Willingness to Pay for the Preservation of Lo Go - Xa Mat National Park in Vietnam

Lo Go - Xa Mat National Park has great value in terms of biodiversity but preserving the park is a great challenge for the Vietnamese government. This study estimated the willingness to pay of households to preserve Lo Go - Xa Mat National Park, using the contingent valuation method. We employed the single-bounded dichotomous choice question format to estimate how much households in Ho Chi Minh City were willing to contribute towards a preservation plan for the park. This plan comprised twelve preservation activities and compensating the local communities for their foregone income. The study found that households in Ho Chi Minh City were willing to pay at least VND 6,209 per month for three years for the preservation of Lo Go - Xa Mat National Park. With protest votes included, factors strongly affecting households' willingness to pay were bid amount and the amount of their monthly electricity bill. The education level of the respondents and the number of working people in the household had significant but lesser impact on their willingness to pay. Without protest votes, the bid amount, monthly electricity bill amount and education level of respondents significantly affected willingness to pay. We found that the annualized benefit value of the project was larger than its annualized cost. This indicated that the preservation plan was economically viable. This study does not provide the total value of Lo Go - Xa Mat National Park, but it shows the great value of the park in terms of local households' willingness to pay for its preservation and this is important information for policy-makers in deciding how to protect the park efficiently.