BINH DUONG, (Vietnam): Lego opened a US$1 billion factory in Vietnam Wednesday (April 9), its second facility in Asia as the Danish toymaker pushes to expand its reach across the region.
Vietnam has become an increasingly attractive investment destination in recent years, although its appeal has been somewhat dented for international firms exporting to the United States due to an enormous 46 percent tariff imposed by Washington on Vietnamese goods.
Lego's new factory will cater to consumers in Asia and will not export products to the United States.
Lego's CEO Niels Christiansen told AFP that it was important for the company "to have proximity to some of the countries where we have a lot of revenue and a lot of Lego fans".
"It was also important that we can have very high skilled labour and the level in Vietnam is strong," he added.
Lego has invested $1 billion in the project in southern Binh Duong province, which it says will employ more than 4,000 people. It also plans to have the factory running on 100 percent renewable energy by early 2026.
The new site features more than 12,000 rooftop solar panels.
The company now has six factories worldwide, including in Europe, Mexico and China.
Christiansen said that two years ago there was huge growth in customers from China in particular, and although it has slowed more recently, he saw the Asia-Pacific region as a "really big opportunity".
Lego products made in the new factory will go to customers in Australia, Japan, South Korea and India, as well as Vietnam itself, he said. - AFP
