The study assesses social vulnerability and how REDD+ interventions could influence resilience and adaptive capacity of communities in Lam Dong province of Vietnam. Data from 120 households’ surveys, four village surveys and 84 interviews with government officials collected over three years (2010-2013)  was used to (i) generate livelihood profiles of the local people, who are vulnerable to climate related events and to (ii) assess the adaptation practices adopted in response to  these events. This study also documented REDD+ related activities, especially the benefit distribution systems (BDS) and considers potential links between REDD+ implementation and vulnerability of local communities. The paper concludes that if REDD+ projects and payments are to contribute to reducing social vulnerability and building adaptive capacity of local communities, a focus on poverty and ethnicity in the design of the BDS is important, but not sufficient. In the way it has been implemented in this location, the BDS design may run the risk of increasing vulnerability of some non-indigenous groups and fail achieve REDD+ goals of reducing emissions from deforestation and. Results are used to offer policy recommendations on the improved design of REDD+ interventions to achieve its objectives as a climate change mitigation option while facilitating longer-term community adaptation.