The LEGO Group's project to build a factory worth over 1 billion USD in VSIP III Industrial Park is being implemented according to the set plan. At the construction site, the contractor is urgently starting work, mobilizing human resources, machinery, and equipment to take advantage of favorable weather to speed up the construction progress to complete items and parts of the work in 2023. Talking to us, Mr. Preben Elnef (photo), Vice President of the LEGO Group and General Director of LEGO Manufacturing Vietnam Co., Ltd., said that the company is carrying out many important processes in parallel, such as establishing a legal entity and recruiting workers so that the factory can be put into operation in time in 2024.
- It is known that the factory in Binh Duong is LEGO's first carbon neutral factory, so is there any difference or difficulty in the construction process, sir?
- The LEGO factory in Binh Duong is built on a 44-hectare plot of land, equivalent in size to 62 standard football fields. The new LEGO factory also applies the most advanced technologies to mold, process and package LEGO products. This is the first LEGO factory designed to be a carbon neutral facility. In addition to solar panels on the factory roof, the factory also has a solar farm built on the adjacent land, meeting the total annual energy demand. The factory also uses modern energy-saving production equipment and is built to meet the minimum standards of LEED Gold - a globally recognized green building certification.
According to the plan, the LEGO Group will use all the electricity from the solar farm, with a capacity of 50WMp, right next to the LEGO product factory. The LEGO Group and VSIP Company will work together in the construction, operation and exploitation of the solar farm, thereby helping the LEGO Group achieve its carbon neutrality goal with the factory in Vietnam as committed.
LEGO factory built in VSIP III Industrial Park, Binh Duong
From planning to implementation, it took us 3 years to “finalize” the location and finally chose Binh Duong. It can be said that accelerating the progress to put the factory into operation in 2024 was the biggest challenge. In fact, there were some delays in the planning approval process due to changes in the Construction Law. But we were quite fortunate to receive timely support from local authorities and competent provincial agencies to have the best conditions, ensuring the project was carried out on time.
- LEGO Manufacturing Vietnam Co., Ltd. has just signed a strategic cooperation agreement with Binh Duong Customs Department. What does LEGO expect from this cooperation and what impact does the strategic cooperation agreement with customs have on businesses?
In March 2022, the LEGO Group was officially granted an investment license for a factory project with an investment value of more than 1 billion USD in Binh Duong. The factory is built on an area of 44 hectares in VSIP III Industrial Park. This is the 6th factory of the LEGO Group globally, the 2nd in Asia and the largest investment project of LEGO ever. The LEGO factory in Vietnam is the project with the largest investment capital implemented by a Danish enterprise in Vietnam and this is also the project with the largest investment capital in Binh Duong. |
- LEGO is not simply building a factory in Vietnam to expand its supply chain in the region. The LEGO factory will supply products to children across the Asia- Pacific region. Therefore, import and export play a key role in ensuring that our products are quickly available on the market as soon as they are produced. The strategic partnership agreement with Binh Duong Customs is an important milestone for LEGO's operations in Vietnam in general and Binh Duong in particular. Through the strategic partnership agreement, the company hopes to receive timely guidance and direction from Binh Duong Customs to ensure the company's import and export activities. LEGO hopes that the relationship between the two sides will become increasingly sustainable and effective. LEGO is committed to complying with all legal regulations, especially regarding customs procedures.
- According to the plan, LEGO will be operational in the third quarter of 2024. How has the company prepared to put the factory into operation next year? What is LEGO's biggest expectation when the factory in Binh Duong comes into operation in 2024, sir?
- The company has made important preparations to put the factory into operation in August 2024. Regarding construction, the company has taken initial steps to prepare for official construction activities as soon as it receives the construction permit. Regarding human resources, the company has selected a location to establish a recruitment center in Binh Duong and will soon start recruiting personnel this year. We hope to attract a highly skilled workforce and develop the local brand. We aim to create 4,000 jobs for local people within the next 15 years. In addition, we hope to be able to put the factory into operation as soon as possible to bring as many LEGO products to the next generation of children as possible.
Guests experience LEGO toy products on display at the factory groundbreaking ceremony. Photo: NGOC THANH
2023 will be an important year because we need to prepare everything before the factory goes into operation in 2024. We will recruit office staff and prepare for the factory operation in the third and fourth quarters of 2023. The first half of 2024 will be spent recruiting workers for the factory.
Thank you!
NGOC THANH (performed)
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