Legislative framework for Circular Economy in Vietnam
Thứ năm, 24/10/2019
As discussed elsewhere, the issues of natural resource depletion, pollution and climate change risk have raised the need for a change in the development model of Vietnam, where a transition from linear economy to Circular Economy could be sensible. Therefore, some legislative framework to support the transition has been forming gradually in the country.
As discussed elsewhere, the issues of natural resource depletion, pollution and climate change risk have raised the need for a change in the development model of Vietnam, where a transition from linear economy to Circular Economy could be sensible. Therefore, some legislative framework to support the transition has been forming gradually in the country.
1. Documents of the Communist Party and the State strategies
Resolutions, Directives and Documents of Congresses of the Communist Party of Vietnam (CPV) are known to play top roles in orienting and guiding the socio-economic development of the country. Accordingly, the State Government would establish national strategies, action programs or action plans to specify and implement the orientation. Some key documents related to Circular Economy are discussed below.
- Directive No. 36/1998/CT-TW by the CPV in 1998
This Directive was the first document to address the need of clean technologies “to consume less raw materials, reduce energy leakages and waste” in industrial production (Communist Party of Vietnam, 1998), which were partly aligned with today’s concepts of Circular Economy.
- Resolution No. 41-NQ/TW by the CPV in 2004
This Resolution set the first basis for reduce, reuse and recycle (3Rs), cleaner production, extended producer responsibility (EPR) and renewable energy in Vietnam by stating the following task.
“Encouraging the thrifty use of natural resources and energy; producing and using clean energy, renewable energy, products and product packaging that are not harmful or less harmful to the environment; Recycle and use recycled products. To step by step apply measures to force producers and importers to recollect and manage the used products that they produced and/or imported.” (Communist Party of Vietnam, 2004)
Accordingly, in 2005, the State Government established an Action Program with 12 main tasks and 16 actions for ministries to implement Resolution No. 41-NQ/TW (Government of Vietnam, 2005). Noticeably in there, Task 6 directed that “Promote the formulation and replication of cleaner production models; forming and developing environment industry, creating markets, promoting environmental service enterprises, developing environmental economy”; and Task 10 is to “Exploiting and using natural resources economically and efficiently; issuing and implementing policies to encourage thrifty consumption, use of renewable energy, clean energy, limit exploitation and use of fossil fuels”. Following the government’s action program, many Provincial People’s Committees (PPCs) in Vietnam also established their action plans to implement the tasks at provincial level.
- Directive No. 29/CT-TW by the CPV in 2009
This Directive was to affirm the continuous implementation of the tasks set by Resolution No. 41-NQ/TW in the new period of development (Communist Party of Vietnam, 2009). In addition, it also emphasized the need to enhance the production and use of environmentally friendly products. This was later followed up by Resolution No. 06/NQ-CP of the State Government, which assigned the National Action Program on Sustainable Production and Consumption to the Ministry of Industry and Trade (MOIT) for implementation (Government of Vietnam, 2012d).
- Socio-economic Development Strategy period 2011-2020 by the CPV in 2011
The Socio-economic Development Strategy was established in the Document of the Eleventh Party Congress. It set an overall objective of “fast and sustainable development” for the country (Communist Party of Vietnam, 2011). The strategy continued to emphasize the principle of “Managing, exploiting and using resources effectively” and “Developing environmentally friendly and green economy; Conducting sustainable production and consumption; gradually develop clean energy, clean production, clean consumption”. In addition, it set some detailed environmental targets, such as: 95% of solid waste, 85% of hazardous waste and 100% of medical waste from cities were treated. However, there was not any target for recycling.
- Resolution 24-NQ/TW by the CPV in 2013
The Resolution emphasized the principle of efficient exploitation and use of natural resources, enhancing the use of renewable energy, new materials and promoting recycling. Most importantly, it set a task of “transformation of economic growth model associated with restructuring the economy towards green growth and sustainable development” (Communist Party of Vietnam, 2013). This indicated that the Party had recognized the need and it desired for a transformation of the economy. This was the second time in the history that such desire for an economic transform was expressed in a document of CPV. The first time was seen during the renovation “Doi Moi” in 1986 (Van Arkadie, 2003), which was the biggest milestone of Vietnam’s economy, resulting unprecedented rapid growth for a decade later (Nguyen, 2014, p. 10).
Accordingly, the State Government established an Action Program of 9 main tasks in 2014 to implement Resolution 24-NQ/TW (Government of Vietnam, 2014b). In there, Task 3 directed that “Continue establishing and improving policies to encourage, support and promote the use of energy-saving technologies and equipment, water saving, exploitation and use of renewable energy and new materials, and recycling in production and service activities”; and Task 9 addressed to “promote the consumption of recycled products and environmentally friendly products”.
With the orientation of CPV’s documents, the State Government issued plenty of strategies that supported one or more aspects of Circular Economy, as follows.
- Sustainable Development Strategy of Vietnam period 2011-2020 included a task to build a system of integrated solid waste management, in which solid wastes are classified at source, collected, reused, recycled and thoroughly treated with appropriate advanced technologies (Government of Vietnam, 2012a);
- National Environmental Protection Strategy by 2020, with a vision toward 2030 detailed plenty of measures to enhance the reduce, reuse and recycle (3R) (Government of Vietnam, 2012b). The measures included improving institution and legal system for 3R, reducing the production and use of bags and packaging that are difficult to decompose, waste-recycling capacity building programs, supporting the establishment of recycling businesses, forming concentrated recycling industrial zones, technology exchanges, market development of recycled products, financial supports for recycling products, enhancing producer responsibility, etc. This Strategy was then followed by a plan for implementation (Government of Vietnam, 2014a) and Decision 50/2013/QD-TTg on prescribing retrieval and disposal of discarded products (Government of Vietnam, 2013);
- National Green Growth Strategy also addressed the task of promoting 3R and improving energy efficiency (Government of Vietnam, 2012c). Noticeably, this was the first strategy to recommend an establishment of Recycling Law;
- Strategy on Cleaner Production in Industry to 2020 set 4 tasks and 4 measures to develop the model in industry (Government of Vietnam, 2009);
- National Strategy for General Management of Solid Waste to 2025, with a vision towards 2050 addressed plenty of measures to improve the classification, collection, reduce, reuse and recycle of solid waste (Government of Vietnam, 2018). In addition, the Strategy also set numerous targets, i.e. by 2025, replacing all normal plastic bags by eco-friendly plastic bags at commercial centers and supermarkets, 80% of sub-products from agriculture must be collected, reused, recycled into environmentally-friendly raw materials and products;
- National Action Plan on Sustainable Production and Consumption up to 2020, with a vision to 2030 set 6 comprehensive tasks and detailed goals for the period of 2016-2020 and 2021-2030. The tasks included not only 3R, energy saving and effective use but also changes in supply chains.
2. Law and policies related to Circular Economy
The system of legal documents in Vietnam is summarised in Table 3.1. Apart from the strategies discussed in the previous section (which were approved by Prime Minister’s Decisions), there are many legal documents related to some aspects of Circular Economy.
Vietnam’s system of legal documents
| Authority | Legal documents |
| National Assembly | Constitution, Law, Resolution |
| Standing Committee of the National Assembly | Ordinance, Resolution |
| President of State Government | Order, Decision |
| State Government | Resolution, Decree |
| Prime Minister | Decision, Directive |
| Ministers and head of ministry-level bodies | Decision, Directive, Circular, Joint Circular (issued collectively by different ministries or by a ministry and a political and social organisation) |
| Justice Council of the Supreme People’s Court | Resolution |
| Chief Justice of the Supreme People’s Court/ Head of the Supreme People’s Prosecutor | Decision, Directive |
| People’s Council | Resolution |
| People’s Committee | Decision, Directive |
Source: Adapted from Nguyen (2014) and Gardner (2019)
Some key legal documents associated with Circular Economy are as follows.
- Law on Environmental Protection in 2005 and in 2014
Since 2005, the Law on Environment Protection had stated to encourage the development of clean energy, renewable energy, environmentally friendly products and reduce, reuse, recycle (The National Assembly, 2005). In 2014, the amended Law specified the commitment in 8 Articles. It is noteworthy that it even set the first move for green public procurement in Article 44:
“Head of state budget-funded institutions shall bear their responsibility for preferring eco-friendly products and services that have been recognized as ecolabels under legal regulations.” – Clause 2, Article 44 of the Law on Environment Protection 2014 (The National Assembly, 2014)
Accordingly, many follow-up legal documents were issued to clarify and implement commitment of the law. For instance, Decree 19/2015/ND-CP was established to further specify the list of businesses and activities that could get preferential policies and supports from the government (Government of Vietnam, 2015); Circular No. 128/2016/TT-BTC was issued in 2016 to clarify the export duty exemption and reduction for environment-friendly products and products from recycling and waste treatment (Government of Vietnam, 2016).
- Mineral Law in 2010, Law on Water Resources in 2012 and Land Law in 2013
All of the 03 laws emphasized the principle that resources must be exploited and used in an economical, safe and effective manner, ensuring integrated, multi-purpose, fair and reasonable use, harmony of benefits and equality in interests and obligations among organizations and individuals (The National Assembly, The National Assembly of Socialist Republic of Vietnam, 2010; 2012, 2013).
In conclusion, although the term “Circular Economy” has not been officially used in any CPV’s document or Vietnam’s legal documents, many aspects of circular economy have been addressed and supported. They include (i) consuming less raw materials, reducing energy leakages and waste; (ii) enhancing the use of renewable energy, limiting the use of fossil fuels; (iii) reducing the use of plastic and promoting the use of environmentally friendly products; (iv) encouraging reduce, reuse and recycle (3R); (v) promoting sustainable production and consumption, especially green supply chain and green public procurement, etc. These indicate that the Communist Party of Vietnam and the State Government have great desire for the transition and have actually initiated it toward Circular Economy.
REFERENCES
Communist Party of Vietnam, Political Bureau. (1998). Directive No. 36/1998/CT-TW: Strengthening environmental protection in the period of industrialization and modernization (dated 25 June, 1998). Hanoi.
Communist Party of Vietnam, Political Bureau. (2004). Resolution No. 41-NQ/TW: Environmental protection in the period of industrialization and modernization (dated 15 November, 2004). Hanoi.
Communist Party of Vietnam, Secretariat Committee. (2009). Directive No. 29-CT/TW: Continuing the implementation of Resolution No. 41-NQ/TW (dated 21 January, 2009). Hanoi.
Communist Party of Vietnam, The 11th Central Executive Committee. (2011). Socio-economic Development Strategy 2011-2020 (dated 16 February, 2011). Document of XI Congress of the Party. Hanoi.
Communist Party of Vietnam, 11th Central Executive Committee, 7th Congress. (2013). Resolution No. 24-NQ/TW: Proactive response to climate change, improvement of natural resource management and environmental protection (dated 03 June, 2013). Hanoi.
Gardner, R. (2019, 26/06/2019). Southeast Asian Legal Research Guide: Introduction to Vietnam & its Legal System. Australia: The University of Melbourne. Retrieved from https://unimelb.libguides.com/c.php?g=402982&p=5862045
Government of Vietnam, Prime Minister of Vietnam. (2005). Decision No. 34/2005/QD-TTG: Issuing action program of the Government to implement Resolution No. 41-NQ/TW on Environmental protection in the period of industrialization and modernization (dated 22 February 2005). Hanoi.
Government of Vietnam, Prime Minister of Vietnam. (2009). Decision No. 1419/QĐ-TTg: Approval of the Strategy on Cleaner Production in industry to 2020 (07 September 2009). Hanoi, Vietnam.
Government of Vietnam, Prime Minister of Vietnam. (2012a). Decision No. 432/QD-TTg: Approval of Sustainable Development Strategy of Vietnam period 2011-2020 (dated 12 April, 2012). Hanoi.
Government of Vietnam, Prime Minister of Vietnam. (2012b). Decision No. 1216/QD-TTg: Approval of National Environmental Protection Strategy by 2020, with a vision toward 2030 (dated 05 September 2012). Hanoi.
Government of Vietnam, Prime Minister of Vietnam. (2012c). Decision No. 1393/QD-TTg: Approval of the National Green Growth Strategy (25 September 2012). Hanoi, Vietnam.
Government of Vietnam. (2012d). Resolution No. 06/NQ-CP: Issuing the Government's action program 2011-2016 (dated 07 March 2012). Hanoi.
Government of Vietnam, Prime Minister of Vietnam. (2013). Decision 50/2013/QD-TTg: on prescribing retrieval and disposal of discarded products (dated 09 August 2013). Hanoi.
Government of Vietnam, Prime Minister of Vietnam. (2014a). Decision No. 166/QD-TTg: Issuing the plan for implementation of National Environmental Protection Strategy by 2020, with a vision toward 2030 (dated 21 January 2014). Hanoi.
Government of Vietnam. (2014b). Resolution No. 08/NQ-CP: Issuing action program of the Government to implement Resolution No. 24-NQ/TW on Proactive response to climate change, improvement of natural resource management and environmental protection (dated 23 January, 2014). Hanoi.
Government of Vietnam. (2015). Decree 19/2015/ND-CP: Detailing the implementation of a number of Articles of the Law on Environmental Protection (dated 14 February 2015). Hanoi, Vietnam.
Government of Vietnam, The Ministry of Finance. (2016). Circular No. 128/2016/TT-BTC: On export duty exemption and reduction for environment-friendly products and products from recycling and waste treatment prescribed in the Government’s Decree No. 19/2015/ND-CP of February 14, 2015, detailing a number of articles of the Law on Environmental Protection (dated 09 August, 2016). Hanoi.
Government of Vietnam, Prime Minister of Vietnam. (2018). Decision No. 491/QĐ-TTg: Approving adjustments to national strategy for general management of solid waste to 2025 with a vision towards 2050 (07 May 2018). Hanoi, Vietnam.
Nguyen, N. H. (2014). Some economics of climate change adaptation in Vietnam (Ph.D. Thesis, Faculty of Business, Economics and Law, La Trobe University, Melbourne, Australia). Retrieved from http://arrow.latrobe.edu.au:8080/vital/access/manager/Repository/latrobe:37965
The National Assembly of Socialist Republic of Vietnam. (2005). Law on Environmental Protection. Hanoi, Vietnam.
The National Assembly of Socialist Republic of Vietnam. (2010). Mineral Law. Hanoi, Vietnam.
The National Assembly of Socialist Republic of Vietnam. (2012). Land on Water Resources. Hanoi, Vietnam.
The National Assembly of Socialist Republic of Vietnam. (2013). Land Law. Hanoi, Vietnam.
The National Assembly of Socialist Republic of Vietnam. (2014). Law on Environmental Protection. Hanoi, Vietnam.
Van Arkadie, B. (2003). Viet Nam: A Transition Tiger? Canberra, Australia: ANU E Press.
Nam Hoang Nguyen - National Economics University