A Lagom employee loads bags of used milk boxes on to a truck for recycling. (Photo courtesy of Lagom) The deputy head was speaking at the seminar "Circular business models:international experience and application in Vietnam" on August 19.
Cuong revealed that the Government approved the National Green Growth Strategyin October 2021 and the Scheme for Circular Economy in June 2022 to commititself to the green path.
Recently, the Government has also assigned its ministries the task ofdeveloping a sandbox for testing circular economic models in the country.
Trinh Duc Chieu, deputy head of CIEM's Department for Research Reform andEnterprise Development, asserted that the notion of circular business is new toVietnam’s business community.
He said just 3 to 6% of Vietnamese firms are fully aware of the notion, whereasthose partly aware account for 20 to 30%.
About 9 to 10% think that the existing legal framework forcircular business is adequate. Meanwhile, 18 to 20% believe such a framework isabsent.
Only 2 to 15% have received Governmental support in some form,including preferential credits. Training support, specifically, has gone to 15%of the firms.
Vo Tri Thanh, Director of the Institute for Brand and Competitiveness Strategy,underscored digital transformation and circular economy as the twopre-conditions for green growth.
"Consumers' green mindset will be the driving force behind greentransition," he added.
The director also said that green firms would run at higher profits thannon-green ones in the medium- and long-term, but in the short-term, the formerhave to incur higher transition costs.
That means the Government should financially support green firms in their earlystages to help them cover the costs, thereby facilitating the green transition.
Le Duy Binh, Director of Economica Vietnam, underlined that green consumers arethe key to a circular economy since their buying decisions dictate firms'production.
"Policies to promote a circular economy should be formulated more consumer-centricallyto produce their desired effects," he said.
Tran Van Hieu, Deputy Director of Lagom Vietnam LTD, introduced the circularbusiness model that his firm has been embracing for many years.
The model comprises five steps, which are communicating, sorting, collecting, recyclingand manufacturing.
He called for more favourable tax policies to save recycling firms fromunnecessary costs.
"Garbage collectors sell waste to our firm without paying tax, and we haveto do so instead under tax regulations. We need more favourable taxpolicies."/.
VNA
