HCMC, Vietnam, LEGO Manufacturing Vietnam has entered into a Direct Power Purchase Agreement (DPPA) with Vietnam–Singapore Industrial Park (VSIP), formalising its plan to run its newly launched factory entirely on renewable energy. The deal, which combines large-scale rooftop solar generation with an industrial battery storage system, is being positioned as a pioneering model for Vietnam’s manufacturing sector.
Prototype for Industrial Energy Transition
As one of the first agreements of its kind in Vietnam, the DPPA is designed to stabilise renewable energy supply for large-scale industrial use. Under the arrangement, solar power generated by VSIP will be supplied directly to LEGO’s operations, with battery storage ensuring a consistent supply despite fluctuations in generation.
Supported by Vietnam’s Ministry of Industry and Trade and local authorities, the framework is seen as a key step towards scaling clean energy adoption across the country’s fast-growing industrial parks. The signing ceremony was attended by Ho Chi Minh City officials, Denmark’s Ambassador Nicolai Prytz, and senior executives from VSIP.
“This marks an important milestone in our ambition to operate the factory entirely on renewable energy,” said Jesper Hassellund Mikkelsen, Senior Vice President of Asia Operations and General Manager of LEGO Manufacturing Vietnam. “We are proud to be among the first companies to sign a DPPA and grateful for the strong support from national and provincial authorities in enabling this initiative.”
Nguyen Phu Thinh, General Director of VSIP J.V. Co., added that the project highlights the role of industrial parks in accelerating Vietnam’s low-carbon transition. “By combining rooftop solar with battery storage, we are establishing a new benchmark for reliable renewable power in the manufacturing sector,” he said.
Scale and Climate Impact
The project is expected to reduce approximately 15,000 tonnes of CO2e annually once operations begin in early 2026. It builds on the 12,400 solar panels already installed at LEGO’s Vietnam site, which are projected to cover around 75% of the facility’s energy demand for its first five years. Additional off-site renewable energy agreements are also under discussion to secure the remainder of its supply.
LEGO’s Vietnam factory, which opened in April 2025, is the company’s sixth globally and its second in Asia. Designed as LEGO’s most sustainable production site to date, the facility plays a key role in the group’s regional growth strategy. 
Broader Significance
Vietnam has emerged as a critical hub for global manufacturing, but challenges around energy security and emissions reduction persist. LEGO’s adoption of one of the country’s first DPPAs sets an example for other multinationals aiming to meet ESG goals while navigating Vietnam’s regulatory frameworks.
For investors, the agreement demonstrates how foreign corporations are integrating renewable infrastructure into emerging markets. For policymakers, it underscores the potential for industrial parks to serve as catalysts for Vietnam’s energy transition, linking commercial investment with national climate objectives.
