Lego opens a clean energy factory in Vietnam

In early 2025, Lego inaugurated a $1 billion factory in Binh Duong, Vietnam, marking a significant step in the company's commitment to sustainability. This factory is particularly notable as it will operate entirely on clean energy, aligning with the ongoing efforts of Vietnam to attain net-zero emissions by 2050. The factory is equipped with cutting-edge technology that ensures precise production of Lego bricks, which are vital for catering to the growing markets in Southeast Asia. Staff have already begun working in advance of the factory's full operation, following training at Lego's existing facilities in China. Lego's choice of location in Vietnam comes during a period of rapid industrialization for the country, which is witnessing increased demand in the manufacturing sector that accounts for one-fifth of the nation's GDP. The new facility stands out not only for its focus on clean energy but also for its proactive approach to environmental responsibility, having planted 50,000 trees, more than twice the number cleared for the factory's construction. The factory's energy requirements will largely be met through the recently introduced Direct Power Purchase Agreement (DPPA), enabling major international firms like Lego to procure clean energy directly from renewable sources such as solar and wind. While a significant component of the factory's energy will be sourced in this manner, approximately 10%-20% will be secured through additional agreements with other clean energy suppliers. This systematic approach showcases Lego's commitment to sustainable practices and their belief in the profitability of eco-friendly operations. Historically, Lego began its journey in toy manufacturing with wood before advancing to the globally recognized plastic bricks introduced in 1958. Currently, the company is focused on researching and developing more sustainable material alternatives, having invested over $1.2 billion to enhance its supply chain for plastic sources that are not derived from fossil fuels. Consequently, the new facility in Vietnam represents both an operational milestone for the company and a critical move toward addressing broader environmental goals.