Soil erosion is a considerable concern in the upland areas of Central Vietnam. This situation is most serious in regions, where the terrain is sloped and subjected to heavy rainfall. Our research was conducted in a mountainous area, belonging to Central Vietnam, the area of Song Kon commune in the Dong Giang district. The objective of this study is first to estimate the impact of soil erosion risk in these areas, and second to assess the capacity of farming systems which are based on indigenous knowledge (IK) to respond to soil erosion. Our data were collected by Participatory Rural Appraisal (PRA) and processed using Geographical Information System (GIS) methods. We then interpreted this research using the Universal Soil Loss Equation (USLE) in order to calculate the soil erosion rate. The Normalized Difference Vegetation Index (NDVI) and the Enhanced Vegetation Index (EVI) were also used as measurements to compare the difference of land surface covers between different farming systems. The results showed that the lowest soil erosion rate was found in the narrow valley regions, which are populated by both agricultural and residential areas. On the other hand, soil erosion was extremely high in the more northerly quadrant of our research area. Our findings also indicate that local farmers are highly aware of soil erosion, which has positively influenced the adoption of adaptation measures (AMs) in their agricultural activities. The most common AMs are as follows: changes in cropping patterns, the adjustments of their planting calendars, the use of native varieties, and intercropping methods. These AMs are mediated by the cultural observances of the local ethnic minority peoples in relation to their IK. We have concluded that when farmers apply IK in their farming systems, the soil erosion rate tends to decrease as compared with non-indigenous knowledge (NIK) practices. We hope to bring a better understanding of the processes that shape farmers’ AMs and thereby to develop well-targeted adaptation policies that can then be applied at the local level. Our findings may be instrumental in future adaptation planning and policies in regard to climate change, and that they will help to increase awareness not only in matters of the soil erosion but also in other interconnected aspects of climate change in these areas.