The impact of circular economy awareness on waste management by vendors in Hanoi, Vietnam

The circular economy is increasingly recognized as a crucial solution to environmental and economic challenges, gaining significant attention from the government, businesses, and citizens in Vietnam. As urban waste management becomes urgent, understanding the factors influencing sustainable waste management practices is essential. This study aims to assess the impact of circular economy awareness on the actual waste management behavior of market vendors in Hanoi. A total of 324 valid responses were collected directly from vendors in 2024. The paper applies an extended version of the theory of planned behavior framework, incorporating key variables such as circular economy awareness, willingness to pay, government policies, and behavioral barriers. Using the PLS-SEM method, the findings indicate that circular economy awareness has a positive influence on vendors’ waste management behaviors, with significant effects through attitudes (β = 0.425), subjective norms (β = 0.473), perceived behavioral control (β = 0.539), and willingness to pay (β = 0.462). However, behavioral barriers negatively impact actual waste management behavior (β = –0.179). Notably, government policies, despite existing national strategies, do not appear to affect vendors’ behavioral intentions (β = 0.031; p-value = 0.520). This suggests that such policies have yet to effectively reach or influence the target group. These findings emphasize the necessity for more targeted policy interventions to enhance circular economy awareness and foster sustainable waste management behaviors among market vendors. Strengthening engagement with vendors and improving policy effectiveness will be critical in promoting long-term environmental sustainability in Vietnam. Acknowledgments This study was funded by the Ministry of Education and Training of Vietnam, grant number B2023-NTH-02.