Hanoi (VNA) – The official opening of the new factory in Vietnam is helping Lego build a regional supply chain, according to Sputnik. This move comes as the Danish toy group seeks to capitalise on the rising middle class in Asia - a key driver of consumer demand.
French newspaper Les Echos observes that the production facility in Vietnam, together with large-scale investments in the US, now plays an essential role in Lego’s expansion strategy. The toy giant is strengthening its position and steadily increasing global market share.
Amidst international trade risks, especially with US tariffs putting strong pressure on industries from automobiles to textiles, Lego shows its adaptability to overcome challenges. The group continues to solidify its global presence despite trade policy volatility.
According to its financial reports, Lego’s revenue in the first half of 2025 reached 5.4 billion USD, a 13% increase from the previous year, outpacing major competitors Mattel and Hasbro. Operating profit grew by 10%, reaching about 1.4 billion USD.
In April, Lego inaugurated its factory in Vietnam, its first production facility in Southeast Asia, which will serve as the backbone for growth in the broader Asia-Pacific region.
Simultaneously, Lego is constructing a new regional headquarters for the Americas in Boston and developing a factory and distribution center on a 185,000 m² site in Virginia with an investment of 1.5 billion USD, scheduled to become operational in 2027. Additionally, Lego continues to fund capacity expansion at factories in Mexico and Hungary.
Lego CEO Niels B. Christiansen said that the toy market is actually back to growth this year, but Lego is outpacing it and taking market share. He emphasised that the global market size has increased by about 7% in this period, Bloomberg reported.
Lego registered growth across all regions, with US sales rising by double digits. However, Christiansen noted that Asia plays a particularly vital role in Lego’s long-term strategy.
To tap into the surge of Asia’s middle class, Lego not only began operations at its Vietnam factory but also opened its first stores in India’s major cities - Delhi and Bangalore earlier this year. In China, after a challenging year of 2024, sales have begun to show positive signs again. According to Christiansen, China, India and many Asian countries are only now seeing the first generation grow up with Lego, so building awareness takes longer. But it’s a clear long-term bet.
Currently, Lego operates six factories in Denmark, Hungary, the Czech Republic, Mexico, China, and Vietnam. Christiansen explained that having production facilities spread over multiple regions provides the flexibility needed to navigate international market fluctuations, while the toy industry remains relatively stable compared to many others./.
