Bamboo Capital highlights role of businesses in advancing Vietnam’s circular economy

Dr. Hoang Trung Thanh, a senior leader of Vietnam's conglomerate Bamboo Capital Group, emphasized the pivotal role of businesses in driving Vietnam’s green economy strategies during his speech at the recent Vietnam Circular Economy Forum 2024.

Invited by the United Nations Development Programme (UNDP) to attend the forum, Dr. Thanh, a member of the board of directors at Bamboo Capital and vice chairman cum deputy CEO of its subsidiary BCG Energy, participated as a speaker in the dialogue on promoting the circular economy in Vietnam.

The discussion featured representatives from state management agencies, international organizations, and the business community, including Ramla Khalidi, UNDP resident representative in Vietnam; Fleur Gribnau, first secretary of the Dutch Embassy in Vietnam; Dennis Quennet, director of the Sustainable Economic Development Program under the German Development Cooperation (GIZ); Vu Minh Duc, senior advisor at the Norwegian Embassy in Vietnam; Doan Anh Thu, expert at the Alliance to End Plastic Waste (AEPW); and Huynh Tien Dung, country director of the Sustainable Trade Initiative (IDH).

The event offered an opportunity for stakeholders to share perspectives, discuss opportunities, challenges, and the necessary resources to achieve the goals of advancing the circular economy and sustainable development in Vietnam.

In his speech, Dr. Thanh emphasized the critical role of businesses in implementing circular economy initiatives. With experience in renewable energy, real estate, and finance, Bamboo Capital has pioneered integrating environmentally friendly solutions into its business strategy.

“By deploying renewable energy projects such as solar, wind, and waste-to-energy power plants, optimizing building materials and applying digital technologies, the group aims to enhance efficiency and minimize environmental impact,” he noted.

He also pointed out that waste-to-energy technology is an effective solution for waste management, especially in the context of rapidly increasing urban waste due to urbanization and population growth. This has led to a rise in urban solid waste, with an average annual growth rate of about 10%.

He cited data from the Environmental Pollution Control Department under the Ministry of Natural Resources and Environment as showing that Vietnam generated approximately 19 million tons of waste in 2023, including 12.8 million tons of urban waste.

Major cities like Hanoi and Ho Chi Minh City generate more than 6,000 tons and 9,500 tons of waste daily, respectively, with landfill rates reaching up to 90% and 69%. Landfilling not only puts significant pressure on waste management systems but also increases environmental pollution and urgent social problems, he stated.

Thanh emphasized that, given the challenges in waste sorting, the development of high-tech, closed waste-to-energy plants is an urgent solution.

In January 2024, Bamboo Capital completed an M&A deal with Tam Sinh Nghia JSC, officially entering the waste-to-energy sector. Just six months later, in July 2024, the Tam Sinh Nghia waste-to-energy plant in HCMC was inaugurated, applying advanced technology and modern treatment processes to optimize recycling efficiency and minimize environmental impact.

According to the representative, Bamboo Capital is building a well-organized circular ecosystem with close coordination between its member companies. The ash and slag from the waste-to-energy process are recycled by Tracodi, the construction arm of Bamboo Capital, into construction bricks.

These products are used not only in Tracodi's construction projects but also in real estate projects by BCG Land, another subsidiary. This approach not only reduces the volume of waste sent to landfills but also optimizes internal resource recycling within the group.

Furthermore, using the modern technology deployed by Bamboo Capital, fly ash is comprehensively treated through multiple filtration systems and chemical neutralization to eliminate toxins, while wastewater is recycled back into the cooling system. With this process, only about 3-5% of the initial waste needs to be treated at designated landfills.

This approach demonstrates that Bamboo Capital is not only engaged in waste-to-energy but also integrates recycling solutions across all stages of the value chain, Thanh said, adding that the seamless coordination among its member companies showcases the group’s commitment to building a sustainable circular economy ecosystem, contributing significantly to Vietnam’s green transition.

Dr. Thanh also stressed that promoting the circular economy in Vietnam requires close cooperation among all stakeholders. Government agencies need to establish clear legal frameworks to support businesses. Enterprises must ensure transparency and efficiency in recycling and renewable energy activities. Especially, raising public awareness of waste sorting and management is a key factor in achieving sustainable change.

Bamboo Capital is currently actively cooperating with international partners to learn from their experience and develop effective circular economy models in Vietnam, he noted.

The Vietnam Circular Economy Forum 2024, themed "From Plan to Action," was organized by the Ministry of Natural Resources and Environment in Hanoi on December 10. It drew the participation of representatives from government agencies, international organizations, major businesses, non-governmental organizations (NGOs), universities, and research institutes, as well as experts in circular economy.

Notably, this year's forum focused on laying the foundation for the upcoming implementation of the National Action Plan for Circular Economy (NAPCE), paving the way for Vietnam to reach its goal of establishing a circular economy by 2030.

Bamboo Capital is listed on the Ho Chi Minh Stock Exchange as BCG, which closed Tuesday at VND6,390 ($0.25) per share.