Vietnam’s carbon neutrality goal instrumental in Lego’s investment decision
Danish giant toymaker Lego Group is investing more than $1 billion in building its first carbon-neutral plant in Binh Duong province, with production set to start in 2024. Preben Elnef, general manager of Lego Manufacturing Vietnam Co. Ltd., explains to The Investor that the country’s target of net-zero emissions by 2050 and government support have made Vietnam its newest investment destination.
What is the significance of the Vietnam manufacturing plant in Lego Group's business strategy?
Our new manufacturing site in Vietnam will be our sixth factory globally and first carbon-neutral run facility. This is the largest investment by a Danish company in Vietnam and part of our strategy to expand our supply chain network and locate production facilities close to our major markets.
With this investment, we will be able to reach even more children with learning through play and create long-term growth in the Asia-Pacific region. It will enable us to quickly adapt and respond to shifts in consumer demand, as well as cut down on transport pollution.
Why was Vietnam selected to host Lego's first carbon-neutral site?
We looked at several factors which influenced our decision to build a factory. A key reason for locating our new factory in Vietnam was the Vietnamese government’s goal of net-zero emissions by 2050.
As a business, we have the ambition to make our products and business operations as sustainable as possible and give children the skills to tackle climate change and build a bright future.
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.
In fact, we have already begun to attend job fairs in the southern province of Binh Duong and have seen lots of strong interest and excitement from skilled potential employees.
An artist's impression of the Lego Vietnam plant. Photo courtesy of Lego.
How has the Vietnamese government supported Lego Group in carrying out the manufacturing project in Binh Duong’s Vietnam Singapore Industrial Park III?
We have received a very warm welcome. We are grateful for the support we have received so far to realize our manufacturing ambitions and look forward to working with authorities and partners to build our factory and have a positive impact on the local economy and community.
How far has the Lego campaign for planting 50,000 trees in Vietnam gone to date?
As a business, we aim to ensure our new factory has a minimal impact on the environment. At the same time, we want to improve the quality of living in urban areas near the factory and support greater biodiversity in the long term.
As part of this ambition, we are planting seven different types of trees native to Vietnam across multiple locations near the factory. A total of 15,000 trees have already been planted, and Lego Group will plant a further 35,000 trees supported by Vietnam Singapore Industrial Park Joint Venture Company Limited in 2023 and 2024.
