VSIP, LEGO sign direct power purchase agreement

VSIP, LEGO sign direct power purchase agreement

The Vietnam–Singapore Industrial Park (VSIP) on Wednesday announced it signed a direct power purchase agreement (DPPA) with LEGO Manufacturing Vietnam (LEGO) for the new LEGO factory that opened in April 2025 this year.

Representatives from the Vietnam–Singapore Industrial Park (VSIP) and LEGO Manufacturing Vietnam sign a direct power purchase agreement (DPPA). – Photo Courtesy of VSIP

The agreement is for the first large-scale renewable energy solution specifically designed for industrial use in Việt Nam. 

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. 

Nguyễn Phú Thịnh, general director, VSIP J.V. 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 Việt Nam. 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 CO2 each 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. 

Jesper Hassellund Mikkelsen, senior vice president of Asia Operations and General Manager of LEGO Manufacturing 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.”

LEGO Manufacturing Vietnam opened in April 2025 and is the company’s sixth factory worldwide and second in Asia. 

Established in 1996, VSIP was mooted by the Vietnamese and Singaporean governments for joint economic co-operation. The VSIPs are executed through a joint venture between Becamex IDC from Vietnam, and Sembcorp Development, a wholly-owned subsidiary of Sembcorp Industries. 

SIP is involved in the development of 20 integrated townships and industrial parks across Việt Nam with total land area of approximately 12,000 hectares. Operating VSIPs have attracted more than US$23 billion worth of investment capital from over 1,000 tenant companies, creating close to 320,000 employment and community living opportunities across the country. 

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