Vietnam Province Backs Swedish Clean Energy Textile Plant

A massive textile recycling plant powered completely by clean energy is coming to central Vietnam, and local officials are working hard to make sure it succeeds.

Swedish textile recycling company Syre is moving forward with plans for a $1 billion polyester recycling complex in Gia Lai province. The facility will transform used clothing into new textiles without relying on fossil fuels.

The project represents a breakthrough in sustainable manufacturing. Syre has committed to sourcing 100% renewable electricity, setting a new standard for environmentally responsible production in Southeast Asia.

Gia Lai province is perfectly positioned to support this vision. The region already operates 86 renewable energy projects generating over 4,300 megawatts of power from wind and solar sources.

In 2025, the province produced about 15 billion kilowatt-hours of electricity while only using 4.5 billion locally. That massive surplus creates opportunity for clean energy buyers like Syre.

Until recently, connecting factories directly with renewable power producers was challenging in Vietnam. Power generators preferred selling to the national grid for stable revenue rather than negotiating individual contracts.

That changed in March 2025 when the Vietnamese government issued Decree 57, establishing a legal framework for direct power purchase agreements. Now companies can buy renewable electricity either through dedicated lines or through the existing grid.

Provincial Vice Chairman Nguyen Tu Cong Hoang assured investors that Gia Lai will facilitate agreements between Syre and power producers. Bidding has already concluded for a 750 megawatt wind farm near the planned factory site.

The recycling complex will consume about 1.6 gigawatt-hours daily when fully operational. Syre plans to start with 60 megawatts from direct purchase agreements by 2028, scaling to 100% renewable power by 2050.

The company will also install seven megawatts of rooftop solar panels to supplement its wind power supply. This hybrid approach ensures reliable clean energy around the clock.

The Ripple Effect

This partnership could reshape Vietnam's industrial landscape. Export-focused manufacturers worldwide are seeking guaranteed access to renewable energy to meet sustainability commitments from major brands like Nike and H&M, both Syre partners.

By demonstrating that large-scale, 24/7 manufacturing can run entirely on clean power, Gia Lai and Syre are proving that environmental responsibility and economic growth can advance together. Other provinces and companies across Vietnam are watching closely.

The investment plan for Syre's dedicated power supply will be announced at Gia Lai's investment conference in late March 2026.

Vietnam is positioning itself as a global leader in circular textile production, where old clothes become new fabric without adding carbon to the atmosphere.

##