Swedish Group Wants to Make Vietnam the First Global Hub for Circular, High-Tech Textiles

Prime Minister Pham Minh Chinh receives Ms. Susanna Campbell, Chairwoman of SYRE Group - Photo: VGP/Nhat Bac

SYRE is a subsidiary of H&M Group (a world-famous Swedish fashion brand) and Vargas Technology Investment Company (Sweden).

SYRE creates a global circular textile ecosystem through large-scale recycling centers, applying high technology and using renewable energy. SYRE's goal is to build large recycling complexes in strategic areas around the world, including Vietnam.

SYRE plans to invest in a polyester fabric recycling complex in Binh Dinh with a design capacity of up to 250,000 tons/year, with a total investment of about 1 billion USD. The project is expected to be operational by the end of 2028 and aims to make Vietnam the first global center for circular textiles, applying high technology according to US and EU standards, in line with Vietnam's sustainable development orientation.

At the meeting, Prime Minister Pham Minh Chinh affirmed that Vietnam always attaches importance to the good traditional friendship with Sweden. The Prime Minister welcomed the SYRE Group's plan to invest in a polyester fabric recycling complex in the direction of green and clean production, utilizing textile-related waste, contributing to improving the environment in the spirit of the Conferences from COP26 to 28.

The Prime Minister emphasized that Vietnam is focusing on developing a circular economy and converting to green energy, identifying this as one of the new driving forces for rapid and sustainable growth, achieving a GDP growth rate of 8% in 2025 and double digits in the coming years. At the same time, SYRE's project is also in line with Vietnam's orientation in diversifying markets, products and supply chains to adapt to fluctuations in the situation.

The Prime Minister welcomed SYRE's plan to invest in a polyester fabric recycling complex towards green and clean production, utilizing textile-related waste, contributing to improving the environment - Photo: VGP/Nhat Bac

The Prime Minister said that Binh Dinh is very favorable for SYRE's project because it has a very good investment environment; it is a center for clean energy (wind power, solar power), has a synchronous infrastructure system, such as highways, international airports, deep-water seaports, has a good environment and climate, and requested the province and ministries and branches to closely coordinate with the group during the project implementation process.

In response to some proposals from SYRE related to raw materials and the direct power purchase mechanism (DPPA), the Prime Minister requested that SYRE Group, when implementing the project, focus on using domestic green materials such as lotus fiber, jute fiber, etc., as well as research on using scraps of fabric and discarded old clothes generated in Vietnam as production materials, helping to save costs and be environmentally friendly.

The Prime Minister said that the Vietnamese Government has recently issued Decree No. 57/2025/ND-CP regulating the mechanism for direct electricity trading between renewable energy generators and large electricity users; requested the Group to discuss specifically with the Ministry of Industry and Trade to clarify the regulations on the basis of the project proposal.

The Prime Minister assigned the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Agriculture and Environment to closely coordinate with the Group to guide the procedural process; and the People's Committee of Binh Dinh province to promptly coordinate and receive and handle the Group's difficulties and problems in accordance with the law.

SYRE Group's leaders said they wanted to choose Vietnam as a strategic investment location because Vietnam is developing strongly in green energy and also has a strong textile industry - Photo: VGP/Nhat Bac

For their part, Chairwoman Susanna Campbell and SYRE leaders congratulated Vietnam on its development achievements and highly appreciated Vietnam's green transformation process, which is taking place very strongly, believing that Vietnam will be one of the leading countries in the world in developing a circular economy.

Thanking Vietnam for its active support in the process of proposing the project implementation, SYRE said that it wanted to choose Vietnam as a strategic investment location because Vietnam is developing strongly in green energy and also has a strong textile industry. SYRE is committed to using the most raw materials from Vietnam, strengthening the supply chain and production in Vietnam.

The Swedish Ambassador affirmed that with the good political relationship between the two countries, Swedish enterprises wish to cooperate, invest and do business in Vietnam for the long term; Sweden wishes to cooperate with Vietnam in green transformation and become a comprehensive strategic partner of Vietnam in science and technology, innovation and digital transformation.

Translator HTKT