Hanoi (VNS/VNA) - A circular economy is the future of every nation’s economy,of all production and business activities. It is the key for rapid andsustainable development, participants heard at a recent forum, entitled“Circular Economy: Direction for Sustainable Businesses in Vietnam”.

Speaking atthe event in Hanoi, Deputy Minister of Planning and Investment Tran Quoc Phuongsaid that the development of a circular economy has gradually become a trendamong nations, especially developed countries with few resources and whenthe world's resources are increasingly becoming depleted.

“Vietnam hasfaced an increasing amount of generated waste while raw materialsand fossil fuels are increasingly exhausted. In addition, mostVietnamese businesses have outdated technology, small production scale and lackof resources to invest in recycling,” said Phuong.

Therefore,Phuong said, implementing a circular economic model will help Vietnameseenterprises achieve their sustainable production and consumption goals.

“Following acircular economy for Vietnam is an inevitable requirement to overcome thelimitations of the traditional growth model. Circular economic developmenthelps Vietnam avoid depending on the outside economy, especially for rawmaterials and fuels for production,” stressed Phuong.

“Thetransition to a circular economy is a great opportunity for Vietnam to developrapidly and sustainably, not only achieving its economic, social,environmental, and climate change responses, but also helping to achieve goalsof the 2030 Agenda for Sustainable Development,” added Phuong.

At theforum, delegates exchanged knowledge and shared experience for businesses inthe implementation of initiatives and business models related to the circulareconomy such as: measures to help businesses develop sustainably; opportunitiesand challenges for circular economic development in Vietnam; eco-industrialparks - an efficient model of the circular economy; and cyclic model in acompany’s sustainable development strategy.

GeneralSecretary of the Vietnam Chamber of Commerce and Industry (VCCI) Nguyen QuangVinh said that the circular economy was a new model, but was very effective andsuitable for all economies. In which, the awareness of environmental protectionshould go hand in hand with practical actions to protect the environment in theprocess of rapid and sustainable growth of economic activities.

Former Directorof the Institute of Natural Resources and Environmental Policy and Strategy NguyenThe Chinh said that the circular economy should go along with technologicalinnovation and design.

“Circulareconomy requires coordination, sharing and linking stakeholders. It alsorequires a team of good experts and the classification and cleaning of wastebefore being reused and recycled,” Chinh said.

To developthe circular economy in Vietnam, Chinh said, priorities should be given topromulgate a clear legal corridor and to conduct extensive research. Thedevelopment of the circular economy needs to be based on sectors, fields andlocalities and create mechanisms to form market dynamics.

“It is necessaryto implement circular economic development with a roadmap and priorities andincrease exchange and learn from international experiences, combining hightechnology and the fourth industrial revolution. And an issue that is needed tobe solved immediately for Vietnam is to sort waste at source,” added Chinh.

The event isa multidimensional forum for policy makers, representatives of businesses,experts, researchers to exchange, discuss and make recommendations to solvecurrent problems and to promote the development of a circular economy in Vietnam.

Le Thi NgocMy, Head of Sustainability at Heineken Vietnam, said that climate change wasone of the most serious threats to Vietnam. The company has applied thecircular economy model wherever possible to have a positive impact on theenvironment.

My said thatHeineken Vietnam now used renewable thermal energy at five out of six of itsbreweries. When the company switched to clean biomass energy to brew, thecompany was able to source approximately 40,000 tonnes of agricultural waste,which also generated 52.6 billion VND for local farmers in 2019. Thisinitiative reinforces that it is not only good for the environment and localcommunity but also beneficial to the business.

According toUNIDO, circular economy is an economic model in which all activities fromdesign, production to service delivery move towards reusing matter andeliminating negative environmental impacts. Circular economy brings four basicbenefits through taking advantage of resources, including: savingresources, protecting the environment, promoting economic development, andsocial benefits./.