Vietnam’s pivot to a circular economy (CE) took a decisive turn this quarter, as more than 200 delegates, including academics, government officials, international organizations, and industry representatives, gathered at a forum organized by the Institute of Vietnam and World Economy to advance the national CE agenda.
The forum highlighted the National Action Plan for Circular Economy through 2035, aimed at reducing resource dependency, cutting emissions, enhancing energy and material efficiency, and unlocking new markets, jobs, and value chains. Yet, Vietnam’s current economic model—heavily reliant on low-cost labor, dominated by foreign and domestic sectors, and with modest technology transfer—complicates the CE transition. Enterprises remain weakly integrated into global value chains, limiting the spillover effects of foreign investment and slowing the adoption of circular practices beyond agriculture and eco-industrial parks.
Government representatives emphasized completing the legal framework, removing regulatory barriers, and harmonizing standards for CE-based products, alongside mechanisms to encourage implementation. Businesses were urged to raise awareness, invest in transformation, foster partnerships, and embrace a dual-transition culture—digital and circular. From an agricultural perspective, experts highlighted the potential to leverage Vietnam’s 150 million tonnes of annual by-products to create closed-loop value chains using the 4F model (Farm–Food–Feed–Fertilizer), integrating biotechnology with local knowledge to advance low-carbon and ecologically sustainable agriculture.
Urban CE initiatives also featured prominently. Experts stressed redesigning products to reduce plastics, using more recyclable materials, and implementing environmental responsibility fees. Recommendations included waste sorting at source, synchronized collection and treatment infrastructure, expansion of household composting, and development of local plastic recycling chains to enhance circularity and reduce greenhouse gas emissions.
The forum highlighted the central role of businesses in driving CE adoption, with challenges including high technology investment costs, regulatory constraints, and limited markets for recycled products. To overcome these barriers, participants recommended green finance mechanisms, tax incentives, and innovative circular business models.
The discussion emphasized that successful implementation of the circular economy in Vietnam requires close coordination across institutions, technology, markets, and social behavior. Experts suggested establishing a national circularity index, developing a green innovation network, and creating financial and investment mechanisms to support enterprises transitioning to circular production, particularly in agriculture, processing industries, and urban development.
