This study thoroughly explores the European Union’s legal framework for secondary raw materials and offers customized recommendations to empower Vietnam in the pursuit of sustainable resource management and the adoption of circular economy principles. The paper delves into key EU directives, regulations, and policies, emphasizing their role in optimizing secondary raw materials. A comparative analysis of Vietnam’s current regulations is provided, identifying opportunities for alignment. Additionally, the article showcases real-world examples such as IKEA’s sustainable approach to recycled materials, a theoretical framework for circular economy implementation, and methodology for circular economy transition using assessment tools for secondary raw materials. Detailed statistical data on the circular material use rate in the EU and a case study on Vietnam’s initial success with Ecoslag further enrich the content. This comprehensive analysis paves the way for Vietnam’s transition toward a sustainable and circular economy.