The H&M Foundation of Sweden has announced a partnership with the Ellen MacArthur Foundation to launch The Fashion ReModel project — an initiative promoting circular business models in the fashion industry, including clothing rental, repair, resale, and textile recycling. This marks an important step toward decoupling revenue from new production, reducing greenhouse gas emissions, and driving sustainable transformation across the global fashion supply chain.
Circular Fashion – An Inevitable Trend
The Fashion ReModel is a groundbreaking demonstration project that helps leading fashion brands scale up circular business practices to reduce dependence on new production. Beyond mitigating environmental impacts, the project opens up new business opportunities, supporting the fashion sector’s sustainable growth.
Participating brands have committed to increasing their revenue share from circular models over the next three years and reporting progress annually to the Ellen MacArthur Foundation. If scaled successfully, this initiative could significantly cut the fashion industry’s carbon footprint, reshape consumer behavior, and foster a new model of economic growth.
“Revenue must be decoupled from new production and resource extraction,” said Christiane Dolva, Head of Strategy and Demonstration at the H&M Foundation. “There’s no viable path to achieving global climate and biodiversity goals without transforming today’s business models.”
Accelerating the Transition to a Circular Fashion Economy
Beyond transforming individual brands, The Fashion ReModel aims to inspire and enable a systemic shift across the fashion sector.
“For circular fashion to become the norm, we need to accelerate innovation not just in design but also in how businesses operate,” emphasized Jules Lennon, Fashion Lead at the Ellen MacArthur Foundation. “Instead of being discarded after one use, garments should circulate through many lives.”
The H&M Foundation’s funding demonstrates its strong commitment to sustainable transformation. Through collaboration and innovation, this project contributes to building an environmentally responsible future for fashion while opening new growth opportunities for global industry players.
Swedish Recycling Companies Turning to Vietnam
The global transition to circular fashion is not limited to major brands — textile recycling enterprises are also expanding internationally, and Vietnam is emerging as a promising destination thanks to its production advantages and commitment to a circular economy.
Recently, Swedish company Syre Group, a high-tech polyester recycling enterprise, proposed investing USD 700 million–1 billion to develop a high-tech textile production complex in Vietnam. The project aims to establish the world’s first global hub for circular textile production, applying advanced U.S. and EU-standard technology toward a Net Zero model.
During a meeting on February 19, 2025, between Vietnam’s Minister of Industry and Trade Nguyễn Hồng Diên, the Binh Dinh provincial government, and Syre Group, the Minister emphasized that Vietnam must enhance both traditional growth drivers (investment, consumption, exports) and new ones (green transition, digital transformation, and circular economy).
“Vietnam fully supports Syre’s proposal, as it aligns with both traditional and new growth drivers,” said Minister Nguyễn Hồng Diên.
However, he stressed that environmental protection must remain a top priority — particularly regarding recycling technologies used in washing, dyeing, and finishing processes. Technologies must ensure environmental safety, clean wastewater management, and solid waste treatment. The Minister also highlighted the importance of integrating local supply chains and ensuring socio-economic benefits for Vietnam.
If successful, this project could help Vietnam become a leading textile recycling hub in Asia, attracting more European fashion and textile enterprises interested in sustainable investment and circular manufacturing partnerships.