Case: the Central Highlands region, Vietnam

5 provinces: Lam Dong, Dak Lak, Dak Nong, Gia Lai, Kon Tum

The future looks bright in the CH…

• 49.1% of GDP with production value of $4.7 BLN

• Key crops produced: coffee, pepper, tea, horticulture, rice

• 80% total export revenue• Provide livelihood

o Rural labors: > 70%o Income per capita:

$1,345 • Key to poverty reduction

o Poverty rate decreased: 45.8% (2000) to 15.6% (2012)

…but several factors put the landscape at risk

Excessive water use for coffee irrigation, depletion of groundwater sources Deforestation

Decreasing surface water sources Soil erosion and nutrient loss

ChallengesIs the CH agricultural system depleting the natural resources on which its growth is so dependent?• Water

• competing claims of coffee, rice & other food crops, hydro power, human consumption

• Deforestation• water buffering capacity of the forest decreases• less shade trees• reduced pollination benefits

• Land suitability• coffee on steep slopes, in dry areas

• Farmers & communities• viability of small scale farming is questionable• monocropping & market volatility income & food insecurity• alternative income sources

• Institutional• land-use planning & enforcement, • trading in land titles

Ingredients for a solution• Technical analysis

o Hydrological mapping, land-use mapping, drivers of deforestation

• Economic analysiso Business case for reduced/optimal

water-use by coffee farmerso Business case for reducing

deforestation and for restoration• The power play

o Who are the influential actors in the area? Companies, government leaders? Get them on board in a coalition of the willing

• Institutional embeddednesso Government policy alignmento Government capacity