Research on World Agricultural Economy

The transition to circular agriculture (CA) represents a critical pathway toward sustainable development, particularly in emerging economies where smallholder farmers remain central to agricultural production. However, the adoption of CA practices in these contexts continues to face substantial institutional and structural challenges. This study provides an empirical assessment of the determinants shaping CA adoption among farming households in Đắk Lắk province, a vital agricultural hub in Vietnam’s Central Highlands. Using primary survey data collected from 274 households, the research applies exploratory factor analysis and multiple linear regression to evaluate the role of institutional, economic, and social factors in influencing adoption decisions. The findings reveal that favorable market conditions, farmers’ education levels, support from local authorities, and the availability of infrastructure are significant positive drivers of CA uptake. In contrast, broader national government policies and interventions by private enterprises show no statistically significant impact on adoption behavior. This outcome highlights an important policy-practice gap, indicating that current top-down directives have limited effectiveness in promoting circular practices at the grassroots level. Instead, adoption appears to be a spontaneous, bottom-up process motivated by practical farm-level incentives and locally embedded institutional support. The study contributes to the growing literature on sustainable agricultural transitions by offering evidence from a key emerging economy context, emphasizing that future policy frameworks should prioritize strengthening local institutional capacity, improving market-driven incentives, and addressing on-the-ground constraints to foster meaningful and resilient pathways toward circular agriculture.