Facing the threat of scarcity of resources and environmental pollution, the concept of a new economy - the circular economy - is getting a lot of support from the Governments and organisations, economists and large corporations worldwide. This is also the content of a seminar held recently by Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi.
According to information at the seminar, in recent years Vietnam economic growth has depended heavily on development elements in width. The production process is material- and energy-consuming with high emissions; the exploitation and use of natural resources is not reasonable; the environment is heavily contaminated and ecosystems degraded.
According to the delegates, environmental pollution, caused by mining activities, lacks strict management at the local level; while the collection and treatment of solid waste, hazardous waste from industrial production do not meet standards. This fact makes people pay due attention to the circular economy, in which all production activities are carried out in a closed cycle, not only to minimize any negative impact on the environment, but also to protect the ecosystem and human health.
A representative from Vietnam Environment Administration stressed: "The interest of businesses to learn about business method innovation through different forms and better compliance with regulations on environmental protection has important implications for labour productivity growth, to increase competitiveness, and to improve image and position in the market."
About the benefits of circular economy, Nguyen Quang Vinh, Deputy General Secretary of VCCI, noted that one of the biggest benefits when promoting circular economy is that resources are used effectively, contributing to protecting the environment and promoting sustainable development.
Besides, according to Mr Vinh, thanks to using the products of circular economy, businesses have more opportunities in the market. Meanwhile, enterprises not only have one product, but also obtain more products through the recycling process, and then access more customers.
Accordingly, more than US$1 trillion is the value that circular supply chain (recycling, reuse, reproduce) can generate globally in 2025, according to data provided at the seminar. But now the fact that waste has not been processed thoroughly before being dumped to the environment has become a pressing issue in environmental protection.
Sharing this opinion, General Director of Dow Company in Vietnam, Mr Sasama Tomoyuki, also said that the transition to a circular economy is essential for society to progress to sustainable consumption. According to Mr Tomoyuki, materials once previously regarded as wastes are likely to be turned into new products and used for other purposes. Notably, the chemistry inventors have helped transform the waste into raw materials.
However, according to many economists, the principle of circular economy is quite new in Vietnam. These will be difficulties and challenges in the transition, because 95 percent of the more than 500,000 Vietnamese enterprises are small and medium, typically under-funded, with limited human resources as well as slow in the process of innovation to adapt to the requirements of development.
Experts also recommended that, in order to promote the economic development of efficient circulation requires the consent of the State, the people and the business community. It also requires drastic and more specific actions to create policy mechanism to encourage activities beneficial to the society and to sanction harmful actions.
Besides, enterprises also need to be active in business-production innovation through many different forms, as well as compliance with legal regulations on environmental protection. That is how to promote the development of circular economy, contributing to improving competitiveness and labour productivity.
Mr Sebastian Egerton-Read, Coordinator, Ellen MacArthur Foundation
Only circular economic systems can save the world from the depletion of resources, increased solid waste and environmental pollution in the context of the increasing population, land cultivation and continuous shrinking and disasters happening due to climate change.
There are four fundamental pillars of the circular economy that businesses need to determine before implementation.
It is circular design and manufacture; new business models; reverse cycle determination and supporting element evaluation, as well as favorable conditions for the system to deploy this closed cycle.
After changing the perception, the transition into actions to promote circular economy will also be time-consuming, because this is a process that requires investment in technology and innovation capacity of enterprises.
Ms Linda Zhu, General Manager of Sustainable Development, Dow Chemical
Waste is a terrible thing that threatens the entire planet. Therefore, there should be a circular economy to change this.
To promote circular economy in Vietnam, it requires the consent of the State, the people and the business community. Moreover, the process also requires technology and ability to innovate in order to re-use resources efficiently, but it is not only good for the environment but also good for the competitiveness of the economy.
Mr Ngo Duy Dong, Director of Green Environment Biogas Company
In Vietnam, some enterprises began to care about the application of technology and use of recycled materials in order to reduce production costs and reduce the risk of contamination.
As at Green Environment Biogas Company, we switched from producing biogas tank from composite to recycled plastic. Advantages of biogas tank made from recycled plastic materials are available, inexpensive, clean, easy to install, transportation price matching investment of the people. Its price is only 60 percent of composite tanks, and 10 per cent lower than brick tank.
However, the problem here is that the mechanism to encourage businesses to invest in this field. It needs to have orientation and rules on "waste" to create favorable conditions for businesses to invest in recycling technology.
Thu Ha
Vietnamese
