SYRE Plans Significant Polyester Recycling Investment in Bình Định

SYRE, a subsidiary of Swedish fashion conglomerate H&M Group and technology investment firm Vargas Holding, intends to develop a substantial polyester textile recycling complex in Bình Định province. The projected investment totals approximately USD 1 billion, targeting a design capacity of 250,000 metric tons per annum. Scheduled for operational commencement in late 2028, the project aims to establish Việt Nam as a global hub for circular textile manufacturing, adhering to stringent US and EU standards while aligning with Việt Nam’s sustainable development objectives.

During a recent meeting, Prime Minister Phạm Minh Chính affirmed Việt Nam’s commitment to fostering strong bilateral relations with Sweden. He lauded SYRE’s proposed green manufacturing initiative, emphasizing its potential to utilize textile waste and enhance environmental stewardship, consistent with the principles articulated in COP26 through COP28.

The Prime Minister underscored Việt Nam’s focus on developing a circular economy and transitioning to green energy, identifying these as pivotal drivers for accelerated and sustainable GDP growth, targeting 8% in 2025 and double-digit growth in subsequent years. He further highlighted the project’s alignment with Việt Nam’s strategy to diversify markets, products, and supply chains to mitigate global economic volatility.

Prime Minister Chính acknowledged Bình Định’s favorable investment climate, citing its robust infrastructure, including high-speed roadways, an international airport, and a deep-water port, alongside its renewable energy resources and conducive environmental conditions. He urged provincial and national authorities to collaborate closely with SYRE throughout the project’s execution.

Addressing SYRE’s inquiries regarding feedstock sourcing and a Direct Power Purchase Agreement (DPPA), the Prime Minister encouraged the company to prioritize domestically sourced green materials such as lotus and jute fibers, and to explore the utilization of domestic textile scraps and discarded clothing, promoting cost efficiency and environmental responsibility. He highlighted Decree No. 57/2025/NĐ-CP, which governs direct power purchase agreements between renewable energy generators and large electricity consumers, advising SYRE to engage with the Ministry of Industry and Trade (MOIT) to clarify the regulations within the context of their project proposal.

The Prime Minister tasked the Ministry of Finance (MOF), MOIT, and the Ministry of Agriculture and Rural Development (MARD), along with the Ministry of Natural Resources and Environment (MONRE), to provide comprehensive procedural guidance. He also directed the Bình Định Provincial People’s Committee to proactively address any challenges encountered by SYRE in compliance with Vietnamese law.

Swedish Ambassador to Việt Nam, Johan Ndisi, affirmed the commitment of Swedish businesses to long-term investment and cooperation in Việt Nam, emphasizing the country’s desire to collaborate on green transition initiatives and to become a strategic partner with Việt Nam in science, technology, innovation, and digital transformation.

SYRE’s Chairwoman, Susanna Campbell, acknowledged Việt Nam’s developmental achievements and commended its rapid green transition, expressing confidence in the country’s potential to become a global leader in circular economy development. She expressed gratitude for the support received and emphasized Việt Nam’s strategic attractiveness, driven by its renewable energy sector and robust textile industry, pledging to maximize the utilization of domestic materials and strengthen domestic supply chains and production capabilities.

Source: Vneconomy, April 24, 2025, Thanh Thủy

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Source: VNECONOMY
This article has been adapted from its original source.