H&M subsidiary plans to invest $1 billion factory in Vietnam

Prime Minister receives Ms. Susanna Campbell, Chairwoman of SYRE Group - Photo: VGP/Nhat Bac

On the afternoon of April 23, Prime Minister Pham Minh Chinh received Ms. Susanna Campbell, Chairwoman of SYRE Group (Sweden) and Swedish Ambassador to Vietnam Johan Ndisi. SYRE is a subsidiary of H&M Garment Group (a world-famous Swedish fashion brand) and Vargas Technology Investment Company (Sweden).

SYRE creates a global circular textile ecosystem through large-scale, high-tech, renewable energy-powered recycling centers. SYRE's goal is to build large recycling complexes in strategic areas around the world, including Vietnam.

SYRE plans to invest in a polyester fabric recycling complex in Binh Dinh with a design capacity of up to 250,000 tons/year, with a total investment capital of approximately 1 billion USD. The project is expected to be operational by the end of 2028 and aims to make Vietnam the first global center for circular textiles, applying high technology according to US and EU standards, in line with Vietnam's sustainable development orientation.

At the meeting, the Prime Minister affirmed that Vietnam always attaches importance to the good traditional friendship with Sweden. The Prime Minister welcomed the SYRE Group's plan to invest in a polyester fabric recycling complex towards green and clean production, utilizing textile-related waste, contributing to improving the environment in the spirit of the Conferences from COP26 to 28.

The Prime Minister emphasized that Vietnam is focusing on developing a circular economy and green energy transition, identifying this as one of the new driving forces for rapid and sustainable growth, contributing to achieving a GDP growth rate of 8% in 2025 and double digits in the coming years. At the same time, SYRE's project is also in line with Vietnam's orientation in diversifying markets, products and supply chains to adapt to fluctuations in the situation.

The Prime Minister welcomed SYRE's plan to invest in a polyester fabric recycling complex towards green and clean production, utilizing textile-related waste, contributing to improving the environment - Photo: VGP/Nhat Bac

The Prime Minister said that Binh Dinh is very favorable for SYRE's project because it has a good investment environment; is a center for clean energy (wind power, solar power) and has a synchronous infrastructure system, as well as a good environment and climate; and at the same time, he requested the province and ministries and branches to closely coordinate with the group during the project implementation process.

In response to some of SYRE's proposals regarding raw materials and the direct power purchase mechanism (DPPA), the Prime Minister suggested that when implementing the project, SYRE Group would focus on using domestic green materials such as lotus fiber, jute fiber, etc., as well as research the use of scraps of fabric and discarded old clothes generated in Vietnam as production materials, helping to save costs and be environmentally friendly.

The Prime Minister said that the Vietnamese Government has recently issued Decree No. 57/2025/ND-CP regulating the mechanism for direct electricity trading between renewable energy generators and large electricity users; he requested the Group to discuss specifically with the Ministry of Industry and Trade to clarify the regulations based on the project proposal.

The Prime Minister assigned the Ministry of Finance, the Ministry of Industry and Trade, and the Ministry of Agriculture and Environment to closely coordinate with the Group to guide the procedural process; and the People's Committee of Binh Dinh province to promptly coordinate and receive and handle the Group's difficulties and problems in accordance with the law.

Photo: VGP/Nhat Bac

For their part, Chairwoman Susanna Campbell and SYRE leaders congratulated Vietnam on its development achievements and appreciated Vietnam's green transition, which is taking place very strongly, believing that Vietnam will be one of the global leaders in circular economy development.

Thanking Vietnam for its active support in the process of proposing the project implementation, SYRE said it wanted to choose Vietnam as a strategic investment location because Vietnam is developing strongly in green energy and has a strong textile industry. SYRE is committed to using the most raw materials from Vietnam, strengthening the supply chain and manufacturing in Vietnam.

The Swedish Ambassador affirmed that with the good political relations between the two countries, Swedish enterprises wish to cooperate, invest and do business in Vietnam for the long term; Sweden wishes to cooperate with Vietnam in green transformation and become a comprehensive strategic partner of Vietnam in science and technology, innovation and digital transformation.

Source: https://thoibaonganhang.vn/cong-ty-con-cua-hm-du-kien-dau-tu-nha-may-1-ty-usd-tai-viet-nam-163267.html