CIRCULAR ECONOMY
Circular Economy policies and legislation Framework in Viet Nam
CONTENTS
VIET NAM CONTEXT
CIRCULAR ECONOMY IN POLICIES AND
LEGAL FRAMEWORK 2020
CIRCULAR ECONOMY ON DECREE
VIET NAM CONTEXT TO TRANSIT TO
CIRCULAR ECONOMY
• From 2002 to 2018, GDP per capita increased by 2.7 times, exceeding
US$2,700 per annum in 2019 and lifting
• More than 45 million people out of poverty. Poverty rates consequently
fell from over 70% to under 6% of the population;
• An accumulation of negative environmental impacts accompanied this
growth, however, given the country’s reliance upon natural resource
exploitation to support its expanding industrial sector, and an
increasing dependence on imported fossil fuel-based sources of energy.
• Viet Nam is now among the 10 countries most-affected by air pollution,
consequently losing about 5% of potential GDP in 2013 alone
• Among the primary drivers of the increasing demand for natural
resources and associated environmental pressures are Viet Nam’s
population growth and continued urbanization.
• The Government of Viet Nam’s intention to develop a CE is also
reflected in its earlier National Waste Management Strategy (NWMS),
which established ambitious targets for dealing with the collection,
treatment and disposal or recycling of waste
• Covid – 19 and interruption of supply chain
Urban MSW collection rate in some localities in 2019
Vietnam solid waste
In 2018, municipal solid waste (MSW) generation in Viet
Nam was estimated at 28 million tonnes and forecast to
be 54 million tonnes by 2030—a 73% increase
The major components of solid waste are organic
materials (food waste, paper, cloth, cardboard, garden
waste) and inorganic materials (plastic, rubber, metal).
Of the inorganic materials, plastic—especially plastic bags
and single-use plastics—is among the leading challenges
for MSW treatment in Vietnam
The popular model of municipal waste collection and
treatment in Vietnam
Index
SOLID WASTE
EMISSION IN VIETNAM
Population and situation of solid
waste in urban areas in Vietnam
divided by socio-economic zone in
2019
The trend of solid waste emission to
2044
Economic zone
Red River Delta
Midlands and Mountains north
North Central and Central Coast
Central Highlands
Southeast
Mekong Delta
The whole country
Population
(million
people)
7.904784
2.282809
5.720313
1.67603
11.19648
4.342132
33.122548
Volume
incurred
(tons/day)
8466
2740
6717
1485
12639
3577
35624
Volume
incurred
(tons/year
)
2784494
1076428
2690517
526586
1149918
2135925
10363868
Incurred
index
(kg/person
/day)
1,07
1,2
1,17
0,89
1,13
0,82
1,08
CIRCULAR ECONOMY FROM
THEORY TO POLICIES AND LEGAL
FRAMEWORK
• The circular economy is an economy “where the value of
products, materials and resources is maintained in the economy
for as long as possible, and the generation of waste minimised’’
(European Commission, 2018);
• As an important lever to achieve important goals of
policymakers such as generating economic growth, creating jobs
and reducing environmental impact (Andrew Morlet, 2015)
• Contribute to the direct achievement of 8 out of 17 SDGs and
will continue to spread to promote the achievement of other
goals (Jinhui Li)
• Circular Economy is part of the Green Economy, the core is
waste management
• Is a system with recovery and regeneration through design
PRINCIPLES OF THE
CIRCULAR ECONOMY
•
The 3 main principles are (Andrew Morlet, 2015):
 Preserve and enhance natural capital through control
of finite assets and balancing flows of renewable
resources to create leverage for regeneration,
digitization and exchange;

Optimizing resource productivity through the
circulation of products, components and materials in
the most profitable use at all times in both the
engineering and biological cycles;

Drive system-wide efficiency by minimizing and
designing to eliminate negative externalities.
Industry
Manifestations
Agriculture, Forestry - When households and businesses operating in the fields of agriculture, forestry and fishery themselves
and fishery
recirculate the products of the operation process, those businesses and households themselves are an agent. for
Mining
Manufacturing
example VAC model, VACR model in farms…)
- Intermediaries in the circulation process in this industry can be companies and enterprises that collect agricultural
wastes
- Internal circulation in mining enterprises (for example, Quang Ninh TKV recirculates water during coal mining
to save water and recover coal)
-According to the project life cycle, when mineral extraction is completed, the mines can be built as a tourist area,
the types of soil and rock created when mining will be used for reclamation or other purposes;
- The use of circulating water, materials, ... in the industry has been used by many businesses;
- Producing products with components that are easily disassembled for convenient replacement when one part is
damaged, limiting the amount of waste released into the environment;
- Second hand stores, which are also an important intermediary in the value-added chain promoting the CE model;
Water supply, waste - Considering the flow of waste in the economy, households and businesses themselves are important actors in the
management
and chain of applying CE model theory to reuse water sources;
treatment
Construction
-The role of waste treatment units plays an intermediary role in promoting recycling, reuse and waste reduction
caused by economic and people's activities.
-Construction is an industry that generates a large amount of waste, but at the same time, it is also an industry with
many advantages in the circulation of wastes in the construction process (Soil, stone, solid waste from
construction materials such as bricks, tile, mortar, concrete, adhesive materials that are past their expiry date are
recycled as construction materials or reused as leveling materials for construction works or buried in construction
solid waste landfills. build).
A. In the documents of the 13th Congress
CIRCULAR
ECONOMY IN
POLICY
“encourage the development of a CE model for integrated and efficient use of the output of
the production process”;
«building roadmaps, mechanisms, policies and laws for the formation and operation of the
knowledge-based economy model".
NO
1
Name
Related content
Industry national National strategy on sustainable development
strategies
and National environmental protection strategy
plans
National strategy on green growth
National strategy on sustainable production and consumption
National strategy on solid waste management
National strategy on livestock
National strategy on renewable energy
- Decision No. 158/QD-TTg dated February 1, 2019 on consolidating the Steering
Committee of Vietnam's industrialization strategy within the framework of
Vietnam-Japan cooperation towards 2020, with a vision to 2030..
2
Projects
Environmental industry development project
Environmental service development project
Digital economy project….
Article 142. Circular Economy
CE IN THE LAW ON
ENVIRONMENTAL
PROTECTION 2020
1.
A circular economy is an economic model in which design, production,
consumption, and service are aimed at reducing the exploitation of raw
materials, extending the product life-cycle, reducing waste generation,
and minimizing adverse impact on the environment.
2.
Ministries, ministerial-level agencies, and provincial People's Committees
shall integrate the circular economy from the stage of formulating
development strategies, master plans, plans, programs and projects; waste
management, recycling and reuse.
3.
Production, business and service establishments are responsible for
establishing a management system, taking measures to reduce resource
exploitation and waste, and improving the level of waste reuse and recycling
from the stages of initiation, product & goods design to production and
distribution stages.
4.
The Government shall stipulate criteria, roadmap and mechanisms to
encourage the implementation of the circular economy in accordance with
the country's socio-economic conditions.
 CE model is integrated in other Articles and Clauses: Eco-products; Best
technology available; Promoting Green Public Procurement (GPP);
Extended producer responsibility (EPR); Promote recycling markets; green
bonds, incentives regulations
DRAFT CONTENTS
OF DECREES
BASE PROPOSITION
INTERNATIONAL EXPERIENCE (CHINA, EU COUNTRIES, ASEAN, …)
PRACTICAL CONDITIONS IN VIETNAM
POLICY DIRECTION
CIRCULAR ECONOMIC
CRITERIA
Circular economy is an economic model in which design,
production, consumption and service activities are aimed at
reducing the exploitation of raw materials and materials,
prolonging the product life cycle, limiting waste generation and
reducing waste. minimize adverse impacts on the environment;
 How many types of economic models are there?
 Design, production, consumption and service?
 What is the goal of the circular economy?
• Reduce exploitation of raw materials and materials?
What is CE's target?
Principles of CE
Criteria are factors to evaluate the implementation of
the principles, reflecting the aspects that need to be
met to ensure the principles;
Indicators are variables that measure the
performance of criteria
Economic, social, environmental data
• Extend product lifecycle?
• Reducing waste generated?
• Minimize negative impact on the environment?
 Who measures and evaluates?
Industry, area
A. Production area
1.Agriculture, Forestry and fishery
- Cultivation
- Livestock
- Aquaculture
- Forestry
2. Mining
3. Processing and manufacturing industry
- Food & drink
- Textiles, sewing
- Paper and pulp
- Leather, Shoes
- Wood processing and production of
wood, bamboo, pineapple products...
- Chemicals
- Plastic
- Glass
- Steel, metal
- Electronics, electrical equipment ...
- Other machinery and equipment
Cars and other engines.
- Repair, maintenance ...
4. Electricity, gas and air conditioning
5.Water, waste and wastewater
VN
CN
X
X
X
X
X
X
X
X
X
EC
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Industry, area
6. Construction
7.Wholesale and retail, repair
VN
X
8. Other activities
B. Consumer area
1. Intermediary
2. Government
3. Households and individuals
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
C. Intermediate area
1. Urban
2. Rural and mountainous
3. Concentrated production
business zones
4. Craft villages
D.Waste management
4.1. Solid waste
4.2.Wastewater
E. National Governance
1. Innovation
2. Digital transformation
3.Administration
4.Technology
5. Education
6. Finance
7. Criteria
CN
EC
X
X
and
X
X
X
X
X
CLASSIFICATION OF COMMENTS
Ministry/Industry
Businesses/
International
Organizations
Region
People's
Committee
Department of
Natural
Resources and
Environment
Experts
DECREES DETAILS
15
General provisions on CE
1. General criteria

Economically and rationally use of land resources, water resources, mineral resources,
biological resources, marine and island resources, climate resources (solar energy, wind
energy);

Extend the use time of materials, equipment, products, goods, components and parts;

Minimizing adverse impacts on the environment: reducing waste and pollutants; reducing
the degree of degradation of the ecosystem; reducing greenhouse gas emissions;
biodiversity conservation.
2. Ministries develop industry-specific criteria
ROADMAP FOR IMPLEMENTATION OF THE CIRCULAR ECONOMY
(DRAFT DECREE - ARTICLE 142)
Ministry of Natural Resources and Environment:
Develop a National Action Plan and submit it to the Prime Minister for promulgation before December 31, 2023

Analysis of the current situation; context of circular economy implementation;

Define goals;

Determining the tasks and diverging the implementation of the circular economy for industries, fields,

Determining the types of investment projects, production and business operations, services and products that must be designed to
achieve circular economy criteria;

Orientation of solutions to implement circular economy

Implementation organization: assigning responsibilities, monitoring, reporting; allocating resources for implementation.
2.
Building and operating a platform to connect information and sharing data on the application of the circular
economy model;
3.
Issuing a framework to guide the application of the circular economy;
16
ROADMAP FOR IMPLEMENTATION OF THE CIRCULAR ECONOMY (DRAFT
DECREE - ARTICLE 142)
2. Ministries and Provincial People's Committees:
Develop an action plan to implement the CE
Integrating specific criteria for the implementation of the circular economy right from the stage of
formulation on strategy, planning
Organize the pilot application of the circular economy model to the energy, raw materials, and waste
sectors according to the action plan for implementing the circular economy;
Develop technical guidelines, standards and regulations
Propagating and disseminating knowledge and laws
Manage and update circular economy information and data and integrate with the information and data
system of the Ministry of Natural Resources and Environment.
17
18
Enterprise
ROADMAP FOR IMPLEMENTATION OF THE CIRCULAR
ECONOMY (DRAFT DECREE - ARTICLE 142)
 Implemented in accordance withthe National action plan, the action plan of the Ministries, the province
People's Committee;
 Implement 9R solutions in order of priority (Project, production operations)
 Optimized overall layout design to improve efficiency and reduce consumption of land, water, and energy
resources (Industrial zone)
 Applying environmentally friendly transportation solutions, reducing greenhouse gas emissions (Urban
area);
 Utilizing the roof area to develop rooftop solar energy(Urban area);
 Collecting and storing rainwater for reuse; recovery and reuse of wastewater after treatment (Urban
area);
 Implement solutions for daily-life solid waste management in accordance with the Law on Environmental
Protection and this Decree(Urban area, Industrial zone)
 Encourage the application of circular economy earlier than the roadmap defined in the Government's
action plan.
19
POLICIES ON INVESTMENT, INCENTIVES, ENCOURAGE
(DRAFT DECREE - ARTICLE 143)
• State investment
 Scientific research, application development, technology transfer and equipment production, human
resource training to implement circular economy;
 Provide a platform to share information and data about the circular economy.
• State incentives and support
 Incentives from the Vietnam Environmental Protection Fund, the provincial environmental protection
fund;
 The granting of credit guarantees to small and medium-sized enterprises borrowing capital from
lending institutions shall comply with the provisions of the law on credit guarantee;
 Incentives on corporate income tax;
 Incentives import tax and export tax;
 Non-agricultural land use tax incentives;
 Special consumption tax incentives;
 Subsidizing prices for products and services on environmental protection
 Green credit, green bonds;
20
POLICIES ON INVESTMENT, INCENTIVES, ENCOURAGE
(DRAFT DECREE - ARTICLE 143)
• State incentives
 Research, develop technology, technical solutions, provide consulting services, design and
evaluate the implementation of circular economy in accordance with the law;
 Development of linkage models, sharing the use of products and waste; establish cooperative
groups, cooperatives, unions of cooperatives, recycling alliances, models of regional linkage,
urban-rural linkage and other models as prescribed by law to implement investment,
production, business and service activities meet the criteria of the circular economy;
 To develop the market for reuse of discarded products and waste recycling;
 Mobilize resources in society to implement the circular economy in accordance with the law;
 International cooperation, exchange of experience, knowledge and technology on the circular
economy in accordance with the law.
FUTURE TASKS
•
Develop action plan/national program on circular economy;
•
Specifically, the circular economy criteria for different levels; various fields;
•
Organizing training and guiding the implementation of circular economy for all
sectors and fields;
•
Building a platform to share information, data and lessons learned on circular
economy;
•
Integrating circular economy criteria in product, product standards and regulations;
•
Completing the current policy regulations, incentives mentioned in the Law on
Environmental Protection and other relevant laws;
•
Integrating circular economy into development strategies, plans and programs and
projects; waste management.
•
…
MANY
THANKS