Swedish firm Syre aims to turn Vietnam into world’s first high-tech, circular textile hub

Sweden’s leading textile manufacturer Syre plans a $1 billion polyester fabric recycling complex in Vietnam’s central province of Binh Dinh, with a view to turning Vietnam into the world’s first high-tech, circular textile hub.

At a meeting with Vietnamese PM Pham Minh Chinh in Hanoi on Wednesday, Syre's chair and co-founder Susanna Campbell said the company is creating a global circular textile ecosystem through large-scale recycling hubs that leverage advanced technologies and renewable energy. Its goal is to establish major recycling complexes in strategic regions around the world, including Vietnam.

Syre is a joint venture between H&M Group, a globally renowned fashion brand from Sweden, and Vargas, a Swedish technology investment company.

Once operational by the end of 2028, the Binh Dinh province project will churn out up to 250,000 tons of circular garments and textiles per year, using high technologies meeting U.S. and EU standards and aligning with Vietnam's sustainable development goals, she noted.

PM Chinh hailed Syre’s plan to invest in the Binh Dinh polyester fabric recycling complex, calling it a wise choice given the locality’s favorable business environment, great potential for clean energy development, and well-developed infrastructure, including an airport and deep-water seaport.

The project is very significant for Vietnam as the country is pursuing rapid yet green and sustainable development, targeting at least 8% growth rate this year and double-digit rates in the following years, based on science, technology, innovation, and digital transformation, he said.

It also aligns with Vietnam’s strategy to diversify markets, products, and supply chains in order to adapt to global fluctuations and uncertainties.

In response to several proposals from Syre regarding raw material sources and the Direct Power Purchase Agreement (DPPA) mechanism, the Prime Minister recommended that the firm, when implementing the project, prioritize the use of domestically available green materials such as lotus fiber and jute fiber.

He also encouraged the company to explore the use of textile scraps and discarded clothing generated within Vietnam as production inputs, which would help reduce costs and promote environmental sustainability.

Campbell said she appreciates the country’s robust green transition and believes that Vietnam will become one of the global leaders in circular economy development.

Thanking the Vietnamese side for their active support throughout the project proposal process, she said that her company wishes to choose Vietnam as a strategic investment location due to the country’s strong progress in green energy and its well-established textile industry.

Syre is committed to maximizing the use of locally sourced materials and strengthening supply chains and production within Vietnam, she added.