On September 25, 2024, the Vietnam Economic Institute of the Vietnam Academy of Social Sciences, in collaboration with partners, organized a forum on “Implementing Circular Economy in Vietnam in the New Context” to contribute to the implementation of views, guidelines, and policies for developing a circular economy, green transition, and responding to the challenges of climate change to achieve net-zero emissions by 2050.
SUSTAINABLE DEVELOPMENT, DIGITAL TRANSFORMATION, GREEN ECONOMY, AND CIRCULAR ECONOMY ARE THE TRENDS
The circular economy, in its broadest sense, is an economic model based on the fundamental principle of “the output of one product is the input of another.” It is a regenerative and restorative economic system designed based on three main principles: conserving and enhancing natural capital, optimizing resource productivity, and promoting system efficiency.
According to the 2020 Environmental Protection Law, the circular economy is an economic model in which design, production, consumption, and service activities aim to reduce the extraction of raw materials, prolong the life of products, limit waste generation, and minimize negative impacts on the environment.
The circular economy operates in a closed-loop, where the waste from one activity becomes the input for a new one. This maintains the value of products, raw materials, and resources within the economy for as long as possible, minimizing the use of new resources, waste generation, and environmental pollution and emissions.
Associate Professor Dr. Nguyen Duc Minh emphasized the importance of the circular economy in achieving green growth and a green economy, leading to sustainable development goals. Vietnam’s government considers the implementation of a circular economy as an essential aspect of its development orientation.
The 2021–2030 Social and Economic Development Strategy outlines directions, tasks, and solutions for social and economic development, including the circular economy as a model for efficient resource management and environmental protection and climate change response.
Vietnam has adopted several important policies and legal documents on the circular economy, including the amended and supplemented 2020 Environmental Protection Law and its guiding sub-law documents.
The government issued Decision No. 687/QD-TTg approving the Project for Developing a Circular Economy in Vietnam. The Ministry of Natural Resources and Environment is currently drafting the National Action Plan for Implementing the Circular Economy towards 2030.
The green-oriented policies and laws, along with upcoming strategies linking social and economic development to sustainability, including the circular economy, demonstrate the government’s determination to innovate the growth model towards quality, efficiency, rapidity, and sustainability. They also reflect Vietnam’s commitment to environmental protection and climate change mitigation.
Sustainable development, digital transformation, the green economy, and the circular economy are crucial global trends, presenting both opportunities and challenges for Vietnam.
Therefore, Associate Professor Dr. Nguyen Duc Minh believes that discussing the content, policies, and prospects of the circular economy and identifying issues and challenges in its practical implementation is of great importance.
According to Associate Professor Dr. Nguyen Van Thanh, Vice Chairman of the Central Theory Council, the traditional linear economy leads to increased waste generation and resource and energy consumption.
Transitioning to a circular economy model that efficiently utilizes resources and minimizes environmental impacts is urgent. It addresses environmental issues, promotes a green economy, enhances competitiveness, and reduces production costs for businesses.
Vietnam has had many innovative models and approaches for decades, notably in agriculture, industry, industrial parks, and eco-cities.
The Vice Chairman of the Central Theory Council also pointed out challenges in implementing the action program for the circular economy, including limited awareness, difficulties in accessing resources and personnel for the green, circular, and digital economy, among others.
IDENTIFYING PRIORITY SECTORS FOR IMPLEMENTING THE CIRCULAR ECONOMY
The Institute of Strategy and Policy on Natural Resources and Environment, the unit assigned by the Ministry of Natural Resources and Environment to promote the circular economy, shared that Resolution 42 of the Party emphasized three fundamental aspects: strengthening natural resource management, environmental protection, and climate change response. These form an essential foundation for policy-making and implementing the circular economy.
Circular economy content has been integrated into the country’s social and economic development strategies and local development plans, as well as programs and projects for its realization.
For the first time, the 2020 Environmental Protection Law legally defined the concept and scope of the circular economy.
Decree 08, guiding the implementation of the Environmental Protection Law, outlined detailed requirements for deploying the circular economy, including assigning the Ministry of Natural Resources and Environment to develop an action plan for its realization.
The draft National Action Plan for Implementing the Circular Economy, led by the Ministry of Natural Resources and Environment and submitted to the Prime Minister, proposes five groups of viewpoints, goals, and corresponding indicators for monitoring and evaluation in phases until 2030 and 2035.
Dr. Dung shared that the plan identifies priority sectors and industries for implementing the circular economy in the coming years, focusing on nine critical sectors with high potential, including transportation, agriculture, construction, waste management, industry, and chemicals. These nine sectors were further divided into 34 sub-sectors based on surveys and analyses.
To materialize the Action Plan, the draft proposes five groups of key solutions and tasks. Within these groups, 38 specific tasks and activities are assigned to ministries, sectors, provincial People’s Committees, and other organizations, with clear timelines. This is a crucial step towards promoting the circular economy.
To achieve the goals set out in the National Action Plan for Implementing the Circular Economy, in addition to the decisive factor of the business community’s efforts and public awareness, Dr. Dung emphasized the need for proactive and effective engagement from ministries, sectors, provincial People’s Committees, and social organizations in carrying out their assigned tasks in the Plan.
Proposing a pilot mechanism for the circular economy in Vietnam, Dr. Tran Thi Hong Minh, Director of the Central Institute for Economic Management (CIEM) under the Ministry of Planning and Investment, suggested that the selection of pilot sectors and fields should ensure the broadest space for enterprises to design circular economy models and projects.
The focus sectors for piloting include agriculture, processing industry, energy, and construction materials.
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