In December 2021, 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 facility is planned to be the company’s first carbon-neutral factory and will include investments in solar energy generation. According to the Danish embassy in Vietnam, this is the largest investment capital by a Danish firm in Vietnam.
This will be the world’s sixth Lego factory and the company’s first carbon-neutral operation. It is being built to support additional long-term growth in the region so the company can continue to deliver play experiences to many more children in the years to come. The LEGO Group has achieved annual double-digit growth in the region since 2019.
The new site expands the LEGO Group’s global supply chain network which locates factories close to its major markets. This provides the flexibility to respond quickly to shifts in local consumer demand, shortens the supply chain, and reduces the environmental impact of shipping long distances.
LEGO aims to achieve 100% energy consumption through solar panels on the factory’s roof and equipped it with electric vehicles and outfitted with energy-efficient production equipment. Part of the investment will go to a neighboring solar project on behalf of the LEGO Group, which will generate enough renewable energy to meet 100% of the factory’s yearly energy needs.