Deploying a circular economy according to industry and field value chains
Circular economy (KTTH) is an economic model towards recovery and regeneration, in which design, production, consumption and service activities aim to reduce raw material input, prolong product life, and reduce waste.
According to Dr. Le Viet Dung - Hung Vuong University, Vietnam has also begun implementing KTTH according to the industry - field value chains. For example, in agriculture, promoting a closed production model, taking advantage of by-products; applying organic techniques and clean production. Regarding industry and high technology, many large enterprises focus on investing in green technology and circular production models.
In terms of energy, circular energy infrastructure focuses on energy saving and developing renewable energy (soluble power, wind, biomass). Vietnam aims to increase the share of renewable energy to 30% of electricity output by 2030 and 50% by 2050...
Although still a preliminary step, according to Dr. Le Viet Dung, some initial results in socio-economic development in Vietnam are encouraging. In terms of institutions, KTTH has been included in the national strategic orientation, creating a legal framework for action. In terms of technology and techniques, many modern waste treatment technologies (such as burning electricity, producing fertilizers from organic waste, plastic waste treatment) have been transferred and piloted...
In particular, according to Dr. Le Viet Dung, public awareness of waste classification and resource saving has been raised. Many communication programs and events on socio-economic development and climate change have been organized. Promoting green startups also creates many startups in the field of recycling and sharing circular technology. Despite limited scale, these achievements show that Vietnam is gradually building a foundation for the economy, meeting the new "green - sustainable" development requirements in the integration era.
Need for a synchronous policy system, capable of inter-sectoral coordination
Vietnam has initially formed a legal framework for the environment, typically the Law on Environmental Protection 2020 and policies on extended producer responsibility.
However, according to Dr. Le Viet Dung, switching to KTTH in Vietnam faces many barriers. In terms of institutions, there is still a lack of detailed regulations and strong incentive mechanisms (such as tax incentives and green credit) for circular projects. The criteria for measuring socio-economic conditions are not yet complete, making it difficult to evaluate the effectiveness and compare. In terms of finance, the investment capital for the circular project (waste treatment, application of green technology) is very large, while the ability to mobilize from the private sector and the state budget is not commensurate.
According to MSc. Pham Thi Thanh - Vietnam and the World Economic Institute, promoting the circular economy cannot only rely on the individual efforts of a single ministry, branch or economic region, but needs a synchronous, unified and capable inter-sectoral policy system.
Firstly, it is necessary to build a National Strategy on the Circular Economy to 2050, playing the role of a comprehensive policy framework, creating a unified legal foundation to coordinate programs and action plans at the ministerial, sectoral and local levels.
Second, economic incentive tools need to be perfected, including tax incentives, green credit, sustainable public procurement and a benefit sharing mechanism in the recycling chain. This is a key driving force for businesses to boldly transform production models, invest in renewable technology and use environmentally friendly materials.
Third, it is necessary to establish an inter-sectoral coordination mechanism - a national focal point for socio-economic development, with the task of synthesizing policies, supervising implementation and connecting data between management agencies.
Fourth, public-private partnership (PPP) and the circular innovation network need to be promoted, with businesses as the center, the State playing a role in creating and supporting.
Fifth, education, communication and changes in social behavior are indispensable conditions. Economic growth is not just a technical story but a cultural change of development, requiring the companionship of people, communities and social organizations in green consumption, waste reduction and resource reuse.
