H&M’s subsidiaries want to build recycled fiber factories in Vietnam

Syre Group is a subsidiary of H&M Group and Vargas Technology Investment Company, mainly operating in the field of recycling textile waste. The focus of the business is to recycle polyester waste into new raw materials for the garment, car and furniture industry.

At the afternoon of February 19, Mr. Tim King – Senior Director of Syre Group – said the company would like to invest in the project of a polyester recycling factory project in Binh Dinh province. The project in Nhon Hoi A Industrial Park is expected to have a capacity of 250,000 tons a year, total investment of 700 million to 1 billion USD.

The Group is committed to applying modern technology, meeting the world’s leading standards for environmental protection and complying with Vietnam’s environmental protection regulations.

In fact, the collection of used clothes in Vietnam has not had a clear deployment mechanism. This causes many difficulties in purchasing, classifying and processing raw materials to meet the production standards of the project, according to Syrre representative.

Therefore, this group asked the Ministry of Industry and Trade to support the development of specific mechanisms and guidelines on collection, classification and handling of used domestic clothing to ensure recycled raw materials for production. export.

According. green. Therefore, Binh Dinh suggested that the Ministry of Industry and Trade has detailed instructions and supports the procedures for importing rags from the production process according to current regulations.

Currently, used clothing and fabrics belong to the list of goods banned from exports and forbidden imports. And rags are also scrap in the production process.

Responding to the investor, Deputy Minister Truong Thanh Hoai said the viewpoint of the Vietnamese government is to create maximum conditions for investors to develop sustainable business. However, according to Mr. Hoai, this project needs a special resolution of the Government to have a basis for implementation. “Because this is a peculiarity and a pilot must have a strict mechanism of control for used raw materials,” he explained.

The Import and Export Department requests the People’s Committee of Binh Dinh Province to consult the Ministry of Natural Resources and Environment before synthesizing and reporting to the Prime Minister to issue the Resolution.

At the conference, Minister of Industry and Trade Nguyen Hong Dien also noted that Vietnam was very interested in the technologies that Syre Group applied in the production process and the stages of erasing, dyeing, steaming and completing products. He requires these technologies to ensure clean and environmental safety, and meet the water treatment and waste of the project.

In addition, the project needs to have a spillover impact on domestic enterprises to form a closed chain from production and processing to consumption. He proposed that the project may localize or connect domestic enterprises to work together.

“When proving the superiority of the project on production technology, the ability to contribute socio -economic, form a closed production chain in the water, the Ministry of Industry and Trade is ready to advise competent authorities to have Specific mechanisms and policies for the project, “the Minister added.