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| Straws are rolled up for use for mushroom growing__Photo: Thu Hien/VNA |
The development of the circular economy has become a global trend, including in Vietnam. As an agricultural country, Vietnam’s development of a circular economy cannot be separated from its agricultural sector.
Bui Duc Hien, Ph.D.
Vietnam Academy of Social Sciences
Concept of circular economy in agriculture
The concept of the circular economy is not new. It has appeared in agriculture since the 18th century. However, the circular economy has been interpreted differently across the world. In Vietnam, the 2020 Law on Environmental Protection (Article 142.1) defined it as “an economic model where design, production, consumption and service activities aim to reduce the exploitation of raw materials and materials, extend product life circles, limit waste generation, and minimize adverse environmental impacts.”
Circular economy in agriculture, or circular agro-economy, refers to an economic model in which research, selection of plant and animal varieties, and input raw materials, design, production, consumption, and reuse and recycling are carried out in a closed-loop process. This model constitutes a complete process, including the steps of sourcing of input raw materials, process designing, commodity production, product distribution, use, reuse and repair, and waste collection and recycling. This model helps save input raw materials, create more jobs during out-of-harvest seasons, optimize the use of by-products, defective products, and waste from agricultural activities, reduce waste accumulation, and protect natural ecosystems. It also improves land, water and air quality.
To promote the development of a circular agro-economy, establishing a legal corridor is essential. The law on circular agro-economy integrates principles and legal norms established or recognized by state bodies and relevant authorities to regulate relationships among stakeholders in the course of research, selection of plant and animal varieties, input raw materials, design, production, consumption and service, reuse and recycling of agricultural wastes. In this process, agricultural substandard products, by-products and waste are repurposed as resources for the production of new products, helping minimize emissions, reduce the exploitation of natural resources, and mitigate environmental damage.
Current law on circular agro-economy in Vietnam
In recent years, the Party and the State have attached great importance to promoting the development of a circular agro-economy. Before the 13th National Party Congress, key aspects of a circular economy, such as the use of renewable energy and recycled products, had been mentioned in various Party documents. However, at its 13th National Congress, the Communist Party of Vietnam affirmed the policy of building “a green economy and a circular economy that is friendly to the environment.” This policy serves as an important foundation for the State to refine the law on this issue.
For the first time, the 2020 Law on Environmental Protection defined a circular economy. This was specified in Government Decree 08/2022/ND-CP of January 10, 2022, detailing a number of articles of the Law on Environmental Protection. The Decree puts forth conditions for planning concentrated production, business and service zones, stressed waste management, and set criteria for circular economy development. It also defined the responsibilities of ministries, ministerial-level agencies and provincial-level People’s Committees in promoting the development of a circular economy. However, the Decree lacked provisions addressing circular agro-economy.
To develop a circular agro-economy, six factors are required:
(i) The conditions on soil, water and climate for selecting appropriate fauna and flora varieties;
(ii) Designing closed-loop circular economic models, complexes and ecosystems from production and processing to consumption and recycling, turning waste into input raw materials for a sustainable production process;
(iii) The process of crop production, livestock production and aquaculture must be carried out toward the thrifty use of land and water resources; turning substandard products, by-products and waste in agriculture into input raw materials for the creation of other products of high economic values;
(iv) Production and use of renewable energies, biogas energy, and geo-thermal energy in conjunction with energy conservation;
(v) Application of scientific and technological advances to agricultural production, aiming to optimize the use of energy and the reuse of wastewater, intensify land improvement, and reduce emissions; and,
(vi) Increasing the employment of laborers, improving the material and moral well-being for farmers in circular agro-economy project areas.
These factors show that a law on circular agro-economy has a wide scope of regulation, while the current legal provisions are yet to satisfy this requirement.
First, legal provisions on circular economy promotion remain general and are scattered across various legal documents of different legal effects, and issued by multiple bodies. Specific and consistent provisions are needed to promote the development of circular agro-economy models, groups and complexes.
Second, Vietnam still lacks specific and clear provisions to encourage and assist organizations and individuals to research, build and develop circular agro-economy models, complexes and ecosystems, especially provisions on connection between crop and livestock strain researchers and farmers; between agricultural producers and recyclers of substandard products and by-products, as well as exporters. Specific provisions on support for investors in building circular economy complexes are also required.
Third, the land law still lacks specific provisions that prioritize land funds for the development of circular agro-economy projects; on the formulation and adjustment of master plans and plans on land use to prioritize land for these projects; and provisions on exemption from and reduction of land use right-related fees, taxes and charges for these projects.
Fourth, provisions of the current law on environmental protection remain ambiguous regarding environment standards, criteria, assessment of environmental impacts, grant of environment licenses, environmental protection tax, green procurement, and green credit. They fail to meet the environmental protection requirements for circular agro-economy development projects.
Fifth, legal provisions on the development of a market for trading agricultural by-product, substandard products and waste remain unspecific. This issue should be incorporated in specific policies and laws to establish a legal corridor for the trade of agricultural defective products, by-products, waste, and recycled products in Vietnam.
Sixth, the responsibilities, rights and obligations of state bodies, enterprises, organizations and individuals in the process of promoting the development of a circular economy in general and a circular agro-economy in particular are yet to be specified. Relevant national master plans and local plans have not been worked out.
Seventh, regulations to boost the development of circular economy in renewable and biogas energy projects in the development of an agro-economy were initially recognized in Politburo Resolution 55-NQ/ TW dated February 11, 2020, on strategic orientations for development of national energy up to 2030, with a vision toward 2045. Yet, there are no guiding documents for applying circular economy practices in the energy sector.
Solutions for legal improvement
Firstly, it is a need to further improve the laws on investment, enterprises, and commerce to encourage, support, and create conditions for scientists, enterprises, organizations and individuals to research and invest in the development of the circular economy as well as circular agro-economy models and complexes. At present, most agro-economy models in Vietnam have not yet been recognized as complete circular economy models, as they contain only certain elements of the circular economy, only focusing on recycling and reusing agricultural defective products, by-products and waste, with the participation of different entities. Therefore, the laws on investment, enterprises and commerce should ensure that the circular economy operates smoothly, with continuous cycles and close coordination among stakeholders and processes.
Secondly, it is required to detail the 2024 Land Law’s provisions on access to land as well as harmonization of the interests of land users, investors and the State. The Law’s guiding documents should be more specific on prioritizing the formulation, appraisal, approval and adjustment of land use planning and plans for the development of the circular agro-economy. In addition, forms of capital contribution with land use rights and land lease for circular agro-economy models or complexes should be encouraged and supported, aiming to guarantee the rights of land users and investors.
Thirdly, the regulations on labor and human resources should be improved to create conditions for people in areas with circular agro-economy activities and projects to be trained and employed in these activities. Only then can local people enjoy practical benefits from the circular economy.
Fourthly, it is suggested to apply such solutions as improving legal provisions on the rational, thrifty and efficient use of land, water and mineral resources; providing clearer and more specific regulations on waste management, clean production and consumption, the green economy, green procurement, green bonds, green credit, and extended producer responsibility in agriculture. These provisions will help minimize the exploitation of natural resources, efficiently use waste, defective products and by-products from agricultural activities, and turn them into input raw materials in a continuous production cycle with high economic value and minimum environmental pollution.
Fifthly, the laws on investment, exploitation and use of energies should be improved to encourage and support investors in terms of capital, technology, human resources, and market access for the development and use of renewable and bio-gas energies in their activities.
Sixthly, it is proposed to further clarify the responsibilities and powers of the State, the rights and obligations of investors, and the rights and obligations of other organizations and individuals in developing the circular agro-economy complexes, as they are the main actors in the process of circular economy development.-
