Currently, many studies on benefit sharing mechanisms (BSM) and the Reducing Emissions from Deforestation and Forest Degradation programme (REDD+) focus on poverty alleviation and livelihood development. However, relatively few studies incorporate an integrated livelihood framework. This study employs the sustainable livelihoods framework to assess the impact of BSM in Vietnam. The lessons learned could be used in creating social safeguards for REDD+. The communities in Central Vietnam involved in BSM were impacted by the programme on various dimensions. These dimensions, expressed in different types of capital, are interconnected and contribute to a person’s well-being. While the communities have restricted access to their natural forests, they benefited in terms of income diversification, knowledge improvement and network expansion. On the other hand, they faced food insecurity, they were more vulnerable to natural hazards, and their human, social and cultural capital faced risk of deterioration.