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Southeast Asia Supply Chain

Analysis

LEGO Opens $1.3B Vietnam Factory, 100% Renewable by 2027

LEGO opened its largest global factory in Ho Chi Minh City on April 9, 2025 — a $1.3 billion facility spanning 44 hectares (62 football fields) with 150,000 m² of floor space. Designed to run on 100% renewable energy from 2027, it features 12,400 solar panels (7.34 MWp) and targets 15,000 tonnes of annual CO₂ reduction. Concurrently, LEGO launched a LEED Gold-certified Regional Distribution Center in Đồng Nai covering 10,200 m² initially, expanding to 16,360 m² and handling 150 containers weekly. The integrated complex supports logistics across Australia, New Zealand, Japan, Singapore, Malaysia, and planned markets including Indonesia and India.

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LEGO Opens $1.3B Vietnam Factory, 100% Renewable by 2027

According to cafef.vn, LEGO officially inaugurated LEGO Manufacturing Vietnam on April 9, 2025, in VSIP III Industrial Park, Thuận An City (formerly Bình Dương Ward), Ho Chi Minh City — its sixth global factory and the largest in the world.

World’s Largest LEGO Factory

The facility represents a total investment of more than $1.3 billion USD, spans approximately 44 hectares, and covers an area equivalent to 62 football fields. Its built-up floor area exceeds 150,000 m², distributed across five main structures: administrative offices, an energy center, injection-molding and packaging zones, an automated warehouse, and auxiliary facilities. The plant is expected to generate roughly 4,000 direct jobs, making it one of the largest high-tech foreign direct investment projects in Bình Dương Province.

100% Renewable Energy & Green Certification

A defining feature is its large-scale renewable energy system: 12,400 solar panels installed across the roof generate 7.34 MWp, sufficient to power over 1,200 households annually. According to LEGO’s 2025 annual report, the factory is engineered to operate on 100% renewable energy starting in 2027, reducing CO2 emissions by approximately 15,000 tonnes per year — equivalent to the annual emissions of thousands of passenger vehicles. The office and play area buildings have achieved LEED Platinum certification, while production and high-bay warehouse blocks hold LEED Gold status.

Integrated Logistics Hub in Đồng Nai

On September 10, 2025, LEGO launched its Regional Distribution Center (RDC) in Giang Điền Industrial Park, Đồng Nai Province — the company’s fifth global RDC and its second in Asia-Pacific after Shanghai. Phase 1 covers 10,200 m² and includes a bonded warehouse and dedicated packing zone. Upon full completion, the center will expand to 16,360 m², handle more than 150 containers per week, and store up to 33,000 pallets. It achieves LEED Gold certification and derives 60–70% of its electricity from rooftop solar panels. This integrated manufacturing-logistics cluster near Ho Chi Minh City shortens delivery times, cuts transport costs, and strengthens supply chain agility across the Asia-Pacific region.

Source: cafef.vn

Compiled from international media by the SCI.AI editorial team.

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Indonesian Palm Oil Supply Chain Faces 60% Theft, 442 Unlicensed PKS
Southeast Asia Supply Chain

Indonesian Palm Oil Supply Chain Faces 60% Theft, 442 Unlicensed PKS

Indonesia’s palm oil sector faces mounting pressure from 442 unlicensed palm oil mills (PKS) and TBS theft rates as high as 60% at member plantations, according to GAPKI. A UNDP forum held in Jakarta on 10/9/2026 highlighted how informal loading ramps and unregulated mills undermine traceability, inflate free fatty acid levels in CPO, and threaten compliance with the EU Deforestation Regulation—effective 30 December 2026. Researchers note that 4.7 million hectares of independent smallholders rely on this fragmented system, yet receive diminished returns due to inefficiencies. GAPKI calls for urgent supply chain formalization to restore integrity and meet international sustainability standards.

Vietnam Logistics Costs Stuck at 80–90% Road Dependency
Southeast Asia Supply Chain

Vietnam Logistics Costs Stuck at 80–90% Road Dependency

Vietnam's logistics sector faces persistent bottlenecks, with road transport handling 80–90% of freight — undermining efforts to cut logistics costs to 14% of GDP by 2030–2035. At a September 16 forum, experts highlighted fragmented planning, poor multimodal integration, and weak last-mile connectivity. Bắc Ninh’s $130 billion export–import turnover in the first eight months of 2026 underscores logistics’ strategic role, yet its Tri Phương Dry Port handled 41,000 TEU in seven months and Gia Bình Airport is set to open in 2027. OCL Logistics’ CEO called for rail/waterway expansion and mega-hub development along expressways.

China Backs Indonesia’s BRICS Supply Chain Plan at New Delhi Summit
Southeast Asia Supply Chain

China Backs Indonesia’s BRICS Supply Chain Plan at New Delhi Summit

China has backed Indonesia’s proposal to strengthen BRICS-wide supply chain collaboration, announced by President Prabowo Subianto at the 18th BRICS Summit in New Delhi on 13 September 2025. Spokesperson Guo Jiakun affirmed China’s commitment to technological cooperation, industrial alignment, and capacity-building projects across the bloc. BRICS now comprises 11 members representing 49.5% of global population, 40% of GDP, and 26% of world trade. The summit emphasized four pillars: resilience, innovation, cooperation, and sustainability.

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