FACTORS AFFECTING THE IMPLEMENTATION OF THE CIRCULAR ECONOMY AND THE IMPACT OF THE CIRCULAR ECONOMY ON SUSTAINABLE DEVELOPMENT: RESEARCH ON SMALL AND MEDIUM ENTERPRISES IN VIETNAM

Abstract This article aims to assess the impact of customer pressure, environmental uncertainty and government support on the implementation of circular economy and the implementation of the circular economy model impacts sustainable development through economic efficiency, social efficiency, and environmental efficiency in Vietnamese small and medium enterprises. For small and medium enterprises in Vietnam, this research is necessary and is the basis for preserving resources in Vietnam and reducing costs for small and medium enterprises, open new business opportunities, build a generation of innovative businesses, and create jobs, integration opportunities, and social cohesion. Data was collected by sending questionnaires to business managers of 250 small and medium enterprises in Vietnam and the number of votes meeting the requirements for inclusion in analysis was 208. Data were analyzed by applying the PLS-SEM model through SmartPLS 3 software. Research results have shown that customer pressure and support from the government have positive impacts on the implementation of circular economy in Vietnamese small and medium enterprises and the implementation of circular economy has a positive impact on economic efficiency, social efficiency, and environmental efficiency.