These inputs pave the way for the upcoming implementation of Vietnam’s National Action Plan for Circular Economy (NAPCE) which is set for approval by the Prime Minister after three years of launch. Under the theme “From Planning To Action”, the Vietnam CE Forum 2024 also marks an important milestone for multi-sector collaborations to put NAPCE into practice, and SCG has been proud to be an active contributor to this whole journey since the beginning.

The Vietnam Circular Economy Forum 2024, taking place on December 10 convenes stakeholders across various sectors to assess progress made on the circular economy and accelerate further action. Notably, this year’s forum focuses on setting the groundwork for the upcoming implementation of NAPCE, which paves the way for Vietnam to achieve a circular economy by 2030. As part of the government's broader strategy to tackle climate change and resource depletion, the NAPCE aims to form a sustainable production and consumption structure system by maximizing the value of natural resources, raw materials, and used materials and minimizing waste in the environment. By providing a robust framework for sectors to apply circular business models, the NAPCE will unleash the innovation and creativity potential of the business community.

As a key contributor to NAPCE during the past three years, SCG not only strengthens collaboration to create a shared vision among stakeholders but also shares its circularity insights and best practices to make the action plan a reality.

During his presentation titled “Circular Economy Transition in Practice: How To Make Circular Economy For Economy Growth Engine” at the Vietnam CE Forum 2024, Dr. Chana Poomee, Chief Sustainability Officer of SCG, stated, "Adopting a circular economy is crucial for sustainable growth and environmental resilience. Global challenges, including extreme weather events like Typhoon Yagi, highlight the need to shift from linear models to circular systems that optimize resources and reduce waste. With this belief, SCG has joined hands with MONRE to organize the Vietnam Circular Economy Forum in the past 03 years to promote the understanding and practices of CE; and call for collaborations across sectors on this matter to create Inclusive Green Growth in line with our corporate commitment to fostering sustainable economic, social, and environmental growth without leaving anyone behind.”

Talking about SCG’s initiatives in Circular Economy, Mr. Kulachet Dharachandra, Country Director of SCG, Vietnam said: “For the first time, Vietnam has set a national action plan for the circular economy, charting a path toward its long-term vision for sustainable development. It is crucial that we continue to work together by putting the NAPCE into practice to reach our shared goals. At SCG, we continue to solidify our leadership role in sustainable development by advancing ESG and circular economy initiatives in line with NAPCE. Through impactful innovations and partnerships to achieve inclusive green growth, SCG is dedicated to building a greener and more resilient future for Vietnam.”

SCG, whose business units range from CBM (Cement-Building Materials Business) to SCGC (SCG Chemicals) and SCGP (SCG Packaging), is taking the lead in circular business models by investing in new technology, spurring renewable energy, transforming production processes, and developing green products. Importantly, these initiatives align harmoniously with the objectives outlined in NAPCE as well as the corporate’s ESG 4 Plus strategy: "Set Net-Zero – Go Green – Reduce Inequality – Embrace Collaboration, Fairness, Plus Trust through Transparency in all operations.” Thanks to these efforts, all of its member companies are making great strides on the circular economy front.

Cement - Building Materials has adopted a green manufacturing process that adheres to circularity principles. One initiative is utilizing alternative fuels like biomass to replace 30% of fossil fuels and implementing new technology to enhance product durability. The company is installing waste heat recovery systems across factories to supply 30% of its renewable energy needs, which helps reduce carbon emissions by up to 20% compared to ordinary cement. Among them, Prime Group is implementing numerous production innovations, including replacing diesel forklifts with electric ones, utilizing solar energy, and transitioning from coal to biomass fuels. Through these green initiatives, SCG member companies are maximizing their contributions to the NAPCE target of forming a sustainable production chain.

SCGC has embraced a comprehensive approach for its circular business strategies, which closely follows the NAPCE’s principles. SCGC Green Polymer Solutions exemplifies this approach by applying the 4R strategy (reduce, recyclable, recycle, and renewable) to create a closed-loop system, potentially reducing greenhouse gas emissions by approximately 60,000 tons of CO2. Long Son Petrochemicals, a flagship project of SCGC, has applied cutting-edge eco-friendly technologies throughout its operations, such as the enclosure ground flare system, air pollution control system, rooftop solar power system, and electric forklifts to enhance environmental and safety standards. Meanwhile, LSP has maintained the implementation of the “Waste Segregation Project” series to instill circular mindsets and skills in the young generation and community.

SCGP has undertaken research and development to discover novel ways to redesign its products for circularity. One of its sustainable innovations is R1, a mono-material flexible packaging, which is made from a single type of polymer for each layer, making it easier to recycle. Additionally, the company has produced packaging bottles made from high-quality post-consumer recycled resin (PCR), offering a greener alternative to plastic packaging. Meanwhile, its bottle caps are designed to remain attached to bottles to slash plastic waste. The expansion of the circular product portfolio showcases SCGP’s ongoing support to the NAPCE to encourage sustainable consumption.

As industries will go circular under NAPCE, SCG and its member companies are taking drastic actions to break away from the incumbent take-make-waste linear economic system. By partnering with government agencies, private enterprises, and civil society, SCG is leading the changes in this critical arena by building a robust ecosystem that aligns with its Inclusive Green Growth strategy. Such collaboration enhances resource efficiency, drives innovation, and fosters collective environmental responsibility.

Building on these achievements, SCG highlights the vital importance of cross-sector collaboration in driving circular economy initiatives, of which the company is taking the leadership role in calling for action. Moving forward, SCG reaffirms its commitment to advancing Vietnam's NAPCE to promote a circular economy through best practices and cross-sector collaboration, shaping a sustainable future for the environment and society.

For more information about SCG's business operations in Vietnam under the Inclusive Green Growth approach, please visit https://scgvietnam.vn.