A project to develop the circular economy approved by the Prime Minister two years ago has provided a roadmap for ways to achieve its goals in a sustainable way. One main focus will be building mechanisms and policies to develop appropriate circular economy models for each industry and locality.

Nguyễn Tiến Huy, Director of the Office of Businesses for Sustainable Development at the Việt Nam Chamber of Commerce and Industry (VCCI), told the Vietnam News Agency about the project.

What has Việt Nam done to develop models for the circular economy two years after the start of the project?

We see that many businesses have invested in corporate innovation and applied science and technology to bring their development models closer to circular production and business models.

However, to move forward with a circular economy, it requires connections between different businesses as well as different economic sectors.

The circular economy development project issued by the Prime Minister also covers the economic aspect of the circular economy. That means practicing the circular economy does not stop at the goals of protecting the environment and saving natural resources, but also focuses on building policies to create economic growth as well.

At present, ministries and sectors are creating plans and mechanisms such as land and tax policies and green credits. These also include other policies to promote the development of science, technology and the workforce.

This shows the effort from agencies to improve the legal system and promote circular economy development.

What are the main difficulties and challenges in implementing this project?

We can see that difficulties mainly come from internal factors in the enterprises. Vietnamese businesses are mainly at a small scale and have limitations in finance, management and technology.

This means that they need to innovate production and business, and enhance connections with other companies to form circular economy chains. Currently, businesses have not really formed these chains.

In addition, awareness of green products among businesses and consumers is still limited. That does not create motivation for the companies to kick off a green production model as well as the circular economy model.

Another factor is the legal and policy system. Although there have been many improvements, the legal system is still not truly synchronised and stable.

This project emphasises public-private dialogues in developing the circular economy. What do you think about the issue?

Public-private dialogues are always a good foundation for building and perfecting mechanisms and policies to develop the circular economy.

Enterprises know clear facts about production and business activities. So, promoting a dialogue between state management agencies and the business community is very necessary to grasp limitations and difficulties as well as the needs of the enterprises.

Experts believe that production and business under the circular economy model require the enterprises to have a breakthrough in management and also to have strong financial resources. What is your opinion?

The viewpoint on the need for strong financial resources is correct, but not comprehensive. In order to practise a circular production and business model, enterprises must change technology at all stages, including production, consumption and distribution. Technology is key for carrying out a circular production and business model, and also requires the companies to have large financial resources.

Connecting or changing partners and finding a qualified labour force to operate circular production and business models also requires large investments from enterprises.

Firms also need the State's supportive policies on taxes and fees or access to green credit to encourage them to practise circular production and business models.

According to the circular economy development project, the Prime Minister has assigned the Ministry of Planning and Investment to complete a draft decree on a pilot mechanism for developing a circular economy in Việt Nam. If this decree is passed, what impact will it have on promoting the development of a circular economy in the country?

Việt Nam needs breakthrough policies to develop the circular economy and this draft decree will help us identify breakthrough policies.

In addition, we must acknowledge that building a circular economy cannot spread across all industries and fields. It needs to take place in priority industries, for example in agriculture, industry, energy and construction materials, which all have a big impact on economic development.

As a national organisation representing the country's business community, what policies and support mechanisms has VCCI proposed to promote the circular economy model in Việt Nam?

VCCI has coordinated with ministries and branches to develop a national action plan on promoting the development of a circular economy in Việt Nam.

The chamber is always a bridge to promote dialogues between state management agencies and the business community to build legal and policy frameworks in the field of sustainable development.

Fifteen years ago, the chamber established Vietnam Business Council for Sustainable Development (VBCSD) to gather pioneering businesses interested in sustainable business practices.

VCCI has also built and completed a set of sustainability indicators for the companies to guide them as they implement sustainable business methods and production.

With its survey, training and support programmes, the chamber has also popularised a number of circular production and business models in the Vietnamese business community, and has raised awareness of green consumption and clean production among enterprises.

Meanwhile, VCCI always informs the companies about opportunities and benefits that can arise from circular production and business models.

Changing to a circular production and business model helps enterprises improve their management and development capacity as well as their workforce. These driving forces will help bring sustainable development to the companies.

Since some economies around the world have introduced very high environmental and social standards, Vietnamese businesses that join circular economy chains will help increase their own chance to access demanding markets. — VNS