background imageAssociated Press (AP)

Lego opens a toy factory in Vietnam it plans to run entirely on clean energy

author image

By illuminem briefings

· 3 min read


illuminem summarises for you the essential news of the day. Read the full piece on The Associated Press or enjoy below:

🗞️ Driving the news: Lego (See sustainability performance) has inaugurated a $1 billion toy factory in Binh Duong, Vietnam, designed to operate entirely on clean energy by 2026
The facility—the first of its kind in Vietnam—will serve fast-growing Southeast Asian markets and marks a key step in Lego’s plan to reach net-zero emissions by 2050

🔭 The context: This is Lego's sixth global factory and second in Asia. Vietnam, aiming for carbon neutrality by 2050, is increasingly positioning itself as a hub for sustainable manufacturing
The factory spans the size of 62 soccer fields and is supported by 12,400 solar panels and an adjacent energy storage facility
It will also benefit from Vietnam’s new Direct Power Purchase Agreement (DPPA), allowing companies to directly source renewable energy

🌍 Why it matters for the planet: Lego’s investment sets a precedent for large-scale clean manufacturing in a country still reliant on coal
Its transition efforts, including replacing plastic packaging with paper and planting double the number of trees cleared for construction, highlight how corporations can align growth with climate goals
However, scaling sustainable material alternatives for its iconic bricks remains a significant challenge

⏭️ What's next: By early 2026, the factory aims to be fully powered by clean energy, with the remaining 10–20% sourced through green energy contracts. Lego plans to open a nearby distribution hub to expand access across Asia and Australia
As the company ramps up production, its progress will test whether profitability can be maintained alongside deep decarbonization in a developing market context

💬 One quote: “Sometimes it takes a big company, like Lego, to take those risks. To show that we can do it … and we can be profitable,” — Mimi Vu, Raise Partners, Ho Chi Minh City

📈 One stat: Manufacturing accounts for 20% of Vietnam’s GDP and consumes 50% of the country’s total energy usage

See here detailed sustainability performance of companies like Lego, Mattel, and Hasbro

Click for more news covering the latest on corporate sustainability 

Did you enjoy this illuminem voice? Support us by sharing this article!
author photo

About the author

illuminem's editorial team, providing you with concise summaries of the most important sustainability news of the day. Follow us on Linkedin, Twitter​ & Instagram

Other illuminem Voices


Related Posts


You cannot miss it!

Weekly. Free. Your Top 10 Sustainability & Energy Posts.

You can unsubscribe at any time (read our privacy policy)