Developing a circular business model - The case of agriculture and agro-industry innovations

Abstract

This research aims to explore the integration of circular economy practices within Vietnam's agriculture and agro-industry sectors by examining the experiences of leading companies that have implemented circular business models. By analyzing case studies of eight companies—including An Dinh Co. Ltd., BUYO Bioplastics, Carafoods, Happyhands, Loc Troi Group, Phuc Sinh Corporation, Vinasamex, and Thanh Long International JSC, the study identifies key circular strategies, including resource circularity, efficiency, and substitution. These strategies have yielded environmental, economic, and social benefits, including reducing greenhouse gas, improved farmers' financial returns, and job creation. Key challenges include limited financial resources, insufficient market demand for circular products, difficulties meeting stringent international quality standards, and low farmer engagement in sustainable practices. Based on these findings, the paper proposes policy recommendations, such as green financing, consumer awareness initiatives, and support for international certification, to overcome these barriers and enhance the adoption of circular business models. These recommendations aim to enable Vietnam's agriculture and agro-industry sectors to overcome existing limitations, promoting a circular economy framework that supports environmental sustainability, economic resilience, and social progress.