Mr. Preben Elnef, vice president and general director of LEGO Vietnam Group, shared the reason for choosing Vietnam as the first country in Southeast Asia to build a billion-dollar factory. And that's not cheap labor.
Speaking at the seminar "Supply chain shift - Opportunities for Vietnamese businesses" on September 15 in Binh Duong, Mr. Preben Elnef said that the group's US$1 billion investment project in Binh Duong is a factory. 6th globally and 2nd factory in Asia.
Currently, the group is promoting the construction of the factory to strive to have the first product by July 2024. To prepare for factory operation, LEGO is also promoting recruitment in Vietnam.
“We see the best conditions to build a modern factory, in line with the LEGO Group's business and production orientation with the goal of being carbon neutral in production,” said Preben Elnef.
Giving the reason for choosing Vietnam to open a factory, the Danish manufacturer said that it does not come from taking advantage of cheap labor costs, but it sees the development in the Vietnamese market, and can open expand the global supply chain network, thereby rapidly responding to the changing consumer demand in each Southeast Asia region.
The price of LEGO items is considered quite high compared to the income of Vietnamese people, and the presence of a factory here will help more children access this game.
Mr. Preben Elnef also said that the process of choosing a factory location is very time-consuming and Vietnam is the first country in Southeast Asia that this group invests in to build a factory, because it has a workforce that can meet the needs of customers. requested. Moreover, Binh Duong has experienced great development in recent years with appropriate infrastructure in relation to the region and the world, ensuring the development vision of LEGO at the factory in the next 20 years.
Not only building factories and selling products, LEGO invests in Vietnam with the desire to diversify the supply chain. Therefore, the company is ready to welcome delegations to visit the factory to seek business opportunities with LEGO Group in Vietnam.
“We have a dedicated team tasked with cooperating with Vietnamese businesses. 5 other LEGO factories in the world also have the desire to cooperate with Vietnamese businesses,” said Mr. Preben Elnef.
In its development strategy, the group always prioritizes local suppliers. So how to become a supplier for LEGO? According to Mr. Preben Elnef, it is not the size, but the suppliers that need to comply with the standards, develop together sustainably, towards the values of environmental protection.