LEGO strengthens Vietnam footprint with new distribution centre

LEGO strengthens Vietnam footprint with new distribution centre

Kuehne+Nagel and the LEGO Group are deepening their collaboration with a new Regional Distribution Centre in southern Vietnam.

Announced on September 10, the Regional Distribution Centre (RDC) will act as a hub for products made at LEGO Manufacturing Vietnam, the group’s newest factory in Ho Chi Minh City, which opened earlier this year.

The RDC will serve as a distribution hub for products manufactured at LEGO Manufacturing Vietnam, the LEGO Group’s newest factory in Ho Chi Minh City, which opened earlier this year.

Once in operation, the RDC will supply markets including Australia, New Zealand, Malaysia, Singapore, and Japan, with other markets including India, Indonesia and more planned to come in 2026.

Kuehne+Nagel will manage end-to-end logistics operations for the RDC, including transport from the LEGO Group’s Vietnam factory and Mainland China, customs clearance, bonded warehousing, sea freight, and delivery to Local Distribution Centres throughout the region.

Speaking at the announcement ceremony, P. Venkatram, vice president, APAC-China Supply Chain Operations of the LEGO Group, said the new RDC will play a critical role in supporting long-term growth in the region by creating a shorter and more agile supply chain.

"We’re grateful for our continued partnership with Kuehne+Nagel, whose strong logistics expertise helps us to bring learning through play to millions of children across the region," said Venkatram.

The facility will cover more than 10,000 square metres and be equipped with bonded storage, specialised packing, and value-added services. Once fully complete and operational in 2026, it will process more than 150 containers per week, have capacity for 33,000 pallets, and span 16,360 sq.m, providing sufficient capacity for growth.

"Beyond managing fulfilment operations, we actively support their broader sustainability goals," said Bjoern Traemann, managing director of Kuehne+Nagel Vietnam. "This includes the use of Sustainable Marine Fuel for all global full container load shipments and the deployment of electric vehicles for last-mile deliveries. We are proud to be part of a supply chain that is built for the future."

The Dong Nai RDC is LEED Gold-certified and features solar panels and smart energy metre to optimise energy consumption and reduce emissions. The RDC is the LEGO Group’s fifth worldwide and second in Asia-Pacific, joining an existing centre in Shanghai, China. It follows the opening of a new RDC in Tessenderlo, Belgium, last year, which is also operated by Kuehne+Nagel and serves the European customers.

VIR