In a strategic move poised to reshape the global textile industry, Việt Nam is set to host the world’s first fully circular textile production hub, powered entirely by renewable energy. The announcement follows a high-level meeting between Vietnamese Prime Minister Phạm Minh Chính and executives from Swedish textile recycling company SYRE, including Chair Susanna Campbell, alongside Swedish Ambassador to Việt Nam Johan Ndisi.

Held in Hà Nội on Wednesday, the meeting underscored both countries’ shared ambitions for a greener future, with Prime Minister Chính extending a formal invitation to SYRE to spearhead a landmark $1 billion investment in the country’s Bình Định province. The goal? Nothing short of transforming Việt Nam into a leading global player in sustainable fashion.

A Strategic Partnership for a Circular Future

“Việt Nam welcomes SYRE’s vision and investment,” declared Prime Minister Chính during the discussion. “We are committed to developing a green, sustainable, and circular economy that will position us as a leader in environmentally responsible manufacturing.”

His comments reflect an accelerating trend in Southeast Asia’s economic policies, which are increasingly prioritizing sustainability alongside growth. Việt Nam’s textile industry, which currently accounts for roughly 16% of the nation’s total exports and employs millions, is under increasing pressure to reform. Global brands are demanding cleaner supply chains, and domestic policymakers are keen to meet those expectations.

SYRE’s proposed project aligns seamlessly with Việt Nam’s commitment to carbon neutrality by 2050, as pledged at COP26. This partnership also represents an intersection of mutual interests: while Việt Nam seeks capital and innovation, Sweden—long considered a global trailblazer in environmental stewardship—is looking to expand its green influence in Asia.

Bình Định: A Rising Star on the Investment Map

SYRE’s choice of Bình Định province as the proposed location for the textile hub is not incidental. Known for its breathtaking coastal landscapes, Bình Định is also quietly becoming a magnet for high-tech and sustainable investments. With its deep-water seaport, international airport, modern industrial zones, and streamlined administrative support, the province provides the logistical infrastructure necessary for global-scale operations.

Prime Minister Chính praised the decision, calling it “strategic and forward-thinking,” and emphasizing the synergy between SYRE’s goals and Việt Nam’s regional development agenda. Bình Định’s government has already expressed strong support, promising to fast-track regulatory processes and provide incentives that would enable the hub’s swift and successful development.

The envisioned complex will use Việt Nam’s abundant surplus textile waste—estimated at over 500,000 tons annually—as raw material, transforming what would be landfill fodder into premium recycled polyester products for export. SYRE’s technology promises to deliver textile-grade outputs without the use of harmful chemicals or fossil fuels, effectively closing the loop on textile production.

SYRE’s Global Ambition Takes Root in Asia

Speaking after the meeting, Susanna Campbell, Chair of SYRE, laid out the company’s long-term ambition to be at the forefront of the textile industry’s green transformation.

“Our fully circular manufacturing model is not only commercially viable but also absolutely necessary for the planet. Việt Nam presents a unique opportunity. The infrastructure, the skilled workforce, and the government’s proactive approach to sustainability make it the perfect fit,” said Campbell.

Founded with the mission of revolutionizing how textiles are made, used, and reused, SYRE’s model is built on advanced chemical recycling processes that regenerate polyester from discarded garments and production offcuts. The process uses renewable energy and eliminates waste, pollution, and the need for virgin raw materials like petroleum-based synthetics.

With operations already underway in parts of Europe and pilot programs in the United States, the Việt Nam venture marks SYRE’s largest single investment to date. It also reflects a growing international appetite for environmentally conscious supply chains, especially among fashion retailers seeking to comply with upcoming EU and U.S. regulations around sustainability and circularity.

Green Transition, Green Jobs

The implications of this project stretch beyond environmental impact—it’s also about economic transformation. The complex is projected to create thousands of green jobs in the Bình Định region, from technical roles in recycling operations to high-skilled positions in digital monitoring, quality assurance, and research and development.

According to SYRE, the facility will train local workers in next-generation textile processing, including AI-assisted sorting and fiber regeneration. It will also work closely with Vietnamese universities and vocational institutions to establish long-term talent pipelines, ensuring that the benefits of the green transition are both immediate and enduring.

Prime Minister Chính noted that Việt Nam’s broader economic strategy depends heavily on such partnerships. “We are aiming for 8% growth this year, with aspirations of reaching double-digit growth in the years ahead. But growth must be accompanied by sustainability. That’s why investments like these are so important—they align economic performance with environmental responsibility,” he said.

Sweden and Việt Nam: Strengthening Bilateral Ties

Ambassador Johan Ndisi echoed this sentiment, stating that the partnership is symbolic of a new phase in Việt Nam–Sweden relations. “Sweden was one of the first countries to recognize Việt Nam diplomatically after the war. Today, we are taking that legacy further by building together in the fields of innovation and green development,” he said.

Swedish companies have increasingly looked to Việt Nam as a stable and strategic base in Southeast Asia. From IKEA to Electrolux, the Swedish footprint in the region has grown, but this $1 billion project represents a qualitative leap—focusing not just on trade, but on transformation.

Ndisi also highlighted the shared values that underpin the venture: human rights, environmental justice, and economic inclusion. “We see Việt Nam not only as an emerging market, but as a partner in solving global challenges,” he added.

Renewable Energy: Powering the Transformation

One of the most compelling aspects of the SYRE project is its complete reliance on renewable energy. In line with Việt Nam’s renewable energy leadership in the region, the hub will draw on a mix of solar and wind power, supplemented by energy storage systems to ensure round-the-clock operations.

This is a significant move, especially given the textile sector’s notorious energy consumption. Traditional textile production is energy-intensive and contributes significantly to global greenhouse gas emissions. By contrast, the Bình Định facility aims to be carbon-neutral from day one.

Việt Nam’s power grid has been increasingly integrated with renewable sources, thanks to aggressive national policies and international support. Wind farms in Bình Định and nearby provinces, along with expansive solar arrays, are already generating substantial capacity, making this clean energy commitment feasible and reliable.

Global Impact, Local Commitment

The ripple effects of this investment will not be limited to Việt Nam alone. As fashion brands around the world face growing scrutiny over their environmental footprints, sourcing materials from a circular, renewable-powered hub could become a competitive advantage.

Moreover, the move may inspire other textile-producing countries in Asia—such as Bangladesh, India, and Indonesia—to explore similar transitions. Việt Nam, once known primarily as a low-cost manufacturing hub, is now positioning itself as a center of innovation, sustainability, and high-value production.

Prime Minister Chính closed the meeting with a reaffirmation of Việt Nam’s openness to further high-tech and green investments. “We are not just open—we are actively building the future. And we welcome partners who are ready to do the same.”

Looking Ahead

As the memorandum of understanding between SYRE and the Vietnamese government moves toward finalization, preparations for ground-breaking are expected to begin later this year, with full operations targeted for 2027. Both sides have committed to ongoing collaboration on environmental benchmarks, workforce training, and technology transfer.

If successful, the project could not only redefine the textile industry but also serve as a blueprint for integrating economic growth with planetary health.

In the words of Susanna Campbell: “This is more than a factory. This is a statement to the world that the future of fashion can be circular, clean, and collaborative.”

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

24th April, 2025