Vietnam Accelerates Green and Circular Economy Transition, Institutional Reform Key

Vietnam is accelerating its transition towards a green and circular economy to meet the demands of national development in the new era. To discuss the institutional reforms crucial for achieving this goal, the "Democracy and Law" magazine, under the Ministry of Justice, organized a scientific conference in Hanoi on September 10. The conference brought together numerous experts, scientists, and business representatives deeply involved in promoting green and circular economies. Participants unanimously recognized their critical importance in driving the shift towards a sustainable growth model. Discussions involved analyzing theoretical foundations, evaluating practical development in Vietnam, and identifying challenges in institutions, resources, and implementation. Attendees emphasized the need to build a foundation for green growth and sustainable development through the refinement of legal frameworks, financial and market mechanisms, and the enhancement of implementation and oversight efficiency. It was particularly noted that in the current era, which demands rapid and sustainable development, the transition to a green and circular economy is becoming a key direction for enhancing national competitiveness and ensuring development. Green and circular economies can not only contribute to efficient resource utilization, emission reduction, and environmental protection but also serve as a driving force for technological innovation, fostering the emergence of new industries, sectors, and business models. However, the realization of these concepts heavily depends on the quality and consistency of institutions, policies, and laws. While Vietnam has gradually established a legal framework related to green growth, environmental protection, and circular economy, gaps and inadequacies persist in implementation mechanisms, incentive policies, and inter-sectoral coordination. Consequently, the continuous improvement of institutions to promote green and circular economies was concluded to be an urgent requirement for creating a legal foundation for the transformation of the growth model and meeting the nation's development needs in the new era. Dr. Le Minh Nghia, Chairman of the Vietnam Financial Consultants Association (VFCA), proposed researching the development of a unified and coherent legal framework for the circular economy, a comprehensive review and amendment of related laws to substantively integrate incentives for green and circular economies, and the refinement of the legal framework for the domestic carbon market. Meanwhile, financial expert Ngo Tri Long warned that a green economy first requires a sound institutional system. If property rights are unclear, private capital will find it difficult to enter. If data is unreliable, the market cannot correctly price risks. If criteria are opaque, preferential policies are prone to creating "application-permission" mechanisms. If procedures are too complex, small and medium-sized enterprises will be excluded from the transition process. Furthermore, if laws are not interconnected, even well-intentioned green goals may be thwarted in practice. Participants agreed on a crucial realization: the development of green and circular economies is no longer merely an environmental policy requirement but has become a constituent element of the national development model for the new phase. The task ahead is not simply to issue more documents but, more importantly, to restructure existing regulations to create a unified system of objectives, criteria, tools, and implementation responsibilities.