Binh Duong to tackle land problem for Lego’s $1 bln carbon neutral facility

Binh Duong authorities have pledged to resolve land problems for giant toymaker Lego’s solar-driven facility project in the southern province.

Lego Vice Chairman Preben Elnef on Monday met with Binh Duong’s Party Chief Nguyen Van Loi to ask for support in investment procedures, including handing over the project site for scheduled construction. Elnef said Lego expects to bring the avant-garde facility online in 2024.

Loi pledged that both 1/5000 and 1/2000 planning works for the VSIP Binh Duong III industrial park, where Logo's facility is located, would complete within this June. As for the project site, he said the provincial administration is seeking to hand over all 44 hectares at once, or in batches of 22 hectares each.

Lego obtained a license this March to develop its latest project worldwide, also the largest investment in Vietnam made by a Danish company. The state-of-the-art facility, planned to be Lego Group’s first carbon-neutral factory, will cover 44 hectares in VSIP Binh Duong III, creating up to 4,000 jobs over the next 15 years.

It will be the giant’s sixth manufacturing site globally and second in Asia. Lego had stated they chose Vietnam because they want to cater to rising demand in Asia and also strengthen their supply chain.

Lego, in December last year, signed a memorandum of understanding with Vietnam Singapore Industrial Park Joint Venture Co. Ltd. (VSIP) to build the facility. The new manufacturing site will expand Lego’s global supply chain network which locates factories close to its major markets. This provides the flexibility to respond quickly to shifts in local consumer demand, shortens the supply chain, and reduces the environmental impact of shipping long distances.

The Danish group said the new factory will feature solar panels on its roof and that VSIP will build a nearby solar project on behalf of Lego. Combined, these solar parks will produce enough renewable energy to match 100% of the factory’s annual energy requirements. The factory will be designed to accommodate electric vehicles and be outfitted with energy-efficient production equipment.

Lego added it and VSIP will plant 50,000 trees in Vietnam to compensate for vegetation removed during construction.