Ha Noi, December 22, 2022 – Over the past six months, one hundred-five business from agriculture, construction, e-commerce, manufacturing, logistics, the environment, and waste treatment have participated in the circular economy capacity-building program for enterprises in 21 cities and provinces. Fifteen of those were selected and enrolled in a followed-up incubation activity. They were directly counseled, connected, and analyzed challenges and solutions to apply circular economic models effectively. It was shown at the Harvest Day & CE Connect, which was organized by the United Nations Development Program (UNDP) in collaboration with the Embassy of the Netherlands, the Institute of Strategy and Policy on Natural Resources and Environment (ISPONRE), the Environmental Economic Policy Institute (EEPI), Thua Thien Hue Innovation Hub (HiHub), the Institute for Circular Economy Development (ICED) and Saxion University of Applied Sciences.

The event highlighted programme’s achievements, brought together businesses along the value chain to foster resource sharing and partnership formation, and showcased company products while sharing strategic business plans and practical circular models with other businesses to accelerate the transition to a circular economy.
Small and medium-sized enterprises (SMEs), which make up 96% of all businesses in Viet Nam, employ 47% of the labor force, and provide 36% of the country's value-added, are crucial for accelerating the transition towards circular economy.

"Circular Economy offers an economic opportunity for Vietnamese businesses. A circular economy is not simply about 'fixing' negative environmental externalities; rather, it is an economic transition aiming to sustain and regenerate natural capital upon which people, communities, and the economy depend. Indeed, research shows that the transition towards a circular economy offers USD 4.5 trillion in economic opportunities globally by reducing waste, stimulating innovation, and creating employment," said Ms. Ramla Khalidi, UNDP Resident Representative in Viet Nam.

"We need to ensure that businesses are provided with the technical and financial support needed to transform the production and consumption model, align with national policies on the circular economy, and reap the benefits of the trade agreements between Viet Nam and other countries."

According to the Ambassador of the Kingdom of the Netherlands to Viet Nam, "The promotion and development of Circular Economy infrastructure have the ability to meet the needs of socio-economic development in Viet Nam (for example, Responsible Business Conduct). With enhancing government policies on the Circular Economy and raising awareness among businesses and the community, the Netherlands believes that Viet Nam is set to become a partner in pursuing sustainable economic development."

Mr. Mai The Toan, Deputy President of the Institute for Strategy and Policy on Natural Resources and the Environment (ISPONRE), stated: "ISPONRE, with the support of UNDP, the Netherlands Embassy, and other international organizations, has incorporated the circular economy's principles into Vietnamese law. In particular, the Law on Environmental Protection 2020 and the guiding documents have recently institutionalized the regulation of the circular economy, along with other policy instruments that promote the implementation of the circular economy, such as Extended Producer Responsibility (EPR), green credit, green bonds, solid waste, and wastewater management, etc. These are necessary conditions for advancing the circular economy in Viet Nam. To put these legal measures into effect, however, additional study is required to uncover and duplicate successful models of circular economy application within businesses."

At the event, businesses shared practical models and lessons learned, such as environmentally friendly packaging model of Tra Dinh Vien, the circulating wastewater treatment model in Nam Cau Kien Eco-Industrial Park, the trading of used fashion products of Piktina, and the lessons learned from the food and beverage industry's transition to circularity shared by Carafood. Delegates and businesses also discussed the role of ecosystem in supporting businesses and facilitating the acceleration of the transition to a circular economy.

This capacity-building program is one of the activities within the Viet Nam Circular Economy Hub, operated by UNDP and ISPONRE. The programme was supported by the Netherland Embassy, implemented by EEPI, HiHub, ICED, and Saxion University of Applied Sciences of the Netherlands.

For more information, please contact:
Phan Huong Giang
Media and Communications Analyst, Climate Change and Environment
United Nations Development Programme
Email: phan.huong.giang@undp.org     Mobile: 0948466688