- CIRCULAR ECONOMY AND POLICY RECOMMENDATIONS IN VIETNAM. - Abstract: On the basis of an overview of the fundamental issues of circular economy, the article summarizes and analyzes the implementation of the circular economy in some countries and regions in the world as well as in Vietnam using the secondary data with qualitative analysis methods. - The results show that the circular economy is not a uniform model for all economies, but rather a variety of models built on the same philosophy based on regeneration and recovery. - From that finding, the article suggests a number of policies for implementation of circular economy in Vietnam.. - This is the main reason resulting in the shortage of natural resources and especially serious environmental pollution. - Given the aforementioned issues, in order to maintain rapid and sustainable development, harmonize the relationship between economic growth and environmental protection without making a trade–off between economic growth with pollution and environmental degradation, switching to circular economy is an appropriate direction. - This article will analyze the features, role and prospects of circular economy, as well as the current global context of implementing such economic model, followed by several recommendations to improve the feasibility of applying circular economy in Vietnam.. - The nature of circular economy. - In this article, the authors will present the definition of linear economy in comparison with the definition of circular economy. - In a linear economy, natural resources play a pivotal role in the production process. - Before the implementation of circular economic model, a transition step that most countries are going through nowadays is called reuse economy, in which after consumption, a part of the waste is then recycled to become raw materials again for the production process of the next stage.. - Circular economy is not a new concept. - Since the 1960s, Kenneth Boulding has compared Earth as a spaceship among the vast of the universe and argued that a circular economic system is necessary to sustain human existence on Earth. - However, it was not until fifteen years later that the concept of circular economy was officially used.. - Figure 1: Linear economy and circular economy. - From that point onward, the concept of the circular economy underwent multiple changes to develop more comprehensively.. - Kirchherr, Reike and Hekkert (2017) stated that there are 114 ways to understand circular economy. - These ranged from simple interpretations like circular economy means reducing emissions to more complex concepts such as 3R and 4R (Figure 1). - The most universally accepted definition was presented by the Ellen MacArthur Foundation at the 2012 Global Economic Conference: “Circular economy is renewable and resilient economic system through planning and proactive design. - renewable energy, etc.” The United Nations Industrial Development Organization (UNIDO) in 2017 also stated that “The circular economy operates on a mechanism which prolongs the product life cycle through improving design and maintenance, and delivering waste from the endpoint of the supply chain back to point.”. - Classification of the levels of circular economy There are three basic principles about circular economy:. - Improve the efficiency of the whole system by minimizing negative externalities through waste design, and pollution design from the very beginning of the manufacturing process.. - Ratio of the contribution of scientific and technological advancement to GDP. - Safe garbage removal rate Perfection of the garbage chain Garbage management tools. - Rate of revenue with the application of circular economy/total revenue.. - Percentage of enterprises applying circular economy/total number of enterprises.. - Rate of revenue of enterprises that apply circular economy/Revenue of enterprises.. - Consumption rate of raw materials per million VND of revenue before and after applying circular economy.. - Proportion of waste with and without application of circular economy.. - Benefits of circular economy. - One of the greatest benefits of promoting the implementation of circular economy is that resources are used efficiently, contributing to environmental protection and sustainable development. - Circular economy not only aims to create jobs and reduce resource consumption, greenhouse gas emissions and waste (Stahel and Reday, 1981) but also create opportunities for ancillary manufacturing industries. - At the 2015 World Economic Forum, Ellen MacArthur Foundation (EMF) and McKinsey Company evaluated the potential benefits of a transition to circular economy through its potential to generate $ 630 billion per year, only for ancillary industries in Europe.. - CURRENT SITUATION OF THE IMPLEMENTATION OF CIRCULAR ECONOMY AROUND WORLD. - A report of OECD presented five business models that can facilitate the transition to a more efficient circular economy, including: (i) circular supply–chain model, (ii) recovery and recovering model, (iii) extended product life model, (iv) sharing model and (v) product service system model, and emphasised that not all of the mentioned models are new and in some cases, companies can adopt a combination of models instead of a single model.. - During downcycling, recovered materials with inferior quality, such as paper and cardboard, each additional loop reduces the length of the cellulose fiber and the quality of the next loop will not be as good as the previous one. - In the upcycling model, waste is converted to secondary raw materials and then used in relatively high value applications. - For example, Freitag, a German manufacturer, specializes in the production of truck tarpaulins, car seat belts and bicycle tubes. - The circular economic deployment model. - This is particularly appealing in developed economies, where a typical car is used 5% to 10% of the time and up to 80% of the goods stored in a household are used only once per month. - Companies that capitalize on this model can maximize the use of the products they sell, increase productivity and value, and create new business relationships and opportunities. - If greater emphasis is on the product itself, the manufacturing companies continue to produce and sell the product in the usual way, but include after–sales service. - The customer pays for temporary access to a particular product, usually through a short or long term lease, while the service supplier retains full ownership of the product. - Real situation in several countries and regions in the world. - Some industrial areas in the world applying this model are Yokohama (Japan). - Resource usage in China has been one of the concerned issues in the periods of economic growth. - China was aware of the ineffective exploitation of resources as well as the long–term consequences of adopting traditional linear economics. - The cyclical economic model has become one of the main problems in China's five–year plans. - In addition, the passage of the Economic Promotion Law, which was circulating on August 29, 2008, officially took effect. - become a leading country on the legal basis of the circular economy application. - The ultimate goal is a "closed, complete circular economy". - Electronic circuit board manufacturers use copper recovered from waste from elsewhere in the industrial park, instead of using pure copper produced by the mining companies.. - Growth of the recycling industry – recycles and reuses municipal waste streams, with a focus on renewable energy.. - Most companies, however, are in the early stages of understanding the circular economy and the ways to operate in it. - Corporate visions in the United States often involve minimizing waste or ensuring products and materials last longer, which also means less resource exploitation, supply chain risks, and less air pollution. - US Chamber of Commerce Foundation Corporate Citizenship Center has published business solutions for how US companies take advantage of the environmental, economic, and social opportunities that a circular economy offers. - A prime example of the adoption of a recirculating economy in the United States is Cambrian Innovation's EcoVolt Technology, which not only treats polluted sewage from industrial activities into clean water, but also converts biogas (like methane) into clean energy. - The company currently has 9 factories in the US, and has treated with. - In addition, in the electronic component manufacturing and supplying industry, HYLA Mobile cooperates with many of the world's leading manufacturers and service providers to repurpose or reuse devices and components in thrown–away smartphones and tablets. - Furthermore, Urban Mining has developed the recycling of the Neodymium Iron Boron (NdFeB) magnet, a magnet widely used for applications in products such as air drills, electrical wires, hard drives and electric motor. - of the product life cycle through greater recycling and reuse, benefiting both the environment and the economy. - The evidence for the implementation of the circular economy in Europe is diverse. - One of the applications of cyclic economy in Europe is Kalundborg Ecological Technology Park, Denmark.. - Description of the process of forming symbiotic relationships between the internal and external components at Kalundborg Ecological Industrial Park. - The centerpiece of the symbiotic system is the Asnæs coal–fired thermal power plant. - Besides, Europe is currently promoting the most powerful market economy in the agricultural sector. - Since then, each country in the bloc has also deployed its own actions to implement the Knowledge–based economy in a systematic manner. - For example, in the Netherlands, the government took the first step since the 1970s with the "Lansink ladder” to prioritize the prevention. - AN OVERVIEW OF THE CIRCULAR ECONOMIC IMPLEMENTATION IN VIETNAM 4.1. - Forms of application of circular economy in Vietnam industries. - These are also two core units of the "No Waste to Nature". - Similarly, NS BlueScope Vietnam, a member of the world's leading steel group BlueScope, also offers practical application of its circular economic model: minimization, reuse, recycling, temporary import and re–export. - Forms of application of circular economy in the Agriculture sector of Vietnam. - In fact, Vietnam already has some manifestations of high technology in the agricultural sector. - In 2017, the Prime Minister also approved the Project to develop Vietnam's environmental industry to 2025 in order to create an environmental industry to meet the contents of a circular economy. - The Ministry of Industry and Trade is currently drafting a National Action Program on SCP with solutions and perspectives of the circular economy to be deployed in the period 2021–2030. - At the same time, the relocation of polluting production facilities in the residential area is continuing.. - The fact remains that the circular economy still requires the integration of everything from raw material supply to disposal. - Furthermore, building a circular economy requires innovation and technology to efficiently reuse resources, which are not only friendly with the environment but are also favorable for the competitiveness of the business. - According to the data collected by the General Statistics Office of Vietnam, more than 95% of Vietnamese enterprises are small businesses, and lack capital, human resources, as well as the innovative ability to apply the principles of circular economy.. - In terms of both theory and practice, the circular economy in Vietnam is still in its infancy.. - However, under the current economic context, with its goals and requirements towards sustainable development, Vietnam needs to realize the benefits of implementing a circular and circular economy as a binding task. - In order for the application and implementation of the circular economy to be smooth, some of the following recommendations should be strictly implemented in the upcoming time.. - Firstly, to complete the legal corridor serving the circular economy development. - Issue technology regulations and standards, promote market development of byproducts and waste products to connect the chain between disposal – recycling – reuse so that wastage can become secondary resources in the closed–loop system of the new production cycle.. - Economists, materials and environmental scientists need to evaluate the ecological impact as well as the cost and benefit of the product. - Designing a product for reuse needs to become a mandatory requirement, accordingly, the product from the design stage has seen its role and position in the cycle.. - Furthermore, the policies and programs laid out for the circular economy must be set in the context of the Industrial Revolution 5.0, which has such basic features as the networking of all everyday objects (e.g. - Because Industrial Revolution 5.0 will play an important role in accelerating the transition from a linear economy to a circular economy.. - Ultimately, better measures for social well–being and economic growth need to be developed, taking into account the success of the cycle and the presence of the products in that closed cycle. - One of the main differences is that instead of prices of the final manufactured products, researchers should consider the net benefits of each product throughout the closed cycle.. - Circular economy policies in China and Europe. - Circular economy towards sustainable development. - H., (2019) Implementing Circular Economy: International Experience and Policy Implications for Vietnam. - The circular economy. - Towards the Circular Economy: Economic and Business Rationale for an Accelerated Transition. - OECD (2019), Business Models for the Circular Economy: Opportunities and Challenges for Policy, OECD Publishing, Paris.. - Circular Economy in Cities Evolving the model for a sustainable urban future (In Collaboration with PwC).. - Business models for the circular economy – opportunities and challenges from a policy perspective, OECD Publishing, Paris.. - Chamber of commerce foundation Corporate Citizenship Center., (2015), Achieving a circular economy: How the private Sector Is Reimagining the Future of Business.
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