On November 11, 2024, during his working trip to Sweden, Deputy Minister Nguyễn Hoàng Long visited the new headquarters of the Vietnam Trade Office in Sweden and held a meeting with Ms. Susanna Campbell, Chairwoman of Syre.
Syre, a Swedish company specializing in textile recycling, aims to reduce carbon emissions and waste in the textile industry by large-scale polyester recycling. Syre plans to establish 12 global factories by 2032, producing 3 million tons of recycled polyester annually, which will contribute to reducing 15 million tons of CO2e each year.
The company is considering Vietnam as the location for a 250,000-ton capacity polyester recycling factory, with an investment ranging from $500 million to $1 billion. This facility is expected to position Vietnam as a global hub for circular textiles, create jobs, develop a waste management ecosystem, and enhance textile waste collection, sorting, and transportation activities.
Government’s Support for Circular Economy Initiatives
During the meeting, Deputy Minister Nguyễn Hoàng Long welcomed Syre’s proposal to select Vietnam as the site for its recycling plant. He emphasized that the Vietnamese government is increasingly prioritizing sustainable and circular investment projects. On June 7, 2022, the Prime Minister issued Decision No. 687/QĐ-TTg, approving a plan to develop the circular economy in Vietnam. One of the plan’s objectives is to “increase awareness and attract investment from domestic and international enterprises into the circular economy model, promoting green economic sectors.”
The Deputy Minister stated that Syre’s proposed investment aligns well with Vietnam’s regulations on textile waste treatment and recycling, as well as the country’s policies on sustainable development, green growth, circular economy, and efficient use of resources.
Syre’s Vision for Vietnam
During the discussions, Ms. Susanna Campbell expressed her ambition to make Vietnam the world’s first global hub for circular textiles, managing an unprecedented volume of textile recycling. Syre also plans to develop a new waste management ecosystem, incorporating advanced technology for textile sorting, setting standards for recycling and waste classification, and attracting local manufacturers to participate in its supply chain once the raw material system is established.
Ms. Campbell expressed her hope for strong support from the Vietnamese government, the Ministry of Industry and Trade, and relevant agencies in approving and implementing the project.
About Syre
Established in 2023 as a joint venture between H&M Group’s subsidiary and the Swedish investment firm Vargas, Syre focuses on recycling textile waste, particularly polyester. Its initial focus is on converting polyester waste into new materials for the apparel, automotive, and furniture industries.
H&M has signed a $600 million purchasing agreement with Syre over seven years, meeting a significant portion of its long-term demand for recycled polyester, which currently relies on converting plastic into fibers.
Syre aims to operate 12 factories worldwide with a maximum capacity of 3 million tons of circular polyester, reducing more than 15 million tons of CO2 annually by 2032. This reduction is equivalent to the annual emissions of over 3 million gasoline-powered cars. Syre’s current investors include major textile companies like H&M, Volvo, and Ikea, as well as financial backers like Vargas and TPG Rise.
The company’s first factory in the United States is set to commence operations in 2024, with commercial activities for its products starting in 2025.
Investment Plans for Vietnam
Vietnam is now on Syre’s priority list for a major commercial factory with an annual capacity of 250,000 tons, requiring a total investment of $500 million to $1 billion. This investment will cover machinery, infrastructure, installation, and other costs. The project is expected to generate 600 local jobs, enhance activities in manual and automated textile waste sorting, and strengthen Vietnam’s position in the global circular textile industry.