Over the past decade, the resource base supporting fishing communities in coastal and inland Vietnam has been depleted or is in a state of serious decline to the point where livelihoods are seriously threatened. Therefore, it is critical to move towards improved management of the fishery sector complemented by the development of alternative income generating activities. Improved fisheries management would need to be comprehensive, addressing issues of the use of captured fisheries gear and the establishment of environmentally sound practices and actions to improve and sustain fisheries productivity and biodiversity. To achieve the above, a co-management strategy would need to be developed that would engage local households and communities; local organizations (Fishermen’s Associations, Women’s Unions, other NGOs); local government departments (DOFI, MPI, PPCs); credit institutions (VBARD and BSP), and the Ministry of Fisheries. The current Vietnamese legal framework allocates specific responsibilities to local governments with regard to the management of fisheries, coastal and inland waters, aquaculture development, and the establishment of protected areas. Experience has shown that direct engagement of all stakeholders in formulating management plans for natural resource use is the strongest approach to assuring sustainable and productive use of those resources. The main objective of this work is to develop the information required to formulate a follow-on project that would be of benefit the poorest fishing communities in particular in the country through sustainable development and management of inland aquatic and coastal resources. This would be done under that operation through the implementation of pilot demonstrations that would include alternative income generation activities such as (a) aquaculture, handicrafts, and other options that would be identified during the seed-grant phase; (b) provision of training for management, environmental monitoring and productive activities; and (c) strengthening of local institutions and community groups in cooperative decision making for sustainable resource use. These pilot-scale activities would be selected through a community driven demand process that would draw together all interest groups, including local governments, NGOs, and others.