Circular economy start-up Syre has signed a memorandum of understanding with the provincial government of Bình Định in Vietnam, marking a key step toward establishing its first large-scale textile-to-textile recycling facility in the region. The plant — which the company refers to as “gigascale” — would be the first of its kind for Syre and a major development in Southeast Asia’s growing role in sustainable manufacturing.
Launched in 2024, Syre is a joint initiative by fashion conglomerate H&M Group and impact-focused investment firm Vargas. The venture was created to close the loop in textile production by enabling large-scale recycling of textile materials — starting with polyester, which represents around 40% of the fashion industry’s emissions footprint. By facilitating the transformation of worn garments back into raw materials, Syre aims to help decarbonise one of the world’s most polluting industries.
In 2023, Syre secured US$100 million in Series A financing, with plans to use the funds to construct a prototype facility in the United States and begin development of two larger plants. At the time, Vietnam and the Iberian Peninsula were shortlisted as possible locations for the first full-scale sites.
Syre’s gigascale plants are expected to process between 100,000 and 250,000 metric tonnes of circular polyester per year, drastically increasing the availability of recycled inputs for the fashion value chain. The company cited Vietnam’s strategic position in the global textile supply chain as a major factor in selecting Bình Định as its preferred site. Vietnam, which is the world’s third-largest textile and apparel exporter, already plays a critical role in global garment manufacturing and is increasingly viewed as a hub for sustainable innovation in the sector.
To move forward with the project, Syre and Bình Định province will collaborate on securing essential prerequisites. These include proximity to industrial infrastructure, access to renewable energy sources, reliable feedstock availability, and a “pilot mechanism” that would allow the import of recyclable textiles from neighbouring countries. Vietnam’s openness to green investment and export-oriented policies further strengthen the business case.
“We are grateful and encouraged by the strong support expressed by the Vietnamese government,” said Syre CEO Dennis Nobelius. “Syre has an ambition to support Vietnam in its green transition and as a global leader in the circular textile industry. The partnership with the Bình Định Province will, with the right conditions in place, be a great opportunity to jointly lead the textile shift. We now need to work together to get all fundamentals in place for an investment decision.”
The announcement aligns with Vietnam’s increasing focus on sustainability and its commitment to reducing greenhouse gas emissions under the Paris Agreement. It also dovetails with broader industry goals, such as those outlined by the [Ellen MacArthur Foundation](https://ellenmacarthurfoundation.org/topics/fashion/overview), which advocates for circularity in fashion as a way to protect natural resources and drive systemic change.
For H&M Group, one of the founding partners of Syre, this is part of a long-term strategy to create a [fully circular and climate positive business model](https://hmgroup.com/sustainability/circular-and-climate-positive/). The Swedish fashion giant has faced growing pressure from consumers and regulators alike to cut its environmental impact and increase transparency around sourcing and production.
As the textile industry begins to reckon with its environmental toll, Syre’s proposed facility in Vietnam could serve as both a regional catalyst and a global model for circular supply chains.
