Circular Economy Transition in Vietnam: A Comparative Case Study of Drivers and Barriers Between FDI Enterprises and Small and Medium-Sized Enterprises

Ngo Thi Hai An

doi:10.56201/ijebm.vol.12.no4.2026.pg85.95

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Circular Economy Transition in Vietnam: A Comparative Case Study of Drivers and Barriers Between FDI Enterprises and Small and Medium-Sized Enterprises

Ngo Thi Hai An

Abstract

This study aims to systematically identify, analyze, and compare the drivers and barriers in the circular economy transition between two key business sectors in Vietnam: foreign direct investment enterprises and small and medium-sized enterprises . Using a comparative case study design and thematic content analysis of secondary data, including sustainable development reports, business survey reports, and policy documents, the research findings confirm a profound differentiation. For the FDI sector, the main drivers are strategic, stemming from global supply chain pressures and brand building, while the primary barriers are institutional issues and the limited capacity of the domestic support ecosystem. Conversely, the SME sector is driven by pragmatic factors such as cost savings and partner requirements but is constrained by inherent barriers related to capital, technology, and awareness. This finding reveals the risk of a "two-speed" transition trajectory, which undermines the overall sustainability of the economy. The study, therefore, implies that public policies need to be distinctively designed: focusing on improving the institutional environment for FDI enterprises and providing direct resource support for SMEs, while also creating effective linkage mechanisms between these two business sectors.

Keywords

Circular economyFDI enterprisessmall and medium-sized enterprisescomparative analysisVietnam.

References

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Circular Economy Transition in Vietnam: A Comparative Case Study of Drivers and Barriers Between FDI Enterprises and Small and Medium-Sized Enterprises

Abstract

Keywords

References

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