[Research Contribution] Circular City – An Inevitable Trend for Vietnam’s Tourist Cities

8 April, 2025

Keywords: Circular City; Tourist City; Sustainable Tourism

Hearing the phrase “circular city”, many people can immediately imagine a “green” future with streets no longer littered with garbage, gradually reduced dust and smoke, and the flow of resources operating sustainably and stably. In fact, this is not a vague concept actually, this has become a specific action trend, strongly encouraged by international organizations such as ICLEI (Local Governments for Sustainability). In Vietnam, dynamic tourist cities like Da Nang, Nha Trang, Phan Thiet, Phu Quoc or Da Lat can all benefit from applying this model in order to simultaneously protect the environment and develop sustainable tourism.

Thumb Lớn Thương Hiệu Học Thuật Mới

Urban landscape and environmental challenges

Source: https://urbact.eu/articles/cities-paving-way-circular-transition

Vietnam is in a period of rapid urbanization, leading to numerous pressures on population, infrastructure needs and resource consumption. Large cities seem to be in a state of “acceleration” – population is increasing, traffic is dense, waste is increasing. This is especially evident in “tourist centers” liek Da Nang or Phu Quoc, where the number of visitors during peak seasons skyrockets, causing a lot of pressure on waste, wastewater and energy treatment systems.

Not only providing attractive tourism experiences, tourist cities also have to think of ways to “live with” the rapid development speed. “Circular cities” – a model built on the foundation of a circular economy – is a “two-in-one” solution: both protecting the environment and fueling sustainable growth.

What is a circular city? According to the United Nations Environment Programme (UNEP), more than 55% of the world’s population now lives in cities. These cities are responsible for more than 72% of greenhouse gas emissions, meet more than two-thirds of global energy demand, and generate more than 50% of the world’s waste. Given this reality, “circular cities” are recognized as an inevitable model towards sustainable development (see Figure 1). Essentially, this is a model in which all resources – from water, energy to raw materials – are used in a closed loop instead of being used once and then discarded. Instead of focusing on minimizing waste at the end of the process, circular cities aim to design from the beginning to turn waste into resources while optimizing the production and consumption cycle to minimize waste. Many cities around the world, especially in the Netherlands, Denmark and Singapore, have pioneered this model and achieved positive results in reducing the environmental burden.

Figure 1: Circular urban action framework.

Source: https://circulars.iclei.org/action-framework/

Prospects for tourist cities

A thriving tourism industry always brings great economic opportunities whereas it also comes with environmental challenges and the long-term stability of local ecosystems. Applying the circular urban model in tourist cities solves the short-term tourism development needs, and also creates a “green” brand meeting the world’s sustainable tourism trend.

* “3 in 1” waste management: Classifying – Recycling – Reusing

Instead of letting landfills fill up after the festival season, tourist cities can apply the source classification model, cooperate with waste treatment businesses, turn waste into raw materials for agriculture or produce recycled products. Concurently, the government can integrate this activity into tourism communication campaigns, encouraging tourists and residents to be involved.

* Clean energy fuels growth

The sunny days on the central coastal beaches can become a “gold mine” of solar energy. Solar panel systems on the roofs of hotels and restaurants create modern technological highlights and save long-term operating costs. Similarly, electric vehicle charging stations along the coast and walking streets create a civilized tourism style and reduce emissions.

* Water reuse and water resource conservation

In coastal cities, clean fresh water sources are often under pressure because of the peak tourist season. The solution is to make full use of rainwater, treat and recirculate wastewater to water plants, clean streets or cool public areas. If this system is properly built, it will both save water and become a unique tourism product for visitors to “witness”.

* Green economy – A new path for businesses

Many tourism businesses are gradually transforming, from reducing the use of plastic bottles and straws to using green products. Further, resorts, hotels, and restaurants are collaborating with local suppliers to develop a circular supply chain: organic waste is transferred to farms, regenerating the land, and then returning to the dining table with fresh, clean ingredients. This process not only creates more jobs but also helps preserve local culture and promote local specialties.

The role of the community and the government

To successfully build a circular city, the role of the government is very important in policy making, incentive mechanisms and implementation monitoring. In addition, the active participation of the community of residents and businesses is decisive. Changing from the roots requires all parties to join hands: from restaurant owners to tourists, from investors to local people. Small initiatives (like exchanging plastic waste for gifts, installing classified trash bins) can become big waves if they are replicated and communicated effectively.

In addition, city governments can participate in the sustainable urban community network such as ICLEI (Local Governments for Sustainability) to learn and to exchange experiences in implementing circular urban initiatives.

Creating a unique mark for Vietnamese tourism

In the context of global competition, international tourists are increasingly interested in sustainability and “green” factors. Applying circular urban areas is no longer a mere “environmental story”; actually, this is an opportunity to build a distinct brand for Vietnamese tourism. For example, a dynamic Da Nang with “clean beaches”, a modern Phan Thiet with “solar energy”, a Hue pioneering “water reuse” – all can become attractive destinations, leaving a good impression of responsibility to the community and the environment.

Conclusion

The path to a circular urban model cannot be achieved overnight; on the other hand, it shoudl implemented with strategic steps. Vietnam’s tourist cities can completely become models of sustainable development in the region. Circular urban areas open up a future where people, the environment and the economy go together, bringing long-term prosperity to all. This is the trend that the international community is trying to replicate, and Vietnam has a golden opportunity to catch up, even pioneer in the region.

This is an article by the Institute of Sustainable Finance, University of Economics Ho Chi Minh City (UEH SFI) – the first educational institution in Vietnam to conduct consulting, training and research activities on sustainable management, sustainable finance and related fields. Up to now, the Institute has achieved many successes in all three areas: training, research and consulting. In particular, the Institute’s Master’s program on Sustainable Management of Enterprises and the Environment has increasingly attracted a large number of candidates and is highly appreciated by students and employers. The Institute has also actively participated in international forums, established partnerships with prestigious universities around the world, provided consulting and technology transfer services to international organizations as follows: the International Finance Corporation/World Bank (IFC/WB), Frankfurt School of Finance & Management, the University Network for Strengthening Macro-financial Resilience to Climate and Environmental Change, and the Global Green Growth Institute (GGGI). The Institute became one of the five founding members of the Eurocham Sustainable Finance Committee. Concurrently, with the goal of spreading knowledge and leading in the field of sustainable governance and sustainable finance in Vietnam, the Institute also focuses on providing: (i) short-term intensive training courses on sustainable finance, impact investing, financial risk management related to climate change, sustainable business strategy, sustainable development reporting; (ii) consulting services suitable for the requirements of each enterprise, government and local authorities on sustainable governance.

Authors: Assoc. Prof. Dr. Bui Thi Mai Hoai – University of Economics Ho Chi Minh City.

The article is part of the series spreading research and applied knowledge from UEH with the message “Research Contribution For All – Research for the Community”. UEH cordially invites readers to read the next UEH Research Insights newsletter.

News, photos: Institute for Sustainable Finance, UEH Department of Communications and Partnerships