Binh Duong to support major investor Lego in project-related problems

Officials in Vietnam’s Binh Duong province, where Lego is building its first carbon-neutral factory with more than $1 billion in investment, have promised to help the Danish toymaker remove land-related obstacles and other issues for the project.

Lego started work on the modern manufacturing site in November last year inside the VSIP 3 Industrial Park in the southern province, and expects to start production in June 2024.

Preben Elnef, general manager of Lego Manufacturing Vietnam Co. Ltd., met with provincial leaders on Wednesday to ask for help in solving related land procedures and other issues such as hooking up the project to a 110kv power grid, building an on-site solar power system for the factory, and fire prevention procedures.

Binh Duong Chairman Vo Van Minh told him that the procedures for land use rights would be finished this March for Lego to implement the next steps of the project.

Minh added his province will ask for support from the Ministry of Public Security, the Ministry of Industry and Trade, and the Southern Power Corporation to solve the other issues as soon as possible.

Built on a 44-hectare site, the state-of-the-art manufacturing facility is the largest investment in Vietnam by a Danish company. It will also be Lego’s first carbon-neutral factory worldwide and will create 4,000 jobs over the next 15 years.

It will be Lego’s sixth manufacturing site globally and second in Asia. Elnef had earlier told The Investor that the Danish giant chose Vietnam due to the Southeast Asian nation’s commitment to carbon neutrality by 2050, and Lego wants to cater to rising demand in Asia while strengthening its global supply chain.

Lego and VSIP Group, which builds industrial parks across Vietnam, are planting 50,000 trees in the country to compensate for vegetation removed during the construction of the production facility. Elnef said 15,000 trees had been planted, and the duo are continuing with another 35,000 trees this year and in 2024.