Lego Manufacturing Vietnam signs direct power purchase agreement with VSIP

Lego Manufacturing Vietnam signs direct power purchase agreement with VSIP

Lego Manufacturing Vietnam on September 17 announced it has signed a direct power purchase agreement (DPPA) with Vietnam–Singapore Industrial Park (VSIP) as part of its ambition to operate the new factory on 100 per cent renewable energy.

The agreement is for the first large-scale renewable energy solution specifically designed for industrial use in Vietnam. Under the agreement, renewable electricity generated from VSIP's large-scale solar panels will be supplied to the factory through an industrial battery energy storage system, enabling a stable and consistent renewable electricity supply.

Jesper Hassellund Mikkelsen, senior vice president of Asia operations and general manager of LegoManufacturing Vietnam, said, “This is an important step forward in our ambition to operate the factory on renewable energy. 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.”

Nguyen Phu Thinh, general director of VSIP JV Co., said, “The agreement reflects a shared commitment to accelerate the transition to renewable energy and sets a new benchmark for low-carbon manufacturing in Vietnam. 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 CO₂e per year and is expected to begin by early 2026. This solution comes in addition to the 12,400 rooftop solar panels already installed on the factory's buildings, which together will cover approximately 75 per cent of the factory's total energy demand for the first five years.

Additional off-site power purchase agreements are also in progress to support the transition to 100 per cent renewable energy.

Lego Manufacturing Vietnam opened in April 2025 and is the company's sixth factory worldwide and second in Asia. Built to support long-term growth in the region and bring more Lego play experiences to children around the world, the state-of-the-art facility is also Lego Group's most environmentally sustainable factory to date.

VIR