LEGO Opens New Factory in Vietnam
The LEGO Group has unveiled its latest production facility, LEGO Manufacturing Vietnam, located in Binh Duong province. This marks the company’s sixth global factory and second in Asia.
With a US$1bn investment planned over the next 15 years and an expected workforce of 4,000, the factory plays a central role in LEGO’s supply chain strategy for the Asia-Pacific region, while setting new sustainability standards within the company’s operations.
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."
LEGO's nearshoring strategy
LEGO Manufacturing Vietnam is a crucial part of the company’s strategy to produce closer to the markets it serves. This approach, already in place in North America with production in Mexico and a new plant planned in Virginia, is now being mirrored in Asia with the new Vietnam facility.
However, the global manufacturing landscape remains challenging as rising import duties increase costs, prompting companies to reconsider where they produce goods. While some are shifting operations from China to Vietnam, others are wary that US President Donald Trump’s new round of tariffs makes this decision risky.
A 46% tariff now applies to Vietnamese exports heading to the US, but Niels, speaking to Bloomberg News, remains confident. "We typically produce within the region that we sell," he explained. This regional model is key to LEGO’s supply chain resilience, even with the new US tariffs on Vietnamese goods. He added, "As a group, we’ll probably be able to cope pretty well."
Niels is optimistic about the future: "So even if the market gets impacted a bit, I still have the hope that we can continue to gain market share and perform stronger. It won’t change our strategy."
To support the growing demand in Asia, LEGO is also set to open a second distribution centre in Dong Nai province later this year. Operated by logistics partner Kuehne+Nagel, the centre is already preparing to handle its first shipments, aiming to boost agility and flexibility in the company’s regional supply chain.
LEGO's most sustainable factory
Equipped with 12,400 rooftop solar panels, the facility is on track to run entirely on 100% renewable energy by early 2026. This initiative is supported by a significant partnership with Vietnam-Singapore Industrial Park (VSIP), which will see the construction of an energy centre on neighbouring land.
The energy centre will house Vietnam’s first large-scale battery storage solution, expected to be operational by the end of 2025. This project further strengthens LEGO's commitment to sustainability while supporting the factory’s energy needs.
Chief Operations Officer Carsten Rasmussen comments: "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 buildings at LEGO Manufacturing Vietnam have achieved top-level green certifications. Its administrative centre and play pavilion both hold LEED Platinum status, a globally recognised standard for eco-friendly construction. The other key structures, including moulding, packing and warehousing, have earned LEED Gold certification.
This facility is also the first LEGO site to replace plastic pre-pack bags with paper-based alternatives, supporting the company’s goal to eliminate all waste sent to landfill from its factories.
Building futures
The factory is a flagship for LEGO’s ‘Future Factory Workplace’ concept, featuring accessible design, green workspaces, and amenities like prayer and lactation rooms, wellbeing areas and play spaces. Training plays a crucial role, with over 100 global trainers providing on-site support as new employees gain hands-on experience at other LEGO facilities.
LEGO’s impact extends beyond its factory walls. The company is investing in play-based education initiatives across Vietnam, aiming to engage over 60,000 children by the end of 2025.
Programmes include LEGO Braille Bricks with the National Centre for Special Education, the Build the Change project with the LIFE Centre, and Girls Unstoppable with Save the Children International, which has already supported more than 9,000 children in Quang Binh Province.
By aligning environmental goals with supply chain resilience and community engagement, LEGO aims to deliver both operational excellence and positive social impact.
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