Swedish group plans US$1 billion investment in central Vietnam

Sweden's Syre Group is interested in investing up to US$1 billion in a polyester fiber manufacturing complex at the Nhon Hoi A Industrial Park - Zone A in the Nhon Hoi Economic Zone in the central province of Binh Dinh.

Tim King, Syre's Senior Operations Director, said at a meeting with the Ministry of Industry and Trade and the Binh Dinh Provincial People's Committee on February 19.

Syre, the textile impact company initiated by Vargas and H&M Group, specializes in converting polyester waste into new materials for the apparel, automotive, and home furnishings industries. Last year, the group announced that it had shortlisted Vietnam and Iberia for its first two plants, given their strategic positions in the textile supply chain and strong industry histories.

At the meeting, Tim King emphasized the group’s commitment to using modern technology for the polyester fiber recycling project, which is expected to have an annual capacity of 250,000 tons, while complying with global and Vietnamese environmental standards.

He requested assistance with policies and mechanisms to implement the textile waste recycling project, including guidance on import procedures for recycled materials and environmental impact assessments.

He also sought help from relevant agencies in facilitating the project.

While the group prioritizes domestic sourcing, the investor was concerned about the absence of a mechanism for collecting used clothing in Vietnam despite growing interest and standards on sourcing, sorting, and processing of materials.

"Therefore, we propose that the Ministry of Industry and Trade formulate guidelines for the domestic collection, sorting, and processing of used clothing to ensure a reliable supply of recycled materials," he said.

Speaking at the event, Nguyen Hong Dien, Minister of Industry and Trade, expressed his support for the Syre Group's project.

He emphasized Vietnam's strong interest in the technologies Syre plans to use in the production, insisting that they must be environmentally friendly and safe, ensuring proper sewage and waste management.

Dien stressed the importance of involving domestic companies to create a closed-loop system for production, processing, and consumption. He also pointed out that the project must demonstrate its social and economic benefits to Vietnam.

Meanwhile, Pham Anh Tuan, Chairman of the Binh Dinh Provincial People's Committee, said the project is important in positioning Vietnam as a global center for the circular textile industry, creating numerous jobs and contributing to a green economy.

To facilitate the project, the local government has urged the Ministry of Industry and Trade to issue guidelines for importing production waste to ensure a stable supply of raw materials.