Vietnam Unveils National Action Plan to Boost Renewable Energy and Circular Economy

Vietnam has introduced its National Action Plan for a Circular Economy until 2035, with a strong emphasis on renewable energy development to drive sustainable economic growth and environmental protection. The plan, approved on January 23, 2025, under Decision No. 222/QĐ-TTg, outlines strategies to enhance energy efficiency, minimize waste, and promote resource recycling as the country faces growing environmental challenges.

Economic Growth Fuels Sustainability Push
Vietnam’s economy continues to expand, with GDP surpassing $476 billion in 2024, marking a 7% increase from the previous year. The industrial sector has seen substantial growth, with its production index rising by over 8% year-over-year, while urbanization has exceeded 44%, a 16% jump from 2023.

However, rapid industrialization and urban expansion have led to increased energy demand and environmental concerns. The country generates approximately 60,000 tons of waste daily, with urban areas contributing over 60% of the total. Meanwhile, waste disposal remains inefficient, with 55% going to unsanitary landfills, 20% burned in the open, and only 10% properly treated or recycled.

Renewable Energy at the Core of Circular Economy Transition
A key pillar of the National Action Plan is the promotion of renewable energy as a long-term solution to reduce dependence on fossil fuels and cut carbon emissions. The plan aims to:

Expand solar, wind, and biomass energy projects to meet rising industrial and urban energy needs.
Promote waste-to-energy (WTE) technologies to convert waste into electricity and reduce landfill dependency.
Encourage businesses to integrate circular economy principles by maximizing material reuse and minimizing energy waste.
The government has set an ambitious target to increase the share of renewable energy in the national energy mix by 2030, aligning with its broader strategy to achieve net-zero emissions by 2050.

Challenges in Renewable Energy Implementation
Despite strong commitments, Vietnam faces several challenges in scaling up its renewable energy sector:

Infrastructure and grid limitations: The existing energy grid requires significant upgrades to accommodate variable renewable energy sources like solar and wind power.
Investment and financing gaps: Transitioning to renewable energy demands large-scale investments, particularly for solar farms, offshore wind projects, and energy storage systems.
Policy and regulatory hurdles: Experts highlight the need for clearer policies, incentives, and private sector engagement to accelerate the adoption of circular economy principles in the energy sector.

Future Outlook: Vietnam’s Role in ASEAN’s Green Transition
With continued investment and policy reforms, Vietnam aims to position itself as a leader in renewable energy innovation within the ASEAN Economic Community (AEC) by 2035. The circular economy strategy not only enhances resource efficiency and environmental protection but also fosters green job creation and sustainable economic growth.

As the country moves toward a low-carbon future, stakeholders emphasize the importance of public-private partnerships, technological advancements, and stronger enforcement of environmental regulations to ensure the successful implementation of its renewable energy and circular economy goals.