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Circular Economy Gains Ground Among Laotian Businesses

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Circular Economy Gains Ground Among Laotian Businesses
Country: Lao PDR
ASEAN Circular Economy Business Alliance

The Laos Workshop of the ASEAN Circular Economy Business Alliance (ACEBA), held at Amari Hotel Vientiane on 22 October 2025, brought together industry leaders, policymakers, and key stakeholders to debate the growing importance of circular economy (CE) and the business opportunities this presents. The event, organized by ACEBA and the Lao National Chamber of Commerce and Industry (LNCCI), was supported by the EU SWITCH-Asia Policy Support Component (PSC) on Sustainable Consumption and Production.

Mr. Vanthong Sitthikoun, Vice President of the LNCCI, in his opening address, firmly established the CE as a key pillar of the National Green Growth Strategy and a profound socio-economic opportunity for Laos. He noted that this transition is a national priority further backed by the National Action Plan on Plastic Management and the country’s Green Label complemented with significant external support, including a $37.85 million World Bank project for waste management. Mr. Sithikoun highlighted that the CE is expected to unlock significant social and economic opportunity, urging business leaders to seize this profitable and responsible path forward, which is being promoted to the country by ACEBA.

Mr. Thomas Thomas, Co-Convenor of ACEBA, introduced ACEBA as an initiative of ARAIBA Sdn Bhd, a not-for-profit business organization working to advance responsible and inclusive business practices in ASEAN Member States. The impacts of climate change, biodiversity loss, and pollution on society and environment continue to increase, and are convincingly caused by the unsustainable use of materials in the products and value chains of the current linear economy. As suppliers of the linear economy, it is reasonably within the responsibility of businesses and other organizations to lead in the CE transition. Mr. Thomas further specifically highlighted that decisive action for CE implementation and investment of the private sector is critical to maintain trust of consumers and the wider society.

The government of Lao PDR has committed to the CE transition in the industrial and energy sectors. Mr. Phonepasong Sitthidet, Head of Division, Energy Efficiency and Conservation, Department of Energy, Ministry of Industry and Commerce explained that Laos targets a 10% reduction in national energy consumption by 2030, focusing on industry and buildings. The Electric Vehicle (EV) policy aims for 30% EV penetration by 2030, backed by tax incentives and leveraging Laos’ domestic hydropower generation to reduce fuel imports. This strategy addresses both environmental goals and economic vulnerabilities.

Dr. Rene van Berkel, Co-convenor of ACEBA, a senior expert with EU SWITCH-Asia PSC, and International Faculty at Thammasat University (Thailand), emphasized the significant opportunity for businesses in ASEAN to implement circular economy solutions. He argued that this approach is key to simultaneously enhancing business competitiveness and fostering sustainable innovation, hence enabling businesses to perform well, whilst doing good for planet and society. Dr. van Berkel highlighted the evidence-based insights and practical tools developed by ACEBA, with the support of the EU SWITCH Asia PSC. This started with development of  an ambitious principles-based CE framework for business, developed with and supported by businesses within the region. To validate the viability and benefits for business, ACEBA has compiled over 85 business cases that demonstrably show the circular economy helps businesses to reduce costs, develop products and markets and reduce risks while effectively contributing to solutions for planetary crises and supporting local communities.

The workshop witnessed inspirational reports on CE achievements from Laotian small and medium firms: Patihoub, turning zero value mixed plastic waste into durable furniture and other consumer goods; Discover Laos, pioneering renewable energy and EVs in the tourism sector; Made New, repurposing discarded plastic bags into traditionally woven and durable items; and Tiger Trail Travel, pioneering refillable water bottles handcrafted from locally abundant bamboo.

Dr. Rene van Berkel, remarked that ACEBA’s curated selection of over 85 Southeast Asian business cases clearly demonstrates that the circular economy is not merely a planetary necessity but also a significant opportunity for innovation and responsible business development. He detailed the specific modalities and resources available from the ASEAN Circular Economy Business Alliance to support enterprises, particularly those in Laos, to engage effectively with the CE and implement impactful actions within their value chains. This reinforced the message that ACEBA, with the continued support of its regional and international partners, is poised to champion the circular economy agenda across Laos and all ASEAN Member States, fostering sustainable growth and innovation.