Transition to Circular Economy in Vietnam: Barriers, Opportunities and Policy Recommendations from an Institutional Analysis Perspective

This study analyzes the transition process to circular economy (CE) in Vietnam from an institutional analysis perspective, aiming to identify barriers, opportunities and propose appropriate policy recommendations. Using desk research methodology with qualitative design, the study analyzes the current institutional framework through a systematic review of legal documents, development strategies and reports from state management agencies. Results show that Vietnam's current institutional framework does not create favorable conditions for CE transition due to its fragmented nature, lack of synchronization and incomplete integration of CE principles. The study identifies three main groups of barriers: (i) formal institutional barriers including lack of specialized legal framework and effective incentive mechanisms; (ii) informal institutional barriers from linear consumption culture and limited awareness; (iii) institutional capacity barriers related to resources and coordination mechanisms. Simultaneously, the study identifies opportunities from international integration pressure, political commitment and Vietnam's specific advantages. Based on these findings, the study proposes four solution groups: improving the legal framework, reforming management institutions, developing policy tools and strengthening institutional capacity, contributing to promoting successful transition to CE in Vietnam.