Lego opens $1b factory in Vietnam

The Lego Group has opened a new manufacturing facility in Binh Duong Province, Vietnam.

This is the company’s sixth factory globally and its second in Asia, intended to support long-term growth in the region.

The facility occupies a 44-hectare site and represents a US$1 billion investment.

It is expected to operate entirely on renewable energy by early 2026.

The site includes five main buildings totaling 150,000 square meters, comprising offices, an energy center, molding and packing buildings, a high-bay warehouse, and other operational structures.

🔗 Source: Bisnis Indonesia

🧠 Food for thought

1️⃣ LEGO’s long-term Asian pivot continues with Vietnam investment

This Vietnam facility marks a significant milestone in LEGO’s decades-long Asian expansion strategy, building on previous strategic moves in the region.

Back in 2011, North America and Western Europe accounted for 72% of LEGO’s sales, prompting leadership to recognize the need for growth in Asian markets 1.

The company’s first major Asian manufacturing facility opened in Jiaxing, China, specifically designed to produce LEGO products for the regional market, reducing import costs and improving supply chain efficiency 2.

This pattern of regional investment continued with LEGO’s Singapore office expansion in 2015, which increased capacity from 220 to 400 employees, reflecting the company’s double-digit growth in Asia over the previous decade 3.

The $1 billion Vietnam factory investment demonstrates LEGO’s sustained commitment to the region, following a consistent strategic trajectory that began after the company’s near-bankruptcy in 2004 when it refocused on core products and targeted growth markets.

2️⃣ Vietnam emerges as strategic manufacturing destination amid shifting investment patterns

LEGO’s selection of Vietnam for its significant manufacturing investment reflects broader economic trends positioning the country as an attractive destination for multinational corporations.

Vietnam’s economy is projected to grow between 6.5% and 8% in 2025, outperforming many emerging markets and creating favorable conditions for manufacturing operations 4.