Deputy Prime Minister Tran Hong Ha has signed Decision No. 222/QD-TTg dated January 23, 2025, issuing the National Action Plan for the implementation of a circular economy by 2035 (the Plan).
The overall objective of the Plan is to establish a system of sustainable production and consumption structures, effectively utilize natural resources, maximize the use of recycled materials, limit waste generation, and reduce negative environmental impacts. It also aims to promote circular economy models in production and business, create momentum for innovation and improve labor productivity, develop best practices, foster a green culture and lifestyle, promote green job creation, and develop new value chains in the circular economy.
Promoting Innovation and Mobilizing Resources for a Circular Economy
The Plan sets a target for 2030 to reduce the exploitation and use of non-renewable resources and water; increase the efficiency of resource and material use; and save energy, striving to achieve resource efficiency indicators (land, water, minerals) comparable to leading ASEAN countries.
By 2030, the capacity of biomass and solid waste power plants is expected to reach 2,270 MW, equivalent to 1.5% of the total capacity of power plants. The proportion of renewable energy in total primary energy is expected to reach 47%, achieving savings of 8-10% of the total national energy consumption.
The plan aims to extend the lifespan of materials, equipment, products, goods, components, and structures; limit waste generation; and minimize negative environmental impacts. The rate of municipal solid waste collected and treated in urban areas is targeted to reach 95%, while in rural areas it is 80%. The rate of solid waste treated by direct landfill compared to the amount of waste collected is to be reduced to below 50%.
At the same time, the plan emphasizes enhancing economic aspects, increasing benefits, promoting innovation, and mobilizing resources for the implementation of a circular economy. Models for the efficient use of natural resources, reuse, and recycling of waste, as well as production and business models applying the circular economy, will be developed, replicated, and expanded to suit each industry, field, region, and level. New and sustainable value chains associated with high added value will be formed and developed, creating new jobs through the application of the circular economy. The plan also calls for strong attraction of resources from green credit, green bonds, and other legal sources for investment projects in circular economy development.
By 2035, the goal is to realize an inclusive circular economy associated with innovation, high competitiveness, economic prosperity, environmental sustainability, and social equity. Viet Nam aims to become one of the centers for innovation, providing technology, equipment, products, services, and mobilizing investment capital for the circular economy within the ASEAN Economic Community (AEC).
This contributes to the successful implementation of goals and targets for efficient resource use, environmental protection, climate change response, and sustainable development by 2035 and subsequent periods as outlined in Party documents, strategies, policies, and state laws.
Improving Technical Standards and Regulations to Encourage Circular Economy Practices
One of the tasks and solutions of the Plan is to raise awareness, knowledge, skills, and develop good practices in implementing the circular economy. This includes communication, training, and dissemination of knowledge and laws on circular economy implementation. It also involves integrating circular economy education into educational programs at all levels and building and operating an information connection platform and data sharing on circular economy models.
The Plan focuses on developing and perfecting institutions and policies and improving the effectiveness and efficiency of state management in implementing the circular economy. It calls for the development and issuance of action plans, integrating the circular economy into strategies, plans, programs, projects, and waste management of ministries, ministerial-level agencies, and localities. It also emphasizes completing legal regulations, standards, and technical regulations to encourage the implementation of the circular economy.
Supporting the Formation and Development of Markets for Circular Economy Goods and Services
The Plan also sets out the task of supporting and promoting the application of the circular economy in production, business, and consumption activities. This includes supporting the implementation of ecological design to meet circular economy criteria and supporting the application and development of circular economy models in production and business.
It promotes innovation, application of digital technology, environmentally friendly technology, and best available techniques to implement the circular economy. It also supports the formation and development of markets for goods and services related to the circular economy.
The Plan promotes the implementation of the circular economy in consumption activities, ensuring consumer rights, and strengthening waste management for circular economy implementation. This involves piloting, replicating, and developing waste management models towards a circular economy and promoting investment and support for waste management to implement the circular economy.
Priority Sectors for Circular Economy Implementation by 2035
According to the Plan, priority sectors for circular economy implementation by 2035 include: Agriculture, Forestry and Fisheries; energy; mineral exploitation and processing; processing and manufacturing industries; chemicals; construction; transport; services and tourism; waste management; development of urban areas and concentrated residential areas; industrial parks, industrial clusters, and concentrated production, business, and service areas.
The Ministry of Natural Resources and Environment will take the lead, coordinating with ministries, ministerial-level agencies, and provincial People’s Committees to implement the National Action Plan. They will coordinate with ministries, ministerial-level agencies, and provincial People’s Committees to develop, issue, and submit to competent authorities for issuance policies and framework guidelines for action plans to implement the circular economy in sectors, fields, and localities. They will also develop and issue a framework to guide the application and evaluation of circular economy implementation.
