H&M plans 1 billion USD investment to turn Binh Dinh into a circular textile hub

During discussions with the Ministry of Industry and Trade, Syre Group outlined its intention to develop a high-tech fabric production complex in Nhon Hoi A Industrial Park, Binh Dinh province.

During discussions with the Ministry of Industry and Trade, Syre Group outlined its intention to develop a high-tech fabric production complex in Nhon Hoi A Industrial Park, Nhon Hoi Economic Zone, with an estimated capacity of 250,000 tonnes per year and a total investment ranging from 700 million USD to 1 billion USD.

According to Tim King, Senior Operations Director at Syre, the group is committed to integrating state-of-the-art technologies into its polyester fibre recycling project, ensuring compliance with global environmental standards, while adhering to Vietnam's environmental protection regulations.

In addition to advanced manufacturing processes, Syre has requested policy support regarding waste textile recycling initiatives, import procedures for recycled materials and environmental impact assessments. The company has also sought assistance in connecting with relevant regulatory bodies to streamline project implementation.

Although Syre prioritises sourcing raw materials locally, the lack of a structured framework for collecting used clothing in Vietnam poses challenges. The absence of clear collection, sorting, and processing mechanisms has hindered efforts to secure a steady supply of recycled materials that meet the project’s production standards.

We propose that the Ministry of Industry and Trade develop specific guidelines and mechanisms for collecting, sorting and processing used clothing domestically to ensure a stable supply of recycled raw materials, a Syre representative said.

Chairman of the Binh Dinh People’s Committee Pham Anh Tuan, emphasised the strategic significance of Syre’s project, highlighting its potential to transform Vietnam into a global hub for circular textile production, generate numerous employment opportunities and contribute to the green economy.

Meanwhile, Deputy Minister of Industry and Trade Truong Thanh Hoai acknowledged the unique and pilot nature of the project, stressing the need for strict control measures over used raw materials. While the Ministry of Industry and Trade supports the initiative, it must first be submitted to the Government for special approval through a dedicated resolution./.

VNA