INTRODUCTION
Sustainable development and circular economy
Since the industrial revolution, which started about the middle of the eighteenth century, the world shifted from an agrarian economy to an industrial one (Bhaskar,
The rapid industrialization led to significant economic growth, enhancing consumption, living standards, and population levels However, this progress came at a cost, resulting in the depletion of natural resources and environmental degradation due to pollution Companies were primarily viewed through an economic perspective, prioritizing profit over ecological responsibility.
The economic growth ethic has shaped research and technology, leading shareholders and employees to perceive pollution as an inevitable consequence of the economic system, treating the natural environment as a mere sink for waste However, the finite nature of our environment is being compromised as economic growth continues unchecked This unsustainable development resembles a Ponzi scheme, driven by misguided decisions based on questionable criteria.
A classic Ponzi scheme deceives participants by separating the enjoyment of benefits from the associated costs, similar to how unsustainable development disconnects economic activities from their environmental impacts Nature has a finite capacity to absorb waste and provide resources, and if production remains unsustainable, it will surpass this carrying capacity This leads to environmental degradation and resource depletion, driven by factors such as industrialization, changing consumption patterns, population growth, and the ongoing exploitation of non-renewable resources.
In today's world, the atmosphere, biosphere, and hydrosphere—the three essential sources for human existence—are all facing contamination This widespread pollution, coupled with the depletion of resources, leads to significant global challenges, including detrimental health impacts, loss of biodiversity, an increase in natural disasters, and negative repercussions for economic growth.
Figure 1.1 Humanity’s collective ecological footprint breached the sustainability mark
Recognizing the detrimental impacts of unsustainable growth highlights the urgent need for sustainable development Over the past decade, the concept of resilient development has garnered significant attention from researchers The term "sustainable development," as defined in the Brundtland Report, refers to development that fulfills the needs of the current generation without jeopardizing the ability of future generations to meet their own needs.
In 1987, sustainable development was officially recognized on the global political agenda, yet its implementation was hindered by a lack of clear guidelines and evaluation criteria The situation improved with the United Nations' introduction of the 2030 Agenda for Sustainable Development, prompting countries to commit to significant and transformative changes toward sustainability This agenda outlines 17 Sustainable Development Goals and 169 targets, serving as a crucial blueprint for nations worldwide.
Sustainable development encompasses three key dimensions: economic, social, and environmental Among the various strategies proposed, Circular Economy has emerged as a prominent solution, attracting interest from both scholars and policymakers This approach aligns closely with the Sustainable Development Goals, focusing on achieving economic growth while promoting sustainability.
The ongoing debate between economic development and environmental impact has yet to yield a universally accepted solution However, the concept of a circular economy offers a promising alternative that harmonizes economic growth with environmental sustainability By integrating this innovative economic framework into mainstream practices, we can achieve both robust growth and ecological balance, as highlighted by the Ellen MacArthur Foundation (EMF) in 2013.
Circular economy in developing countries
Even though circular economy can be considered as an effective ‘toolbox’ for achieving a more sustainable growth and consumption patterns (Schroeder, Anggraeni
Research on the circular economy shows a significant imbalance between developed and developing countries, with most leading nations in publications and citations being developed, apart from China The European Union has implemented various policies to promote circular economy practices, alongside measurable data systems to ensure compliance with national strategies Countries like Japan and South Korea are also at the forefront of this transition However, developing nations often struggle to keep pace, which poses a risk to global sustainable development, as the environmental system transcends national borders The circular economy, which balances resource limitations and economic performance, presents a vital strategy for achieving sustainable development and economic growth, making it essential for developing countries to prioritize this approach.
Vietnam has emerged as a rapidly developing country, demonstrating impressive economic growth, even achieving a 2.9 percent GDP increase during the COVID-19 pandemic (Lee, 2021) However, this growth has often overlooked sustainability, leading to significant environmental challenges To ensure more resilient economic development, it is essential for Vietnam to implement systemic changes in its production processes.
5 will be presented as an appropriate case to explore and offer some insight to the transition towards circular economy in agriculture sector in developing nations
The circular economy is crucial for sustainable development, particularly in the agriculture sector of developing countries like Vietnam This approach emphasizes a closed-loop production system where waste and by-products from one process serve as inputs for another, leveraging biotechnology and advancements in physical and chemical processes By optimizing resource use and minimizing waste, this model not only enhances the quality and safety of agricultural products but also protects the environment Consequently, this research will explore the transition to a circular economy specifically within Vietnam's agricultural sector.
This study focuses on agricultural cooperatives in specific regions to explore the implementation of circular economy practices It aims to identify key factors influencing the transition to a circular economy within these cooperatives, providing valuable insights for policymakers to facilitate a broader shift toward sustainable practices.
LITERATURE REVIEW
Circular economy
2.1.1 General concept of circular economy
The environment and the economy are deeply interconnected, yet much of the economic literature often overlooks this relationship (Heshmati, 2017) The introduction of the circular economy concept by Pearce and Turner in 1990 aimed to address this gap, highlighting that the economy operates within a linear system that lacks integrated recycling, implying that neglecting the environment ultimately undermines the economy Boulding (1966) further emphasized this connection by describing the economy and environment as a closed system with a circular relationship, necessitating their coexistence in equilibrium These foundational ideas of a circular economy, however, did not receive significant attention initially.
The rapid economic development that began in the mid-18th century has led to significant global environmental deterioration, prompting the creation of various policies aimed at mitigating the harmful effects of production and consumption This has resulted in the growing popularity of the circular economy concept among scholars and practitioners In the past decade, there has been a notable increase in academic research and policy implementation related to the circular economy (Deus et al., 2017) However, despite the surge in peer-reviewed articles, a consensus on the definition of circular economy remains elusive (Lieder & Rashid, 2016; Yuan et al., 2006).
A circular economy is defined as an economic system that shifts away from the traditional 'end-of-life' model, focusing instead on reducing, reusing, recycling, and recovering materials throughout production, distribution, and consumption processes.
2017, p 224 – 225) With the objective of minimizing carbon emissions, lessening material consumption, the concept focuses on reduce – reuse – recycle principles, h
The 3R framework, which stands for Reduce, Reuse, and Recycle, serves as the foundational principle of circular economy practices As awareness of sustainable innovation has grown, additional R factors have emerged, such as 4R, 6R, and even 9R, developed by various scholars Despite the evolution of these frameworks, their core objective remains the same: to achieve zero waste, enhance waste utility, optimize product reuse, and promote renewable energy usage In the context of this thesis, the circular economy concept is still in its infancy, leading to the adoption of the 3R framework, which is integral to the 2008 Circular Economy Promotion Law of the People's Republic of China.
The evolution of scientific production and policy frameworks surrounding the circular economy highlights its significance and global focus on sustainability This trend is linked to the rising negative impacts of urbanization and industrialization, alongside distinct environmental challenges Among various sustainable development approaches, the circular economy emerges as an urgent and strategic priority because it addresses the critical dilemma of balancing economic growth with environmental conservation at its core A notable illustration of this concept is the inverted-U environmental Kuznets curve depicted in the Green Solow model by Brock and Taylor.
Economic development initially causes environmental harm, but once average income surpasses a certain threshold, improvements in environmental quality can occur (Brock & Taylor, 2010) However, traditional linear economic growth may exacerbate environmental degradation instead of enhancing it (George, Lin & Chen, 2015) The analysis primarily considers pollutants like carbon dioxide, sulfur dioxide, and SPM10 to determine the turning point, yet numerous other environmental indicators, such as waste and resource demand, are also critical (Al Sayed & Sek, 2013) Therefore, countries must address not only current environmental challenges like climate change but also the pressing issue of resource shortages.
The growing demand for sustainable energy and material supplies is crucial for national security, making the circular economy a strategic approach to achieving sustainability in development With the launch of the Sustainable Development Goals (SDGs) as a universal objective, the circular economy has emerged as a vital 'toolbox' that aids in meeting numerous targets outlined in the SDGs (Schroeder, Anggraeni & Weber, 2019).
Figure 2.1 Relationship between circular economy and Sustainable Development Goals targets
2.1.3 Practices, drivers, and barriers of a circular economy transition
Recent global initiatives focused on the circular economy have led to extensive literature examining its practices, drivers, and barriers Govindan & Hasanagic (2018) conducted a systematic review of 60 studies to analyze these influencing factors This article will selectively highlight relevant clusters from their findings to align with the research topic.
To describe how circular economy is adopted at business level, the practices can be classified into two main cluster which are:
• Internal practices: This cluster includes cleaner and eco-efficiency production, awareness of circular economy and technologies that support the circularity practices
• External practices: This cluster refers to the cooperation with other stakeholders to implement the 3R
Table 2.1 Literature review of circular economy practices
Cleaner and eco- efficiency production
Integrating 3R practices in the production for a more eco-efficiency
Zhijun and Nailing (2007), Ying and Li-jun
(2012), Ghisellini et al (2016), Zhu et al (2010), Reuter (2016)
Su et al (2013), Xin and Yanfu
Delivering more awareness about circular economy and its environmental benefits for public and workforce
Zhijun and Nailing (2007), Su et al (2013), Reuter (2016), Xinan and Yanfu
Technologies that support the circularity practices
Equipping technologies and infrastructure that are required for circular economy practices
Cooperation with other stakeholders to implement 3R
Cooperating with other businesses to create a sharing economy and therefore implementing reuse and recycle practices
(Source Govindan & Hasanagic, 2018, edited and supplemented by the author)
Many authors have explored the factors affecting a business's shift toward a circular economy, focusing on both drivers and barriers The drivers of this transition are categorized into three primary groups.
• Economic incentives: This group includes economic growth by adopting the circular economy and consumers’ preference or pressure
• Policy and management: This group refers to the governmental policies and incentives that promote the circularity concept
• Environmental benefits: This group refers to environmental issues that make it necessary to adopt circular economy
Table 2.2 Literature review of circular economy drivers
Economic growth by implementing circular economy
Implement circular economy can reduce cost and increase profit for businesses
There is pressure from consumers since they acknowledge the environmental and sustainable issues
Governmental policies and incentives that
Government have made laws to promote cleaner
11 promote the circularity concept production and consumption
Environmental issues making it necessary to adopt circular economy
Productivity has been quickly increased but it resulted in serious negative externalities for the environment, leading to climate change and other problems
(2016), Clark et al (2016), Hazen et al
(2017), Jun and Xiang (2011), Xuan, Baotong, and Hua (2011) (Source Govindan & Hasanagic, 2018, edited and supplemented by the author)
The role of non-tariff barriers in promoting a circular economy remains largely unexplored However, numerous case studies indicate that the European Union's non-tariff barriers can facilitate sustainable development in their trading partners, as highlighted by UNIDO.
Second, the barriers can be placed in four clusters as follows:
• Policy and management: This cluster refers to the lack of standard system or current laws and regulations are not supporting circular economy
• Interest in circular economy: This cluster includes the weak economic incentives and the lack of awareness and information about this concept
• Technological issues: This cluster refers to the technological limitations and difficulties when applying the circular economy
• Management readiness: This cluster includes the poor leadership and management toward circular economy and the lack of successful business models and framework to follow
Table 2.3 Literature review of circular economy drivers
Lack of standard system or current laws and regulations are not supporting circular economy
Lack of standard system to assess performance
Existing laws and regulations are not strong or inefficiently implemented
Weak economic incentives for business to shift towards circular economy
Su et al (2013), Geng et al
Lack of awareness and information
Lack of awareness, information and sense of urgency for circular economy
Su et al (2013), Liu et al (2009)
The limitation of technological capacity makes it challenging to implement 3R practices
Poor leadership and lack of management’s commitment and support for circular economy implementation
Su et al (2013), Liu and Bai
Lack of successful business models and framework
Lack of successful and standard model for circular economy, making it difficult to transform
(Source Govindan & Hasanagic, 2018, edited and supplemented by the author)
The circular economy has emerged as a promising strategy, gaining support from various governments and organizations (Haas et al., 2015, p 765) To maximize its impact, it is essential to integrate the circular economy into mainstream practices on a global scale.
Circular economy: why it matters for developing countries
One of the most essential goals of every nation is to achieve economic prosperity
In today's globalized world, the challenge of balancing economic growth and resource consumption is particularly pressing for developing countries These nations often emulate the development trajectories of their more affluent counterparts, as suggested by modernization theory, which posits that all countries progress through five similar stages of growth (Rostow, 1971) Consequently, less developed nations typically adopt the industrialized, capitalist model of Western countries to achieve economic milestones, including the crucial "take-off" stage and ultimately reach a phase of "high mass consumption" (Rostow).
The traditional unsustainable development model is no longer viable for developing countries, which face limited natural resources that cannot be exploited indefinitely These countries can be categorized into three groups: fuel exporters, non-fuel commodity exporters, and manufacturing exporters Consequently, their economic growth tends to be carbon and resource-intensive, leading to considerable environmental harm For instance, while ASEAN member nations have experienced significant growth in recent years, this progress has come at a considerable environmental cost, highlighting the need for more sustainable development practices.
The traditional linear model of 'take-make-use-dispose' leads to a significant migration of resources from mineral extraction to landfills after production and consumption Adhering to this conventional approach increases the use of natural resources and emissions, ultimately exceeding the Earth's capacity to meet human demand This unsustainable practice poses serious environmental challenges.
14 externalities towards the environment have already occurred and directly affect humanity in various aspects, including economic, health and national securities
Developing countries are heavily reliant on natural resource exploitation and are disproportionately affected by environmental degradation (Hynes & Wang, 2012; Samson et al., 2011) In response to a global shift towards sustainable growth and consumption patterns, these nations must prioritize conservation and sustainability while striving for inclusive economic growth to alleviate poverty and enhance their position in the global market The circular economy concept has emerged as a viable green growth strategy, offering an alternative framework to help developing countries navigate these challenges effectively.
Adopting a circular economy offers substantial benefits, including cost reductions, job creation, innovation, and improved resource efficiency in both developed and developing nations Research by the McKinsey Global Institute highlights that developing countries have an 85% chance of enhancing resource productivity through a circularity transition As a crucial strategy for sustainable development, it is essential for developing countries to accelerate their transition to a circular economy.
2.2.2 The skewness in the global shift towards circular economy
The circular economy is crucial for sustainable development, necessitating the involvement of all stakeholders Despite its importance, there is a noticeable imbalance in both academic research and the practical application of circular economy principles Literature on this topic has notably increased in Europe and developed Asian countries like Japan and South Korea Additionally, China, as the world's second-largest economy, is emerging as a key player in this research area, ranking highly in terms of publication volume and citation impact.
15 et al., 2018) Yet very few developing countries are included in the existing analyses of this circular economy concept (Preston et al., 2019, p.12)
Developed countries are at the forefront of implementing policies aimed at minimizing environmental impacts and promoting circular economy practices Germany, a leader in this transition since 1996, has been pivotal in adopting circular economy principles, setting an example for others to follow.
The 'Closed Substance Cycle and Waste Management Act' establishes a framework for closed-loop waste management, exemplified by Japan's comprehensive legal framework that sets quantitative recycling targets (METI, 2004; Morioka et al., 2005) Significant initiatives from the European Commission (2012) and Sweden's incentive programs further facilitate the transition to a circular economy China has made substantial progress with its 'Law for the Promotion of the Circular Economy' (2008), the Circular Economy Development Strategies Action Plan (2013), and the 13th Five-Year Plan (2016-2020), demonstrating a large-scale commitment to this shift In contrast, many developing countries, including those in ASEAN, have only recently introduced circular economy policies, which often focus narrowly on aspects like waste management and cleaner production, lacking the comprehensive approach seen in more advanced economies (Visvanathan & Anbumozhi, 2018).
The gap in the transition to a circular economy in developing countries, particularly the least developed ones, is attributed to economic development stages and limited access to knowledge and technologies To achieve true sustainability, which encompasses both economic and environmental pillars, inclusiveness must be prioritized Therefore, it is essential to address the lack of literature on the circular economy transition in these regions Vietnam, characterized by rapid economic growth and significant environmental challenges, serves as an ideal case study for exploring this topic.
Based on that, appropriate policies recommendation can be developed and support the global sustainability transformation.
Agriculture sector and the circular agriculture
2.3.1 Background context of circular agriculture
Agriculture is crucial for every nation's economy, ensuring food security and stability across social, political, and economic spheres In developing countries, it serves as a primary source of employment, livelihood, and revenue, often regarded as the backbone of their economies Despite efforts to expand industrial and service sectors, agriculture remains vital According to Aznar-Sánchez et al (2020), global agricultural production must increase by 70% to meet the food demand by 2050 Recent innovations have transformed agriculture from a backward sector, enhancing both productivity and the quality of agricultural products, which are now enjoyed for their value rather than merely consumed Thus, agriculture is poised for robust future development.
For centuries, farmers have utilized by-products and waste from cultivation to create input materials for other production processes, establishing agriculture as a pioneer in the circular economy However, the recent surge in population growth has positioned agriculture as a significant contributor to various environmental challenges Additionally, the sector has become increasingly resource-intensive, with global crop cultivation representing the largest share of water and energy consumption.
Agriculture significantly impacts the environment, accounting for over 90% of related land and water consequences and contributing notably to human toxicity This presents a challenge in reconciling the need for increased agricultural production with the sustainable preservation of natural resources In this regard, adopting a circular economy offers a promising strategy for conserving essential resources and reducing negative environmental effects.
The implementation of a circular economy is essential across all sectors, but it is particularly crucial in the agricultural sector of developing countries, as it can significantly enhance production processes and overall performance (Kuisma and Kahiluoto, 2017; Stegmann et al., 2020).
Circular agriculture is an innovative model aimed at shaping the future of farming, emphasizing the principle of producing more with fewer resources This approach prioritizes minimal external inputs, nutrient recycling, and the reduction of environmental waste and emissions Key activities in circular agriculture include utilizing waste streams, enhancing soil health, increasing organic matter, ensuring animal welfare, and promoting healthy crops through genetic insights and agrobiodiversity, while also mitigating the natural degradation associated with agricultural by-products (Thigssen, 2018) Despite its potential benefits, circular agriculture is predominantly adopted in developed countries, with limited awareness and implementation in developing nations like Vietnam.
Agriculture is a crucial economic sector in Vietnam, employing approximately 14.3 million people, making it the largest industry in terms of employment (Ngoc, 2022) The Vietnamese culture places significant emphasis on agriculture, viewing it as the foundation of society It not only stabilizes the lives of the rural population but also underpins socio-economic development and political stability Rural areas represent 63% of the population, 66% of households, and 68% of the workforce (GSO, 2019) Despite the challenges posed by the Covid-19 pandemic in 2020, Vietnam's agricultural sector continued to thrive, ensuring food security and increasing its role in supporting food security for other nations Additionally, the export of high-value agricultural products from Vietnam is on the rise However, this growth brings greater challenges for sustainable development in the country.
The concept of circularity in agricultural practices is not new to Vietnam, as historical production models resembling the circular economy have long been in place, paving the way for the development of a closed-loop system in agriculture.
The VAC model, which stands for Garden – Pond – Barn, has been a foundational aspect of circular agriculture in Vietnam since the 1980s, integrating cultivation, aquaculture, and livestock raising to minimize waste and align with nature This model exemplifies the principles of a circular economy and has evolved into various adaptations, such as VACB (adding biogas), VACR (incorporating forest elements in mountainous areas), and VAH (utilizing lakes in central provinces) These models not only enhance economic efficiency but also significantly reduce greenhouse gas emissions by managing agricultural waste, recycling by-products as fertilizers, and producing renewable energy Originally practiced on a small scale, the VAC model has expanded nationwide, now embraced by households, farms, cooperatives, and large enterprises, showcasing its versatility and sustainability in modern agriculture.
The "Rice - Shrimp" and "Rice - Fish" models have been effectively utilized in Vietnam since the early 2000s, with the former in the Mekong Delta and the latter in the inundated provinces of the Red River Delta These integrated aquaculture systems allow shrimp and fish to thrive in rice fields, where their waste and leftover feed naturally fertilize the rice plants Conversely, the rice stubble and spilled grains provide nourishment for the aquatic species after harvest This sustainable rotation minimizes the need for pesticides and antibiotics, promoting a healthier ecosystem.
The innovative "Fragrant Rice – Clean Shrimp" and "Fragrant Rice – Clean Fish" models not only protect the environment but also promote the production of clean products, reduce disease prevalence, and enhance economic benefits for farmers These models utilize waste from shrimp and fish farming as fertilizer for fragrant rice cultivation, while mushrooms are employed to manage aphids in organic rice farming Additionally, linking shrimp farming with processing factories allows for the conversion of shrimp shells into chitin, a substance that extends the shelf life of vegetables, fruits, and meat, effectively turning waste into valuable by-products in aquaculture.
The 4F Biosafety Breeding Model, introduced by the Que Lam Group in 2020, represents a pioneering circular economy approach in agriculture This innovative model encompasses a closed production system that integrates organic pig farming, the creation of bio-products, organic animal feed, and microbiological fertilizers By processing farm waste into microbiological organic fertilizers, it establishes a sustainable cycle from animal husbandry to crop cultivation The adoption of the 4F model not only enhances economic efficiency but also significantly reduces adverse effects on the ecosystem.
Vinamilk JSC has implemented the "Green Circulation" Model for its dairy farms, focusing on environmentally friendly practices This innovative breeding model ensures that the dairy farm system adheres to Global GAP standards, promoting sustainable agriculture and responsible farming techniques.
Not only in production practices, the government policy of developing circular economy, including agriculture sector, also was introduced at an early stage Resolution
On June 25th, 1998, the Political Bureau issued No 36/CT-TW, emphasizing the importance of strengthening environmental protection amidst industrialization and modernization This initiative included the implementation of tax and credit policies to promote the adoption of clean technologies Furthering these efforts, the Politburo's Resolution No 41-NQ/TW, released on November 15th, 2004, specifically encouraged the recycling and utilization of recycled products Additionally, the socio-economic development strategy for 2011-2020, established during the XI Party Congress in 2011, underscores the commitment to sustainable environmental practices.
The Central Executive Committee's resolution No 24/NQ-TW, issued on June 3, 2013, reinforces the importance of proactive measures in addressing climate change, managing natural resources, and protecting the environment, further detailing the policy's objectives.
(Source Nguyen & Nguyen, 2019, translated and edited by the author)
Figure 2.2 Laws and regulations related to circular economy in Vietnam
Vietnam has implemented several policies based on the Party's guidelines, including the Environment Protection Strategy to 2020, Vision to 2030, Green Growth Strategy, Decree 38/2015/ND-CP, Decision 16/2015/QD-Ttg, and the National Strategy on Integrated Management of Solid Waste 2018, reflecting a strong commitment to a circular economy, particularly in the agriculture sector The revised Law on Protection of the Environment in 2020 defines the circular economy for the first time as an economic model aimed at minimizing raw material exploitation, extending product life cycles, reducing waste generation, and mitigating environmental impacts This law includes specific provisions for promoting a circular economy, further supported by the Vietnam National Action Plan on Sustainable Consumption and Production (SCP) for the upcoming years.
RESEARCH FRAMEWORK
Research objective and questions
This thesis aims to explore the current understanding and implementation of circular economy practices within agricultural cooperatives in Vietnam It will address key questions related to these practices to gain insights into their effectiveness and adoption in the sector.
RQ1 How do agricultural cooperatives in Red River Delta and Northeast area of Vietnam apply practices towards circular economy?
1-1 How do the agricultural cooperatives perceive circular economy?
1-2 How are circular practices currently implemented in the agriculture cooperatives?
This paper aims to investigate the promotion of a circular economy in Vietnam by exploring the key motivations and barriers to this transition To achieve this, several questions will be addressed.
RQ2: What are important drivers and barriers in the transition towards circular economy for agriculture cooperatives?
2-1 What are major drivers facilitating the application of a circular practices or business models in agricultural cooperatives?
2-2 What are the barriers that agricultural cooperatives can face in the transition towards the circularity concept?
Last, to predict cooperatives’ intention to shift towards a circular agriculture, the influence of various factors on intention is tested:
RQ3: Why does the intention to shift towards circular economy vary between cooperatives? h
Framework
The conceptual framework for this study is shown in figure 4 There are four concepts that influence the cooperatives’ intention to shift towards circular economy
Figure 3.1 Conceptual framework compiled by the author
Understanding behavioral intention is essential for investigating the implementation of a circular economy in agricultural cooperatives, as it significantly influences individual behavior (Ajzen & Fishbein, 1980) Given that the circular economy is a relatively new concept, awareness of it plays a critical role in shaping intentions to take action Research indicates that awareness impacts attitudes, beliefs, and behavioral intentions in environmental and green growth contexts (Tung & Ho, 2021) Consequently, awareness and intention are closely linked; heightened awareness not only enhances intention but also enables individuals to better assess the outcomes of their actions, thereby influencing their attitudes as well.
Furthermore, according to theory of planned behavior, Ajzen (1991) argued that attitude towards particular behavior can significantly impact a person’s intention of h
Attitude plays a crucial role in determining individuals' evaluations of the outcomes of their behaviors, as highlighted by Ajzen (1991) When individuals perceive a behavior as likely to yield positive and desirable results, they are more inclined to adopt a favorable attitude towards it, which increases the likelihood of engaging in that behavior Consequently, the attitude of cooperatives towards the circular economy is significantly linked to their intention to transition towards sustainable practices.
Lastly, not only based on attitude but intention is also affected by individual's beliefs about the factors that may facilitate or hinder performance of the behavior (Ajzen,
The study examines how cooperatives evaluate the impact of drivers and barriers on their behavioral intentions, positing that these factors represent perceived control over behavior By treating drivers and barriers as independent variables, the research goes beyond mere awareness, focusing on the significance of these factors in influencing cooperatives' transition processes Higher perceived importance of these elements correlates with a stronger influence on the intentions of cooperatives.
Data will be collected and analyzed using a framework described in Table 4 below
The article is structured into six key sections that align with the conceptual framework and research questions, focusing on cooperatives' awareness of the circular economy, their attitudes towards it, the drivers and barriers influencing their transition, their intentions to adopt circular practices, and an overview of their current circular initiatives.
Table 3.1 Analytical framework created by the author
Level of awareness Understanding about 3R practices
Evaluation of outcome Evaluation of environmental benefit Evaluation of impact on sustainable development Acceptance of responsibility
Policies and regulations Environmental benefit Technology
Interest in circular economy Policies and regulations Management readiness
5 Intention to apply circular economy
6 Circular economy practices in production
The study aimed to assess agricultural cooperatives' awareness of the circular economy by exploring two key layers of understanding First, it evaluated their general familiarity with the concept, ranging from no knowledge to a precise understanding Subsequently, it delved into their comprehension of the core principles of the circular economy, specifically the 3R framework Additionally, the research examined the cooperatives' attitudes towards the circular economy by presenting four positive beliefs related to its outcomes for them to rate A higher level of agreement indicated a more favorable perception of the circular economy among the cooperatives.
This article explores various factors influencing cooperatives' perceptions of transitioning to a circular economy, focusing on circular practices in production and the associated drivers and barriers These factors will be analyzed through specific clusters derived from prior research on the circular economy (Govindan & Hasanagic, 2018), as referenced in the literature review tables Following the literature analysis, the study will identify key elements of current Vietnamese practices in circular agriculture, highlighting both the drivers and barriers that impact their shift towards a circular economy, primarily assessed through a Likert scale questionnaire.
The intention to implement a transition towards a circular business model is assessed through two levels of willingness The first level indicates the readiness to shift from existing business practices, while the second level reflects a deeper commitment, showcasing the cooperatives' readiness to invest in this transformative process.
Lastly, to investigate the variation in intention to shift towards circular economy between cooperatives, the study tests the following relations:
• What is the relationship between cooperatives’ awareness of circular economy and their intention to implement this economic model?
• What is the relationship between cooperatives’ attitude towards circular economy and their intention to implement this economic model?
• What is the relationship between cooperatives’ assessment of key drivers and their intention to shift towards circular economy?
• What is the relationship between cooperatives’ assessment of key barriers and their intention to shift towards circular economy? h
METHODOLOGY
Selection of the case study
As of late 2019, the nation boasted 13,541 agricultural cooperatives, with 4,045 formed in the preceding six years The highest concentration of these cooperatives is found in the Red River Delta (30.5%), followed by the North Central region (20.8%), Northeast (17.5%), and Mekong River Delta (11.6%).
This research explores the factors influencing the circular economy within Vietnam's agricultural sector, focusing on selected agricultural cooperatives These cooperatives, which encompass activities in agriculture, aquaculture, forestry, and salt production, enable small-scale farmers to collaborate, enhancing their production capacity and efficiency while adopting modern technologies and business models As the cooperative sector rapidly evolves, it is poised to play a pivotal role in advancing the circular economy in Vietnam's agriculture, presenting significant advantages for its members.
This study concentrates on the Red River Delta and Northeast regions of Vietnam, which collectively house approximately 50% of the country's cooperatives, according to the Vietnam Cooperative Alliance (VCA, 2020).
Cooperatives’ manager surveys
The research focuses on agricultural cooperatives in Vietnam, where the concept of a circular economy is relatively novel Currently, supporting policies and regulations for this transition are not widely enforced, leading to spontaneous initiatives by businesses to adopt circular economy practices.
To achieve a circular economy in the agricultural sector, the role of cooperatives, which unite smallholder farmers, is crucial The perspectives and assessments of managers within these cooperatives play a vital role in facilitating this transition Consequently, this study aims to gather and analyze data from the directors of agricultural cooperatives in the targeted region.
To validate the research framework, surveys were conducted among agricultural cooperatives in selected regions of Vietnam, focusing on the implementation of circular economy practices in agricultural production The study aims to identify key drivers and barriers to this transition, necessitating a broad distribution of questionnaires to gather insights from a diverse range of participants Utilizing random sampling, the surveys were disseminated through the Vietnam Cooperative Alliance to established cooperatives in the Red River Delta and Northeast regions A total of 98 responses were collected from cooperatives across seven provinces: Vinh Phuc, Thai Nguyen, Thai Binh, Ha Noi, Lao Cai, Hai Duong, and Nam Dinh Due to the Covid-19 pandemic, the surveys were administered both online via Google Forms and offline, using Vietnamese as the survey language Table 4.1 presents the demographics of the participating cooperatives.
Providing agricultural services i.e., irrigation, plant protection, land preparation…
The data collected from the surveyed cooperatives was quantitatively coded and processed Initially, the characteristics of these cooperatives were analyzed based on their field of operation, location, year of establishment, and primary market Subsequently, the responses were examined using Stata software to derive statistical results, including frequency, mean, and standard deviation.
This study employs SmartPLS's PLS-SEM algorithm to analyze the relationships between variables in the conceptual framework illustrated in Figure 3.1 By utilizing Partial Least Square SEM (PLS-SEM) instead of Covariance-Based SEM (CB-SEM), the research aligns with the exploratory nature of the study, which lacks a well-developed theoretical background (Chin et al., 2003) PLS-SEM is a non-parametric method that does not require normally distributed data or large sample sizes, making it a suitable choice for this analysis (Qureshi & Compeau, 2009) Calculations are conducted using SmartPLS 4 software.
The low response rate from the survey presents challenges in generalizing the perspectives of Vietnamese agricultural cooperatives This limitation primarily arises from the difficulty of reaching these cooperatives through online surveys Additionally, constraints such as insufficient funding, limited research time, and the effects of the Covid-19 pandemic influenced the decision to use this method despite its drawbacks.
FINDINGS AND ANALYSES
Cooperatives’ awareness of circular economy
In 2022, the Vietnamese central government officially recognized the circular economy as a vital model for economic recovery and achieving Sustainable Development Goals (SDGs) This marks a significant transition for Vietnam, moving from promoting the concept to implementing it on a larger scale The success of this transition relies heavily on the understanding and commitment of various stakeholders, particularly cooperatives, to effectively adopt and enforce the principles of the circular economy.
The term circular economy has become increasingly widespread in many aspects
In recent years, the concept of a circular economy has gained significant attention in mass media, government directives, and various projects at all levels However, agriculture cooperatives still struggle to fully grasp its meaning and implications.
Table 5.1 Agriculture cooperatives’ level of awareness
Referring Table 5.1 the answers is quite diversified Out of 98 responses, only 3.06 percent (n=3) know exactly what circular economy is, which is the highest level of h
A recent survey revealed that while 64.29% of agricultural cooperatives do not fully understand the concept of the circular economy, over 75% have heard of it Specifically, 32.65% possess some understanding, and 40.82% acknowledge familiarity with the term but cannot articulate its meaning Furthermore, 23.47% of cooperatives reported never having encountered the concept Despite the lack of comprehensive knowledge, the widespread recognition of the circular economy indicates the effectiveness of Vietnam's recent awareness-raising efforts on this important topic.
To assess cooperatives' understanding of the circular economy, it's essential to explore the concept of 3R—Reduce, Reuse, and Recycle This foundational principle is pivotal in distinguishing the circular economy from the traditional linear model of "take – make – dispose." The 3R framework encourages individuals and businesses to embrace circularity, making it interchangeable with the broader concept of the circular economy (Manickam & Duraisamy, 2019) Thus, a cooperative's recognition of the 3R principles indicates its grasp of the core tenets of the circular economy.
Table 5.2 Agriculture cooperatives explanation of 3R in circular economy
In a survey of 98 cooperatives regarding the 3R principles in the circular economy, 57 cooperatives accurately identified them as "Reduce, Reuse, Recycle." Notably, the second most common response was "Don't know," which accounted for 29.59 percent of the participants.
The responses "Rethink, Repair, Recycle" and "Reuse, Refurbish, Redesign" accounted for 5.1% (n=5) and 7.14% (n=7), respectively The correct understanding of the 3R principles was the most prevalent, representing over 58% (nW) This indicates that, despite a limited understanding of the circular economy among agricultural cooperatives, there is still an acknowledgment of its fundamental concepts.
Table 5.3 Distribution of level of awareness and understanding of 3R concept
Table 5.3 reveals that agricultural cooperatives indicating "Don't know" primarily consist of those unfamiliar with the term "circular economy." However, awareness of the "Reduce, Reuse, Recycle" (3R) concept varies, with some cooperatives having heard of it but lacking understanding, while others have a clear grasp of its meaning This discrepancy may stem from government propaganda initiatives promoting the 3R model since 2007, which included waste segregation programs supported by Japanese ODA funding These campaigns have significantly influenced public perception of waste management, making the 3R concept widely recognized through various media channels Consequently, even individuals with limited knowledge of the circular economy are familiar with the 3R terminology Notably, the 3R keywords prominently feature in discussions about the circular economy, exemplified by Decision 687/QD-TTg 2022, which outlines the "Develop Circular Economy in Vietnam" scheme.
The economic model announced by the Prime Minister outlines specific goals for circular economy development by 2025, focusing on the key principles of reduce, reuse, and recycle.
By 2025, the goal is to reuse, recycle, and treat 85% of generated plastic waste, while also aiming to cut plastic waste in oceans by 50% compared to previous levels Efforts will focus on gradually decreasing the production and consumption of non-degradable plastic bags and disposable products in everyday life Additionally, there will be a significant enhancement in the recycling capacity of organic waste across both urban and rural areas.
By 2030, it is projected that 50% of urban domestic solid waste will be collected and treated using circular economy models Additionally, the recycling rates are expected to reach 100% for urban organic waste and 70% for rural organic waste.
Popular agricultural TV shows like "Green Agriculture" and "Road to Farm" highlight recycling and reuse practices within the context of the circular economy This emphasis may contribute to over 57 percent of cooperatives being familiar with the core idea of the circular economy, particularly the 3R concept, despite only having heard the term Among those with a basic understanding of this economic model, the accuracy rate regarding the 3R concept reaches an impressive 97 percent.
In a survey regarding sources of knowledge on the circular economy, respondents indicated multiple channels, with television being the most popular, chosen 59 times The Internet and government policy documents followed, with 29 and 25 selections, respectively Television effectively reaches a wide audience across Vietnam, particularly through national channels like VTV1 and VTV2, which have highlighted successful circular economy case studies since early 2021 These programs air immediately after the official news, ensuring a large viewership, and are specifically tailored to the agricultural sector, attracting individuals and businesses involved in this field.
The internet has emerged as the second most popular source of information, with 29 respondents citing it for news and knowledge about the circular economy Its reach has expanded globally, encompassing both urban and rural areas In Vietnam, the internet penetration rate exceeded 70 percent of the population in 2022, enabling individuals of all ages and locations to engage in essential activities like searching for information, reading news, and accessing various online resources.
Government policy and propaganda documents
Television Newspaper Internet Case studies from other cooperatives I've never heard of circular economy
With the rise of 38 social networking sites, farmers now have access to a wealth of knowledge beyond traditional practices and family customs; they can simply "Google it." The internet empowers farmers to obtain the latest information and case studies from cooperatives worldwide As the number of young agricultural cooperatives, established after 2000, continues to grow, leveraging online resources for knowledge acquisition becomes increasingly vital While television effectively provides basic information and introduces new agricultural models to a broad audience, the ability to actively search for specific topics online fosters a deeper understanding of these concepts.
In Vietnam, government policy and propaganda documents play a crucial role, similar to the internet, in shaping public understanding The concept of "circular agriculture" is relatively new; however, the emphasis on developing a circular economy, including in agriculture, has been present in the Party's policies for many years Notably, Directive No 36/CT-TW, issued in June, highlights this commitment to sustainable agricultural practices.
Cooperatives’ attitude towards circular economy
Following an explanation of the circular economy, participating cooperatives will assess their beliefs about the concept using a Likert-scale survey This survey includes four key statements evaluating the profitability of the circular economy, its impact on sustainable development and environmental protection, and the ethical responsibilities of businesses The results will reveal whether cooperatives view the outcomes of the circular economy as desirable, its benefits to the environment and sustainable development, and their acceptance of corporate responsibility.
Table 5.4 Descriptive statistics for salient beliefs of cooperatives (N)
Description Min Max Mean Std
BeProfit Circular economy helps cooperatives gain more profit
BeEnvi Circular economy minimizes negative impacts on environment
BeSD Circular economy is important to gain sustainable development
BeEthic Circular economy is business ethic
Table 5.5 Cooperatives’ belief of circular economy’s outcome
The level of confidence in profit enhancement significantly influences cooperatives' perceptions of the circular economy's outcomes Approximately 92% of cooperatives express support for the notion that the circular economy can yield increased profits, with a mean evaluation score of 2.18 out of 3 This positive assessment suggests a greater willingness among cooperatives to adopt circular practices Both those with prior experience in implementing circular strategies and those yet to fully embrace this model recognize its benefits Experienced cooperatives report that the circular economy has led to reduced raw material costs and improved production efficiency through recycling Numerous case studies on transitioning to circular agriculture consistently highlight profit increases, often achieved by lowering fertilizer and animal feed expenses For instance, a farm in Ha Nam province that raises both dairy and beef cattle has shared insights on these advantages.
Our local area excels in a unique farming model that integrates cattle raising with the cultivation of fruit trees and medicinal plants By efficiently utilizing agricultural by-products and waste, we generate substantial income, reaching hundreds of millions of Dong annually We convert waste from dairy cows and post-harvest stalks into fertilizer, which is used to grow crops like basil, corn, and elephant grass Upon harvesting, these crops are processed using grinding, crushing, and pressing machines to maximize their value.
41 the main fodder for the cows With this, we save about 40 to 50 percent of the fertilizer cost every year [1] 1
Not only reduce cost, integrating circularity in production will help cooperatives to produce organic and safe products, thereby increasing the price of products in market
Table 5.6 Cooperatives’ belief of circular economy benefits environment and sustainable development
Cooperatives recognize the significance of the circular economy in promoting sustainable development, as evidenced by their strong agreement with the statement that "Circular economy is important to gain sustainable development."
Implementing a circular economy significantly reduces environmental harm, with approximately 98% of individuals supporting this concept, compared to 92% who prioritize profit This strong endorsement stems from the circular economy's association with sustainable development and environmental protection, particularly in agriculture, which is heavily reliant on ecological balance As issues like climate change, resource depletion, and waste pollution intensify, the need for sustainable practices becomes increasingly urgent.
The article by Phuong (2022) discusses the expansion of the circular agricultural production model, emphasizing its significance in promoting sustainable farming practices It highlights the benefits of this model in reducing waste, enhancing resource efficiency, and improving overall agricultural productivity By adopting circular principles, farmers can contribute to environmental conservation while ensuring economic viability The piece advocates for broader implementation of this innovative approach to agriculture, aiming to foster a more resilient and sustainable food system.
The global community, particularly Vietnam, faces 42 urgent problems that require immediate attention Recognizing the significant impact of the circular economy on environmental sustainability is crucial for cooperatives By viewing the circular economy as a viable solution to societal challenges, these organizations can actively contribute to addressing these issues This awareness may encourage them to adopt more pro-ecological practices, ultimately fostering a more sustainable future.
The data indicates that the concept of a circular economy is closely linked to societal benefits, and cooperatives recognize this connection However, their actions depend on their acceptance of responsibility, as noted by Schwartz (1977) This responsibility is gauged through respondents' agreement with the statement, "It is business ethic to put circular economy into action." While approximately 80 percent of respondents believe that transitioning to a circular economy is an ethical obligation for businesses, this figure remains lower than for other ethical statements.
Table 5.7 Cooperatives’ belief of acceptance of responsibility
In Vietnam, there is a proverb called “Cha chung không ai khóc”, which means
The phrase "Everybody’s business is nobody’s business" highlights a common attitude in community-oriented environments, such as Asian agriculture, where few individuals take responsibility for environmental issues While there is an awareness of the benefits of transitioning to a circular economy for sustainable development, this understanding often lacks the motivation needed for action To enhance motivation, it is crucial to connect the concept of a circular economy with personal values, such as ethical standards or profit enhancement However, demonstrating the potential for increased profits may require time and is often dependent on individual circumstances.
While there is consensus on the profitability of the circular economy, many may not yet be prepared to take action Framing the circular economy as an essential ethical standard can drive more effective engagement In October 2022, the Vietnam Chamber of Commerce and Industry hosted a scientific conference focused on "Business Ethics and Vietnamese Business Culture in the New Context," where six ethical guidelines for business leaders were presented, highlighting the development of the circular economy as a key ethical responsibility for entrepreneurs.
This study aims to identify circular practices currently implemented in agricultural cooperatives, categorizing them into two main clusters: internal practices and external practices Internal practices encompass cleaner and eco-efficient production, awareness of the circular economy, and technologies that promote circularity Meanwhile, external practices focus on collaboration with other stakeholders.
Technologies that support circularity practices
The circular economy leverages scientific and technological advancements for effective implementation, utilizing various applied technologies Key innovations include net house farming, substrate cultivation, and Israel's automated fertilizer and drip irrigation systems Additionally, it incorporates temperature and moisture sensors, along with biological and physicochemical technologies like biogas tunnels and manure filter machines.
To assess cooperatives’ availability of technologies and infrastructure that are required for circular economy practices, respondents were asked to answer question
A recent study revealed that only 13.27% of 98 cooperatives utilize modern technological equipment and facilities that promote reduce, reuse, and recycle practices This limited adoption is largely due to two factors: cooperatives that embrace circular economy principles are more likely to implement such technologies, and the high costs associated with acquiring and installing these modern solutions remain a significant barrier for many organizations.
44 farmers For example, the installation cost of a drip irrigation system is about 30 million VND per hectare, 40 million to 100 million VND for manure filter machine
Table 5.8 Availability of modern technology supporting circular practices
While 43.88 percent (nC) of respondents answer that they do not use modern equipment and facilities that support circular practices, about the same proportion suggest that they are planning to have it This shows that the number of cooperatives that have planned to apply modern technology to implement circular practices is considerable Having timely support such as capital support, technology transfer, cooperation program will help promote this plan into reality faster
Training activities on circular economy
Raising awareness about the circular economy and its environmental advantages is essential for a successful transition, particularly in Vietnam's agricultural sector Recent forums organized by government bodies like the Department of Economic Cooperation and Rural Development and the Ministry of Agriculture, along with support from international organizations such as GIZ and DGRV, have focused on this emerging trend These training sessions primarily target cooperative directors, equipping them with knowledge about the circular economy, its significance, relevant government policies, and successful case studies The success of cooperatives in adopting a circular economy model heavily relies on the training provided to their managers Additionally, it is crucial to extend training to staff and cooperative members to effectively implement circular practices at all levels.
Cooperatives’ drivers and barriers for the transition
Cooperatives are increasingly motivated to adopt closed-loop production models due to various drivers and barriers they face during the transition According to Ajzen (1991), an individual's perception plays a crucial role in shaping their decisions, highlighting the importance of understanding these influences in the shift towards sustainable practices.
51 or her own abilities, which can be understood as beliefs about their own abilities, influences their intention to perform a behaviour
5.4.1 Drivers for the transition towards circular economy
The circular economy is an emerging global economic model that Vietnam is adopting as a key development strategy for the future This approach is essential in response to the degradation of resources, environmental pollution, and the challenges posed by climate change Importantly, transitioning to a circular economy does not require cooperatives to sacrifice their interests; instead, it offers numerous benefits, encouraging them to embrace circular agriculture Various driving factors and stakeholders play a crucial role in facilitating this transition This study will explore how cooperatives perceive the significance of these existing drivers in their shift towards a circular economy.
Agricultural cooperatives participating in the survey will evaluate the significance of various drivers influencing their transition through a Likert-scale questionnaire Eight statements, labeled from DR1 to DR8, have been crafted to identify factors that may facilitate this transition Specifically, DR2, DR4, and DR8 focus on the economic incentives offered by the circular economy, including enhanced profits, consumer preferences for circular products, and job creation potential Additionally, DR3, DR5, and DR7 assess the motivations stemming from policies and regulations Meanwhile, DR6 explores whether the potential to mitigate negative climate change impacts encourages cooperatives to adopt more circular practices Lastly, DR1 investigates how technological advancements supporting the circular economy influence the transition of cooperatives.
Table 5.12 Descriptive statistics for drivers for the transition (N)
Description Min Max Mean Std
DR1 There are technology developments that make circular economy easier to apply
DR2 Increasing profit and productivity by implementing circular economy
DR4 Consumer’s preference with circular products
DR5 Non-tariff barriers from trade partner requiring changes towards sustainable development
DR3 Government policies and incentives towards implementation of circular economy
DR7 There is a system of standards and specific indicators to evaluate the implementation of circular economy practices
DR6 Possibility to minimize negative impacts from climate change
The majority of respondents recognize the significant role of government policies and regulations, rating them as crucial for their operations Key elements such as government incentives, non-tariff barriers from trade partners, and specific guidelines from authorities are deemed important to very important Notably, the factor of "Government policies and incentives towards the implementation of a circular economy" received the highest mean score (M = 3.48), underscoring the undeniable importance of government support in shaping effective business models.
To facilitate the transition of cooperatives towards a circular economy, it is essential for enterprises to operate under government guidance, supported by long-term policies that incentivize and promote sustainable practices The Vietnam Chamber of Commerce and Industry (VCCI) has introduced the Cooperate Sustainability Index 2022 (CSI), which provides environmental indicators relevant to circular economy practices, including criteria for environmental protection, waste recycling, and sustainable resource use These regulations serve as both a framework for competent authorities and a guideline for cooperatives, enhancing their efficiency in implementing circular economy initiatives Additionally, non-tariff barriers from trade partners necessitate a shift towards sustainable development, as evidenced by studies on the EU's impact on its trading partners Vietnam's participation in free trade agreements, particularly the EU-Vietnam FTA, underscores the importance of meeting international standards for sustainable practices to facilitate exports Although not all cooperatives currently export, the significance of these standards is anticipated to grow as Vietnam's agricultural exports expand.
Agricultural cooperatives recognize economic incentives as a crucial factor driving their transition towards circular economy practices, with "profit" being the most significant motivator, reflected in a mean score of 3.29 The potential to enhance profit and productivity through circular economy implementation strongly encourages cooperatives to adapt Additionally, consumer preference for circular products, with a mean score of 3.08, plays a vital role as increasing awareness and spending habits lead consumers to favor sustainable and organic options, compelling cooperatives to align with market demands and enhance competitiveness While circular products are associated with higher quality and value, the potential for job creation remains a lesser priority for cooperatives, evidenced by a mean score of 2.75 Although the circular economy has the capacity to generate substantial job opportunities globally, Vietnam's agricultural sector is still in the early stages of transitioning from traditional practices to circular methods, limiting the development of new job opportunities in this model.
Respondents consider environmental benefits, particularly the potential to reduce negative impacts of climate change, as somewhat important, reflected in a mean score of 3.02 While cooperatives recognize the positive effects of the circular economy on the environment and sustainable development, this awareness does not strongly motivate them to make a shift, highlighting the significance of accepting responsibility in their decision-making process.
Modern technology plays a crucial role in enabling the transition to a circular economy, as evidenced by a respondent consent score of 3.25 (DR1) This shift in production models is significantly facilitated by technological advancements.
5.4.2 Barriers for the transition towards circular economy
Circular agriculture represents an innovative approach distinct from conventional farming techniques However, cooperatives encounter several challenges during the transition and implementation of these practices To effectively navigate this shift, it is crucial to identify key drivers and assess how cooperatives perceive the difficulty of the barriers they may face in adopting circular agriculture.
All 98 respondents answered a Likert-scale question to evaluate the degree of barriers that they might face when implementing circular economy, from very low challenging to very high challenging Eight statements, from BR1 to BR8, were developed to represent factors that may hinder the agricultural cooperatives in their transition In particular, BR2 to BR4 and BR8 examine how lack of interest in circular economy can negatively influence cooperatives Various causes for the unenthusiasm, including weak economic incentives, higher priority for other issues, lack of awareness and enthusiasm for new model and high cost for the transition Management readiness, referring to poor leadership and lacking business and framework models are being tested in BR5 and BR7 On the other hand, BR5 provides insight of whether unsupportive policies and regulations have hindered cooperatives from shifting towards more circular agriculture DR1 aims to test the level of impediment that limitations of technology bring
Table 5.13 Descriptive statistics for barriers for the transition (N)
Description Min Max Mean Std
BR1 Limitation of technologies that are needed for circular economy’s practices
Interest in Circular economy Barrier
BR2 Weak economic incentives for implementing circular economy practices
BR3 Higher priority for other issues rather than circular economy
BR4 Lack of awareness and enthusiasm towards circular economy
BR8 High investment cost for the transition 0 4 2.89 83
BR5 Existing laws and regulations are not supporting the transition
BR6 Lack of business model and frameworks to implement circular economy
BR7 Poor leadership and management towards circular economy
According to the data presented in Table 5.13, cooperatives perceive the influence of drivers on their transition as significantly greater than that of barriers, with a mean score of 3.13 for drivers out of a possible 4, while barriers received a mean score of only 2.66.
Cooperatives encounter significant challenges in transitioning to a circular economy, primarily due to low interest in its principles Key obstacles include weak economic incentives for adopting circular practices, prioritization of other pressing issues over the circular economy, and a general lack of awareness and enthusiasm towards its benefits.
The transition to a circular economy presents significant challenges for cooperatives, primarily due to high investment costs, which are perceived as a major barrier (M = 2.89) Economic incentives are crucial in motivating these organizations to adopt circular practices; however, if the new model fails to yield substantial profits, cooperatives are likely to hesitate in their transition (M = 2.69) The circular economy is viewed as a modern and innovative approach, often associated with advanced technology and machinery Consequently, the lack of interest from stakeholders further exacerbates the reluctance to invest in circular initiatives As a result, activities requiring substantial investment are infrequently pursued, making investment cost a prominent topic of discussion among cooperatives regarding the implementation of circular practices.
The two primary barriers related to a negative attitude towards the circular economy are identified as having a moderate influence, with average scores of 2.52 and 2.34, respectively These findings highlight the significant impact of attitudes on the adoption of circular economy practices.
Management readiness for cooperatives reveals a significant gap between poor leadership and the critical need for a business model to implement a circular economy While leadership is not seen as a major barrier (M = 2.25), the absence of a guiding model is rated as a significant challenge (M = 2.99) Traditionally, agricultural practices rely on generational experience, making the adaptation to new production methods like the circular economy essential Cooperatives require effective guidelines and successful models to facilitate this transition Despite some support from international organizations and local governments, resources remain limited There is an urgent need for standardized frameworks and tools to integrate circular economy principles into cooperative production processes The International Organization for Standardization (ISO) has initiated several projects, including ISO/WD 59004 and ISO/WD 59010, aimed at developing frameworks and guidance for cooperatives By engaging with these resources and receiving support from relevant authorities, cooperatives can overcome barriers and successfully adopt circular economy practices.
Relationships between cooperatives’ Awareness, Attitude, Drivers, Barriers and
This study examines the relationship between Awareness, Attitude, Drivers, and Barriers in influencing Intention, leading to the development of a set of hypotheses These hypotheses were tested within a sample of agricultural cooperatives located in the Red River Delta and Northeast regions of Vietnam.
Cooperatives’ awareness of circular economy has a positive impact on their intention to shift towards circular agriculture h
Cooperatives’ attitude towards circular economy has a positive impact on their intention to shift towards this model
Cooperatives’ awareness has a positive impact on their attitude towards circular economy
Cooperatives’ assessment of existing factors facilitating the transition towards circular economy has a positive impact on their intention to take action
Cooperatives’ assessment of existing factors hindering the transition towards circular economy has a negative impact on their intention to take action
5.5.2 Reliability and validity of measurement model
Prior to evaluating the structural model, a comprehensive validity and reliability analysis was performed for all constructs, which included assessing scale structural reliability through Cronbach’s alpha and composite reliability, as well as examining convergent and discriminant validity It is important to note that PLS-SEM does not facilitate the assessment of the overall model fit, and thus, this aspect will not be evaluated (Hair et al., 2016).
All measures demonstrated acceptable quality criteria, with Cronbach’s alpha values exceeding 0.7; however, the composite reliability for the construct "Barrier" fell below this threshold To address this issue, single indicators with the lowest outer loading were removed, specifically the "Unsupportive policies and regulation barrier," "Technology Barrier," and "Lack of framework Barrier," all of which had outer loading values below 0.4 The updated reliability and convergent validity results are presented in Table 5.14.
Table 5.14 Result of reliability test
Cronbach’s alpha Composite reliability Average variance extracted (AVE)
The study demonstrated acceptable reliability and validity of the measures used, with all composite reliability values exceeding 0.7 Although the Cronbach’s alpha for the Barrier construct was 0.638, a value above 0.6 is deemed acceptable for exploratory research The convergent validity was confirmed through Average Variance Extracted (AVE), where Awareness, Attitude, and Intention showed AVEs above 0.5, while Driver and Barrier had AVEs of 0.425 and 0.406, respectively Despite these lower AVE values, their composite reliability above 0.6 supports their acceptability Additionally, discriminant validity was established using the Heterotrait-Monotrait (HTMT) Ratio, with all diagonal HTMT values below 0.85, indicating good discriminant validity among constructs Overall, the model exhibited reliable and valid constructs.
Table 5.15 HTMT values of Constructs
Awareness Attitude Barrier Driver Intention
Common method biases can lead to systematic error variance in variables measured by the same method and source, resulting in misleading conclusions (Liu et al., 2017) However, Kock (2015) indicated that the model was free of common method bias, as all collinearity statistics (VIF) in the inner model were below the threshold of 3.3, ranging from 1.029 to 1.267.
To determine the path coefficients of the structural equation model (SEM), the PLS-SEM algorithm from SmartPLS was utilized, employing R-squared to assess the model's predictive power R-squared indicates the percentage of variance in the dependent variable explained by the model, with values typically lower than 0.5 in social science research, particularly in predicting human behavior In this study, a strong path relationship is indicated by R-squared values between 0.1 and 0.5 (Ozili, 2022) As illustrated in Figure 5.2, the combined factors of Awareness, Attitude, Barrier, and Driver accounted for 29% of the variance in the intention to transition towards a circular economy, yielding an R-squared value of 0.292.
Figure 5.2 Path coefficients of the model
The Bootstrapping method of PLS was employed to assess the statistical significance of each path coefficient The results indicate that awareness significantly predicts the intention to transition towards a circular economy in agricultural cooperatives, with a coefficient of β = 0.32, t = 3.115, and p = 0.002 Additionally, the path coefficient between the driver and intention shows statistical significance, with β = 0.28, t = 3.012, and p = 0.003 Consequently, both hypotheses H1 and H2 are supported.
Research indicates that awareness and evaluation of current drivers significantly influence the intention to transition to a circular economy Furthermore, the relationship between awareness and attitude is strong, with a path coefficient of β = 0.298 and a t-value of 3.368, confirming the hypothesis at a p-value of 0.001.
The study indicates a positive correlation between attitude and intention (β = 0.075), while barrier shows a negative correlation (β = -0.158) However, the p-values for both attitude and barrier are significantly higher than the accepted threshold, at 0.46 and 0.18 respectively, leading to the inability to reject the null hypotheses Previous research has raised concerns about high p-values (Pitak-Arnnop et al., 2010), which may stem from a small sample size with uniform values and the use of Likert-scale measurements Boone & Boone (2012) note that Likert item data is discrete and often does not conform to a normal distribution, which can affect the validity of standard deviation calculations Despite the inability to accept hypotheses H2 and H4, the observed correlations between attitude and barrier warrant further investigation in future studies.
CONCLUSION
Summary and Discussion
The transition to a circular economy is becoming essential globally, particularly as natural resources dwindle and waste increases, with agriculture being a primary focus Since 1986, Vietnam's agricultural sector has made significant strides, enhancing food security, reducing poverty, and positioning the country among the top five agricultural exporters worldwide However, the current growth model raises concerns regarding sustainability and environmental impact Research on the circular economy's adoption in Vietnam is crucial, as it reveals farmers' awareness and practices related to closed-loop production A survey of 98 agricultural cooperatives highlighted both facilitating and hindering factors affecting this transition, providing valuable insights for future improvements.
Agricultural cooperatives have become increasingly aware of the circular economy, a relatively new concept, with many recognizing its key principles, particularly the 3R framework This awareness suggests that extensive promotional efforts across various platforms have been effective Furthermore, the primary sources of information, mainly from official channels like television and government policies, highlight the significant role of the government in fostering this understanding As a result, agricultural cooperatives hold a positive view of the potential outcomes associated with the circular economy.
Implementing a circular economy can significantly benefit cooperatives, but for this transition to succeed, it is crucial for them to embrace a sense of responsibility towards it When cooperatives recognize the circular economy as their obligation, they can facilitate a smoother transition and align their operations with sustainable practices.
While cooperatives are adopting circular practices, significant limitations remain Simple, cost-effective changes like using sustainable inputs and integrated farming techniques are common, yet more robust initiatives—such as enhancing recycling, reusing waste, increasing renewable energy usage, and adhering to environmental indicators—require greater focus Emphasizing organic and sustainable production can yield long-term benefits for farmers, as modern consumers are willing to pay premium prices for sustainable products Additionally, effective waste management and utilization of agricultural by-products can lead to increased profits amid rising fertilizer and animal feed costs Therefore, targeted training programs and the sharing of successful case studies are essential for advancing these practices.
Cooperatives face three key factors that significantly influence their transition to a circular economy: economic analysis, policies, and regulations Economic analysis plays a crucial role in determining whether businesses will adopt a new model Additionally, while policies and regulations are vital, existing legal frameworks for promoting circular economy transitions are fragmented and lack coherence, leading to obstacles in implementation To facilitate this transition in agriculture, it is essential to address these policy barriers, create incentive-driven regulations, and enhance awareness of the profitability associated with circular economy practices A clear and systematic legal foundation is necessary for effective implementation.
To achieve a balance between economic development and environmental protection, it is essential to implement high waste taxes while simultaneously offering incentives for renewable energy usage, such as biofuels and waste recycling Addressing significant barriers like high investment costs and the absence of successful models can be facilitated through targeted funding policies and regulatory frameworks Additionally, policies that encourage businesses and cooperatives to adopt innovative practices are crucial for providing tangible incentives Furthermore, while advancements in technology are making circular economy practices more viable, widespread adoption remains hindered by challenges related to knowledge, investment, and infrastructure.
A recent SEM analysis explored the differences in intentions among cooperatives to transition to a circular economy The findings reveal that awareness and evaluation of existing drivers significantly enhance cooperatives' intentions to adopt circular agriculture practices This aligns with previous research linking beliefs to behaviors and enhances the understanding of circular economy behaviors within Vietnamese cooperatives.
In conclusion, to promote the mainstream transition towards a circular economy in Vietnam’s agriculture, there are some suggestions
To enhance farmers' understanding of the circular economy in agriculture, a comprehensive communication strategy is essential This strategy should outline the roles, benefits, and implementation methods of the circular economy Effective promotion can be achieved through mass media, agricultural training courses, and support programs Additionally, it is important to draw lessons from the successful experiences of countries and domestic enterprises that have adopted circular agriculture practices.
To encourage investment in circular agriculture, it is essential to provide businesses and farmers with capital and technology support This includes promoting the adoption and replication of production models that utilize agricultural waste for growing crops such as mushrooms, soybeans, corn, and potatoes Additionally, fostering organic and sustainable agricultural practices and providing education on these methods will further enhance the transition to a circular agricultural system.
66 or even forbidding burning straw and fields; prohibiting livestock household from discharging polluting waste
To enhance the recycling and reuse of agricultural by-products and waste, it is essential to train research teams and implement advanced technologies for waste treatment Investment in modern agricultural waste management is particularly crucial in regions with extensive cultivation and livestock farming Local governments can support agricultural cooperatives by providing resources such as land, capital, and technology, encouraging them to focus on the collection and sorting of agricultural waste and by-products, while also investing in recycling technologies.
To establish a legal framework for a circular economy in agriculture, the government must foster a supportive business environment through targeted regulations and policies that promote clean technology and waste management practices This includes prioritizing the development of recycling and reuse methods that transform waste into valuable resources throughout the production and consumption processes Additionally, policies should incentivize businesses that invest in recycling technologies for high-value agricultural by-products.
Limitations and future research
Collecting data for this empirical study presented several challenges, particularly due to the Covid-19 pandemic, which hindered access to target cooperatives Additionally, the researcher faced difficulties conducting field trips across various provinces, and many agricultural cooperative managers lacked proficiency in digital tools like Google Forms or Zoom As a result, the study's methodology relied solely on quantitative surveys, limiting the depth of understanding typically gained from interviews, and the number of surveys collected was relatively small in comparison to the overall population.
Future research should focus on the specific factors that influence the transition to a circular economy Furthermore, studies involving agricultural enterprises can provide valuable insights by assessing and comparing the differences among various business types.
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Survey form in Vietnamese
Appendix 1 Survey form in Vietnamese
CHUYỂN ĐỔI HƯỚNG TỚI KINH TẾ TUẦN HOÀN TẠI VIỆT NAM:
THỰC TRẠNG VÀ ĐỘNG LỰC
Kính gửi Quý Hợp tác xã,
Tên tôi là Lương Mai Lâm, nghiên cứu sinh thạc sĩ ngành Lãnh đạo toàn cầu thuộc trường Đại học Việt Nhật - Đại học Quốc gia Hà Nội
Hiện nay, tôi đang tiến hành nghiên cứu về "Chuyển đổi hướng tới kinh tế tuần hoàn tại Việt Nam: Thực trạng và động lực" trong các hợp tác xã nông nghiệp Kết quả nghiên cứu sẽ hỗ trợ các nhà quản lý thúc đẩy quá trình chuyển đổi kinh tế tuần hoàn tại Việt Nam Tôi trân trọng mời Quý Hợp tác xã tham gia nghiên cứu bằng cách hoàn thành khảo sát dưới đây.
Bảng câu hỏi dự kiến sẽ mất khoảng 10 phút để hoàn thành Tất cả thông tin và dữ liệu thu thập được sẽ chỉ được sử dụng cho mục đích nghiên cứu và sẽ không được chia sẻ với bên thứ ba nếu không có sự đồng ý từ Quý Hợp tác xã.
Xin chân thành cảm ơn sự hỗ trợ của Quý Hợp tác xã
Vui lòng xác nhận Quý Hợp tác xã đã đọc và đồng ý tham gia khảo sát này o Tôi đồng ý o Tôi không đồng ý
I Thông tin về Quý Hợp tác xã
1 Lĩnh vực hoạt động của Quý Hợp tác xã (Có thể chọn nhiều đáp án)
Cung cấp các dịch vụ nông nghiệp (VD: tưới tiêu, bảo vệ cây trồng, làm đất …)
2 Địa phương hoạt động của Quý Hợp tác xã (Tỉnh): _
3 Năm thành lập của Quý Hợp tác xã: _
4 Thị trường tiêu thụ chính của Quý Hợp tác xã: o Thị trường nội địa o Thị trường xuất khẩu o Tỉ lệ của cả hai thị trường tương đương nhau
5 Tên của Quý Hợp tác xã: _
II Nhận thức và thực trạng ứng dụng kinh tế tuần hoàn
Mức độ hiểu biết của Quý Hợp tác xã về kinh tế tuần hoàn hiện tại có thể được phân loại như sau: Một số thành viên hiểu rõ về khái niệm này, trong khi một số khác chỉ có một chút kiến thức Cũng có những người chưa từng tìm hiểu nhưng đã nghe nói đến, và một số thành viên hoàn toàn không biết gì về kinh tế tuần hoàn.
7 Quý Hợp tác xã đã nghe nói về kinh tế tuần hoàn qua kênh nào? (Có thể chọn nhiều đáp án)
Chính sách và văn bản tuyên truyền của nhà nước
Bài học kinh nghiệm từ các doanh nghiệp/hợp tác xã khác
Tôi chưa từng nghe nói về kinh tế tuần hoàn
Trong kinh tế tuần hoàn, 3R theo Quý Hợp tác xã là viết tắt của ba từ: Tái sử dụng (Reuse), Giảm thiểu (Reduce) và Tái chế (Recycle) Ngoài ra, cũng có thể hiểu 3R là Tái sử dụng (Reuse), Nâng cấp (Refurbish) và Tái thiết kế (Redesign).
74 o Thay đổi tư duy (Rethink), Sửa chữa (Repair), Tái chế (Recycle) o Tôi không biết về 3R trong kinh tế tuần hoàn
Vui lòng đọc kĩ định nghĩa dưới đây về Kinh tế tuần hoàn:
Kinh tế tuần hoàn là mô hình kinh tế mới, trong đó mọi thứ đều được coi là nguyên liệu đầu vào cho quá trình sản xuất khác Mô hình này biến rác thải từ một quá trình sản xuất thành nguồn tài nguyên cho quá trình sản xuất khác, tạo ra sự tuần hoàn giữa các doanh nghiệp và ngành nghề Bên cạnh đó, việc giảm thiểu sử dụng nguyên liệu gây hại cho môi trường, khai thác tài nguyên thiên nhiên, và tối đa hóa hoạt động tái sử dụng giá trị tài nguyên cũng góp phần thúc đẩy kinh tế tuần hoàn.
Kinh tế tuần hoàn được áp dụng qua nhiều ví dụ thực tiễn, bao gồm sản xuất phân hữu cơ từ chất thải nông nghiệp, thực hiện chăn nuôi an toàn sinh học, sử dụng năng lượng tái tạo và triển khai công nghệ Biogas mới Những ứng dụng này không chỉ giúp giảm thiểu lãng phí mà còn thúc đẩy sự phát triển bền vững trong ngành nông nghiệp.
9 Vui lòng đánh giá tần suất thực hiện các hoạt động dưới đây trong quá trình sản xuất của Quý Hợp tác xã
Mua nguyên liệu thô không thân thiện với môi trường
Giảm thiểu tiêu thụ và sử dụng tài nguyên thiên nhiên
Tự xử lý, tái chế phụ phẩm, phế thải để làm nguyên liệu đầu vào
Vứt bỏ chất thải sau khi xử lý h
Khi mua nguyên vật liệu, ưu tiên tiêu chí thân thiện với môi trường và người sử dụng hơn giá cả
Sử dụng năng lượng tái tạo như năng lượng sinh khối và năng lượng mặt trời đang trở thành xu hướng quan trọng Việc áp dụng các mô hình trồng trọt và chăn nuôi mới không chỉ thân thiện với môi trường mà còn đảm bảo an toàn sinh học, góp phần vào sự phát triển bền vững.
Sử dụng hệ thống dữ liệu đo lường về hiệu quả kinh tế và môi trường của các hoạt động sản xuất
Sử dụng phân bón và thuốc bảo vệ thực vật, thức ăn chăn nuôi hữu cơ, từ chế phẩm sinh học
Hiện nay, Quý Hợp tác xã đang trang bị và sử dụng các công nghệ hiện đại để áp dụng mô hình kinh tế tuần hoàn Có thể khẳng định rằng việc này đang được thực hiện, hoặc nếu chưa, có kế hoạch triển khai trong tương lai.
Hợp tác xã đã từng thực hiện các hoạt động đào tạo về kinh tế tuần hoàn cho cấp quản lý hoặc thành viên, với các tùy chọn là "Có", "Không" hoặc "Dự định sẽ triển khai".
Hợp tác xã cần đánh giá tần suất mua, bán và trao đổi nguyên vật liệu cũng như phế phẩm với các đối tác khác để thực hiện tái chế hoặc tái sử dụng Việc này không chỉ giúp tiết kiệm tài nguyên mà còn góp phần bảo vệ môi trường.
76 o Thỉnh thoảng o Hiếm khi o Không bao giờ
13 Vui lòng đánh giá mức độ đồng tình của Quý Hợp tác xã đối với các nhận định dưới đây:
Không đồng tình Đồng tình
Chuyển đổi hướng tới kinh tế tuần hoàn đem lại lợi nhuận cao hơn cho các hợp tác xã
Kinh tế tuần hoàn đóng vai trò quan trọng để đạt được phát triển bền vững
Kinh tế tuần hoàn sẽ giảm thiểu các tác động tiêu cực lên môi trường
Chuyển đổi hướng tới kinh tế tuần hoàn là yêu cầu về đạo đức kinh doanh
14 Quý Hợp tác xã có sẵn sàng thay đổi mô hình kinh doanh để phù hợp với kinh tế tuần hoàn? o Không o Có thể o Có
15 Quý Hợp tác xã có sẵn sàng đầu tư vào các hoạt động chuyển đổi hướng tới kinh tế tuần hoàn? h
III Động lực và rào cản trong quá trình chuyển đổi hướng tới kinh tế tuần hoàn
Đánh giá mức độ quan trọng của các động lực chuyển đổi hướng tới kinh tế tuần hoàn là cần thiết để hiểu rõ hơn về vai trò của chúng trong quá trình phát triển bền vững của các hợp tác xã Các động lực này không chỉ ảnh hưởng đến chiến lược phát triển mà còn định hình cách thức hoạt động và tương tác của các thành viên trong hợp tác xã Việc xác định và phân tích những động lực này sẽ giúp tối ưu hóa quá trình chuyển đổi, đảm bảo tính hiệu quả và bền vững trong kinh tế tuần hoàn.
Các kĩ thuật, công nghệ tiên tiến giúp việc ứng dụng kinh tế tuần hoàn trở nên dễ dàng hơn
Các lợi ích kinh tế có được khi thực hiện kinh tế tuần hoàn
Các quy định, chính sách và hỗ trợ của chính phủ khuyến khích kinh tế tuần hoàn
Sự ưa chuộng của khách hàng dành cho các sản phẩm được sản xuất h
78 theo mô hình kinh tế tuần hoàn
Hàng rào phi thuế quan từ đối tác thương mại yêu cầu thay đổi theo hướng phát triển bền vững
Khả năng giảm thiểu tác động tiêu cực lên môi trường của kinh tế tuần hoàn
Có hệ thống tiêu chuẩn, hướng dẫn cụ thể về ứng dụng kinh tế tuần hoàn để thực hành theo
Tiềm năng tạo việc làm mới khi chuyển đổi hướng tới kinh tế tuần hoàn
17 Vui lòng đánh giá mức độ thách thức của các rào cản dưới đây tới việc chuyển đổi hướng tới kinh tế tuần hoàn theo Quý Hợp tác xã
Rất thấp Thấp Trung bình Cao Rất cao h
Kinh tế tuần hoàn đang đối mặt với nhiều hạn chế về kỹ thuật và công nghệ cần thiết cho việc ứng dụng hiệu quả Ngoài ra, việc áp dụng mô hình này thường mang lại ít hoặc không có lợi ích kinh tế rõ rệt Hơn nữa, nhiều tổ chức và doanh nghiệp thường ưu tiên giải quyết các vấn đề khác thay vì chuyển đổi sang kinh tế tuần hoàn.
Thiếu nhận thức và sự nhiệt tình dành cho kinh tế tuần hoàn
Các chính sách hiện nay chưa thúc đẩy việc chuyển đổi kinh tế tuần hoàn
Thiếu các mô hình, khung mẫu về kinh tế tuần hoàn để thực hiện theo
Chưa đủ năng lực quản lý cần cho kinh tế tuần hoàn
Chi phí đầu tư cho quá trình chuyển đổi cao
18 Vui lòng đánh giá mức độ quan trọng của các chủ thể sau đây tới việc chuyển đổi hướng tới kinh tế tuần hoàn theo Quý Hợp tác xã?
Quản lý hợp tác xã
Tổ chức liên minh hợp tác xã Đối tác thương mại
Các cơ quan chính phủ
Bộ Kế hoạch và Đầu tư,
Bộ Tài nguyên và Môi trường ) h
Survey form in English
19 Field of operation (Can choose more than one answer)
Providing agricultural services i.e irrigation, plant protection, land preparation…
22 Main market: o Domestic o Export o The same proportion for both
V Practices and perception about circular economy
The circular economy is an economic model that emphasizes sustainability by minimizing waste and making the most of resources Individuals may have varying levels of understanding about this concept: some have a clear grasp of its principles, while others possess a general awareness but lack detailed knowledge There are also those who have heard the term but do not fully comprehend its significance, and some who are completely unfamiliar with the concept.
25 What are the channels of information about circular economy that you have heard from? (Can choose more than one answer)
Case studies from other businesses
I have never heard of circular economy
26 What are the “3R” of circular economy? o Reuse, Reduce, Recycle o Reuse, Refurbish, Redesign o Rethink, Repair, Recycle o I do not know about 3R of circular economy
Please read the following explanation of circular economy:
The circular economy is an innovative economic system where waste from one production process serves as an input for another, effectively transforming discarded materials into valuable resources This approach emphasizes reducing the use of environmentally harmful materials and minimizing resource depletion while promoting increased reuse activities to maximize resource value.
Some examples of circular economy’s practices: Producing organic fertilizer from agricultural by-products, applying biosafety breeding, using renewable energy, using new Biogas technology h
27 Please rate how frequently your cooperative implement these practices in production chain
Frequency Never Rarely Sometimes Usually Always
Purchase environmental sensitive raw material
Minimize the consumption of natural resources
Turn by – products or waste into input material
Make cleaner purchase from purchasing (purchase in more clean and green way, instead of only taking the price into account)
Use renewable energy (For example: biomass energy, solar energy…)
Apply new models of cultivation and husbandry towards environmental friendliness and biosafety
Use auditing system to measure the economic and environmental performance regarding the h
Use organic fertilizer, pesticides, and animal feeds
28 Does your cooperative use modern technological equipment and facilities that support reduce/reuse/recycle practices? o Yes o No o Planning to
29 Has your cooperative ever organized training activities for managers and employees that relate to circular economy? o Yes o No o Planning to
30 How often does your cooperative purchase, sell or exchange materials and waste with others in order to reuse and recycle? o Usually o Sometimes o Rarely o Never
31 To what extent do you agree with the following statements:
Strongly disagree Disagree Agree Strongly agree
Circular economy helps cooperative to gain more profits h
Circular economy is important to gain sustainable development
Circular economy can minimize negative impacts from the environment
It is business ethic to put circular economy into action
32 Is your cooperative willing to change the business model to match with circular economy? o No o Maybe o Yes
33 Is your cooperative willing to invest in circular economy? o No o Maybe o Yes
VI Motivations and barriers for the transition towards Circular economy
34 Please rate how important the following drivers for transition towards circular economy are for your cooperatives
Somewhat important Important Very important
There are technology developments that make circular economy easier to apply h
Increasing profit and productivity by implementing circular economy
Government policies and incentives towards implementation of circular economy
Consumers' preference with circular products
Non-tariff barriers from trade partner requiring changes towards sustainable development
Possibility to minimize negative impacts from climate change
There is a system of standards and specific indicators to evaluate the implementation of circular economy practices
35 Please indicate the degree of following barriers that your cooperative may face when implementing circular economy
Very low Low Moderate High Very high
Limitation of technologies that are needed for circular economy’s practices
Weak economic incentives for implementing circular economy practices
Higher priority for other issues rather than circular economy
Lack of awareness and enthusiasm towards circular economy
Existing laws and regulations are not supporting the transition
Lack of business model and frameworks to implement circular economy
Poor leadership and management towards circular economy
High investment cost for the transition h