Environmental protection more important than making profit: Lego executive

By Tuong Minh
Sat, June 3, 2023 | 4:17 pm GMT+7

Enterprises that are shifting production to go green in Vietnam must protect the environment instead of chasing the cheapest cost, according to an executive from Danish giant toymaker Lego.

Addressing an environmental, social and governance (ESG) forum in Ho Chi Minh City on Thursday, Lego Manufacturing Vietnam Co. general manager Preben Elnef said companies and countries must stop trashing their own environment.

“Let's find a place where it's cheap to manufacture so we can just sell our products at the highest profit. But we have to change that,” he said.

The Danish group is building its first carbon-neutral factory worldwide in Vietnam, located in Binh Duong province bordering HCMC, with an over $1 billion investment. 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. The facility will include an on-site solar power system.

Lego and VSIP Group, which builds industrial parks across Vietnam, are planting 50,000 trees in the country to compensate for vegetation removed in the construction of the carbon-neutral Lego facility.

Lego Manufacturing Vietnam Co. general manager Preben Elnef plants a tree in a campaign designed to compensate for vegetation removed during the construction of the group's production plant in Binh Duong province, southern Vietnam. Photo courtesy of Lego.

Lego Manufacturing Vietnam Co. general manager Preben Elnef plants a tree in a campaign designed to compensate for vegetation removed during the construction of the group's production plant in Binh Duong province, southern Vietnam. Photo courtesy of Lego.

Elnef told The Investor earlier this year that 15,000 trees had been planted, and the duo are continuing with another 35,000 trees this year and in 2024. He stressed that Vietnam’s target of net-zero emissions by 2050 and government support had made Vietnam Lego’s newest investment destination.

At the ESG forum in HCMC, hosted by consultancy firm Raise Partners and marketer Vietcetera, Elnef said that its investment would focus on protecting the environment, rather than taking the cheapest option.

He explained the Danish giant selected the southern province of Binh Duong based on conditions for waste handling, water saving and solar power. He said his company is looking for ways to attract staff, like guaranteeing their mortgage applications.

“Access to high-quality labor was also one of the reasons behind our decision to build a factory in Vietnam. We are building a fantastic workplace for our colleagues and are confident that we will be able to attract the talent needed,” Elnef told The Investor earlier this year.

Vietnam is seeking to reach its target of net-zero emissions by 2050. The government approved PDP VIII, the country’s newest power development plan, in mid-May.

Central to PDP VIII is the extensive development of renewable energy sources for electricity production. Renewable energy sources, including hydropower, solar power, wind, and biomass, are projected to experience a nearly twofold increase, accounting for about 50% of energy capacity, by 2030.

Looking ahead to 2050, renewable energy sources will soar, constituting 69.8% of power capacity and generating an impressive 80.5% of total electricity production. By enhancing self-sufficiency in renewable energy production, PDP VIII aims to reduce the nation’s reliance on imported energy.

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