Lego Manufacturing Vietnam signs direct power purchase agreement with VSIP

Lego Manufacturing Vietnam has signed a Direct Power Purchase Agreement (DPPA) with Vietnam-Singapore Industrial Park (VSIP) as part of the company's ambition to operate its new factory, which opened in April 2025, on 100% renewable energy.

The agreement is for the first large-scale renewable energy solution specifically designed for industrial use in Vietnam, Lego stated in a release on Wednesday.

Under the agreement, renewable electricity generated from VSIP’s large-scale solar panels will be supplied to the factory through an industrial battery energy storage system, enabling a stable and consistent renewable electricity supply.

Lego Manufacturing Vietnam opened in April 2025 in Binh Duong province and is the company’s sixth factory worldwide and second in Asia. The state-of-the-art facility is also Lego Group’s most environmentally sustainable factory to date.

Jesper Hassellund Mikkelsen, senior vice president of Asia operations and general manager of Lego Manufacturing Vietnam, said that this is an important step forward in Lego's ambition to operate the factory on renewable energy.

"Lego is one of the first companies to sign a DPPA and we appreciate the support of the national and provincial authorities in creating this opportunity. We look forward to continuing our collaboration with VSIP to create a world-class, environmentally sustainable factory in Vietnam," Mikkelsen added.

The DPPA signing ceremony was attended by Nicolai Prytz, Ambassador of Denmark to Vietnam, senior representatives from the Vietnam Ministry of Industry and Trade, authorities from Ho Chi Minh City, and leaders from VSIP.

Nguyen Phu Thinh, general director of VSIP J.V. Co. said: "The agreement reflects a shared commitment to accelerate the transition to renewable energy and sets a new benchmark for low-carbon manufacturing in Vietnam. By integrating rooftop solar and battery energy storage, we are demonstrating how industrial parks can lead the way in delivering reliable low-carbon solutions."

The supply of sustainable energy from the agreement is expected to help Lego Manufacturing Vietnam reduce approximately 15,000 tons of CO2e (carbon dioxide equivalent) each year and is expected to begin by early 2026.

This solution comes in addition to the 12,400 rooftop solar panels already installed on the factory’s buildings, which together will cover approximately 75% of the factory’s total energy demand for the first five years.

Additional off-site power purchase agreements are also in progress to support the transition to 100% renewable energy.

VSIP developed the first industrial park (IP) in the southern province of Binh Duong in 1996 through a joint venture between local developer Becamex IDC and Singapore’s Sembcorp. Its portfolio now comprises 20 IPs covering a combined 12,000 hectares across Vietnam.