The Danish toymaker opens a cutting-edge facility in Binh Duong, employing over 4,000 staff and powering operations with renewable energy, bypassing the US due to prohibitive tariffs.
In a major expansion move, Lego has inaugurated its second Asian factory in Vietnam, with a capital investment of US$1 billion (approximately S$1.34 billion). Located in the southern province of Binh Duong, the state-of-the-art plant is designed exclusively to serve the Asian and Pacific markets, as exports to the United States are ruled out amid a staggering 46% tariff levied by Washington on Vietnamese goods.
Lego’s chief executive, Niels Christiansen, emphasised that establishing production in Vietnam enables the company to operate closer to key markets where it enjoys strong revenue and widespread brand loyalty. “Having our factory nearby not only shortens our supply chains but also allows us to tap into Vietnam’s highly skilled labour force,” he remarked.
The facility, which is expected to create more than 4,000 jobs, is a cornerstone of Lego’s regional strategy. Notably, the factory is set to transition to 100% renewable energy by early 2026, with more than 12,000 rooftop solar panels installed to power its operations sustainably.
This new venture adds to Lego’s global network of six manufacturing sites, which include facilities in Europe, Mexico, and China. Although customer growth in China was once phenomenal, there has been a recent slowdown. Nevertheless, Christiansen remains optimistic, asserting that the Asia-Pacific region still presents a significant opportunity for expansion.
Products made in the Vietnamese plant will be distributed across Australia, Japan, South Korea, India, and domestically within Vietnam. This strategic move not only circumvents the burdensome US tariff regime but also underscores Lego’s commitment to catering to a dynamic and rapidly growing market in the Asia-Pacific region.
