LEGO Group announces $1 Billion plant in Vietnam

09/12/2021
LEGO has finally arrived to Vietnam! The world leading toy maker has announced the plan to build a new factory in Vietnam to meet the growing demands in Asia.
Source: Lego Group
Source: Lego Group
Just today, the LEGO Group signed a Memorandum of Understanding with Vietnam Singapore Industrial Park Joint Venture Company Limited (VSIP) to build a new factory in Vietnam. The LEGO Group will invest more than US $1 billion in the 44-hectare site in the Binh Duong Province around 50km from Ho Chi Minh City and create up to 4,000 jobs over the next 15 years. 

Construction is set to begin in the second half of 2022 and production is due to start during 2024.

This investment, which includes solar energy generation, is planned to be the company’s first carbon neutral factory and help the world’s largest toymaker achieve its goal of carbon-neutral operations by next year. Being the sixth manufacuring site and the second in Asia (after Jiaxing, China); the new factory will use 100% renewable energy and "built to support long-term growth and bring play to more children".

The new site expands the LEGO Group’s global supply chain network which locates factories close to its major markets.
Chief Operations Officer, Carsten Rasmussen said: “We are very grateful for the support of the Vietnamese government in helping us achieve our ambition to build our first carbon neutral factory. Their plans to invest in expanding renewable energy production infrastructure and a collaborative approach to working with foreign companies who are seeking to make high quality investments, were among the factors in our decision to build here."

Mr Nguyen Phu Thinh, General Director of VSIP said: “We are excited to collaborate with the LEGO Group on this important investment and honoured they selected Vietnam Singapore Industrial Park III in Binh Duong Province. We are committed to offering international companies high quality investments and sustainable solutions to create attractive long-term development opportunities.”

The new factory will feature solar panels on its roof and VSIP will build a nearby solar project on behalf of the LEGO Group. Combined, these solar parks will produce enough renewable energy to match 100% of the factory’s annual energy requirements. Carsten Rasmussen said: “Every LEGO factory no matter where it’s located is designed to make the safest, best quality products, and provide a world class work environment for our colleagues, so we live up to our promise that only the best is good enough. When you buy a LEGO set, you know you are getting a play experience that will last for generations.”
 

2021 also marks 50 years of diplomatic relations between Vietnam and Denmark - a superb time to announce such a significant investment. Denmark’s Ambassador to Vietnam and Laos, Mr. Kim Højlund Christensen said: “2021 is a milestone year for Danish and Vietnamese relations. During the past 50 years both countries benefited economically and culturally from developing close ties – from development cooperation to trade and investment. This is the largest investment in Vietnam made by a Danish company. It shows the confidence and optimism we have in the future of this important partnership.”
 

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