This ‘Inside story on climate compatible development’ by the Climate and Development Knowledge Network highlights key lessons learned from Vietnam’s experiences in planning for a REDD+ compliant benefit distribution system. The brief outlines the process of preparing such a system and provides the following lessons: be open to addressing sensitive governance issues; learn from existing benefit distribution systems; funding mechanisms must be flexible and transparent; adapt the system to local needs through pilot programmes; make free, prior and informed consent more effective; and safeguard benefits for communities. It notes that the Vietnamese experience holds broader implications for other countries including: the need for communities to have sufficient legal status and rights to participate independently and effectively in REDD+ contracts and carbon market; and the need to keep REDD+ funds separate from general government revenues.