Linear Economy and Circular Economy: What is the Sustainable Path for Business?

In the context of the gradual depletion of resources, the threatened environment and changing consumption trends, the choice of economic model is no longer a short-term decision. Between the linear economy and the circular economy, which is the more optimal model based on three criteria: cost, efficiency, and environmental impact?

Linear economy: Short-term straight line but potential long-term risks

Linear Economy Illustration

The linear economy – with cycles of exploitation → production → consumption → disposal – has been the cornerstone of economic growth for decades. However, this model is gradually revealing many limitations:

• It is highly dependent on primary resources, susceptible to price fluctuations and supply shortages.

• Creates a huge amount of waste, putting pressure on the treatment system and the living environment.

• Increased operating costs, especially logistics, inventory, and waste treatment.

• Difficult to meet international environmental standards, limiting the ability to expand export markets.

Therefore, although familiar and easy to implement, the linear economy is becoming increasingly obsolete to the requirements of sustainable development.

Circular Economy: The Circle Recreates Value and Long-Term Benefits

Circular economy illustration

In contrast, the circular economy is a modern model that focuses on reuse – recycling – renewable. This is an inevitable trend to help businesses:

• Optimize raw material costs, by repurposing inputs instead of relying entirely on new resources.

• Reduce waste pressure, save treatment costs and protect the environment.

• Easy to achieve green certification, expanding opportunities to access the international market.

• Towards the goal of Net-Zero Carbon, enhancing brand image and social responsibility.

The circular economy not only helps solve environmental problems, but is also a comprehensive strategy for long-term development in an increasingly demanding world with sustainability standards.

BioFix Fresh – Creating sustainable value from the circular economy model

With the mission of "Biological Era, Sustainable Creation", BioFix Fresh has been contributing to the realization of the circular economy model in Vietnam through the application of microbial technology to environmental treatment. The solutions that BioFix Fresh provides not only help minimize negative impacts on the environment but also create sustainable economic value for businesses and communities.

Specifically, BioFix Fresh has brought many outstanding values such as:

• Reduce waste and recycle resources: Turn agricultural waste and organic waste into organic fertilizer, helping businesses save input costs and improve the quality of farmland.

• Effective reuse and treatment of wastewater: Applying microbial preparations to treat wastewater that meets QCVN standards, helping businesses reduce operating costs, avoid legal risks and improve reputation with partners, especially in export.

Not only stopping at technical solutions, BioFix Fresh also spreads the spirit of green – clean – circular development through practical cooperation programs, such as the deployment model at the 167 and 171 Brigades of the Navy. Here, microbial technologies are effectively applied to waste treatment, protecting the marine environment and raising awareness of circularity in the military community.

In today's context, when the human factor is at the forefront, biological solutions – especially microbiological products – are increasingly popular due to their safety for health and environmental friendliness. Thanks to this advantage, businesses can build sustainable trust from customers. And that is the core value that BioFix Fresh brings – accompanying businesses to create safe, effective and sustainable biological solutions.

Businesses that are spreading the application of the circular economy model:

SABECO beer enterprise and TH true Milk milk group are businesses that have been cooperating with BioFix Fresh. It is not only a testament to the quality of BioFix Fresh's solutions, but also the connection of sustainable development values. We share a vision of a green production ecosystem – where people and the environment are being put first.

• TH true Milk group:

Millions of TH true YOGURT yogurt spoons are made from biodegradable, environmentally friendly plastic material

TH true Milk has successfully transformed to a circular economy model. Catching up with global trends, raising the position of TH true Milk in the hearts of customers.

Through effective waste management, water reuse, utilization of by-products as organic fertilizers, and application of microbial technology in environmental treatment, TH true Milk is gradually closing the production cycle in the direction of circularity. At the same time, the unit has also invested in renewable energy such as solar power, protecting biodiversity in livestock areas, and planting trees to absorb CO₂, contributing to the implementation of the Netzero commitment by 2050.

TH true Milk is a clear demonstration of the successful application of the circular economy in the dairy industry – a field that is under a lot of environmental pressure – and has become a model for businesses that are transforming towards green and sustainable development.

• SABECO Brewery:

Towards the goal of green production and minimizing environmental impacts, SABECO has implemented many sustainable development projects at breweries nationwide:

Renewable energy: Nearly 64% of factories have installed rooftop solar power systems, contributing to the efficient use of clean energy.

Renewable Energy Projects

Reduced greenhouse gas emissions: SABECO converted forklifts from diesel to liquefied petroleum gas, and replaced fossil fuel boilers with steam from biomass furnaces, resulting in a reduction of 7,405 tons of CO₂e per year.

Water recovery and reuse: Water from the RO filtration system is reused in ancillary processes, helping to reduce water consumption to 2.91 hl/hl of beer (down 7.3% compared to 2023). At the same time, the rainwater collection system at Cu Chi and Can Tho factories helps save about 4% of rainy season water and hundreds of millions of VND in operating costs.

All wastewater is treated in accordance with QCVN 40:2011, demonstrating SABECO's strong commitment to water resource protection and sustainable development.

Transform or Stay the Same - Linear or Cyclic Pattern?

If the linear economy is a straight line with the destination being a landfill, then the circular economy is a circle that creates continuous value, turning waste into resources, and the output of one industry will be the input of another. In the problem of balancing cost – efficiency – environment, the circular economy is the key to unlocking a sustainable future for businesses.

Learn more about other solutions with BioFix Fresh:

BIOFIX FRESH TECHNICAL TRADING CO., LTD

• Address: House No. 71, DH Street 607, Group 2, Ben Tuong Hamlet, Lai Hung Commune, Bau Bang District, Binh Duong Province.

• Contact: 1900 988 949

• Youtube: https://www.youtube.com/@biofixfreshvietnam

• Facebook: https://www.facebook.com/BiofixFresh 

• Website: https://biofixfresh.com/