CIRCULAR ECONOMY DEVELOPMENT, PROPOSAL ON EXPERIMENTAL MECHANISM

Vietnam is currently a potential and attractive destination in Southeast Asia. Along with economic and social development, there are many challenges in resource supply and pollution from large amounts of waste that threaten environmental security, water security and climate change. In line with the world’s general trend in developing a green, sustainable economy, Vietnam is developing its own draft experimental mechanism for circular economy development, with the expectation of speeding up the transition process from the traditional linear economy.

1.         Circular economy development

Circular economy is a model of organizing modern economic activities with a closed and continuous nature of many production units linked together on the principle of “everything is an input for other products”, taking full advantage of each other. Effective use of connection services (finance, logistics, information and communication technology).

The concept of “circular economy” actually appeared and was first officially used by Pearce and Turner (1990). The concept of this economy operates through turning the output waste of one industry into input resources for another industry or circulating within a business itself, through the use of renewable energy, eliminate the use of hazardous waste through superior design of materials, products, and systems. The purpose is to reduce costs, reduce waste and environmental pollution.

2.         About expectations for adaptability and growth

In the situation where the traditional linear economy is no longer really suitable, building a common unified mechanism towards cyclical production links is expected to:

–           Save production costs and optimize added value by minimizing waste during the production process;

–           Streamline the input and processes of output and associated with innovation, improve labor productivity and workers’ income;

–           Proper production and use of renewable energy forms in the production and recovery of renewable resources;

–           Promote sustainable consumption, reduce emissions and contribute to fighting climate change and protecting the environment.

>> 6 INCENTIVES POLICIES ON EXPERIMENT OF CIRCULAR ECONOMY DEVELOPMENT https://linconlaw.vn/6-incentives-policies-on-experiment-of-circular-economy-development/

>> CONDITIONS FOR ISSUANCE OF THE ELIGIBILITY CERTIFICATE FOR CONSTRUCTION DESIGN (ASSESSMENT), CLASS I https://linconlaw.vn/conditions-for-issuance-of-the-eligibility-certificate-for-construction-design-assessment-class-i/

3.         Draft pilot mechanism for circular economy development in Vietnam

a.         Implementation methods

The circular economy development pilot mechanism is expected to be implemented through conversion, establishment, expansion, and new development of complex projects, industrial clusters, industrial parks, economic zones, export processing zones, agricultural, forestry, aquaculture and seafood production and processing zones focus on applying an integrated circular economy model.

b.         Investment support and incentive plan

The circular economy experimental mechanism is expected to be implemented through preferential policies, development support, model conversion support and state management for projects applying the circular economy model, including:

–           Industrial park and economic zone policies.

–           Green classification.

–           Technology consulting and technology transfer policies.

–           Green credit policy, green bonds.

–           Policies to support human resource development.

–           Land policy.

c.         Applicable field

–           Agriculture, forestry and fisheries;

–           Industry;

–           Recycled energy;

–           Building materials.

d.         Applicable subjects

–           Enterprises, cooperatives, production organizations, cooperative partnerships, and business cooperation in projects applying the circular economy model;

An organization will be considered for a Certificate of participation in the experimental mechanism when it simultaneously meets the conditions of the organization’s capacity and the criteria for the project.

–           Other agencies, organizations, and individuals involved in management, establishment, new development, and conversion of projects applying the circular economy model.