The concept of circular economy is built on the basic principle that "everything is an input to something else". Accordingly, circular economy is an economic model in which design, production, and service activities set the goal of extending the lifespan of materials and eliminating negative impacts on the environment. Around the world, circular economy is considered an economic model that meets the requirements of solving environmental pollution and responding to climate change associated with sustainable development goals.

Among the environmental commitments specified in Chapter 13 of the EVFTA Agreement, Article 13.6 of the Agreement stipulates that the Parties must ensure the implementation of multilateral treaties related to climate change, including: United Nations on Climate Change 1992 (UNFCCC), Kyoto Protocol related to UNFCCC Convention 1997, Paris Agreement 2015 and actively cooperate to promote the transition to a low-growth economy emissions, climate adaptation, in accordance with the Paris Agreement. At the same time, the Parties commit to promoting domestic and international carbon markets, including through mechanisms such as the Emissions Trading Program and Reducing Emissions from Deforestation and Forest Degradation; promote energy saving, low emission technology and renewable energy.

To meet the requirements of environmental protection and ensure sustainable development under the EVFTA, the transition from a linear economy (an economic model of exploiting and using natural resources as raw materials for production) exporting inputs for the economic system, followed by production, distribution, consumption and disposal) to a circular economy because the risk of depletion and degradation of natural resources and environmental pollution has increased. and is becoming more and more serious. The circular economy development orientation will contribute to helping Vietnamese businesses save input materials, minimize emissions into the environment along with sustainable and environmentally friendly changes in the environment. production and business activities of the enterprise. This is a basic and important condition for Vietnamese businesses to move towards achieving environmental commitments under EVFTA, increasing value and benefits for businesses in enjoying the economic benefits brought by EVFTA. again.

After the United Nations' Sustainable Development Goals (SDGs) were approved in 2015, the transition to a circular economy model was implemented by many countries - including Vietnam and gradually became a trend. popular on a global scale. In addition, the signing of the EVFTA Agreement, along with environmental commitments on responding to climate change and transitioning to a low-emission economy, has increasingly posed important tasks for the Party, The State and People of Vietnam in their efforts to transition from the "brown economy" - a traditional economy that consumes natural resources and emits large amounts of emissions into the environment - to an eco-friendly "green economy". environment, saving natural resources.

From theory to practice of economic model transformation in countries, it shows that institutions, with a focus on law, play a large and comprehensive role and influence on the process and results of implementing circular economy at scale. micro country. Therefore, to create a basis for unified and effective implementation of the policy of developing a circular economy, the institutions - with the focus being the law on the circular economy - need to be expressed throughout and consistently in the policy. Party's guidelines; State policies and laws on ensuring sustainable development; Focus on ensuring harmony between economic benefits, safety issues, social security and environmental protection. Accordingly, Vietnam needs to continue to perfect its socialist-oriented market economic institutions, transition from a linear economy to a circular economy with many new business models based on the application of science. science - technology and policy innovation, contributing to rapid and sustainable economic development.

In the context that Vietnam is trying to gradually recover from the Covid 19 pandemic, accelerating the implementation of environmental commitments under EVFTA in the trend of ensuring sustainable development, promoting construction and economic development. Circularity is an important and necessary economic policy to ensure sustainable economic growth, transition to a green economy, low carbon emissions, and environmentally friendly. At the same time, the circular economy will contribute to improving the quality of life of the community, ensuring increasingly better conditions for safety and social security.

Minh Toan