Swedish corporation wants to invest 1 billion USD in a project to recycle old clothes

On February 19, Minister Nguyen Hong Dien had a working session with the People's Committee of Binh Dinh province on the high-tech fabric production complex project of Syre Group (Sweden).

Ministry of Industry and Trade meets with parties on high-tech fabric production project - Photo: C.DUNG

Syre Group is a subsidiary of H&M Group and Vargas Technology Investment Company, operating mainly in the field of recycling textile waste. This group has a need to invest in a high-tech textile production complex project in Nhon Hoi A Industrial Park, Nhon Hoi Economic Zone, Binh Dinh Province with a capacity of 250,000 tons/year, total investment capital of 700 million - 1 billion USD.

Import old clothes and scraps as recycled materials

Regarding the project, Mr. Tim King, senior operations director of Syre Group, wishes to invest in the polyester fiber recycling complex factory project, committed to applying modern technology to the polyester fiber recycling project, meeting the world 's leading standards.

Mr. Tim King wishes to be supported with mechanisms and policies related to the implementation of textile waste recycling projects, guidance on procedures for importing recycled materials and environmental impact assessments. At the same time, the group wants to prioritize the collection of domestic raw materials and used clothing in Vietnam.

However, this investment still does not have a clear implementation mechanism, causing difficulties in purchasing, classifying and processing raw materials to meet the project's production standards. Therefore, Mr. Tim King proposed that the Ministry of Industry and Trade support the development of a mechanism and specific instructions on the collection, classification and processing of domestic used clothing to ensure a source of recycled materials for production.

Supporting the project investment, the Import-Export Department (Ministry of Industry and Trade) said that used clothes and fabrics are on the list of goods banned from export and import.

As scrap fabric is also waste in the production process, the import must meet the regulations on the list of scrap materials allowed to be imported from abroad as raw materials for production. Therefore, it is necessary to consult with a professional agency.

Can help Vietnam become a hub for the circular textile industry?

Mr. Pham Anh Tuan - Chairman of Binh Dinh Provincial People's Committee - said that this is an important project, making Vietnam a global circular textile industry center, creating many jobs and contributing to the green economy. Therefore, the province proposed that the Ministry consider, support and provide detailed instructions and support for scrap fabric import procedures, ensuring raw materials for production.

Deputy Minister of Industry and Trade Truong Thanh Hoai expressed his support and created the best conditions for investors. He also said that it is necessary to report to the Prime Minister and have a special resolution for this project. Because this is a special product, the pilot must have a strict control mechanism for used raw materials.

Minister Nguyen Hong Dien also expressed his support for the project, but the import of recycled materials is the most important environmental issue. Therefore, Vietnam is very interested in the technologies applied by Syre Group, ensuring cleanliness and safety for the environment, meeting the requirements for wastewater and waste treatment of the project.

In addition, the spread of connections between domestic enterprises to form a closed chain from production, processing to consumption can be localized or connect domestic enterprises to jointly implement the project's goals. In particular, the project needs to demonstrate its socio-economic effectiveness for Vietnam.

He asked the group to prove the superiority of the project in terms of production technology, the ability to contribute to the socio-economy of Vietnam as well as the ability to create a closed domestic production chain, as a basis for the Ministry of Industry and Trade to advise competent authorities to have specific mechanisms and policies for the project.

Source: https://tuoitre.vn/tap-doan-cua-thuy-dien-muon-dau-tu-1-ti-usd-lam-du-an-tai-che-quan-ao-cu-20250219213219009.htm