Lego opened a new factory in southern Vietnam on Wednesday, marking its sixth site worldwide, to appease the burgeoning demand for its brick toys.
The 93-year-old Danish group has seen its sales consistently grow, defying a softer overall toy market and creating the need for more production.
Lego’s new Vietnam factory will be key to bringing its toys’ “experiences to children and our fans in the Asia-Pacific region through increased manufacturing capacity,” CEO Niels B. Christiansen said in a statement. The company invested $1 billion in the new site and will employ an estimated 4,000 people.
By 2026, the Vietnam factory will run entirely on renewable energy.
So far, Lego’s only other Asia location was in Jiaxing, China. Lego’s new site, located just outside Ho Chi Minh City, is as big as 62 soccer pitches and will work in tandem with a regional distribution center opening later this year to help ensure a smooth supply of new Lego sets.
Lego’s 2024 revenue jumped 13% to DKK 74.3 billion ($10 billion), and it expanded its portfolio of brick sets by 46%—more than ever before. The toymaker, which famously makes sets themed around Harry Potter, Star Wars, and numerous other franchises, also announced new partnerships with Nike and Formula 1 last year.
The Danish company’s fan following transcends age and interest, as it creates sets at varying degrees of complexity and across different interests.
During the company’s earnings release last month, prior to Liberation Day, Christiansen said that U.S. President Donald Trump’s tariffs would not impact the company’s business substantially.
“At this point in time, there are no tariffs. If they would come in, and we would deem that they would be more of a permanent nature, then I think we will also find ways to deal with that,” the Lego chief said. He added that tariffs are “not what keeps me awake at night,” according to AFP.
Lego has a factory in Monterrey, Mexico, that supplies American shoppers. The Danish group is building a new U.S. factory in Virginia, due to open in 2027.
