On the afternoon of March 29, 2023, Mr. Hoang Duc Vuong – Chairman of VietCycle Joint Stock Company (VCC) participated in the Financial Seminar on Circular Economy – Perspectives for participants in Vietnam organized by the German Organization for International Cooperation (GIZ) and the Central Institute for Economic Management (CIEM).
Overview of the conference
Joining the discussion at the seminar, Mr. Hoang Duc Vuong contributed ideas from the perspective of a policy consultant, a plastic collection and recycling unit, a member representing the whole Vietnam Recycled Plastics Branch:
- The plastic recycling market is unstable and affected by oil prices, so businesses in the industry have short or long-term borrowing needs. However, nowadays, it is difficult to get a loan with high interest, and borrowing under preferential policies is also difficult.
- Most of the enterprises in the industry are small and medium enterprises, so the accessibility capacity is still weak. We look forward to technical support such as having a specialized agency to support or training courses to guide targets, financial requirements, policy knowledge, etc.
- In addition, we hope that the Government will pay attention to our policy recommendations on eco-design, developing a market for recycling, operating a carbon credit exchange in Vietnam, regulations on quality standards for plastic products and communication education on sustainable consumption.
- The last thing is a separate recommendation about the smart credit mechanism: we ask for more support from the parties. When private equity 20%, government guarantee and financing 30% and cheap loans for the remaining 50%, the recycling industry will have significant transformations, contributing to circular economy in the near future.
Mr. Hoang Duc Vuong and other guests participated in the discussion at the seminar
These proposals also received the consensus of many delegates inside and outside the industry. All exchanges contribute to the overall desired financial picture for the Circular Economy:
- Mr. Tran Anh Quy – Head of State Policy Credit Department, Credit Department for Economic Sectors, State Bank of Vietnam said: Currently, the set of criteria for issuing green bonds and green credit for investors, businesses (especially projects that are beneficial for the environment) can simply apply to immediately receive preferential credits from banks that are still being built. Therefore, both banks and businesses face difficulties. State management agencies and supporting projects will help the two sides to have more opportunities to exchange and solve difficulties.
- Ms. Nguyen Thi Kim Phuong, Deputy Director of Corporate Clients Department (BIDV) shared: BIDV has implemented green credit for many green projects in various industries such as agriculture, renewable energy, waste treatment, recycling… However, there are 3 types of problems in terms of cost – efficiency, skills – knowledge within the company and awareness of the business that prevent us from performing this task well.
- Dr. Nguyen Tram Anh, national technical manager, UNIDO Vietnam – The unit that helps IPs convert to an eco-industrial park model shares financial tools that have information on all 64 domestic and international organizations in 16 lending areas.
- Mr. Nguyen Anh Duong, Head of the General Study Group (CIEM) – A policy consulting unit directly for the Government, shared about the proposal of a short-term legal framework to be open to all parties. This can be one of the medium-term motivating factors for businesses to boldly innovate. At the same time, relevant authorities still fix the long-term legal framework.
Photos of delegates and guests attending the conference
Workshop document Publication “Finance for the circular economy – Perspectives for subjects in Vietnam”: Please visit this link to download. The link includes both Vietnamese and original English publications.