Vietnam is making more circular business models

DNHN - Together with the Embassy of Denmark in Vietnam, the Central Institute for Economic Management (CIEM) held a seminar on August 19 in Hanoi to talk about the report "Circular business model: International experience economy and applied in Vietnam."

The purpose of the conference was to share research results about how things are now and what can be done to develop circular business models in Vietnam. It talks about things like how important circular business is and what other countries have learned about the circular business model. The current state of circular business in Vietnam and suggestions for relevant policies and mechanisms.

Mr Nguyen Hoa Cuong, the Deputy Director of CIEM, said that many Vietnamese businesses have changed their business models to be more circular in response to regulations and policies on sustainable development. For example, the National Strategy on Green Growth, the National Action Program on Sustainable Production and Consumption, and the Cleaner Production Strategy in Industry are all examples of these kinds of policies and regulations.

Many companies, like Vinamilk, Nestle, Coca-Cola, Lagom Vietnam, Duc Giang Chemical, and others, have realized that they have a social responsibility and have built their business models in the direction of circularity to ensure their long-term growth. This helps the economy grow in a way that is sustainable overall. In the field of recycling, there have been many circular business models that have worked well. Most businesses, on the other hand, use circular business models that are not organized.

Mr Trinh Duc Chieu, Deputy Head of the Research and Development Department at CIEM, said that Europe, Denmark, and many other countries' experiences show that circular business is becoming a trend around the world and is seen as one of the most important ways to reach sustainable development goals, deal with climate change effectively, and minimize negative effects on the environment.

CIEM says that there are still problems with most business activities, such as resources, technology, and markets, that make it hard to make circular business models. In Vietnam, people have different ideas about what a circular economy and a circular business model are. Also, the legal framework isn't complete, clear, or in sync; the capacity and resources of the enterprise don't meet the requirements; and business culture, consumption habits, and legal policy content are still mostly based on the traditional linear business philosophy.

Vietnam made a promise at the United Nations Conference on Climate Change (COP26) to work toward sustainable development goals. CIEM suggests that to develop a circular economy in general and circular business in particular, it is important to raise awareness of circular economy and circular business and improve the legal and institutional framework.

The government should encourage the integration of circular economy and circular business development solutions into the socio-economic development plan. It should also pass specific policies on resource support for enterprises and create a system of criteria and standards, especially a set of criteria to measure how circular an enterprise's business is, as well as detailed instructions on how to use the circular business model. for businesses in a certain field or industry...

To reach the goal of sustainable development, businesses also need to work on long-term plans for switching from traditional business models to circular business models.

P.V (t/h)