Vietnam’s retail sector embraces circular economy shift

Vietnam’s retail sector embraces circular economy shift

Vietnam is stepping up efforts to promote circular economy practices in the retail sector, with stronger policy frameworks and growing engagement from major retailers to reduce plastic waste and adopt sustainable business models.

On July 31, the Institute of Strategy and Policy on Agriculture and Environment (ISPAE) under the Ministry of Agriculture and Environment, in collaboration with plastic waste reduction partners, held a policy dialogue on promoting the circular economy (CE) in the retail sector.

Dr. Nguyen Trung Thang, vice president of ISPAE, noted that Vietnam has made strong commitments to fostering the CE model. “Developing and issuing policies related to the circular economy has become a key focus on the country’s roadmap towards sustainable development,” he said.

Vietnam’s Law on Environmental Protection, passed by the National Assembly in November 2020, includes a dedicated Article 142 on circular economy development. To support this, the government issued Decree No.08/2022/ND-CP in January 2022, outlining CE criteria, roadmaps, and incentives. Most recently, in January, the prime minister approved the National Action Plan for CE Implementation, which identifies strategic directions and development priorities across key sectors.

In addition to CE-specific policies, Vietnam has introduced several legal frameworks to control plastic waste and promote sustainable production and consumption. These include the National Strategy on Integrated Solid Waste Management; a directive dated August 2020 on enhanced plastic waste management; and a decision dated July 2021 on strengthening plastic waste reduction initiatives.

In support of global movements like Bag Free World, marking July 3 as International Plastic Bag Free Day, ISPAE launched the No Plastic Bag Day in Vietnam campaign in 2023 in partnership with Hanoi’s Department of Industry and Trade and leading retailers. A coalition of 16 major retailers has since been formed to promote the reduction of single-use plastics and embed circular principles into their operations, with support from the EU and the German government.

The shift towards sustainable development, green growth, and circularity is opening significant opportunities for Vietnam’s retail industry.

By 2030, Vietnam is expected to become a key hub in the global supply chain restructure, especially as multinational companies seek to diversify markets and reduce international dependency.

This transformation is driving the digital economy and strengthening Vietnam’s retail integration into global value chains, particularly as international efforts accelerate towards a Global Plastics Treaty.

VIR