Vietnam Grants $1 Billion Investment License to Sweden’s Syre, Paving the Way for Major Textile Recycling Complex
- Tuesday - 17/06/2025 16:07
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In a ceremony underscoring Vietnam’s growing embrace of green industry, officials from Binh Dinh province on June 12 formally awarded a $1 billion investment license to Swedish textile recycling innovator Syre Impact AB. The event, held in Stockholm and witnessed by Vietnamese Prime Minister Pham Minh Chinh and Swedish Minister for International Development Cooperation and Foreign Trade Benjamin Dousa, marked a major milestone in Vietnam’s transition toward sustainable manufacturing.
The license authorizes Syre to build and operate a large-scale polyester recycling complex in Nhon Hoi Economic Zone - a coastal industrial hub in Vietnam’s central region. The facility, covering nearly 29 hectares, is among the most ambitious foreign direct investments in Vietnam’s recycling sector to date. With a 50-year operating license, the project aims to convert up to 400,000 tons of textile waste annually into high-grade PET resin, a raw material widely used in eco-friendly garment production.
A Project Born from Months of High-Level Dialogue
The investment is the culmination of extensive engagement between Syre and Binh Dinh provincial authorities, beginning with a memorandum of understanding signed in April. Since then, the company has worked closely with Vietnam’s Ministry of Industry and Trade, presenting its proprietary closed-loop technologies designed to meet the country’s goals under its Sustainable Textile Industry Strategy through 2030.
Syre’s approach - centered on converting discarded polyester fabrics into new raw materials without incineration or landfill - aligns closely with Vietnam’s COP26 and COP28 climate pledges to achieve net-zero emissions by mid-century. The Ministry welcomed the initiative, recommending that the project receive fast-track status and national investment incentives.
On June 6, Binh Dinh’s Economic Zone Authority issued the official investment registration certificate, allowing Syre to proceed with preparatory activities. Speaking in Stockholm, Mr. Ho Quoc Dung, Secretary of the Binh Dinh Provincial Party Committee, emphasized the province’s commitment to facilitating high-quality green investment.
Timelines and Technical Ambitions
The project will be implemented in three phases:
- Phase 1 (2025–2026): Legal, environmental, and planning approvals
- Phase 2 (2027–2028): Construction and installation of advanced machinery
- Phase 3 (2029): Trial operations and full-scale commercial production
The facility will operate entirely on renewable energy and utilize cutting-edge recycling systems. Syre intends to source up to 15% of its input materials from Vietnam’s domestic textile waste stream, reducing landfill dependency and promoting local supply chains.
In a working session held the same day as the license handover, Syre Chairwoman Susanna Campbell met with Mr. Dung and outlined the company’s long-term commitment to Vietnam. She noted that major investors - including H&M and TPG Rise Climate - had already committed capital to the project and pledged to apply globally certified technology while training local labor in collaboration with Quy Nhon University.
Local and Global Expectations
With thousands of new jobs anticipated and supply chain infrastructure poised for growth, the project’s impact could ripple beyond Binh Dinh. Vietnam’s central coast, once overlooked in industrial planning, now stands to become a model for green manufacturing and circular economy innovation.
“Binh Dinh is ready to lead the nation in sustainable industrial development,” said Pham Anh Tuan, Chairman of the Provincial People’s Committee. “Syre’s project represents more than just economic growth - it is a blueprint for how we want our future industries to look.”
The Swedish – Vietnamese partnership comes at a pivotal moment as global attention intensifies on the environmental toll of fast fashion. In choosing Vietnam as its flagship site in Asia, Syre is betting not only on favorable logistics and policy support, but on a government and local leadership that see sustainability not as a cost, but as an opportunity.
As the world reimagines production in an era of climate urgency, Binh Dinh may soon find itself at the center of the textile industry's green transformation.
A Project Born from Months of High-Level Dialogue
The investment is the culmination of extensive engagement between Syre and Binh Dinh provincial authorities, beginning with a memorandum of understanding signed in April. Since then, the company has worked closely with Vietnam’s Ministry of Industry and Trade, presenting its proprietary closed-loop technologies designed to meet the country’s goals under its Sustainable Textile Industry Strategy through 2030.
Syre’s approach - centered on converting discarded polyester fabrics into new raw materials without incineration or landfill - aligns closely with Vietnam’s COP26 and COP28 climate pledges to achieve net-zero emissions by mid-century. The Ministry welcomed the initiative, recommending that the project receive fast-track status and national investment incentives.
On June 6, Binh Dinh’s Economic Zone Authority issued the official investment registration certificate, allowing Syre to proceed with preparatory activities. Speaking in Stockholm, Mr. Ho Quoc Dung, Secretary of the Binh Dinh Provincial Party Committee, emphasized the province’s commitment to facilitating high-quality green investment.
Timelines and Technical Ambitions
The project will be implemented in three phases:
- Phase 1 (2025–2026): Legal, environmental, and planning approvals
- Phase 2 (2027–2028): Construction and installation of advanced machinery
- Phase 3 (2029): Trial operations and full-scale commercial production
The facility will operate entirely on renewable energy and utilize cutting-edge recycling systems. Syre intends to source up to 15% of its input materials from Vietnam’s domestic textile waste stream, reducing landfill dependency and promoting local supply chains.
In a working session held the same day as the license handover, Syre Chairwoman Susanna Campbell met with Mr. Dung and outlined the company’s long-term commitment to Vietnam. She noted that major investors - including H&M and TPG Rise Climate - had already committed capital to the project and pledged to apply globally certified technology while training local labor in collaboration with Quy Nhon University.
Local and Global Expectations
With thousands of new jobs anticipated and supply chain infrastructure poised for growth, the project’s impact could ripple beyond Binh Dinh. Vietnam’s central coast, once overlooked in industrial planning, now stands to become a model for green manufacturing and circular economy innovation.
“Binh Dinh is ready to lead the nation in sustainable industrial development,” said Pham Anh Tuan, Chairman of the Provincial People’s Committee. “Syre’s project represents more than just economic growth - it is a blueprint for how we want our future industries to look.”
The Swedish – Vietnamese partnership comes at a pivotal moment as global attention intensifies on the environmental toll of fast fashion. In choosing Vietnam as its flagship site in Asia, Syre is betting not only on favorable logistics and policy support, but on a government and local leadership that see sustainability not as a cost, but as an opportunity.
As the world reimagines production in an era of climate urgency, Binh Dinh may soon find itself at the center of the textile industry's green transformation.