Swedish firm eyes $1bn green investment in Vietnam’s textile industry
Swedish firm eyes $1bn green investment in Vietnam’s textile industry
Syre Group, a Sweden-based textile scrap recycler, plans to launch a high-tech polyester fiber recycling facility in Binh Dinh Province, south-central Vietnam, with an investment of up to US$1 billion.
Vietnamese Minister of Industry and Trade Nguyen Hong Dien (C) at a meeting to discuss the proposal by Syre Group, a Sweden-based textile impact company, to launch a high-tech polyester fiber recycling facility in Binh Dinh Province, south-central Vietnam, February 19, 2025. Photo: C.Dung |
On Wednesday, Minister of Industry and Trade Nguyen Hong Dien met with Binh Dinh provincial officials to discuss a groundbreaking proposal by Syre Group, a Swedish textile impact company focused on hyperscale textile-to-textile recycling, starting with polyester.
Syre Group aims to establish a recycling facility in Nhon Hoi A Industrial Park, part of the Nhon Hoi Economic Zone, with an investment estimated to range between $700 million and $1 billion.
The proposed plant would process 250,000 metric tons of textile waste annually, converting polyester waste into raw materials for the garment and other industries.
During the meeting, Syre Group’s senior operations director Tim King affirmed the company’s commitment to utilizing cutting-edge recycling technology while complying with global environmental standards.
King emphasized that the project would incorporate advanced techniques to meet world-class sustainability benchmarks while ensuring full compliance with Vietnam's environmental regulations.
He noted that the factory would require approximately 300,000-400,000 metric tons of raw materials per year.
However, a survey conducted by the group found that domestic sources could supply only 40,000-60,000 metric tons, necessitating imports to meet demand.
King proposed the government provide instructions related to importing recycled materials as well as carrying out environmental impact assessments. He also suggested that the government adopt policies to support the company’s textile waste recycling project.
A representative of the ministry’s Import-Export Department expressed support for the project but stated that used clothing and fabric are on the list of goods prohibited from export and import.
Scrap fabric is also considered waste material from the production process, so its import must comply with regulations on the list of scrap materials allowed to be imported from abroad for production purposes. Therefore, it is necessary to consult with relevant authorities on the matter.
King therefore urged the ministry to issue clear policies and guidelines for collecting and processing used garments domestically to ensure a stable supply of recyclable materials for the project.
He emphasized that Syre Group aims to prioritize domestic sources of used clothing for its operations, fostering a circular economy within Vietnam.
Chairman of the Binh Dinh administration Pham Anh Tuan underscored the project’s potential to position Vietnam as a global leader in sustainable textile manufacturing. He urged the ministry to consider and issue concrete instructions on the import of fabric scraps for production.
Deputy Minister of Industry and Trade Truong Thanh Hoai affirmed support for Syre Group’s initiative but stressed the importance of securing government approvals, including a special resolution for the project.
Minister Dien also backed the initiative, requesting that the project's technologies be clean, safe for the environment, and meet all wastewater and waste treatment requirements.
He asked the group to provide detailed evidence of its technological superiority and socio-economic benefits to ensure the project aligns with Vietnam’s sustainability goals.
He further encouraged the firm to collaborate with local enterprises to establish a closed-loop production chain, fostering localization and long-term industry growth.
