Dec 9, 2021
Global supply chain: Lego to build $1bn factory in Vietnam
Lego has announced plans to build a new manufacturing operation in Vietnam to keep up with growing demand for its products in Asia.The toymaking giant said it will invest more than $1bn in the project, which will be near the country's main business hub of Ho Chi Minh City.It will be the Danish company's second factory in Asia after it opened a plant in China five years ago. It is the latest development in Lego's decade-long strategy of building production plants close to key markets, and comes after companies around the world have faced global supply chain issues during the coronavirus pandemic. "This provides the flexibility to respond quickly to shifts in local consumer demand, shortens the supply chain, and reduces the environmental impact of shipping long distances," the company said. Although the company also said that its decision to build the plant in Vietnam had not been accelerated by recent supply chain disruptions, some experts have said it can be a lesson to other companies struggling to get their products to customers. The past two years have been challenging for some multinational companies with manufacturing facilities Vietnam.
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