Swedish giants H&M, Syre to scale up operations in Vietnam

H&M, a globally renowned fashion brand from Sweden, plans to expand its network of stores in Vietnam to over 20 in the time to come, said CFO Adam Karlsson.

At a meeting with visiting Vietnamese Prime Minister Pham Minh Chinh in Stockholm on Friday, Karlsson noted that Vietnam has been a key sourcing market for nearly two decades, with H&M now partnering with 103 local factories that employ over 86,800 workers. The group has operated in Vietnam since 2017, with 13 stores to date.

Meanwhile, Susanna Campbell, chairwoman of Syre, a joint venture between H&M and tech investment firm Vargas, told the Vietnamese cabinet leader that her company focusses on building large-scale textile recycling hubs worldwide.

Syre recently obtained an investment registration certificate to construct a $1 billion high-tech polyester fabric recycling plant in the central Vietnam province of Binh Dinh. 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.

As H&M and Syre look to scale up green investments in Vietnam, they proposed the Prime Minister to direct continued policy support, particularly in facilitating the import of raw materials for Syre’s production. The executives also expressed their desire to help Vietnam’s textile industry transform toward a circular, sustainable model.

PM Chinh stated that developing a circular textile ecosystem is one of the goals that Vietnam is aiming for. He suggested Syre share its experience in managing and operating a sustainable and successful circular textile ecosystem.

He also suggested the corporations use Vietnamese materials in their production and strictly adhere to commitments regarding the use of high technology and environmentally friendly input materials to ensure sustainable development.

In response, Susanna Campbell and Adam Karlsson affirmed their commitment to implementing the projects in alignment with the goals set out by the Prime Minister, particularly those concerning circular economy development and environmental protection.