Decision 687/QD-TTg 2022 approving the Scheme on development of circular economy in Vietnam

DECISION

Approving the Scheme on development of circular economy in Vietnam^[1]

THE PRIME MINISTER

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the Government’s Resolution No. 01/NQ-CP of January 1, 2021, on major tasks and solutions for implementation of the 2021 socio-economic development plan and state budget estimates;

At the proposal of the Minister of Planning and Investment in Document No. 1483/TTr-BKHDT of March 10, 2022,

DECIDES:

Article 1. To approve the Scheme on development of circular economy in Vietnam (below referred to as the Scheme) with the following principal contents:

1. Viewpoints

- Taking the initiative in developing circular economy is an inevitable step suitable to trends and requirements to create breakthroughs in economic recovery and implementation of Sustainable Development Goals (SDGs), thus contributing to promoting economic restructuring in association with renovating the growth model toward modernity, improving competitiveness and proactive adaptability and resilience to external shocks, realizing the National Strategy on green growth in the 2021-2030 period, with a vision toward 2050, and ensuring national defense and security.

- The development of circular economy must be based on an open approach, focusing more on creating space and favorable conditions for promoting economic efficiency on the basis of strengthening international cooperation and mobilizing and effectively using human knowledge, achievements of the Fourth Industrial Revolution and digital transformation, and necessary resources from the private economic sector, international organizations and foreign partners.

- The development of circular economy needs to be urgent, substantial, effective and feasible, inheriting good practices in other countries and in Vietnam and boldly implementing them in specific fields on a pilot basis, thus attracting attention of domestic and foreign investors.

- Focusing on promulgating long-term policies to encourage, give incentives, and facilitate the development of circular economy with specific roadmaps and targets and, at the same time, firmly improving legal bases and building flexibility and proactivity in order to soon promote circular economy model at appropriate levels in sectors, fields and localities; avoiding applying circular economy to the whole economy in a stereotyped and uniform manner.

- Sustainably developing circular economy on the basis of raising awareness and proactivity, promoting innovation and social responsibility of enterprises; encouraging responsible lifestyle of each individual toward the community and society, orienting future generations to a green living culture, and forming a civilized and modern society in harmony with the nature and environment.

2. Objectives

a/ Overall objectives

To develop circular economy with the aim of creating a driving force for innovation and improving labor productivity, contributing to promoting green growth associated with economic restructuring, renovating the growth model toward increasing efficiency and circular linkage among enterprises and economic sectors, improving competitiveness and resilience of enterprises and supply chains to external shocks so as to contribute to economic prosperity, environmental sustainability and social justice, strive toward a green, carbon-neutral economy and contribute to the goal of limiting global warming.

b/ Specific targets

- To contribute to concretize the goal of reducing the greenhouse gas emission/GDP ratio by at least 15% by 2030 compared to the 2014’s figure and then reduce the net emissions to “zero” by 2050.

- To raise awareness and investment interest of enterprises and investors at home and abroad in circular economy model; to promote the application of circular economy model to boost the greenization of economic sectors. By 2025, circular economy projects will initially be put into practice and bring into play their economic, social, technological and environmental efficiency, contributing to the recovery of renewable resources, reduction of energy consumption, increasing the share of renewable energy in the total primary energy supply, forest coverage rate and waste recycling rate, and raising the localization rate of agro-forestry-fisheries and industrial exports. By 2030, circular economy projects will become a major driving force in reducing primary energy consumption, attaining partial or whole energy self-sufficiency based on renewable energy and increasing forest coverage.

- Circular economy model will support the building of a green lifestyle, encourage waste separation and promote sustainable consumption. By 2025, to reuse, recycle and treat 85% of the volume of generated plastic waste; to reduce the volume of marine plastic litter by 50% compared to the previous period; to gradually reduce the production and use of non-degradable plastic bags and disposable plastic products in daily-life activities. To significantly improve organic waste recycling capacity in urban and rural areas. To raise awareness of agencies, organizations, enterprises, communities and people in the production, consumption and disposal of plastic waste, non-biodegradable plastic bags and disposable plastic products in daily-life activities. By 2030, the proportion of municipal domestic solid waste collected and treated up to standards and technical regulations through circular economy models will reach 50%; 100% of urban organic waste and 70% of rural organic waste will be recycled; the method of direct burial will not apply to domestic solid waste generated from circular economy model in urban areas; and the proportion of urban wastewater collected and treated up standards and technical regulations for urban areas will be maximized.

- Circular economy model will make important contributions to improving the quality of life and people’s resilience to climate change, ensuring equality in conditions and opportunities for capacity development, and improving labor productivity and income of workers from circular economy.

3. Specific tasks and solutions

- To fully, timely and effectively implement the orientations, tasks and solutions set in the Government’s Resolution No. 50/NQ-CP of May 20, 2021, on the Action Program to implement the Resolution of the 13^th National Party Congress; the Prime Minister’s Decision No. 1658/QD-TTg of October 1, 2021, approving the National Strategy on green growth in the 2021-2030 period, with a vision toward 2050; the Prime Minister’s Decision No. 1316/QD-TTg of July 22, 2021, approving the Scheme on strengthening the management of plastic waste in Vietnam; the Prime Minister’s Decision No. 343/QD-TTg of March 12, 2021, promulgating the Plan on implementation of the Law on Environmental Protection; the Government’s Resolution No. 38/NQ-CP of April 25, 2017, on the Action Program to implement the Party Central Committee’s Resolution No. 06-NQ/TW of November 5, 2016, on effectively proceeding with the process of international economic integration and maintaining socio-political stability in the context of the country’s participation in new-generation free trade agreements; the Government’s Resolution No. 50/NQ-CP of April 17, 2020, promulgating the Action Program to implement the Party Central Committee’s Political Bureau’s Resolution No. 52-NQ/TW of September 27, 2019, on a number of guidelines and policies on proactive participation in the Fourth Industrial Revolution; the Prime Minister’s Decision No. 2289/QD-TTg of December 31, 2020, promulgating the National Strategy on the Fourth Industrial Revolution through 2030; the Government’s Resolution No. 58/NQ-CP of April 27, 2020, promulgating the Action Program to implement the Party Central Committee’s Political Bureau’s Resolution No. 50-NQ/TW of August 20, 2019, on orientations for improvement of institutions and policies and raising of the quality and effectiveness of foreign investment cooperation through 2030.

- To carry out public communication and raise awareness about circular economy, requirements, guidelines and orientations on development of circular economy for cadres, civil servants and public employees at all levels, the business community, and the people. To develop human resources to serve the development of circular economy in specific fields and areas according to competence.

- To develop a separate plan for the development of circular economy or integrate the content on development of circular economy into strategies, master plans and plans on development of sectors or fields or local socio-economic development.

- To study and integrate the content on development of circular economy into regional linkage policies and projects and activities to implement the Prime Minister’s Decision No. 1658/QD-TTg of October 1, 2021, approving the National Strategy on green growth in the period of 2021-2030, with a vision toward 2050.

- To strengthen the study and formulation of plans and roadmaps for collection, use and analysis of information in order to support comprehensive and harmonious information technology and communication apps and solutions associated with circular economy model.

- To take the initiative in exchanging information with foreign donors and international organizations to seek opportunities to access knowledge, skills and resources for development of circular economy through specific pilot projects on circular economy, projects on circular economy-friendly technologies and services (information technology, environmental technology, etc.).

- To increase public-private dialogue on development of circular economy on the basis of promoting the social responsibility of enterprises; to find out and grasp the needs and problems of enterprises, thereby taking appropriate solutions to resolve problems and support enterprises or propose competent authorities to consider, resolve problems and support enterprises at an appropriate level.

- To review and improve the policy and legal framework to facilitate the development of circular economy. To study and review the current status of development of circular economy in a number of priority areas or areas in which circular economy models can be soon applied on a pilot basis.

- To adopt mechanisms and policies to attract and use investment and develop human resources for development of circular economy. To improve mechanisms for development of environmental industry and services.

Article 2. Organization of implementation

1. The Ministry of Planning and Investment

- To assume the prime responsibility for, and coordinate with ministries, sectors and localities in, studying and reviewing the current situation and proposing pilot development of circular economy in a number of priority fields.

- To assume the prime responsibility for, and coordinate with ministries, sectors and localities in, formulating a Decree on a regulatory sandbox for development of circular economy, specifying standards and suitable conditions for development of circular economy, and submit it to the Government in the first quarter of 2023 for consideration.

- To take the main charge of studying the amendment and supplementation of regulations on eco-industrial parks and eco-enterprises to promote the development of circular economy in Vietnam.

- To coordinate with the Ministry of Natural Resources and Environment and related ministries, agencies and localities in formulating and improving the system of criteria on circular economy along the line of attaching importance to economic aspects and increasing economic benefits from circular economy model.

- To assume the prime responsibility for, and coordinate with ministries, sectors and localities in, promoting foreign investment projects that meet the criteria of circular economy, attaching importance to regional linkage projects associated with climate change response.

- To study the requirements of improving the system of information and statistical data to serve the appraisal, monitoring and assessment of the impacts of circular economy projects in particular and of circular economy in Vietnam in general.

- To assume the prime responsibility for, and coordinate with ministries, sectors and localities in, mobilizing resources for investment projects associated with development of circular economy and business support services associated with development of circular economy. To attach importance to cooperation with international organizations, free-trade agreement partners, and key investment partners; to access green finance. To take the initiative in studying the possibility for, and appropriateness in, accessing digital finance in service of circular economy projects.

- To coordinate with international organizations and experts in supporting localities in integrating the content on development of circular economy in strategies, master plans and plans on local socio-economic development.

- To study and share experiences and good practices on development of circular economy in the world and at home for ministries, sectors and localities, including the measurement and monitoring of the implementation of circular economy.

2. The Ministry of Natural Resources and Environment

- To assume the prime responsibility for, and coordinate with related ministries, agencies and localities in, formulating and promulgating framework guidance on the implementation of circular economy according to Decree No. 08/2022/ND-CP of January 10, 2022.

- To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment, Ministry of Finance and Ministry of Justice in, monitoring, amending and supplementing regulations and mechanisms to encourage enterprises and organizations to carry out production and business activities along the direction of circular economy.

- To timely and effectively fulfill its tasks as assigned in the Prime Minister’s Decision No. 1658/QD-TTg of October 1, 2021, approving the National Strategy on green growth in the 2021-2030 period, with a vision toward 2050.

3. The Ministry of Finance

- To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment, Ministry of Natural Resources and Environment and related agencies and localities in, studying and proposing competent authorities to promulgate policies and measures to encourage organizations and enterprises to implement circular economy

- To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and related ministries and sectors in, ensuring funds for the implementation of the Scheme from the sources of state budget funds, international donations and other lawfully mobilized sources in accordance with law.

4. The Ministry of Industry and Trade

- To coordinate with the Ministry of Planning and Investment and Ministry of Natural Resources and Environment in studying, formulating and improving the system of criteria on circular economy.

- To build circular economy model to promote sustainable production and consumption and energy efficiency and conservation.

- To formulate policies to promote energy transition toward green, clean and sustainable, increasing the proportion of renewable energy and reducing dependence on imported energy and fossil energy; to strengthen technological solutions to ensure the harmonious development of new energy and renewable energy, enhancing the ability to integrate renewable energy into the power system; to reduce energy loss.

- To make up a list and guide the implementation of best available techniques and best environmental management practices for industries according to the country’s conditions and the level of development of science and technology; to review, formulate and promulgate energy consumption norms for industries. To apply managerial and technological solutions in mining and mineral processing, focusing on deep processing and creating products of high economic value.

- To take the main charge of the exchange and coordination with partners in trade facilitation and mutual recognition for products, goods and services from circular economy model.

- To formulate and improve institutions and policies on ecological and sustainable industrial clusters; to apply circular economy model in construction, operation and management of industrial clusters.

5. The Ministry of National Defense

- On the basis of the guidance of related ministries and sectors, to take the initiative in studying, integrating and developing circular economy model in production and economic activities of the army, combining economic activities with national defense assurance.

- To direct military enterprises and military units to study and apply solutions to develop circular economy in performance of the tasks of promoting production, and building green, clean and fine army units; to apply sustainable production and consumption; to use renewable energy in military operations.

6. The Ministry of Agriculture and Rural Development

- To improve institutions and policies to create a legal corridor for the formation and development of circular economy model in agriculture and rural development. To study and implement solutions to improve the capacity of recycling and reusing agricultural by-products and scraps. To train and further train the contingent of workers engaged in research and application of technologies for treatment of agricultural by-products and scraps, and invest in research and transfer of science and technology in treatment of agricultural scraps.

- To formulate and implement programs and projects on circular economy in development of key agricultural product value chains in order to improve competitiveness, create added value and effectively use land and water resources, and input materials to reduce natural resource degradation and environmental pollution.

- To promote the participation of the private sector, organizations and individual farmer households in circular agricultural product value chains and models that enhance the efficient use of natural resources (land, water, aquatic products).

- To continue to develop and implement the Program on green agriculture, sustainable development and circular economy in agriculture and rural development. To study and propose the implementation of the program on one commune, one circular economy model (OCOC).

7. The Ministry of Science and Technology

- To promote the harmonization of standards for products, goods and services from circular economy model.

- To study and assess the needs of the process of certifying the application of environmental technologies to render technical support for conversion into circular economy. To promote the application of the process of, and formulate mechanisms to encourage pilot implementation for enterprises applying technologies for, conversion into circular economy.

- To study and apply environmentally friendly science and technology to related agriculture, industry and service sectors. To promote the application of science and technology to the development of circular economy.

- To study and integrate the criteria of circular economy in association with the application of science and technology in each specific sector and trade into schemes and projects related to development of circular economy, green economy, and sustainable development.

8. The State Bank of Vietnam

To coordinate with ministries, sectors and localities in building financial and credit mechanisms in order to support circular economy projects in Vietnam, ensuring compliance with green growth goals; green bank; and green investment projects.

9. The Ministry of Justice

Based on its assigned functions and tasks, to inspect and supervise the formulation of the legal framework, regulations and legal provisions on the implementation and development of circular economy in accordance with current laws and international commitments.

10. The Ministry of Labor, Invalids and Social Affairs

To take the initiative in researching the demand for labor and skills in sectors of circular economy, formulate vocational education programs and train and develop human resources to meet the requirements of development of circular economy in the coming time.

11. The Ministry of Construction

- To accelerate the implementation of the Plan on development of urban green growth, the Scheme on climate change response for urban areas and the Scheme on smart city development.

- To coordinate with the Ministry of Planning and Investment and Ministry of Natural Resources and Environment in studying and integrating solutions to develop circular economy into programs, mechanisms and policies on urban garbage and wastewater treatment.

12. The Ministry of Transport

- To formulate mechanisms and policies for the development of green transport infrastructure; encourage clean energy-operated vehicles, energy-efficient vehicles, and vehicles using environmentally friendly technologies; to proceed to green transport and transport master plans in the direction of green, sustainable and environmentally friendly.

- To prioritize resources for investment, completion and operation of green transport infrastructure to ensure economic efficiency and environmental protection, contribute to reducing greenhouse gas emissions, and enhance resilience to climate change and sea level rise. To implement scientific and technological research and application programs to ensure efficient use of construction materials and energy in the implementation of investment projects to complete public transport infrastructure.

13. Ministries and ministerial-level agencies shall take the initiative in studying and integrating solutions to develop circular economy into programs, mechanisms and policies in the fields under their management; and closely coordinate with related ministries and agencies in performing the tasks specified in this Article.

14. Provincial-level People’s Committees shall take the initiative in formulating and implementing the roadmap, tasks and solutions to facilitate circular economy model and projects in their localities; and supervise the implementation of investment and construction projects, and sustainable production and consumption programs in their localities.

15. The Vietnam Chamber of Commerce and Industry

- To coordinate with units, ministries, sectors, and provincial-level People’s Committees in promoting public communication and education for the business community to promote their social responsibility for environmental issues in general and proactively approach circular economy model and perform their social responsibility.

- To take the initiative in exchanging opinions and conducting dialogues with the business community in order to grasp the needs and problems of enterprises related to the implementation of circular economy model, thereby proposing competent authorities to consider and resolve problems and support enterprises as appropriate.

Article 3. This Decision takes effect on the date of its signing.

Article 4. Ministers, heads of ministerial-level agencies and government-attached agencies, chairpersons of provincial-level People’s Committees, and related units and organizations shall implement this Decision.-

For the Prime Minister
Deputy Prime Minister
LE MINH KHAI