The Vietnamese agricultural sector is embarking on an ambitious journey towards a circular economy, aiming to transform its production methods and resource utilization. This shift comes as the government approved a landmark project last month to accelerate the development and application of circular economy principles in agriculture through 2030. The Ministry of Agriculture and Rural Development has now begun implementing this pivotal initiative, which is expected to have far-reaching impacts across the sector.
At the heart of this transition is a focus on research, technology application, market development, policy frameworks, international cooperation, and communication related to circular agriculture. Deputy Minister of Agriculture and Rural Development Phung Duc Tien emphasized the critical importance of strengthening multilateral international cooperation and multi-sectoral coordination to achieve the project's goals. He called upon the international community, government ministries, agencies at all levels, and the private sector to collaborate in supporting the agricultural sector's circular economy objectives.
This push towards circularity aligns with Vietnam's commitment to achieving net-zero emissions by 2050. The agro-forestry-fishery sector has been tasked with implementing solutions to develop a circular economy that recycles all products and materials, protecting the environment and reducing emissions. As a key pillar of the economy, the agricultural sector plays a vital role in ensuring food security, contributing to economic balance, and maintaining macroeconomic stability. In 2023, the sector achieved impressive export figures, with total export turnover reaching $53.01 billion and a trade surplus of $12.07 billion. The first half of 2024 has seen continued growth, with exports increasing 19% year-on-year to $29.2 billion.
The adoption of circular economy principles in agriculture is seen not just as a requirement but as a solution for sustainable and effective agricultural development. It aligns with international commitments and national goals for green and sustainable growth. Deputy Minister Tien highlighted the potential economic, social, and environmental benefits of circular agriculture models. He noted that climate change, resource scarcity, environmental degradation, and other challenges are pushing countries to rethink their development approaches, guided by the principle that everything serves as input for something else.
Several Vietnamese enterprises have already begun implementing effective circular economy models. TH Group, for example, has adopted a comprehensive closed-loop production process called Towards Net-Zero, ensuring sustainability from meadow to milk glass. This approach supports the government's efforts to combat climate change and achieve sustainable development goals. TH Group consistently applies green and circular economy principles across all its operations, with a particular focus on reducing and neutralizing carbon emissions. The company operates a 1.2 billion liter high-tech dairy farming and processing complex in Nghe An province, where it produces organic fertilizers and manages waste from its production processes.
The scale of the challenge - and opportunity - is significant. According to MARD statistics, the agricultural sector generates approximately 156.8 million metric tons of waste and by-products annually. This includes 88.9 million metric tons from crop production, 61.4 million metric tons from livestock and poultry farming, 5.5 million metric tons from forestry, and nearly one million metric tons from fisheries. The rice sector alone produces 47 million metric tons of straw, 8.6 million metric tons of rice husk ash, and 5.6 million metric tons of bran each year. In the fisheries sector, nearly one million metric tons of by-products remain untreated or underutilized.
Tong Xuan Chinh, deputy director of MARD's Department of Livestock Production, has highlighted various solutions for processing seafood by-products. These include extracting biological compounds for industries like cosmetics and pharmaceuticals, such as chitin and chitosan from shrimp shells, and collagen and gelatin from catfish skin. While the seafood by-product processing sector generated only $275 million in 2020, Chinh believes that with advanced technology, the potential earnings could reach $4-5 billion annually from these resources.
As Vietnam's agricultural sector continues its transformation towards a circular economy, the benefits are expected to extend beyond environmental protection. The adoption of circular principles promises to enhance resource efficiency, create new economic opportunities, and strengthen the sector's resilience to future challenges. With continued government support, international cooperation, and private sector innovation, Vietnam's circular agro-economy is poised to become a model for sustainable agricultural development in the region and beyond.
