Cover Central and local officials tour the LEGO Vietnam factory in Binh Duong. Photo: D.X.
Central and local officials tour the LEGO Vietnam factory in Binh Duong. Photo: D.X.
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On 9 April 2025, LEGO Manufacturing Vietnam officially inaugurated its state-of-the-art facility in Binh Duong, a milestone in the brand’s broader expansion across Asia.
With a total investment of USD 1.3 billion, this marks LEGO’s sixth factory worldwide and its second in Asia. It is also hailed as the group’s most environmentally friendly facility to date. The launch signals a leading step forward in Vietnam’s pursuit of green industry.
While LEGO and the Vietnamese government share an ambitious vision for sustainability, turning that vision into reality will require overcoming challenges such as regulatory gaps, infrastructure constraints and varying levels of local readiness.
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Green commitment from global corporation
Above Delegates attend the ceremony to formalise the renewable energy partnership between LEGO Manufacturing Vietnam and VSIP. Photo: VGP.
Delegates attend the ceremony to formalise the renewable energy partnership between LEGO Manufacturing Vietnam and VSIP. Photo: VGP.
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Developed with the aspiration to become LEGO’s most eco-conscious facility, the Vietnam factory is expected to run entirely on renewable energy by early 2026. To support this goal, more than 12,400 rooftop solar panels have been installed, while a partnership has been formed with the Vietnam–Singapore Industrial Park (VSIP) to construct a dedicated renewable energy centre. Beyond its practical impact, this initiative affirms LEGO’s long-term commitment to building a production model that aligns with sustainable values.
Carsten Rasmussen, Chief Operating Officer of the LEGO Group, shared his admiration for Vietnam’s strides in sustainability.
“This development not only enables LEGO to bring meaningful contributions to the local community, but also supports our global objectives. The integration of battery energy storage and long-term power purchase agreements marks a pioneering step not just for LEGO, but for any enterprise operating in Vietnam.”
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At the factory’s inauguration, Deputy Prime Minister Mai Van Chinh commended LEGO’s approach to environmentally responsible production and carbon reduction. He emphasised that the factory is a wellspring of creativity for children in Vietnam and beyond, and serves a vital role in balancing economic advancement with environmental care.
Driving force of Vietnam's economy
Above Deputy Prime Minister signs the first product of LEGO Manufacturing Vietnam. Photo: VGP.
Deputy Prime Minister signs the first product of LEGO Manufacturing Vietnam. Photo: VGP.
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Binh Duong, currently ranked third nationwide in attracting foreign investment, is fast emerging as a hub for high-tech and sustainable industries. The arrival of LEGO underscores the province’s appeal to major global players and supports the growth of a greener, more diversified economic landscape. The factory’s presence is expected to boost surrounding sectors such as logistics and technical education, cementing the region’s position as a key player in shaping Vietnam’s modern industrial future.
On a national scale, the LEGO factory is expected to have far-reaching impacts, contributing to diversifying the supply chain and enhancing Vietnam’s position on the global manufacturing map. With an initial capacity of 30,000 tonnes of products per year, the project stands as a key force in the country’s journey towards industrialisation, modernisation and deeper global integration. More significantly, it supports Vietnam’s bold pledge at COP26—to reach net zero emissions by 2050—by adopting a progressive and sustainable production model.
To help realise these ambitions, LEGO has committed to nurturing a highly skilled workforce in Vietnam, aiming to recruit 4,000 employees in the years ahead. Since 2024, the group has implemented a robust training initiative, combining domestic programmes with international experience across global factories. Today, the scheme remains active with direct guidance from more than 100 overseas training specialists, ensuring that Vietnamese employees uphold the stringent standards expected of a world-leading enterprise.
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Challenges on the journey to sustainability
Despite its innovative green manufacturing approach, LEGO encounters a host of challenges in Vietnam. Chief among them is a fragmented legal framework surrounding sustainable development. Regulations on green classification, sustainable finance, carbon credit markets and recycling—essential components of a circular economy—remain incomplete. In the absence of a cohesive structure, companies like LEGO are left to navigate the space between global obligations and local compliance.
Take plastic recycling, for example—an essential pillar in LEGO’s sustainability strategy. Realising this vision requires clear legislation on waste management and the reuse of materials. Yet, current regulations in Vietnam remain broad, with little practical detail, hindering efforts to create a fully circular supply chain. Moreover, overlap between environmental and industrial policy frameworks often results in delays and added complexity for firms striving to do the right thing.
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The pressures of the market add another layer of difficulty. As global competition intensifies, LEGO must continue offering products at attractive prices while bearing the higher costs of green production. In Vietnam, renewable energy remains more expensive than conventional sources, so maintaining a fully green manufacturing model calls for both long-term investment and thoughtful policy incentives.
The final challenge lies in human capital. While LEGO’s training programme is carefully designed, building a high-tech workforce within a short time frame is no easy task—especially in a country still evolving its labour structure. The scarcity of specialised skills can affect productivity, particularly in the more complex phases of production.
These hurdles, while considerable, also present opportunities. By addressing them with care, LEGO has the potential to shape a leadership role in sustainable manufacturing in Vietnam. Ultimately, the pace of progress will be shaped by the extent of government support. If Vietnam can swiftly refine its legal framework and encourage green innovation, LEGO could well become a beacon for future waves of sustainable investment.
