Vietnam Backs Swedish $1B Green Recycling Plant Deal

Vietnam's Gia Lai province is stepping up to power one of the world's largest green recycling projects with renewable energy.

Swedish textile company Syre is developing a massive $1 billion polyester recycling complex in central Vietnam. The facility is designed to run on 100% clean electricity, transforming old textiles into new materials without the carbon footprint of traditional manufacturing.

Syre told provincial officials they needed guaranteed access to renewable power before scaling up operations. Long-term certainty on green energy supply was the deciding factor for moving forward with the project.

Gia Lai answered with a clear commitment. Provincial leaders said they would help Syre secure direct renewable power purchase agreements, something that has historically been challenging in Vietnam.

The timing couldn't be better. Vietnam's new Decree 57, issued in March 2025, created a fresh legal framework specifically designed to enable these kinds of direct power contracts between renewable energy producers and companies.

Gia Lai is already a renewable energy powerhouse. The province operates 86 clean energy projects with more than 4,300 megawatts of installed capacity from wind and solar farms dotting the landscape.

Syre plans to start with 20 to 30% direct renewable energy purchases by 2028. The company aims to reach 100% clean power by 2050 and will install seven megawatts of rooftop solar panels at the facility itself.

The Ripple Effect

This partnership shows how local governments can remove barriers for companies trying to operate sustainably. By solving the clean energy puzzle, Gia Lai is attracting major green investment that creates jobs while reducing environmental impact.

The project demonstrates that large-scale industrial recycling powered entirely by renewables is becoming a reality, not just a concept. As more regions build the infrastructure and policies to support direct renewable energy deals, other companies will find it easier to make similar commitments.

Vietnam is positioning itself as a destination for sustainable manufacturing, proving that environmental responsibility and economic growth can go hand in hand.