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LEGO kicks off construction of a US $1 billion factory in Vietnam – What does this mean?

ABROADER November 04, 2022 4 read

A new sustainable future in Vietnam with the construction of a US $1 billion plant of Lego Group from Denmark! What does this mean? Find out more right in this blog!

The biggest investment from Denmark into Vietnam

On Thursday, November 3rd, the construction of a $1-billion Lego plant began in the southern province of Binh Duong, Vietnam, becoming the biggest investment ever of Denmark into Vietnam, and working as part of the LEGO Group’s strategy to expand its global supply chain network. Covering 44 hectares in Vietnam – Singapore Industrial Park 3, the Lego Group schedules the plant to create some 4,000 jobs and launch its first products in 2024.

This also becomes the sixth plant of the Danish toy company in the world and its second in Asia. Lego CEO Niels Christiansen said the toy maker chose Vietnam for its big pool of skilled staff, commitment to carbon neutrality by 2050, and location as a gateway to the Asia-Pacific region, which boasts a growing market of young consumers.

This Lego plant in Binh Duong is the biggest foreign-invested project in the province since the Covid outbreak, marking a new peak and new chapter in the economic scenario in Southern Vietnam. Lego opened its first Asian plant in China in 2016. And since its establishment, the Danish firm has sold its products in over 130 markets.

What does this mean to Vietnam?

Vietnam is heading toward sustainable industry and development

One special thing about this plant compared to the previous ones is that: It is Lego’s first carbon-neutral plant in the world, using electricity from rooftop solar cell panels and a nearby solar farm. This means the plant in Vietnam is Lego Group’s “most sustainable” one ever.

The group will equip this plant with rooftop solar panels and a solar farm on the adjacent land. And we expect this combination to meet the total annual energy demand of the plant. The plant will also use construction and energy-efficient production equipment that meets the minimum standards of LEED Gold, a globally recognized green building certification.

Business opportunities in Vietnam

Through this huge investment project in Vietnam, Lego Group is not only looking for opportunities to diversify the supply chain and increase Vietnam’s export turnover but also wants to contribute to the local community. Specifically, the factory is expected to create jobs for 4,000 people within the next 15 years. Lego will directly help children across Vietnam experience learning by playing and ensures they have the skills they need in the fields of science, engineering, and math (STEM) through community programs locally.

Besides, the support of the Vietnamese government in accelerating the implementation of this project demonstrates Vietnam’s efforts in attracting green investment and contributing to the circular economy in Vietnam.

Together with the sustainability effort of the government and company ecosystem, we – ABROADER have supported our best in organizing internships for students coming to sustainable organizations to work at. Some of our partners working in this field are Wildact, GreenViet, Zerowaste Vietnam, SolarBK, etc. Together with these partners, our interns have meaningful and exciting responsibilities to build up their skills and contribute to sustainable efforts by joining in different hands-on tasks.

Interested in the sustainability effort and the opportunities in Vietnam, you can read more on this blog.

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