China’s tax policies for promoting recycling and recommendations for Vietnam

Developing a circular economy is an important policy direction for achieving the Sustainable Development Goals under the United Nations 2030 Agenda. Recycling and the use of recycled products contribute to resource efficiency and waste reduction. To promote these activities, China has implemented a range of tax incentives, particularly in value-added tax and corporate income tax, together with supporting mechanisms such as reverse invoicing for recyclable-resource transactions. This study analyzes China’s tax policies for recycling and recycled products, evaluates their implementation outcomes, and draws recommendations for Vietnam. The findings suggest that appropriately designed tax incentives can encourage efficient resource use, expand recycling industries, strengthen circular supply chains, and support environmental industries. The study provides a reference for improving Vietnam’s tax framework to promote recycling and circular-economy development.