Swedish group wants to build a $1 billion high-tech recycling factory in Vietnam

Minister of Industry and Trade Nguyen Hong Dien had a working session  on February 19  with the People's Committee of south-central Binh Dinh province  and representatives of Sweden's Syre Group  on a projected high-tech fabric production complex, to be invested in by Syre Group, 

At the meeting, Syre Group proposed to invest in a polyester fiber recycling complex factory project in Binh Dinh province with an investment capital of $700 million or more, to $1 billion.

The Group is committed to applying modern technology to the polyester fiber recycling production project, meeting the world's leading standards on environmental protection and complying with Vietnam's environmental protection regulations.

In addition, the Group proposed to be supported in terms of mechanisms and policies related to the implementation of the textile waste recycling project, guidance on procedures for importing recycled materials and assessing environmental impacts, and support in connecting with specialized agencies to ensure the project is implemented smoothly.

According to the Group, it will always prioritize the collection of  raw materials in Vietnam. However, there is not a clear mechanism for collecting used clothing in Vietnam. This will cause many difficulties in purchasing, classifying and processing raw materials to meet the production standards of the project.

"Therefore, we propose that the Ministry of Industry and Trade (MOIT) support the development of a mechanism and specific instructions on the collection, classification, and treatment of used clothing domestically to ensure a source of recycled materials for production," said Mr. Tim King - Senior Operations Director, Syre Group. 

Speaking at the working session, Minister Dien affirmed that the European Union (EU), including Sweden, is an important economic and trade partner of Vietnam.

Over the past years, since the two sides signed the Free Trade Agreement and the Investment Protection Agreement, the wave of investment as well as economic and trade relations has increased rapidly every year.

It can be said that the EU has everything Vietnam needs and Vietnam meets everything the EU needs, including Sweden, so the two sides need to cooperate more closely to promote economic and trade relations between the two countries to a new level, including specific proposals related to the High-tech Fabric Production Complex project.

According to the Minister,  Syre Group's proposals meet the traditional growth drivers and new growth drivers such as investment and green transformation, digital transformation, and circular economy, so the MOIT fully supports this project.

However, the Minister noted that the most important issue when importing recycled products is environmental issues.

Therefore, Vietnam is very interested in the technologies that Syre Group applies in the production process to ensure cleanliness and safety for the environment, and to meet the requirements for wastewater and waste treatment of the project.

In addition, the minister asked Syre Group to cooperate with domestic enterprises to implement the project's goals, including the formation of a closed chain from production, processing to consumption, which can be localized,  so that the project can demonstrate its socio-economic effectiveness for Vietnam.

"If Syre Group proves the superiority of the project in terms of production technology, the ability to contribute to the socio-economic development of Vietnam as well as the ability to create a closed domestic production chain, the MOIT is ready to advise competent authorities to have specific mechanisms and policies for the project," Minister Dien emphasized.

The Import-Export Department under the MOIT basically supports the investment policy of Syre Group to strengthen the development of supporting industries for the textile and garment sector within the framework and regulations of the law, according to the minister.

Mr. Pham Anh Tuan, Chairman of Binh Dinh Provincial People's Committee, emphasized that Syre Group's project is of great significance in making Vietnam a global circular textile and garment industry center, creating many jobs and contributing to the green economy.

Therefore, Binh Dinh Provincial People's Committee proposed the MOIT to support the project, providing favorable regulatory conditions for importing scrap fabric, ensuring a stable source of raw materials for the project.