Viet Nam's transformative journey towards a Circular Economy (CE) since 2020 has been marked by significant legislative milestones, including the integration of CE principles into the draft Socio-Economic Development Strategy (2021-2030) and the Law on Environmental Protection (LEP) 2020. The issuance of Decree 08/2022/ND-CP and the Master Plan on CE by the Prime Minister further underscores the country's commitment to fostering a green recovery and enhancing its competitive edge, aligning with the objectives of the Green Growth National Strategy.

While policy advancements have been notable, the practical implementation of the CE approach has encountered obstacles. These challenges include a lack of sector-specific knowledge and data, regulatory constraints, and the intricate nature of value chains, necessitating collaborative efforts across diverse sectors and stakeholders. Businesses face hurdles such as limited awareness, expertise, incentives, and financial constraints, impeding their ability to transition to circular economy practices.

To address these challenges and promote sustainable development, the United Nations Development Programme (UNDP) has initiated various projects, notably the establishment of a Material Recovery Facility (MRF) in Quy Nhon City, aimed at promoting responsible waste management and recycling practices. The Viet Nam Circular Economy Hub, developed in collaboration with the Institute of Strategy, Policy on Natural Environment (ISPONRE) of Ministry of Agricultural and Environment (MAE), serves as a pivotal platform to promote CE principles and foster collaborative partnerships among government bodies, businesses, civil society, and academia.

Furthermore, strategic partnerships between the Embassy of the Netherlands, UNDP, and other stakeholders have resulted in the implementation of capacity-building programs for enterprises, highlighting the necessity of accelerating the CE transition in Vietnam. Recent collaborations between the Ministry of Foreign Affairs of the Netherlands and the Ministry of Industry and Trade (MOIT) signify joint efforts to reduce emissions and promote CE through various initiatives, including capacity building, technology transfers, and technical support in critical areas such as industrial wastewater management, circular design, eco-innovation, and plastic recycling.

To address the issues, therefore, UNDP has initiated a project entitled “Accelerate Circular Economy for Business” (ACE-Biz) to contribute to Vietnam's low-carbon and circular development by transforming businesses.