LEGO Manufacturing Vietnam today announced it has signed a Direct Power Purchase Agreement (DPPA) with Vietnam–Singapore Industrial Park (VSIP) as part of its ambition to operate the 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. 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.
Jesper Hassellund Mikkelsen, Senior Vice President of Asia Operations and General Manager of LEGO Manufacturing Vietnam, said: “This is an important step forward in our ambition to operate the factory on renewable energy. We are proud to be one of the first companies to sign a DPPA and appreciate the support of the national and provincial authorities in creating this opportunity. We are also grateful for the ongoing support of our operations. We look forward to continuing our collaboration with VSIP to create a world-class, environmentally sustainable factory in Vietnam.”
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, 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 tonnes of CO2e 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.
LEGO Manufacturing Vietnam opened in April 2025 and is the company’s sixth factory worldwide and second in Asia. Built to support long-term growth in the region and bring more LEGO® play experiences to children around the world, the state-of-the-art facility is also the LEGO Group’s most environmentally sustainable factory to date.
Facts about LEGO Manufacturing Vietnam
-
Investment: US $1 billion
-
Jobs: Recruitment ongoing for roles. For a full list of job openings, visit: www.LEGO.com
-
Land: 44-hectares, size of 62 soccer pitches
-
Buildings: Five buildings that cover approximately 150,000 m2 and include office spaces, energy centre, moulding, packing buildings, a high bay warehouse and other buildings critical to factory operations.
-
Precision manufacturing: All LEGO factories follow the same blueprint, using high-tech equipment to produce bricks with 1/10th of a hair’s width precision.
-
Location: Ho Chi Minh City, Vietnam
Sustainability
-
Renewable energy: The majority of the factory’s energy needs will be met through on-site rooftop panels as well as through a nearby energy centre that utilises rooftop solar panels and battery storage solutions. Until all remaining energy needs can be accounted for through power purchase agreements, renewable energy certificates will be used.
-
Paper-based bags: The packaging line in this new factory will package LEGO bricks in new paper-based bags, which replace single-use plastic bags.
-
Zero waste to landfill: The new factory shares the same ambition as all LEGO operations of achieving zero waste from factories to landfill.
-
Certification: LEED (Leadership in Energy & Environmental Design) Platinum and Gold certifications issued for the factory’s main buildings, covering energy, water and waste.
