in the form grants either as a sole donor or co-financier to programs, projects and non-project activities. By December 2007, 22 projects and activities had been endorsed for support from the TFF with a total value of Euro 29 million.

The TFF is able to support national organizations. During implementation of programs or projects, international NGOs and international organizations that are legally operating in Vietnam can participate as technical service providers to a national implementing agency.

The TFF is able to consider requests for funding on the basis of priorities identified by MARD and agreed by the BOD based on the implementation status of the Vietnam Forest Development Strategy (2006-2020) and the sectoral plans. In general one or more organisations can be pre-selected by MARD/TFF to prepare proposals to address such priorities.

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