Synergies and scaling challenges of the circular economy for Vietnam’s Sustainable Development Goals

Abstract

The circular economy (CE) is increasingly recognized as a critical pathway for advancing the Sustainable Development Goals (SDGs). However, robust empirical evidence on how CE contributes to SDG implementation and why successful initiatives frequently fail to scale in developing economies remains fragmented. This study addresses this critical gap through an in-depth examination of Vietnam. Employing a qualitative multiple case study design complemented by structured document analysis, the research investigates a diverse set of CE models across the agriculture, industry, waste management, and service sectors. A cross-case analytical approach is utilized to identify the specific mechanisms driving CE-SDG synergies, as well as the systemic trade-offs that hinder macro-level scaling. The findings reveal that while CE initiatives generate substantial multi-dimensional synergies across economic, social, and environmental domains, these benefits remain largely localized—a phenomenon conceptualized as the "Island Paradox." Interpreted through the integrated lens of socio-technical transition and institutional theories, this fragmentation reflects a structural lock-in of the entrenched linear economic regime. This lock-in manifests as a persistent policy-implementation gap, driven by regulatory ambiguity, financial risk asymmetries, and infrastructural deficiencies. By shifting the analytical focus from normative advocacy toward a systemic diagnosis, this study concludes that meaningful SDG progress in emerging economies requires coordinated transformations across governance, financial, and infrastructural systems, rather than isolated circular initiatives