DEVELOPMENT OF THE CIRCULAR ECONOMY IN THE CONTEXT OF DIGITAL TRANSFORMATION: OPPORTUNITIES AND CHALLENGES

Abstract

In Vietnam, contemporary economic development is increasingly confronted with significant pressures arising from natural resource depletion, growing volumes of waste generation, and escalating environmental pollution. The country produces approximately 27 million tons of solid waste annually, while recycling rates remain low, thereby posing latent risks to public health and environmental sustainability. Acknowledging the strategic importance of the circular economy, the Vietnamese Government has demonstrated strong political commitment by actively participating in international initiatives, including the Paris Agreement, and by pledging to achieve carbon neutrality by 2050 at COP26. In parallel, the promulgation of the Law on Environmental Protection (2020) has established a fundamental legal framework for the promotion of the circular economy. Nevertheless, the practical implementation of the circular economy in Vietnam continues to encounter substantial challenges, including conceptual ambiguities, the absence of a coherent and standardized system of performance assessment criteria, and a shortage of sufficiently mature and scalable practical models. This article examines the development trajectory of the circular economy in Vietnam, identifies the opportunities and challenges emerging in the context of digital transformation, and proposes policy-oriented solutions aimed at fostering the circular economy as a pivotal pillar of Vietnam’s sustainable economic development.