Legal framework should be upgraded for circular economy development: experts

Vietnam should upgrade its legal framework to facilitate the development of a circular economy, experts and business representatives said at the debut of a book published by The Investor.

The bilingual book (Vietnamese and English), titled Circular Economy & Pioneering Models, was launched in Hanoi on Thursday.

Speaking at the event, Phan Duc Hieu, permanent member of the National Assembly’s Economic Committee, noted that while Vietnam did not have a law on circular economy, related provisions could be found in other laws. "Authorities should streamline these rules by cutting unnecessary terms towards facilitating businesses in applying the circular economy model."

Rigid rules with too many detailed requirements would inhibit innovation towards a circular economy. The legal framework should limit itself to listing harmful activities that firms must refrain from and give the latter autonomy in other tasks, he argued.

Nguyen Mai, chairman of Vietnam's Association of Foreign Invested Enterprises (VAFIE), noted that the world as a whole was focusing on the circular economy. While major businesses have already applied the model, small and medium size enterprises (SMEs) faced transition challenges because of limited resources.

Therefore, authorities should provide policy support for SMEs in tackling the challenges, he stressed.

Mai also said that while people in general were aware of environmental protection, very few had a strong understanding of the circular economy concept. Authorities have to boost dissemination to improve public awareness, he added.

David Riddle, CEO of leading Vietnamese beverage maker Tan Hiep Phat, said circular economy transition was a long-term move that could even last generations.

"Now was the time for corporates to practically undertake relevant tasks and for authorities to improve the legal framework, as also help firms recover, sort and recycle waste and receive payments for doing so. Economic incentives should be introduced to increase recycling," he said.

Ha Thuy Hanh, vice chairwoman of the Vietnam Farm and Agriculture Enterprises Association, said the government had issued a document on promoting circular agriculture but more detailed guidelines were needed.

The book "Circular Economy & Pioneering Models" was published in order to disseminate knowledge, make recommendations and build up society’s consensus on promoting green and circular economic models, said Dr. Nguyen Anh Tuan, Editor-in-chief of The Investor and head of the book compiling team.

Developing a green economy was a major target set by the Communist Party of Vietnam in its guidelines for economic growth for the 2021-2030 period; and the Prime Minister’s Decision 687/QD-TTg in 2022 on developing circular economy was a major step towards achieving it, Tuan said.

The 540-page bilingual (Vietnamese and English) book features articles by famous Vietnamese and international scholars and businesspeople.

The book also highlights strong models of the circular economy in Vietnam, including the Nam Cau Kien eco industrial park in the northern city of Hai Phong; the reduce-reuse-recycle (3R) model of beverage producer Tan Hiep Phat; the circular model of factories of dairy firms Vinamilk and TH True Milk; the tunnel brick factory in the northern province of Tuyen Quang; as also actions taken by Sabeco, Nestle and Australis.

To buy the book, please contact Ms. Luu Hien.

Mobile: 0985 823 558

Email: [email protected]

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