Since the 1990s, forests have changed dramatically, transitioning from net forest loss to net forest increase in Vietnam. This study aims to advance the understanding of the factors driving forest transition at local scales. We employed GIS tools and a structural regression model to quantify the areas of rehabilitated forests and their determinants at the commune scale in Dien Bien province. We found that approximately 118,000 hectares of forest were rehabilitated during 1990 and 2010. Rehabilitated forests accounted for a large share of total forest gain (i.e., above 84%), and this proportion increased from 1990 to 2010. The presence of these rehabilitated forest was associated with both biophysical and accessibility factors. While no evidence regarding the effect of smallholder land use intensity or economic development was found, we did find that forestry land tenure policies facilitate the expansion of rehabilitated forests. The findings of this study can inform the development of policies that support small scale forest transition, environmental management, and upland sustainable development in Vietnam and other countries.