Identifying key areas for circular economy: a waste collection input-output analysis in Vietnam

The transition from linear economy to circular economy (CE), which can reduce natural resource depletion and minimize waste generation, has become a worldwide trend. The current challenge for Vietnam is to identify the key areas for the transition, given that financial resources are limited and that a detailed and comprehensive accounting of waste generation and collection for decision-making is lacking. This study aims at filling the gap by analyzing the waste flows throughout the supply chains and identifying the key areas for the CE transition in Vietnam. The 2018 updated IO table is used as an econometric tool to identify direct and indirect waste collection intensity for all types of waste. The result shows that in terms of waste intensity, among primary sectors, Coke and the group of Mining and Extraction industries (S4-S7) have significant room for reducing waste. In terms of IO interaction, collection rate and recyclable potential of waste, among secondary sectors, Paper production and services (S11), Plastics (S16), and Building materials (S17) should be prioritized for the CE transition in Vietnam. Having a long supply chain and meeting all priority criteria, Plastics is identified as one of the key industries to be selected to exemplify managerial implications to show which solutions/innovations should be proposed in each circular economy period to improve sustainable efficiency.

Automated summary

This study aims to identify the key areas for the transition to a circular economy in Vietnam by analyzing waste flows in the supply chains. The results show that industries such as Coke, Mining and Extraction, Paper production and services, Plastics, and Building materials have significant potential for reducing waste and should be prioritized for the circular economy transition in Vietnam.