For the upland people, especially ethnic minorities, forest plays a very important role in daily life. This study was conducted in a Ka Non No.1 village, Huong Lam commune, district Luoi, Thua Thien - Hue province, is a poor and remote area village where the Kinh and ethnic minorities (Co Tu and Ta Oi live together. The study found out some key findings as follows: A Luoi Protection Forest Management Board have managed well their forest, particularly natural forest Beside administrative' budget, they also implemented project 661 to support farmers to improve household income by participating in natural forest protection. However, linking between forest protection and management and sustainable livelihood improvement is great challenge facing the A Luoi Protection Forest Management Board, because the life of a villager in Ka Non No.1 still depends much on natural forests. Local people still carry out activities relating to natural forests such as shifting cultivation, logging, gathering non-timber forest products (NTFPs) and hunting wildlife even if they do not have any legal rights (formal rights) over those forest area. Trend of swidden land use in the future are very different between poor and non-poor households. Poor households tend to use such land to plant hill rice, crops and vegetables to ensure food security. Meanwhile, most nonpoor households want to transfer the swidden land to afforestation (planting acacia). Other forest based activities such as the logging, gathering NTFPs, trapping wildlife with main purpose is to sell for getting money to buy rice, food and other daily expenses.