<p>Modern industrialization has significantly contributed to the depletion of natural resources and environmental degradation in Asia. Traditional linear economic models are responsible for this degradation and inadequate for achieving sustainability, leading to the emergence of the circular economy (CE) to improve resource efficiency and sustainable business management. This study systematically reviews 34 peer-reviewed articles from Scopus and Web of Science, using Covidence software to explore how CE can be incorporated into industrial systems to enhance green industrial productivity growth across various industries. Its findings reveal that the CE directly enhances green industrial productivity growth, yet both concepts' dynamic synergies remain under-researched. We advanced the literature on identifying these synergies by proposing an Industrial Green Total Factor Productivity (IGTFP) approach based on a green growth accounting framework that complements CE into the industrial mechanism to achieve circular eco-efficiency and sustainability in industries. The IGTFP approach excludes the environment from industrial TFP measurement and considers it a source of growth along with other traditional factors of production. By considering the environment as an unpaid factor of production in the absence of environmental policy, a theoretical foundation of the circular IGTFP (CIGTFP) model is established. The CIGTFP model incorporates CE, emission-augmenting technological development, innovations, and Environmental, Social, and Governance (ESG) principles to enhance green industrial productivity while navigating the trade-offs between industrial advancement, resource efficiency, and sustainability. Technological development is a moderator in this synergy, supported by ESG, which is a mediating factor. This model can promote CE in Asian industries by fixing challenges such as infrastructure deficits, financial constraints, and regulatory barriers.</p>