The paper analyses the development towards Sector-Wide Approaches (SWAps) in the forestry sector in Tanzania, Mozambique and Vietnam. The main research question is: does the sector-wide approach promote effective delivery of aid? There are two critical factors in effective implementation of SWAps in the forestry sector: (a) efficiency in financial flow and management, and (b) national ownership in the forestry sector development. The paper argues that SWAps in forestry might be less successful than in other sectors because of the dominance of market forces in the forestry sector, and might not be the most effective way to deliver aid because of the dependence on the quality of institutional capacity in the recipient countries and donor countries. SWAps and direct budget support (DBS) may take several years to begin producing concrete results in rural development and poverty reduction. The paper concludes that a range of support modalities are needed, and SWAps and DBS are important in developing national ownership. However, in all likelihood, projects in the forestry sector will remain important instruments for implementing sector strategies and national development frameworks.