Denmark accelerates transition to circular economy, opening up opportunities for Vietnamese businesses to participate in European green supply chains

Denmark is strengthening its pioneering role in Europe in the transition to a circular economy, with the implementation of a National Action Plan of 129 initiatives, aiming to achieve climate neutrality by 2030. The specific goals are to reduce incineration of plastic waste by 80% and increase the recycling rate of household waste to 65% by 2035, in line with the EU roadmap.

Bộ Công thương•14/05/2025

A key initiative is a DKK 125 million investment from the Danish Industry Fund to support domestic companies in transforming their production models, developing sustainable packaging, handling bio-waste and promoting product design for reuse and recycling. The government’s long-term goal is to make Denmark a global knowledge hub for the circular economy and environmental technology.

According to Statista, Denmark is currently the country with the highest per capita household waste in the EU, with 800 kg/person/year. This high level of waste, combined with modern treatment infrastructure and incentive policies, is creating great investment opportunities in the fields of recycling, waste treatment and green manufacturing.

In particular, the new EU Circular Economy Act, due to be introduced in 2026, will change the way industries access resources and design products. It will not only promote recycling, but also require businesses to build closed-loop supply chains, reducing waste and CO₂ emissions throughout the entire product lifecycle. This creates a favorable legal framework for countries like Denmark that are already well-equipped with infrastructure and capacity.

Opportunities for Vietnamese businesses

This is an opportune time for Vietnamese businesses, especially in areas such as bio-packaging, recycled products, green furniture, environmental equipment and renewable energy technology, to access and participate in the emerging supply chain in Denmark. Businesses can:

Export of green raw materials and auxiliary products to circular manufacturers in Denmark;

• Joint ventures – technology cooperation with Danish startups or environmental research institutes;

• Take advantage of circular economy innovation fairs and forums in Northern Europe to promote products with high sustainability content;

• Access green investment funds or EU funding programmes through your Danish contact.

With Northern Europe leading the way in green transformation, Vietnamese businesses investing in environmentally friendly products not only have the opportunity to access this market but also create leverage to spread to the entire EU.

Source: Vietnam Trade Office in Sweden, concurrently in charge of Denmark, Norway, Iceland and Latvia

Source: https://moit.gov.vn/tin-tuc/thi-truong-nuoc-ngoai/dan-mach-tang-toc-chuyen-doi-sang-kinh-te-tuan-hoan-mo-ra-co-hoi-cho-doanh-nghiep-viet-nam-tham-gia-chuoi-cung-ung-xanh-.html