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.

Comments (0)
  • Read More
Vietnam remains Nike’s biggest manufacturing hub for 3rd year in row

Vietnam remains Nike’s biggest manufacturing hub for 3rd year in row

Vietnam remains Nike’s largest manufacturing base globally for the third fiscal year running, according to the U.S. sportswear giant’s annual report for fiscal year 2025 ending in May.

Companies - Thu, July 24, 2025 | 4:24 pm GMT+7

Gia Binh to be northern Vietnam’s largest airport as scale largely revised up

Gia Binh to be northern Vietnam’s largest airport as scale largely revised up

Gia Binh International Airport in Bac Ninh province, an industrial hub neighboring Hanoi, is set to surpass Noi Bai as northern Vietnam’s largest airport, after the construction ministry approved adjustments to its projected capacity and land area.

Infrastructure - Thu, July 24, 2025 | 3:25 pm GMT+7

Ho Chi Minh City powers up as industrial giant post-merger

Ho Chi Minh City powers up as industrial giant post-merger

Vietnam’s southern economic engine Ho Chi Minh City is shifting into high gear, fueled by a landmark merger with neighboring industrial hubs Binh Duong and Ba Ria-Vung Tau.

Companies - Thu, July 24, 2025 | 2:04 pm GMT+7

Malaysia announces cash aid, fuel price cut amid inflation

Malaysia announces cash aid, fuel price cut amid inflation

Malaysian Prime Minister Anwar Ibrahim on Wednesday announced new measures to address growing public concern about the rising cost of living, including a cash handout for all adult citizens and a promise to lower fuel prices.

Southeast Asia - Thu, July 24, 2025 | 1:44 pm GMT+7

Ca Na LNG-fueled power project in central Vietnam draws only one bid

Ca Na LNG-fueled power project in central Vietnam draws only one bid

A consortium comprising multi-sector corporation Trungnam Group and Sideros River has been the sole bidder to date for the 1,500 MW Ca Na LNG-to-power project in Vietnam’s south-central province of Khanh Hoa, according to local authorities.

Investing - Thu, July 24, 2025 | 1:21 pm GMT+7

Techcombank, Vingroup okayed to form life insurance firm

Techcombank, Vingroup okayed to form life insurance firm

Techcombank, a major private lender in Vietnam, said it has secured a license from the Ministry of Finance to set up a life insurance firm, with itself and leading conglomerate Vingroup as major shareholders.

Finance - Thu, July 24, 2025 | 11:04 am GMT+7

Vietnam's logistics major Gemadept completes 70% of 2025 profit plan after 6 months

Vietnam's logistics major Gemadept completes 70% of 2025 profit plan after 6 months

Gemadept Corporation, a leading port and logistics company in Vietnam, had completed 70% of the year's profit target set by its AGM after six months.

Companies - Thu, July 24, 2025 | 8:53 am GMT+7

Danish Ambassador, Carlsberg Vietnam's meeting with Hue city's administration reflects long-term partnership commitments

Danish Ambassador, Carlsberg Vietnam's meeting with Hue city's administration reflects long-term partnership commitments

The recent visits by Danish Ambassador Nicolai Prytz and Carlsberg Vietnam leadership to the Hue city People's Committee reaffirm their commitment to long-term partnership and sustainable development.

Companies - Thu, July 24, 2025 | 8:00 am GMT+7

Postal and delivery services: high revenue, slim profit

Postal and delivery services: high revenue, slim profit

The presence of both international and domestic players is energizing the postal and delivery services market, yet fierce price competition continues to narrow profit margins, testing corporate endurance.

Companies - Thu, July 24, 2025 | 7:42 am GMT+7

Vietnam’s digital asset market attracts major players

Vietnam’s digital asset market attracts major players

Domestic securities firms, investment funds, and prominent technology companies both in and outside Vietnam are actively positioning themselves to tap into the country’s growing digital asset and cryptocurrency market.

Finance - Wed, July 23, 2025 | 11:55 pm GMT+7

Vietnam's Deputy PM pledges support for German group's vocational projects

Vietnam's Deputy PM pledges support for German group's vocational projects

Deputy Prime Minister Nguyen Chi Dung welcomed German-based Avestos Group's interest in promoting investment and business cooperation in Vietnam, emphasizing the continued positive development of the Vietnam-Germany Strategic Partnership across all sectors.

Companies - Wed, July 23, 2025 | 11:48 pm GMT+7

SP Group partners with Hoa Sen Group for Vietnam’s first industrial cooling-as-a-service offering

SP Group partners with Hoa Sen Group for Vietnam’s first industrial cooling-as-a-service offering

SP Group (SP) recently announced a partnership with Hoa Sen Group, one of Southeast Asia’s leading steel manufacturers, to introduce Vietnam’s first Industrial Cooling-as-a-Service (CaaS) offering.

Companies - Wed, July 23, 2025 | 11:42 pm GMT+7

'Green' products more costly than traditional ones: exec

'Green' products more costly than traditional ones: exec

Products manufactured using eco-friendly processes are often more expensive than traditional ones, posing a major challenge for businesses transitioning to green production, said Nguyen Bich Dien, deputy general director of Fashion Link JSC (Faslink).

Companies - Wed, July 23, 2025 | 11:35 pm GMT+7

US agrees to reduce tariffs for Philippines

US agrees to reduce tariffs for Philippines

U.S. President Donald Trump on Tuesday, July 22 agreed to reduce tariffs on the Philippines by one percentage point, after what he termed a successful meeting with his Philippine counterpart Ferdinand Marcos.

Southeast Asia - Wed, July 23, 2025 | 11:18 pm GMT+7

White House releases US-Indonesia trade deal framework

White House releases US-Indonesia trade deal framework

The U.S. and Indonesia have agreed to a framework for negotiating an Agreement on Reciprocal Trade to strengthen the bilateral economic relationship, which will provide both countries’ exporters unprecedented access to each other’s markets, the White House stated in a joint statement on July 23 (Vietnam time).

Southeast Asia - Wed, July 23, 2025 | 11:15 pm GMT+7

Vietnam's Ministry of Finance proposes 20% tax on capital gains from securities, equity transfers

Vietnam's Ministry of Finance proposes 20% tax on capital gains from securities, equity transfers

The Ministry of Finance has proposed a significant change to the personal income tax regime applied to capital gains from securities and equity transactions, shifting from the current flat-rate method to taxing actual profits.

Finance - Wed, July 23, 2025 | 11:04 pm GMT+7