
Factory Opens: Lego opened a new $1 billion factory in Vietnam on Wednesday, a big step in its plan to grow worldwide. It’s located in Binh Duong province, close to Ho Chi Minh City, and will help meet the rising demand for Lego toys in Southeast Asia. This is Lego’s sixth factory globally and its second in Asia, showing the company’s focus on expanding in this fast-growing region.

Strategic Location: The factory’s spot in Binh Duong is smart because it’s near Ho Chi Minh City, a key business centre in Vietnam. This makes it easier and cheaper to ship toys across Southeast Asia. Being close to big markets means Lego can deliver products faster and keep up with what customers want, giving the company an advantage in the busy Asian toy industry.

Clean Energy Goal: Lego wants this factory to use only clean energy by early 2026, which is a bold move for Vietnam. This plan supports global efforts to fight climate change by cutting out pollution from making toys. It shows how Lego is serious about protecting the environment, aiming to run a factory that doesn’t harm the planet while still producing millions of bricks.

Energy Solutions: To reach its clean energy goal, the factory will use 12,400 solar panels to make electricity from sunlight. A nearby energy center with big batteries will save extra power for when the sun isn’t shining. Lego will also buy clean energy from wind and solar farms through Vietnam’s new direct power purchase agreements, helping it avoid coal and other dirty energy sources.

Production and Employment: The factory uses high-tech robots to make Lego bricks, ensuring every piece is perfect—down to a tenth of a hair’s width. Skilled workers run these machines and handle packaging. As production grows, the factory will create thousands of jobs. Some workers are already training, including at Lego’s factory in eastern China, to learn the skills needed for this advanced setup.

Lego’s Targets: This factory helps Lego work toward net-zero emissions by 2050, meaning it won’t add to global warming gases. By 2032, Lego plans to cut its emissions by 37% compared to earlier levels. Using clean energy and smart manufacturing here is a big part of that effort, letting Lego make toys without leaving a heavy mark on the environment.

Vietnam’s Goals: Vietnam aims to hit net-zero emissions by 2050, and Lego’s factory fits right into that plan. Manufacturing uses a lot of energy in the country, often from coal. By running on clean power, the factory shows how industries can switch to renewables. It supports Vietnam’s push to reduce pollution and could inspire other businesses to make similar changes.

CEO’s Vision: Lego’s CEO, Niels Christiansen, said, “We want to ensure the planet children inherit is functional and thriving.” He believes the factory is a step toward a cleaner future. His focus is on making Lego a company that grows without hurting the environment, showing how business and sustainability can work together to leave a better world for kids.

Material Challenges: Lego has spent over $1.2 billion to find sustainable materials to replace its oil-based plastic bricks. It’s tough because new materials need to be strong and eco-friendly. Last year, a third of Lego’s materials came from renewable or recycled sources, but these cost more. The company keeps researching to solve these issues and make its toys better for the planet.

Broader Initiatives: Lego is also building a distribution center in Dong Nai province to supply Australia and other Asian markets, improving its shipping network. The factory follows strict energy-saving rules and will plant 50,000 trees—twice as many as were removed during construction. It’s also the first Lego factory to use paper instead of plastic bags for packaging, cutting down on waste even more.