Danish investments driving Vietnam's green transition

The Danish Parliament’s Business Committee on a visit to the Lego Group's factory in Binh Duong. Photo: Embassy of Denmark in Vietnam

Following a meeting between representatives from Lego Group and Binh Duong province on March 25, it has been reported that the Danish construction toy producer's much-anticipated first carbon-neutral factory will be inaugurated in the province in early April. With a reported cost of as much as $1.3 billion, the factory has been designed to become Lego's most sustainable factory ever.

The project will consist of 12,400 rooftop solar panels with a total expected capacity of 7.34MWp, equivalent to the electricity needed for 1,270 households in a year. The packaging line will use paper bags instead of plastic, while aiming to create no landfill waste like other Lego factories.

"Sustainable development is not just a commitment, it is a guideline for all of our activities of Lego in Vietnam," said Jesper Hassellund Mikkelsen, Lego Group's senior vice president of Asia Operations, and general director of the factory.

Lego’s investments in sustainable projects have had a positive impact as a series of large corporations have followed its lead, coming to Binh Duong to invest in green, environmentally friendly projects.

Among them, Pandora Group, also from Denmark, has invested in a jewellery manufacturing plant to the tune of $150 million. The factory is built according to Leed Gold standards and is 100 per cent powered by renewable energy.

During a visit to Vietnam to strengthen the bilateral trade and investment relations between Denmark and Vietnam March 3-7, chairwoman of the Danish Parliament's Business Committee Louise Schack Elholm told VIR, "Vietnam is on the right track for growth and the green transition. The sectors prioritised by Danish businesses here are primarily renewable energy, high-quality food, logistics, water, and giftware."

She said that to encourage further cooperation on technological development, Danish governmental institutions can provide optimal framework conditions to help businesses develop.

"In light of Vietnam’s potential to become a more strategic player in the global market, there will be more Danish investors and businesses looking for opportunities to strengthen their value chains here," she added.

Vietnam is home of more than 135 Danish companies and Denmark is now one of the biggest European investors in the country.

Last year, the total import-export turnover of goods between Denmark and Vietnam was $676.35 million, an on-year increase of over 20 per cent. Danish goods exported to Vietnam reached $232 million, while Vietnamese goods exported to Denmark were valued at over $444 million. Vietnam's main export items to Denmark are still mainly traditional items, such as textiles, electronic components, furniture, iron and steel, footwear, and seafood.