How LEGO’s New Vietnam Plant will Boost Green Supply Chains
The LEGO Group has opened its newest production hub, LEGO Manufacturing Vietnam, in Binh Duong province, marking its sixth factory worldwide and second in Asia.
With US$1bn committed over the next 15 years and a workforce expected to reach 4,000, the factory anchors the company’s supply chain strategy for Asia-Pacific while setting a new internal benchmark 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 forms a key part of the company’s plan to manufacture close to the markets it serves. This approach, already established in North America with production in Mexico and a new plant coming to Virginia, is now reflected in Asia through the new Vietnam site.
However, the global picture is worrying as higher import duties raise costs across the board and companies reassess where they manufacture goods. Whilst some are moving out of China into the likes of Vietnam, others worry US President Donald Trump's new round of tariffs make this an unwise choice.
A 46% tariff now applies to Vietnamese goods headed to the US, but Niels isn't worried. 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."
He’s also optimistic about the broader outlook: "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 distribution across the region, LEGO is preparing to open a second Asian distribution centre in Dong Nai province later this year. Operated by logistics firm Kuehne+Nagel, the centre is already preparing its first shipments.
The aim is to improve agility and flexibility across the supply chain.
Manufacturing meets environmental sustainability
LEGO Manufacturing Vietnam is now the company’s most environmentally sustainable factory.
Powered by 12,400 rooftop solar panels, it is set to run on 100% renewable energy by early 2026. That effort is backed by a major agreement with Vietnam-Singapore Industrial Park (VSIP) to build an energy centre on adjacent land.
The centre will feature Vietnam’s first battery storage solution of its scale, which is due to be operational by the end of 2025.
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 factory’s buildings have also received top-level green certifications. Its administrative centre and play pavilion both hold LEED Platinum status — a globally recognised standard for eco-friendly construction, standing for Leadership in Energy & Environmental Design. The other core buildings, including moulding, packing and warehousing, have received LEED Gold certification.
It’s also the first LEGO facility to replace plastic pre-pack bags with paper-based alternatives, supporting the company’s ambition to eliminate waste sent to landfill from all factories.
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.
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