Preben Elnef, vice-president of LEGO Group, shared the reasons why the Danish company chose Vietnam as the first country in Southeast Asia to build a US$1 billion factory during a conference in southern Binh Duong Province last week.
Source: binhduong.gov
LEGO’s $1 billion factory in Binh Duong Province will be the group’s sixth factory in the world and its second in Asia, Elnef stated during the conference on a supply chain shift organized in Binh Duong last Thursday.
The construction is being expedited so that LEGO’s factory in Vietnam will be able to produce its first products in July 2024.
LEGO is also boosting the recruitment of employees in Vietnam to prepare for the operation of the plant.
It saw the best conditions to build a modern factory in line with the group's business and production orientation and the goal of being carbon neutral, the vice-president elaborated.
Cheap labor cost was not the reason why LEGO chose Vietnam, Elnef stated, adding that the group saw growth opportunities here as well as the possibility to expand global supply chains.
Having a factory in Vietnam will also help LEGO quickly respond to the changes in consumer demand in Southeast Asia.
The price of LEGO products is considered quite high compared to the income of Vietnamese people, and the presence of a factory here will help more children access the group’s toys.
Vietnam is the first country in Southeast Asia that LEGO has decided to invest in because it has a workforce that meets all the requirements.
Binh Duong Province has seen great development in recent years with modern infrastructure, matching LEGO’s development plan for its factory in the next 20 years.
Aside from building a plant and selling products in Vietnam, LEGO also wants to diversify its supply chain and seeks cooperation with other businesses.
LEGO has a team dedicated to forming partnerships with Vietnamese businesses, Elnef said, adding that five other LEGO factories in the world also want to cooperate with enterprises in Vietnam.
In its development strategy, the group always prioritizes local suppliers.
In order to become a LEGO supplier, businesses need to meet the requirements, especially those related to sustainable development and environmental protection.
Source: Tuoi Tre News