Lego Lays New Foundations with Vietnam Factory and Regional Expansion

Lego has inaugurated a new factory in Vietnam as part of its strategy to boost growth in Asia Pacific by localizing production. The company invested $1 billion to align its manufacturing closer to key markets. Lego will also open a regional distribution center in Vietnam this year.

Lego has taken a significant step in its global expansion strategy by opening a new factory in southern Vietnam, as the Danish company aims to foster long-term growth in the Asia Pacific region. This move, announced on Wednesday, is part of Lego's broader endeavor to localize production, bringing it closer to consumption markets to better manage costs and minimize supply chain disruptions.

The $1 billion investment is in line with Lego's decade-old strategy of situating manufacturing operations near essential consumer bases. This strategy has previously helped the company mitigate external economic factors and maintain operational efficiency. In addition to the factory, Lego plans to set up a regional distribution center in Vietnam, its second in Asia, to further bolster supply chain resilience.

In the broader context, Lego continues to expand its global footprint with six operational factories in various countries and is constructing another facility in Virginia, USA. Despite geopolitical challenges, including U.S. tariffs on Mexico, Lego CEO Niels Christiansen has expressed confidence in the company's growth trajectory.

(With inputs from agencies.)