Swedish giant Syre strikes deal for $1 bln circular textile project in central Vietnam

Binh Dinh province and Sweden’s leading textile manufacturer Syre on Friday signed an MoU for a $1 billion polyester fabric recycling complex which aims to position Vietnam as the world’s first high-tech, circular textile hub.

The project, designed to have a capacity of up to 250,000 tons per year, is expected to become operational by the end of 2028.

Vietnam as Syre’s first investment destination

Syre intends to develop large-scale factory projects globally, and Vietnam was selected as the first investment destination, CEO Dennis Nobelius told the signing ceremony.

Explaining the choice, he highlighted Vietnam’s dynamic economy and its well-developed textile and garment industry as key factors. He emphasized that the Binh Dinh project will utilize the most advanced textile recycling technologies.

Nobelius expressed a desire to obtain an import permit within six months and secure a suitable location within an industrial zone.

Sweden’s largest investment project in Vietnam to date

According to Ho Quoc Dung, Party chief of Binh Dinh, the province has seven industrial zones with highly competitive leasing costs.

“Binh Dinh has fully developed industrial infrastructure and clean land is available, allowing investors to start construction at any time,” he said.

Dung also noted that the polyester recycling complex by Syre has received high praise from the Prime Minister and ministries.

Regarding the two major concerns over raw material imports and renewable energy supply for the project, he said that following the Prime Minister’s directions, the province is actively working with ministries to revise mechanisms and policies.

“The project's proposed energy demand is less than 70 MW, and we currently have a surplus,” he said, citing that Binh Dinh is a renewable energy hub.

According to Swedish Ambassador to Vietnam Johan Ndisi, more than 70 Swedish companies are operating in Vietnam, with Syre’s polyester recycling complex being the largest investment from Sweden in the country to date.

He said he believes that Syre’s project will become a symbol of green and circular transition in the textile industry. It will also help Vietnam become one of the world’s leading nations in developing a circular textile economy.

To accelerate the project's progress, Chairman of the province Pham Anh Tuan asked the two parties to work together on detailed project timelines.

“The group needs to finalize a project proposal soon, demonstrating its contributions to the circular economy, green transition, high-tech application, and environmental protection for ministerial review,” he stressed.

Earlier, at a meeting with Vietnamese Prime Minister 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.

The Binh Dinh project will use advanced technologies meeting U.S. and EU standards, aligning with Vietnam's sustainable development and net-zero emissions goals, she noted.

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