[{"bbox": [96, 153, 1134, 283], "category": "Text", "text": "technologies will not only accelerate circularity but also make us less dependent on primary materials. Scaling up the circular economy throughout the value chains, from front-runners to the mainstream economic players, will make a decisive contribution to achieving climate neutrality by 2050. Key product value chains requiring urgent actions are electronic and ICT, batteries and vehicles, packaging, plastics, textile, construction and buildings, food, water and nutrients."}, {"bbox": [96, 298, 1134, 484], "category": "Text", "text": "The EU Corporate Sustainability Due Diligence Directive aims to foster sustainable and responsible corporate behaviour by requiring companies to identify and address adverse human rights and environmental impacts in their operations and value chains. This directive will promote the green and circular transition by ensuring businesses minimise negative impacts and adopt sustainable practices, thus reducing environmental degradation and enhancing resilience to climate change. The directive mandates large companies to develop climate change mitigation plans aligned with the Paris Agreement, promoting transparency, legal certainty, and innovation, and setting a potential global standard for mandatory due diligence."}, {"bbox": [96, 496, 1134, 708], "category": "Text", "text": "Viet Nam is the EU's biggest trading partner in ASEAN, with bilateral trade-in-goods amounted to EUR 64.2 billion in 2022. The EU is one of the biggest foreign investors in Viet Nam, with a total foreign direct investment outward stock of EUR 8 billion in 2021⁸. The largest sector of investment by the EU is industrial processing and manufacturing, while Viet Nam's main exports to the EU are electronic products, footwear and textiles, coffee, rice, seafood, and furniture. These export commodities fall under the key product value chains of the EU's Circular Economy Action Plan 2020. Working with Vietnamese export sectors that have strong linkages with the EU key value chains for circular economy is therefore important to ensure the achievement of the EU ambitions on circular economy and green transition."}, {"bbox": [96, 720, 1134, 907], "category": "Text", "text": "The action is expected to improve bilateral trade and investment, and contribute to the implementation of the EVFTA, notably Chapter 13 on Trade and Sustainable Development. It will work with both government and the private sector to improve regulations and create a more enabling environment to support businesses to switch to cleaner production, resource efficient and circular business models. This encompasses facilitation of access to finance to scale up investments in green infrastructures, digital-circular economy technologies, including opportunities brought by the European Fund for Sustainable Development Plus (EFSD+) under the NDICI -GE, in the context of the EU Global Gateway strategy."}, {"bbox": [96, 933, 1134, 1039], "category": "Text", "text": "A just and inclusive transition towards circularity calls for a stronger participation of women in all their diversity, and inclusion of persons with disabilities across the *entire* circular economy spectrum⁹. Accordingly, the Action will promote for more responsible business conducts, which address the gender gaps and promote the inclusion of person with disabilities."}, {"bbox": [174, 1054, 427, 1084], "category": "Section-header", "text": "## 2.2 Problem Analysis"}, {"bbox": [96, 1100, 1134, 1260], "category": "Text", "text": "Viet Nam is among the top five countries most affected by climate change¹⁰. It has an extensive coastline and diverse but generally warm climate including temperate and tropical regions. The country's low-lying coastal and river delta regions are highly vulnerability to rising sea levels. Viet Nam faces potentially significant social and economic impacts across multiple regions and sectors. It was estimated that climate change would reduce national income by up to 3.5% by 2050. Without effective adaptation and disaster risk reduction efforts, multidimensional poverty and inequality are likely to increase."}, {"bbox": [96, 1271, 1134, 1428], "category": "Text", "text": "Viet Nam is ranked the third in the South-east Asia region and the 15th in the world in terms of population size, with an estimated population of 100.3 million in 2023. Approximately one third of whom live in the metropolitan areas of its two mega-cities, Hanoi and Ho Chi Minh cities. Viet Nam has been experiencing fast urbanisation. At the end of 2023, urban area accounts for 42% of the total area, hosting 38.1% of the total population¹¹. Growing population and rapid urbanisation have increased the demand for natural resources and pressure on the environment."}, {"bbox": [96, 1443, 1134, 1496], "category": "Text", "text": "Against the background of economic growth and rising average incomes, Viet Nam is facing growing inequality. The richest are taking a disproportionate share of income and the gap between the richest 20% and the rest has"}, {"bbox": [86, 1557, 1142, 1605], "category": "Footnote", "text": "⁸ The European Chamber of Commerce in Viet Nam (EuroCham) was established in 1998. Eurocham has more than 1400 members, representing one of the biggest foreign business association in Viet Nam."}, {"bbox": [86, 1605, 797, 1627], "category": "Footnote", "text": "⁹ Why adopting a gender-inclusive approach towards Circular Economy matters, UNIDO 2022"}, {"bbox": [86, 1629, 438, 1653], "category": "Footnote", "text": "¹⁰ The WB, Climate Risk country profile, 2021"}, {"bbox": [86, 1653, 445, 1676], "category": "Footnote", "text": "¹¹ General Statistical Office of Viet Nam, 2024"}, {"bbox": [1035, 1678, 1144, 1703], "category": "Page-footer", "text": "Page 7 of 26"}]