Lego starts construction of its first carbon-neutral factory in Vietnam

November 04, 2022 | 10:34
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11 months after signing the MoU, Denmark’s Lego Group kicked off its $1.3 billion factory in the southern province of Binh Duong on November 3, the largest foreign-invested project to pour capital into the province since the pandemic.
Lego starts construction of its first carbon-neutral factory in Vietnam
The 44-hectare factory is expected to create 4,000 jobs and come into operation in 2024

The event was attended by the Crown Prince of Denmark Frederik and Permanent Deputy Prime Minister Pham Binh Minh along with leaders of Binh Duong Party Committee, Binh Duong People's Committee, and representatives of Danish business leaders.

Speaking at the ceremony, Chairman of Binh Duong People's Committee Vo Van Minh said that the project was started 11 months after signing an MoU between Lego Group and Vietnam-Singapore Industrial Park.

Minh said, “Binh Duong People’s Committee is always committed to accompanying businesses and creating the most favourable conditions for investment activities.”

“This is the largest foreign direct investment project in the locality since the pandemic and also the largest investment ever by a Danish enterprise in Vietnam,” added Minh.

According to Niels B. Christiansen, CEO of Lego Group, this is the first factory from Lego Group to be designed as a carbon-neutral facility and is the group's most sustainable factory globally.

In addition to solar panels on the roof, the factory also has a solar power farm built on the neighbouring land to meet the demand for energy.

The factory will use state-of-the-art, energy-efficient production equipment and is built to the minimum level of LEED Gold – a globally recognised green building certification.

Talking to the press after the groundbreaking ceremony, Christiansen said there are three reasons why the Danish group chose Vietnam as the destination for this large investment.

“First, Vietnam has a large enough trained labour force to meet the needs of this high-tech factory. Second, the Vietnamese government has a very strong vision for sustainable development and emissions reduction that is in line with the Danish corporation's vision. Finally, Vietnam has very good trade relations with countries in the Asia-Pacific region,” Christiansen said.

The factory in Binh Duong is Lego's sixth globally and second in Asia. The leader of the Danish group said that the products manufactured at the factory will serve the markets of the Asia-Pacific region. The group also has supply chain partners in Vietnam and will continue to expand its ecosystem to operate the factory.

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By Bich Ngoc

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