Vietnam Accelerates Circular Economy Transition for Sustainable Growth

Vietnam is actively promoting its transition to a circular economy to achieve sustainable growth. This approach goes beyond simply reducing environmental impacts, embracing a regenerative model that contributes to ecosystem restoration, cultural heritage preservation, and strengthening the resilience of local communities. As part of these efforts, Vietnam is enhancing its compliance with international standards. In the agricultural sector, for instance, a new project launched in 2024 aims to address longstanding challenges such as lengthy certification procedures, limited product traceability, and difficulties in meeting increasingly stringent international standards. This initiative seeks to further leverage the strong potential of Vietnamese agricultural products in international markets, as demonstrated at the Malaysian International Food and Beverage Trade Fair (MIFB) 2026. To maintain and improve economic growth and international competitiveness, Vietnam is prioritizing the attraction of high-value investments. The focus is particularly on projects capable of driving innovation, technology transfer, workforce development, and wider economic spillover effects. This direction is outlined in Politburo Resolution No. 10-NQ/TW, issued on June 8, 2026, which recognizes the foreign-invested sector as a crucial component of the national economy and signals a shift towards seeking quality investments that can lead technological progress, innovation, sustainable development, and stronger participation in global value chains, rather than prioritizing labor-intensive projects. Furthermore, Vietnam is advancing its digitalization efforts. In urban areas, guidance is being provided to fishermen and vessel owners on updating fishing vessel information on the VNeID electronic identification platform and on using the electronic fishing logbook system, as part of the broader digital transformation drive. In terms of economic policy, regulations on cryptocurrency trading are also being tightened. Decree 284/2026, effective from September 1, 2026, marks the first time Vietnam has imposed penalties on domestic investors who trade crypto assets outside of service providers licensed by the Ministry of Finance. International cooperation is also progressing. The Free Trade Agreement (FTA) between Vietnam and the European Free Trade Association (EFTA) is one of the longest-negotiated trade agreements in Vietnam's history, reflecting its broad scope of commitments covering trade in goods and services, investment, intellectual property, government procurement, environmental protection, sustainable development, small and medium-sized enterprises (SMEs), and other areas of cooperation. Moreover, Vietnam is undergoing transformation in its energy sector. For example, a plant is expected to use one million tonnes of rice husks annually to produce electricity and ferrosilicon compounds. This is an example of implementing a circular economy by combining the use of renewable energy with the effective utilization of industrial by-products. Hanoi is planning to establish and operate night-time economy zones, including heritage and cultural districts, modern entertainment hubs, and creative economy zones, aiming to stimulate economic activity and foster the development of diverse industries. These developments indicate Vietnam's intent to forge its own sustainable development model while deepening its engagement with the international community.