EXPLORING THE CIRCULAR ECONOMY EMBEDDED IN THE BUSINESS MODEL. THE PERSPECTIVE OF VIETNAM

Abstract

The Covid-19 pandemic has exposed the leadership inability of the head of several states. This is also an occasion for countries’ policymakers to reconsider policies regarding priorities for policies. Combining with the COP26 conference after the beginning of the new normality, where policymakers gathered for initiating collective actions to tackle climate change. This event turns out that requires collective action in the private and business sector in handling sustainability. These events play very crucial factors in paving the way for the increase of competitiveness in the market through a more sustainable business model. The circular economy is a recent tendency of developed countries while implementing policy within these criteria. The approach of the Environment, Social and Governance report indicator (ESG) is not new and a favorable option for many multinational corporations including small and medium-sized enterprises in several developed countries. ESG is expected that investors and policy-makers would evaluate firms regarding sustainability. It is to say that ESG will be a factor in the process of shaping the global circular economy. However, enterprises in developing countries might take slow progress in this regard, especially in Vietnam. The dissemination of the circular economy is somewhat slow. Vietnam is gradually employing this economic model. And firms operating within the country are being encouraged to shift their linear business model to a circular economic business model. Vietnam's government is making its effort to pave the way for more sustainable economic development by raising awareness of the circular economy, ESG, and sustainable business. Based on the exploratory research, this paper uses web content analysis, secondary sources, and literature research especially the national policies to revise the perspectives of the government and firms. Moreover, this paper should view the development trend of the circular economy in Vietnam. This paper will investigate the situation in Vietnam by analyzing national reports and policies. Several enterprises implementing the circular economy model will be taken under consideration regarding their direction and how they perceive it.

Keywords

• circular economy
• business model
• shared values creation
• vietnam
• policy implication