EXPERIMENTAL MECHANISM OF CIRCULAR ECONOMY DEVELOPMENT, SUBJECTS AND FIELDS TO PARTICIPATE

Vietnam is currently a potential destination with an economy in a period of rapid development. However, along with attractive conditions, there are many challenges that must be faced to move towards building a green and sustainable economy. Transitioning from a traditional linear economy to a circular economy, Vietnam is building its own experiment  mechanism, subjects and fields are regulated, please refer to the article below.

1.         Circular economy development

a.         Concept of circular economy

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.

In Vietnam, a similar closed production model was once very popular with the concept of “garden – pond – barn”, using organic waste from farming as animal feed for fish, poultry, and livestock.

b.         Purpose of the experiment  mechanism

Building a unified mechanism towards cyclical production links is expected to remove problems in resource supply and pollution from large amounts of waste that threaten environmental security, water resource security, and climate change, towards green and sustainable economy development.

2.         Applicable field

–           Agriculture, forestry and fisheries;

–           Industry;

–           Recycled energy;

–           Building materials.

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

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3.         Subjects participating in the circular economy experiment  mechanism

a.         Organizations subject to regulation of the draft circular economy experiment mechanism are identified as:

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

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

b.         Conditions for consideration on participation in the Circular economy experiment  mechanism

An organization will be considered for a Certificate of participation in the experiment  mechanism when it simultaneously meets the following conditions and criteria:

–           Conditions for participating organizations:

+          To be a legal entity established and legally operating in the territory of Vietnam; is not in the process of division, separation, consolidation, merger, conversion, dissolution or bankruptcy according to the issued decision;

+          Have financial capacity or a clear and feasible financial access plan; no bad debts, serious tax violations or information disclosure according to the provisions of law;

+          Have a specific circular economy project or propose a specific circular economy project in the prescribed fields.

–           Criteria for the project:

+          To have a feasible plan and have the potential to promote positive economic, social and environmental impacts, in which economic impact is the main one, reflected through business profits and labor productivity. employment, employment and income for workers.

+          To mainly use domestic input materials.

+          Based significantly on the foundation of accessing, applying and mastering the achievements of Industrial Revolution 4.0; In case of importing and using technologies from developed countries, there must be a clear and feasible plan for technology transfer, mastery and advancement of technology in Vietnam.

4.         Time of experiment

The expected experiment period is 05 (five) years, which can be extended 01 (one) time with an extension period of 05 (five) years from the date of issuance of the Certificate of participation in the experiment mechanism.