April 29, 2025 – A major investment initiative is set to reshape Vietnam’s textile industry landscape. On April 25, Binh Dinh Province in Vietnam and Sweden-based Syre Group inked a Memorandum of Understanding (MoU) for a groundbreaking polyester fiber fabric recycling and production complex project. With a planned investment of approximately $1 billion, Syre Group aims to establish a state-of-the-art recycling complex in Binh Dinh, boasting an annual capacity of 250,000 tons of chemically depolymerized recycled polyester fibers. The overarching goal? To transform Vietnam into the world’s first high-standard circular textile hub, fully compliant with stringent technological and environmental norms in the US and Europe.
Syre Group, a textile circular economy enterprise jointly funded by H&M and Vargas, is headquartered in Stockholm, Sweden. Currently operating its first manufacturing facility in North Carolina, US, the planned Vietnamese plant is poised to become the company’s second global foothold. Strategically located in Nhơn Hội A Industrial Park of Binh Dinh Province, the project will leverage cutting-edge “spinning-to-spinning” chemical depolymerization technology. This innovative approach breaks down used polyester (PET/polyester) into monomers and repolymerizes them, yielding recycled PET (rPET) with properties on par with virgin materials. Unlike conventional “bottle-to-spinning” mechanical recycling methods, Syre’s technology slashes carbon emissions by 85%. It also expands the recycling scope from beverage bottles to textile garments, significantly diversifying the sources of recycled raw materials. Additionally, the project will incorporate rooftop photovoltaic systems, energy storage, and wastewater recycling facilities, ensuring compliance with Vietnam’s increasingly strict environmental standards and contributing to the pursuit of net-zero emissions.
The implementation of this project is expected to have far-reaching implications for Vietnam’s textile industry. It will provide local textile companies with a stable supply of high-quality recycled raw materials, facilitating the fulfillment of H&M Group’s long-term rPET procurement agreement worth $600 million over seven years. Moreover, it will supply traceable recycled materials for high-end applications such as automotive airbags, home textiles, and sports shoe materials, driving the transformation of Vietnam’s textile sector towards high-end and green development. Simultaneously, the project will stimulate the coordinated upgrade of the upstream used textile recycling system and the downstream green manufacturing ecosystem, promoting the development of local recycling networks, sorting centers, and raw material pre-treatment industries. This, in turn, will generate numerous job opportunities and enhance Vietnam’s standing in the global textile value chain. This collaboration marks a pivotal stride for Vietnam in the realm of circular textiles, and the industry eagerly anticipates its future developments.