Developing circular economy performance indicators: Lessons from China's policy practices and recommendations for Vietnam

Abstract

    This study provides a foundation for building a system of indicators to measure the effectiveness of circular economy (CE) policies, drawing on practical experiences and lessons from China.  The transition to a CE requires a comprehensive measurement system that reflects both resource use efficiency and pollution reduction.  The study analyzes various methodologies, including EW-MFA, LCA, and CF, along with their respective strengths and limitations.  China's EIS indicator system (2007 & 2017), with indicators such as PRP and EE, is analyzed in detail, highlighting the role of Material Flow Analysis (MFA).  However, the paper also points out the challenges in data collection and the applicability of the EIS in different contexts, particularly in Vietnam.  Building an effective indicator system requires careful consideration of policy objectives, data accessibility, and the involvement of multiple stakeholders to ensure transparency, feasibility, and long-term effectiveness.