The key to green growth is transitioning from a linear to a circular economic model. In this design, manufacturing and service activities aim to extend the life of materials and eliminate negative environmental impacts. This is becoming a popular trend globally.
General understanding about green growth
This method is considered the best approach to address the relationship between economic growth and negative impacts on resource depletion, pollution and environmental degradation. The circular economy aims to reduce waste and optimise resource use effectively, thereby replacing the traditional “exploit – produce – consume – dispose” model with a more sustainable approach. This is an opportunity to achieve green growth and sustainable development to meet socio-economic and environmental goals and respond to climate change.
Policy on building green growth in Vietnam
According to the United Nations Development Program (UNDP), by 2030, the global circular economy could bring economic benefits worth 4,500 billion USD and contribute to completing the 10/17 sustainable development goals of the United Nations. UN. A circular economy helps meet human consumption needs with only 70% of the amount of materials the world is exploiting and using, thereby limiting the impact of human activities to a safe level for humans.
See more: Economic overview of ASEAN and Vietnam in 2023
However, implementing the circular economy model globally is facing many challenges. Some countries still need a legal framework for circular economic development. Materials recycling is still challenging due to inadequate recycling technology, and most startups in this field are nascent.
Investment costs for recycling and reusing materials are often higher than for producing a new product, making the transition to a circular economy challenging for many enterprises.
In addition, the circular economy requires the classification and treatment of waste before reuse and recycling, which is a significant challenge in the economic reality of many developing countries. Furthermore, people’s and businesses’ awareness of the circular economy still needs to be improved. Reuse is an essential concept in the circular economy. However, it has yet to be widely applied in many industries, especially in the garment industry, where consumers are still unfamiliar with reusing clothes. According to experts, to promote progress towards a circular economy, countries need to remove legal barriers that prevent the application of circular economy and clarify and adjust regulations related to circular economy.
