LEGO is investing heavily to expand its Mexico plant as well as its operations in Vietnam. What makes this one special is the proximity to customers in Asia, which is the fastest-growing region in the world for the $262.2 billion toy market. LEGO is the largest toy company in the world with over a 6 percent market share.
LEGO's new $1.3 billion factory in Binh Duong province, Vietnam, is set to begin operations later in 2024. The factory is expected to create 4,000 jobs in Vietnam. LEGO is the world's largest toy maker with a market share of over 6%.
LEGO entered Vietnam in 2002, establishing its first Southeast Asian office in Ho Chi Minh City. The company initially focused on distribution and marketing, but later expanded its operations to include packaging and assembly. In 2014, LEGO invested $600 million in its first Vietnamese factory, located in the southern province of Dong Nai. This factory currently employs over 1,400 people and produces Technic and Ninjago sets.
LEGO's factory in Monterrey, Mexico, is currently the company's largest manufacturing facility outside of its home market in Denmark. Opened in 2008, the Mexican factory employs over 5,000 people and produces a wide range of LEGO sets, including City, Friends, and Creator lines. Compared to the new Vietnamese factory, the Mexican facility has a larger production capacity and workforce. But the Vietnam facility is in Asia which is the fastest-growing region of the $262.2 billion toy market.
LEGO is committed to its Vietnam operations evidenced by the massive investments it has made and comments from executives over the years:
"Vietnam has emerged as a key strategic location for LEGO in Southeast Asia," said Niels Christiansen, CEO of the LEGO Group, during a visit to Vietnam in 2020. "We are impressed by the country's skilled workforce, competitive labor costs, and strong infrastructure."
"We are committed to building a long-term presence in Vietnam and contributing to the country's economic development," said Henrik Hansen, Managing Director of LEGO Vietnam, in an interview with Vietnam Insider in 2022.