Danish Toymaker Lego Opens 1 Billion Vietnam Factory To Boost Asia Expansion

Lego has officially opened a 1 billion manufacturing plant in Vietnam, marking its second production facility in Asia as the company seeks to deepen its presence in the region's fast-growing markets.

The new factory, located in the southern province of Binh Duong, represents a significant investment by the Danish toy giant, which is aiming to meet rising demand in Asia. The plant will serve consumers across the region but will not export to the United States, as Vietnam faces steep 46 percent tariffs on its goods imposed by Washington-an issue that has slightly dampened the countrys attractiveness to exporters targeting the US market.

Lego's chief executive, Niels Christiansen, told AFP that being closer to key markets was a major factor in the company's decision. "It's important for us to be near countries where we have strong revenues and many Lego fans," he explained. He also praised the quality of Vietnam's workforce, highlighting the availability of highly skilled labour.

The new facility is expected to employ over 4,000 people and has been designed with sustainability in mind. Lego plans for the site to be powered entirely by renewable energy by early 2026. More than 12,000 solar panels have already been installed on the factorys rooftops as part of this effort.

With the opening of this plant, Lego now operates six manufacturing sites globally, including facilities in Europe, China and Mexico. Christiansen noted that while growth in China has cooled since a surge two years ago, the Asia-Pacific region remains a "really big opportunity" for the brand.