The LEGO Group has signed a new agreement that paves the way for its most sustainable factory yet, now open in Vietnam.
LEGO Manufacturing Vietnam has signed a Direct Power Purchase Agreement (DPPA) with Vietnam–Singapore Industrial Park (VSIP) as part of its plans for its newly-opened factory to operate on 100% renewable energy. The agreement, the first of its kind in an industrial setting in Vietnam, will see renewable electricity generated from VSIP’s large-scale solar panels used to supply the factory through an industrial battery energy storage system, enabling a stable and consistent renewable electricity supply.
“This is an important step forward in our ambition to operate the factory on renewable energy," said Jesper Hassellund Mikkelsen, Senior Vice President of Asia Operations and General Manager of LEGO Manufacturing Vietnam. "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.
“The agreement reflects a shared commitment to accelerate the transition to renewable energy and sets a new benchmark for low-carbon manufacturing in Vietnam," said Nguyen Phu Thinh, General Director, VSIP J.V. Co. "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 CO2 each year and is expected to begin by early 2026. That process works in partnership with the 12,400 rooftop solar panels already in place on the factory’s buildings, which together will account for 75% of the factory’s total energy demand for the first five years.
LEGO Manufacturing Vietnam opened in April 2025, complete with its own exclusive model, and is the company’s sixth factory worldwide and second in Asia. It was built to support long-term growth in the region and is the LEGO Group's most environmentally sustainable factory to date.
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