Decision No. 687/QD-TTg dated June 07, 2022 on approving the scheme for circular economy development in Vietnam

DECISION

APPROVING THE SCHEME FOR CIRCULAR ECONOMY DEVELOPMENT IN VIETNAM

PRIME MINISTER

Pursuant to Law on Governmental Organization dated June 19, 2015; Law on amendments to Law on Government Organization and Law on Local Governmental Organization dated November 22, 2019;

Pursuant to Resolution No. 01/NQ-CP dated January 1, 2021 of the Government on primary tasks and solutions implementing socio-economic development plan and state budget estimates in 2021;

At request of Minister of Planning and Investment under Document No. 1483/TTr-BKHDT dated March 10, 2022,

HEREBY DECIDES:

Article 1. Approving the Scheme for “Circular economy development in Vietnam” as follows:

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- Active circular economy development is essential and suitable for requirements of economic recovery and implementation of Sustainable development goals; promotes restructuring of the economy, renovating the economy via modernization and improvement of competitiveness, adaptation, and resistance to external shocks and realization of the National strategy for green growth of period of 2021-2030 and vision to 2050 while maintaining national defense and security.

- Circular economy development must rely on open approach and aim towards creating space and convenience for economic effectiveness on the basis of international cooperation, mobilization and effective use of human knowledge, achievements of the fourth industrial revolution and digital transformation, necessary resources from private economic sectors, international organizations, and foreign partners.

- Circular economy development must be swift, practical, effective, feasible, and inheriting advantages in Vietnam and foreign countries, have experiments in specific fields conducted, and attract attention of Vietnam’s and foreign investors.

- Focus on issuing long-term policies in order to promote, facilitate circular economy development, including specific roadmap and results, while developing stable legal grounds and creating flexibility, initiative in order to utilize circular economy model in appropriate levels in local sectors, departments, and authorities; avoid uniform implementation of circular economy across the economy.

- Develop sustainable circular economy on the basis of increasing awareness, initiative and renovating creativity and responsibilities of enterprises; encourage responsible lifestyle of individuals to community and society, direct future generations towards green lifestyle, form civilized, modern, and environmentally friendly society.

2. Objectives

a) General objectives

Develop circular economy in order to promote innovation and improvement of productivity, promote green growth together with restructuring of the economy, renovating growth model by increasing effectiveness and interconnectedness within circular economy of enterprises and economic sectors, improving competitiveness and resistance of enterprises and supply chains to external shocks in order to achieve economic prosperity, environmental stability, and societal equality; aim towards green economy, carbon neutrality, and contribute towards global warming mitigation.

b) Specific objectives

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- Raise awareness and investment concerns of enterprises and investors in Vietnam and foreign countries regarding circular economy; promote the application of circular economy model to promote green transition of economic sectors. By 2025, circular economy projects are essentially in implementation phase and reaping economic, social, technological, and environmental effectiveness; contribute towards restoration of renewable resources, reduction of energy consumption, and increase the ratio of renewable energy over total energy supply, forest cover, waste recycling rates, import substitution rates of agricultural, forestry, fishery, and export products. By 2030, circular economy projects become a primary drive in reducing energy consumption with major or total autonomy in energy demand by utilizing renewable energy and in increasing forest cover.

- Circular economy models assist development of green living, encourage waste segregation, and promote sustainable consumption. by 2025, reuse, recycle, and treat 85% of plastic wastes produced; reduce 50% of plastic wastes in ocean and at sea compared to prior period; gradually reduce production and use of non-biodegradable nylon bags and disposable plastic products. Drastically increase organic waste recycling capacity in urban and rural areas. Raise awareness of agencies, organizations, enterprises, community, and the general public regarding production, consumption, and disposal of plastic wastes, non-biodegradable nylon bags, and disposable plastic wastes. By 2030, 50% of urban municipal solid wastes are collected and treated to standards and regulations via circular economy models; 100% of organic wastes in urban areas and 70% of organic wastes in rural areas are recycled; burial of municipal solid wastes are no longer carried out within circular economy models in urban areas; maximize percentage of urban wastewater collected and treated to standards and regulations in urban areas.

- Circular economy model plays a vital role in improving quality of life and resistance of the general public to climate change, ensuring equality in conditions and opportunities to improve capacity, productivity, and income of workers from circular economy.

3. Specific tasks and solutions

- Adequately, promptly, and effectively implement directions, tasks, and solutions under Resolution No. 50/NQ-CP dated May 20, 2021 of the Government; Decision No. 1658/QD-TTg dated October 1, 2021 of the Prime Minister; Decision No. 1316/QD-TTg dated July 22, 2021 of the Prime Minister; Decision No. 343/QD-TTg dated March 12, 2021 of the Prime Minister; Resolution No. 38/NQ-CP dated April 25, 2017 of the Government; Resolution No. 50/NQ-CP dated April 17, 2020 of the Government; Decision No. 2289/QD-TTg dated December 31, 2020 of Prime Minister; Resolution No. 58/NQ-CP April 27, 2020 of the Government.

- Publicize and raise awareness regarding circular economy, requirements, policies, and direction of circular economy development for public officials, officials, and public employees of all levels, enterprises, and the general public. Develop human resources serving circular economy in specific economic sectors and areas.

- Develop separate circular economy plans or integrate circular economy development in strategies, planning, and plans for sector development or socio-economic development of areas.

- Research and integrate circular economy development in policies and projects for regional connection, activities serving implementation of Decision No. 1658/QD-TTg dated October 1, 2021 of the Prime Minister.

- Research, develop plans and roadmap for collecting, using, and analyzing information in order to support information technology applications and solutions and comprehensive, harmonious communication.

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- Increase discussion between public and private sectors regarding circular economy development on the basis of implementing social responsibilities of enterprises; look into and acknowledge difficulties of enterprises in order to develop solutions for settling and assisting or request competent authorities to consider, settle, and assist accordingly.

- Review and develop policy framework and legal affairs in order to facilitate circular economy development. Research and review circular economy development in prioritized sectors/sectors available for early pilot implementation.

- Develop policies on attracting, using investment, and developing human resources in circular economy. Develop industrial and environmental service development policies.

Article 2. Organization for implementation

1. Ministry of Planning and Investment shall

- Take charge and cooperate with ministries and local authorities in researching, reviewing development status, and proposing pilot implementation of circular economy in prioritized economic sectors.

- Take charge and cooperate with ministries and local authorities in developing Decree(s) on circular economy development experiments, requesting the Government to review in the first quarter of 2023, including narrowing down standards, and conditions for circular economy development.

- Take charge researching and amending regulations on ecosystem industrial parks and enterprise ecosystem in order to promote circular economy development in Vietnam.

- Cooperate with Ministry of Natural Resources and Environment, relevant authorities, and local authorities in developing circular economy criteria in a manner focusing on economic aspect, increase of economic benefits from circular economy model.

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- Research and develop information system, statistics in order to serve appraisal, monitoring, and assessment of impact of circular economy projects in general and circular economy in Vietnam in specific.

- Take charge and cooperate with ministries and local governments in mobilizing resources for investment projects that include circular economy development and auxiliary services accompanying circular economy development. Prioritize cooperation with international organizations, FTA partners, and key investment partners; approach green financing. Research feasibility and level of suitability in approaching digital finance to serve circular economy projects.

- Cooperate with international organizations and experts in assisting local governments in integrating circular economy development contents in local socio-economic development strategies, planning, and plans.

- Research, share experience and good practices regarding circular economy development around the world and in Vietnam with ministries and local governments, including measuring and supervising the implementation of circular economy.

2. Ministry of Natural Resources and Environment shall

- Take charge and cooperate with Ministries and local governments in developing and promulgating guideline framework in implementation of circular economy in accordance with Decree No. 08/2022/ND-CP.

- Take charge and cooperate with Ministry of Planning and Investment, Ministry of Finance, and Ministry of Justice in monitoring, reviewing, and amending regulations, policies incentivizing enterprises and organizations to do business following circular economy.

- Fulfill deadline and results of task assigned under Decision No. 1658/QD-TTg dated October 1, 2021 of the Prime Minister.

3. Ministry of Finance shall

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- Take charge and cooperate with Ministry of Planning and Investment and relevant ministries in guaranteeing expenditure on implementation of the Scheme from sources of state budget, international sponsors, and other legal funding sources as per the law.

4. Ministry of Industry and Trade shall

- Cooperate with Ministry of Planning and Investment and Ministry of Natural Resources and Environment in researching, developing, and finalizing circular economy criteria.

- Develop circular economy models to promote sustainable production and consumption, effective and efficient energy use.

- Develop policies for energy transition in a manner that guarantees green, clean, sustainable energy, increases percentages of renewable energy, reduces dependency on imported energy, fossil fuel; increase technological solutions for ensuring harmonious development of new energy, renewable energy, increasing integration of renewable energy into electrical grid, and reducing energy consumption.

- Develop lists and provide guidance on implementation of the best available technical measures and the best available environment management experience for industries within Vietnam’s capabilities and levels of scientific and technological development; review, develop, and issue energy consumption quota for industries. Implement managerial and technological solutions in extracting and processing minerals, focus on processing and creating highly valuable products.

- Take charge in discussing and cooperative with partners in creating commercial advantages and implementing mutual recognition for products and services originating from circular economy models.

- Develop and finalize policies on sustainable industry ecosystem; adopt circular economy models in developing, operating, and managing industrial parks.

5. Ministry of National Defense shall

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- Direct military enterprises and military entities to conduct research and adopt circular economy development solutions in organizing implementation of: Increasing production, developing in a green, clean manner; organizing sustainable production and consumption; use of renewable energy in activities of the military.

6. Ministry of Agriculture and Rural Development shall

- Develop policies in order to create legal corridor for formation and development of circular economy in agriculture and rural development. Conduct research and implement solutions for increasing recycling and reusing agricultural by-products and scraps. Train and improve personnel for research and implementation of agricultural by-product and scrap processing technology, research investment, and science and engineering transfer in processing agricultural scraps.

- Develop and implement programs, projects utilizing circular economy in developing primary agricultural value chains in order to increase competitiveness, create value, and effectively use land, water, and materials in reducing environmental degradation and pollution.

- Promote participation of private sector, organizations, and agricultural households in circular agricultural product chains; Models for increasing effectiveness use of water, land, and fisheries.

- Continue to develop and implement Program for green agriculture, sustainable development, and circular economy in agriculture and rural development. Research and propose implementation of one commune one circular economy model (hereinafter referred to as “OCOC”).

7. Ministry of Science and Technology shall:

- Promote harmonization of standards regarding products, goods, and services originating from circular economy models.

- Research and assess the necessity for procedures for verifying adoption of environmental technology for supporting the transition to circular economy. Promote application of procedures and development of regulations incentivizing experiments in enterprises adopting technologies that serve the transition to circular economy.

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- Research and integrate circular economy criteria accompanied by application of science and technology in specific sector under Schemes and projects relating to circular economy, green economy, and sustainable economic development.

8. State bank of Vietnam shall

Cooperate with ministries and local authorities in development financial and credit regulations in order to support circular economy projects in Vietnam in a manner that fits green growth objectives; green banks; and green investment projects.

9. Ministry of Justice shall

Within the assigned functions and tasks, inspect and supervise the development of legal frameworks, regulations on implementation and development of circular economy in accordance with applicable laws and international agreements.

10. Ministry of Labor - War Invalids and Social Affairs shall

Research labor demand and skills in circular economy sectors, develop vocational education programs and organize training, development of human resources to meet circular development demands in the future.

11. Ministry of Construction shall

- Promote the implementation of Plan for green urban development, Scheme for urban areas adapting to climate change, and Scheme for development of smart urban areas.

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12. Ministry of Transport shall

- Develop regulations and policies for developing green traffic infrastructure; encourage vehicles utilizing clean, efficient, effective energy and environmentally friendly technology; green traffic and traffic planning in a green, sustainable, and environmentally friendly manners.

- Prioritize resources for investment, completion, and extraction of green traffic infrastructure in a manner that guarantees economic effectiveness and environmental protection, reduces greenhouse gas, and increases resistance to climate change and rising sea level. Implement programs for research and application of science and technology that guarantees the effective use of construction materials and energy in implementation of projects for investment in public traffic infrastructures.

13. Ministries and ministerial agencies shall actively research and integrate circular economy development solutions in programs, regulations, and policies within assigned sector; closely cooperate with ministries and relevant authorities in implementing this Article.

14. People’s Committees of provinces and cities shall develop and implement roadmaps, tasks, and solutions for facilitating local circular economy models; supervise the implementation of investment, construction, production, and sustainable consumption projects in provinces and cities.

15. Vietnam Chamber of Commerce and Industry shall

- Cooperate with entities, ministries, authorities, People’s Committees of provinces and cities in disseminating and educating enterprise community to assume their social responsibilities for the environment and approach circular economy models.

- Discuss with enterprise community in order to acknowledge demands and difficulties of enterprise relating to the implementation of circular economy models thereby requesting competent authorities to consider and deal with at appropriate levels.

Article 3. This Decision comes into effect from the day of signing.

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PP. PRIME MINISTER
DEPUTY PRIME MINISTER




Le Minh Khai