Extinguished guests discuss CE topics at the event. (Photo: VNA) Khalidi spoke at the event 'Harvest Day & Circular Economy Connect' hostedby the Vietnam Circular Economy Hub on December 22.
The resident representative said small- and medium-sized enterprises(SMEs), which comprise 96% of the total number of enterprises in Vietnam, havea critical role in accelerating the transition towards CE.
Ramla Khalidi, Resident Representative of UNDP in Vietnam. (Photo: UNDP) "We need to ensure that businesses are provided with thetechnical and financial support needed to transform the production andconsumption model, align with national policies on CE, and reap the benefits ofthe trade agreements between Vietnam and other countries," said Khalidi.
To this end, a recent UNDP-initiated capacity-building programme,in partnership with the Netherlands Embassy, has trained over 100 Vietnameseenterprises in various sectors to scale up CE models, adopt low-carbontechnologies, and shift production and consumption models to greener ones.
Kees van Baar, Ambassador of the Netherlands to Vietnam, remarked that bigenterprises typically have the capacity and resources to embrace CE actively.Still, it is not the case for SMEs, which account for almost 100% of the totalnumber of enterprises in Vietnam.
He said CE transition is not only a matter of responsiblebusiness conduct but also a matter of profitability. Therefore, hebelieved that enterprises incorporating CE into their operation wouldbe better off financially.
"With CE, you can profit because you reuse your water and things. Youhave renewable energy, so you don't have to buy gas or oil," saidBaar.
Mai The Toan, vice president of the Institute of Strategy and Policy onNatural Resources and Environment, underlined CE as an inevitable pathfor Vietnam, given its limited natural resources, high population, and thegrowing pressure of environmental pollution.
He also revealed that his institute had recently outlined the National ActionPlan on CE, which is slated to be submitted to Prime Minister for approvalbefore December 31, 2023. However, for the time being, the outline was handedout to local authorities, enterprises, and research institutes to elicittheir comments.
"We need to develop a set of guidelines on CE transition in Vietnam, whichwould instruct enterprises how to incorporate CE into their operation,"Toan added.
Nguyen The Chinh, director of the Environmental Economic Policy Institute, assertedthat some regulations on water treatment need revision because they are holdingback the CE transition.
"Many enterprises want their treated wastewater to be reused in theirproduction rather than discharged back to the environment. But,unfortunately, the current legal framework has not provided for thepractice," said Chinh.
Without legal grounds for the reuse of treated wastewater, the enterprises haveno choice but to return the effluent to the environment because closingthe water loop would put them at risk of being whistle-blowed.
Nguyen Anh Duong, director of the Department for General EconomicIssues and Integration Studies, Central Institute for Economic Management,underlined profits as the primary motivation for enterprises shiftingtheir focus to CE.
"CE transition is not a matter of developing CE laws and makingenterprises obey the laws, but rather raising awareness among them," Duongadded.
The director was concerned that it would take more than ten years to fixall the legal issues hindering the CE transition. In the meantime, hesuggested a regulatory sandbox span of at least five years, under whichenterprises would be given more legal leeway to implement their CEmodels.
Duong Thi Phuong Anh, deputy director of the Vietnam Environment ProtectionFund, claimed that her fund had launched many lending programmes to financegreen projects over the past 20 years.
"We have programmes to accelerate CE transition in the country, withpriority being given to wind energy, solar energy, and water treatmentprojects," she said.
Loans under the programmes, according to Anh, are favourable, with an averageannual interest rate of roughly 3.0% and terms of between seven to 10 years.But, more importantly, the rates are fixed during the entire term of theloan.
Director Chinh said that CE transition makes profits becauseit allows enterprises to turn waste into pay dirt.
"Reclaimed fish head and skin can be sold at prices higher than thefish itself", said Chinh./.
To this end, a recent UNDP-initiated capacity-building programme,in partnership with the Netherlands Embassy, has trained over 100 Vietnameseenterprises in various sectors to scale up CE models, adopt low-carbontechnologies, and shift production and consumption models to greener ones.
Kees van Baar, Ambassador of the Netherlands to Vietnam, remarked that bigenterprises typically have the capacity and resources to embrace CE actively.Still, it is not the case for SMEs, which account for almost 100% of the totalnumber of enterprises in Vietnam.
He said CE transition is not only a matter of responsiblebusiness conduct but also a matter of profitability. Therefore, hebelieved that enterprises incorporating CE into their operation wouldbe better off financially.
"With CE, you can profit because you reuse your water and things. Youhave renewable energy, so you don't have to buy gas or oil," saidBaar.
Mai The Toan, vice president of the Institute of Strategy and Policy onNatural Resources and Environment, underlined CE as an inevitable pathfor Vietnam, given its limited natural resources, high population, and thegrowing pressure of environmental pollution.
He also revealed that his institute had recently outlined the National ActionPlan on CE, which is slated to be submitted to Prime Minister for approvalbefore December 31, 2023. However, for the time being, the outline was handedout to local authorities, enterprises, and research institutes to elicittheir comments.
"We need to develop a set of guidelines on CE transition in Vietnam, whichwould instruct enterprises how to incorporate CE into their operation,"Toan added.
Nguyen The Chinh, director of the Environmental Economic Policy Institute, assertedthat some regulations on water treatment need revision because they are holdingback the CE transition.
"Many enterprises want their treated wastewater to be reused in theirproduction rather than discharged back to the environment. But,unfortunately, the current legal framework has not provided for thepractice," said Chinh.
Without legal grounds for the reuse of treated wastewater, the enterprises haveno choice but to return the effluent to the environment because closingthe water loop would put them at risk of being whistle-blowed.
Nguyen Anh Duong, director of the Department for General EconomicIssues and Integration Studies, Central Institute for Economic Management,underlined profits as the primary motivation for enterprises shiftingtheir focus to CE.
"CE transition is not a matter of developing CE laws and makingenterprises obey the laws, but rather raising awareness among them," Duongadded.
The director was concerned that it would take more than ten years to fixall the legal issues hindering the CE transition. In the meantime, hesuggested a regulatory sandbox span of at least five years, under whichenterprises would be given more legal leeway to implement their CEmodels.
Duong Thi Phuong Anh, deputy director of the Vietnam Environment ProtectionFund, claimed that her fund had launched many lending programmes to financegreen projects over the past 20 years.
"We have programmes to accelerate CE transition in the country, withpriority being given to wind energy, solar energy, and water treatmentprojects," she said.
Loans under the programmes, according to Anh, are favourable, with an averageannual interest rate of roughly 3.0% and terms of between seven to 10 years.But, more importantly, the rates are fixed during the entire term of theloan.
Director Chinh said that CE transition makes profits becauseit allows enterprises to turn waste into pay dirt.
"Reclaimed fish head and skin can be sold at prices higher than thefish itself", said Chinh./.
VNA
