Every year, Viet Nam generates over 2.9 million tons of plastic waste, with only 27% being recycled. Due to inadequate collection and improper disposal, terrestrial and marine ecosystems are becoming increasingly polluted, with growing adverse impacts on the environment, human health and local livelihoods. In early 2025, Ha Noi was ranked among the most polluted cities in the world for several consecutive days, with outdoor burning of waste, including plastic, significantly contributing to poor air quality.

In this context, Viet Nam has taken a leading role in ASEAN, developing and implementing circular economy policies with ambitious targets including but not limited to:

• reducing marine plastic litter by 50% by 2025;
• increasing the reuse, recycling, and treatment of plastic waste by 85% by 2025;
• ensuring the collection and treatment of 95% of municipal wastewater by 2030; and
• reducing greenhouse gas emissions by 15.8% by 2030.

In addition, entrepreneurship and innovation (E&I) have become critical components of Viet Nam’s push to build a dynamic, knowledge-based economy. For example, the National Assistance Policy programme, launched in 2016 to Support Innovative Startup Ecosystems in Viet Nam until 2025, spurred numerous initiatives to promote local entrepreneurship and create a vibrant startup ecosystem.

Indeed, the private sector at large is the driving engine of the circular transition, including multinationals but also SMEs comprising 95% of the ecosystem in Viet Nam. By August 2024, approximately 26,000 Social Impact Businesses (SIBs) existed, however its portion in total registered businesses of the country is very limited.