LEGO is opening a new factory in Vietnam focused on regional supply chain agility (Credit: LEGO Manufacturing Vietnam)
LEGO has opened a new factory in Vietnam focused on regional supply chain agility and environmental sustainability, aiming to serve more children in Asia
The LEGO Group has inaugurated its latest production hub, LEGO Manufacturing Vietnam, located in the Binh Duong province.
This is the company’s sixth factory globally and its second in Asia.
he facility represents a US$1bn investment over the next 15 years and is set to employ 4,000 individuals.
It anchors LEGO’s supply chain strategy for the Asia-Pacific region while setting a high standard for sustainability.
Chief Executive Officer Niels B Christiansen calls the launch “an exciting milestone” and describes the complex as “state-of-the-art,” designed to “bring more LEGO play experiences to children and our fans in the Asia-Pacific region through increased manufacturing capacity.”
Supply chain scale-up with regional resilience
LEGO Manufacturing Vietnam is integral to the company’s strategy of manufacturing close to the markets it serves.
This approach, previously implemented in North America with production in Mexico and a new plant in Virginia, is now extended to Asia through this new site in Vietnam.
The global landscape poses challenges, with rising import duties increasing costs and prompting companies to reassess their manufacturing locations.
Despite the looming 46% tariff on Vietnamese goods headed to the US, Niels remains confident.
In an interview with Bloomberg News he said: “We typically produce within the region that we sell.” That regional model is central to LEGO’s supply chain stability, especially as Vietnam faces new US import duties of up to 46%. Despite these developments, he adds: “As a group, we’ll probably be able to cope pretty well.”
To bolster regional distribution, LEGO is opening a second Asian distribution centre in Dong Nai province, managed by logistics firm Kuehne+Nagel, which is already preparing its inaugural shipments.
Manufacturing meets environmental sustainability
LEGO Manufacturing Vietnam is now the company’s most environmentally sustainable facility.
It is powered by 12,400 rooftop solar panels and is set to achieve 100% renewable energy usage by early 2026.
This initiative is supported by a major agreement with the Vietnam-Singapore Industrial Park (VSIP) to construct an energy centre on adjacent land.
This centre will host Vietnam’s first battery storage solution of its scale, expected to be operational by the end of 2025.
Chief Operations Officer Carsten Rasmussen says: “I am extremely proud of our environmental sustainability progress in Vietnam, strengthening our positive impact locally while supporting our global ambitions.”
He also highlights the collaboration with local partners to “establish frameworks and policies that can serve other companies looking to increase their own use of renewable energy.”
The administrative centre and play pavilion hold LEED Platinum status, a globally recognized eco-friendly construction standard.
Other buildings like moulding, packing and warehousing have received LEED Gold certification.
Additionally, it’s the first LEGO facility to replace plastic pre-pack bags with paper-based alternatives, aligning with the company’s zero landfill waste ambition.
Building futures
The factory serves as a flagship for LEGO’s ‘Future Factory Workplace’ concept, which includes accessible design, green workspaces and amenities like prayer and lactation rooms, wellbeing areas and play spaces. Training is central to LEGO’s approach, with more than 100 global trainers providing on-site support while new hires undergo practical instruction and hands-on experience at other LEGO factories.
LEGO’s efforts also extend beyond the factory gates. The company is investing in play-based education programmes across Vietnam, aiming to reach more than 60,000 children by the end of 2025.
Initiatives include the LEGO Braille Bricks programme through the National Centre for Special Education, the Build the Change scheme in collaboration with LIFE Centre and the Girls Unstoppable project with Save the Children International, which is already helping in excess of 9,000 children in Quang Binh Province.
By combining environmental commitments with supply chain resilience and local community engagement, LEGO aims to deliver both operational performance and social impact.
This article is from Sustainability Mag