Linear or Circular Economy: A Review of Theories, Practices, and Policy Recommendations for Vietnam

Abstract

The traditional linear economy has created unstainable development. A circular economy (CE) is considered as a crucial means and has been adapted by many governments to achieve sustainable development goals. By narrative literature review, this article aims to discuss the concepts of linear and circular economies and CE models, examine countries’ CE development experiences, and make recommendations for successfully adapting a CE. The findings show that a CE is different from a linear one in terms of the step plan, focus, system boundaries, reuse, and business models. The CE model includes slowing and closing resource loops and a narrowing of resource flows and is based on the foundation of renewable and non-toxic resources as well as through long-lasting design, and reducing, maintaining, repairing, reusing, remanufacturing, refurbishing, recovering, and recycling. Many countries around the world have adapted a CE model with different circularity levels with the main focus to reduce waste. The paper also recommends that a CE should be percieved as the central point of socio-economic development programs and policies that must address the full cycle, from product design to production processes, consumption, and recycling rather than having only a waste reduction focus. Producers should use a CE framework as the basis for product design, manufacturing, and recycling strategies. Consumers should change their perception of CE and adjust their behaviors towards making decisions to buy and consume toward circularity. Also, there is a need to change the perceptions of policy makers and other stakeholders on the CE concepts and framework.