In light of the escalating frequency and severity of climate change, there exists an urgent necessity for nations to transition towards a more circular economy, thereby mitigating carbon emissions and reducing reliance on limited resources. The extant literature indicates that developing countries have the potential to derive valuable insights from developed nations in the formulation of effective circular economy policies and legislation. Building upon this premise, the present paper investigates critical elements of Australia’s circular economy policies, aiming to furnish recommendations for Vietnam. The findings imply that Vietnam stands to gain significantly from the establishment of a comprehensive action plan with clearly defined targets to advance the circular economy. Furthermore, this initiative necessitates the promotion of a consistent strategy across all tiers of government in the implementation of circular economy initiatives, as well as consideration of the introduction of a government-led container deposit scheme featuring financial incentives to bolster recycling efforts throughout the entire community.