Shifting retail industry in Vietnam adopts circular economy approach
In the bustling markets of Vietnam, a transformation is underway. Multinational companies are seeking to diversify markets and reduce international dependency, while the retail sector is strengthening its integration into global value chains. This shift is driving the digital economy in Vietnam, but it's not just about numbers and profits.
The Vietnamese government has made strong commitments to fostering a circular economy (CE) model, with key policies and initiatives aimed at reducing plastic waste, promoting sustainable consumption, and encouraging waste sorting and recycling.
One of the most notable initiatives is the "No Plastic Bag Day" campaign, launched in 2023. This campaign, supported by government bodies like the Institute of Agricultural and Environmental Strategy, Policy, and Environment (ISPAE), local departments, and major retail partners, aims to mobilize retailers and consumers in reducing single-use plastics and enhancing quick waste sorting at source.
Activities such as environmental exhibitions, reusable bag promotion, green shopping, and refill programs help embed circular economy principles into retail practices. For instance, Central Retail Vietnam, a major player in the Vietnamese retail market, has been actively participating in these initiatives.
Beyond plastics, Vietnam’s broader textile and garment sector, a key part of the retail industry, is adopting circular economy principles. Policies encourage reduced fossil fuel-based fiber use, increased recycled material content, and design for recyclability to extend product lifecycles and minimize pollution.
The government is also framing and sharing legal regulations to limit single-use plastic products and promote circular economy practices within the retail supply chain. Discussions between ISPAE, retailers, and environmental partners are common, demonstrating the government's proactive approach to this transition.
Vietnam's commitment to the circular economy is not going unnoticed. Mondelez Kinh Do has been honored for pioneering in the circular economy, and by 2030, Vietnam is expected to become a key hub in the global supply chain restructure.
The transformation in Vietnam's retail sector is not just about reducing waste and promoting sustainability. It's about fostering a greener, more sustainable economy that benefits both businesses and the environment. Retailers in Vietnam are being encouraged to lead the shift to greener consumption, setting an example for other countries to follow.
Internationally, efforts are accelerating towards a Global Plastics Treaty, further solidifying Vietnam's commitment to a sustainable future. With its integrated approach involving government, industry, and civil society, Vietnam is well on its way to achieving its circular economy goals.
The integration of circular economy principles into Vietnam's retail sector extends beyond plastics, with the textile and garment sector adopting these principles as well. For example, policies encourage reduced fossil fuel-based fiber use and increased recycled material content, while design for recyclability is promoted to extend product lifecycles and minimize pollution.
Finance and technology play a crucial role in this transformation, as retailers like Central Retail Vietnam invest in digital platforms to streamline waste sorting and recycling processes, enhancing the efficiency of their circular economy practices. This deliberate approach towards a greener, more sustainable economy is paving the way for Vietnam to become a key hub in the global supply chain restructure, with internationally recognized companies like Mondelez Kinh Do leading the way in circular economy initiatives.
