|An information system on circular economy launched (Photo: Ministry of Natural Resources and Environment)
A circular economy is a closed production cycle, where wastes are recycled to become raw materials for production. A circular economy along with a green economy and a low-carbon economy ensures sustainable development.
Compared with traditional economic models, a circular economy will help Vietnam realize its commitment to achieving "zero" net emissions and will certainly bring benefits to Vietnam and its businesses.
Minister of Natural Resources and Environment Tran Hong Ha said: "A circular economy helps businesses reduce the risks of overproduction and a scarcity of resources, incentivizes investment and technological innovation, reduces production costs, and strengthens supply chains. It also reduces management costs, protects the environment, increases resilience to climate change, creates new markets and new job opportunities, and improves people's health."
Vietnam is a leader in promoting sustainable economic development. A survey by the Vietnam Chamber of Commerce and Industry, however, showed that few businesses have adopted the circular economic model and many businesses say have a limited capacity to apply it.
Bui Trung Nghia, VCCI’s Vice President, said: "Developing the circular economic model in Vietnam will require stronger cooperation between the State, the Government, and the business community. The State and Government must create a legal and policy basis, a favorable environment, and an incentive mechanism to motivate businesses to invest in the circular economy."
Developing a circular economy will help Vietnam avoid dependence on the external economy, especially for raw materials and fuel for production. Transitioning to a circular economy will help Vietnam achieve its goals of environmental protection and climate change response, and realize the 2030 Agenda for Sustainable Development.