One of Vietnam’s first Direct Power Purchase Agreements links LEGO’s new factory to rooftop solar and battery storage.
The deal is expected to cut 15,000 tonnes of CO2e annually, advancing LEGO’s goal to run the site on 100% renewable energy.
Agreement sets a benchmark for industrial renewable power supply in Vietnam, with operations beginning by early 2026.
LEGO Manufacturing Vietnam has signed a Direct Power Purchase Agreement (DPPA) with Vietnam–Singapore Industrial Park (VSIP), cementing its plan to power its newly opened factory entirely with renewable energy. The agreement combines large-scale rooftop solar generation with an industrial battery storage system, a model that national officials see as a prototype for Vietnam’s manufacturing sector.
The deal is among the first of its kind in Vietnam and aims to stabilize renewable supply for industrial use. Power from VSIP’s solar installation will be fed directly into LEGO’s operations, with the storage system ensuring reliability during periods of variable generation.
Industrial Energy Model for Vietnam
Vietnam’s Ministry of Industry and Trade and provincial authorities backed the DPPA framework, positioning it as a cornerstone for scaling renewable energy adoption in the country’s rapidly growing industrial parks. Officials from Ho Chi Minh City, Denmark’s Ambassador Nicolai Prytz, and senior VSIP executives attended the signing ceremony.
“This is an important step forward in our ambition to operate the factory 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 one of the first companies to sign a DPPA and appreciate the support of the national and provincial authorities in creating this opportunity.”
Nguyen Phu Thinh, General Director of VSIP J.V. Co., said the model demonstrates how industrial parks can accelerate the low-carbon transition. “By integrating rooftop solar and battery energy storage, we are setting a new benchmark for reliable renewable energy in Vietnam’s manufacturing sector.”
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Scale and Climate Impact
The DPPA is projected to reduce approximately 15,000 tonnes of CO2e per year once operations begin in early 2026. It builds on the 12,400 solar panels already installed across LEGO’s Vietnam site, which cover about 75% of its energy demand for the factory’s first five years. Additional off-site renewable purchase agreements are under negotiation to secure the remaining supply.
LEGO’s Vietnam plant, which opened in April 2025, is its sixth worldwide and second in Asia. The facility is central to LEGO’s regional growth strategy and is designed as the company’s most environmentally sustainable factory to date.
Why It Matters for Investors and Policymakers
Vietnam has become a strategic hub for global manufacturing, but energy reliability and emissions reduction remain pressing challenges. By adopting one of the country’s first DPPAs, LEGO provides a model for other multinationals navigating regulatory frameworks and local partnerships to meet global ESG commitments.
For investors, the agreement illustrates how foreign corporates are embedding renewable energy infrastructure into growth markets. For policymakers, it signals the potential of industrial parks to act as anchors for Vietnam’s energy transition, combining commercial scale with national climate targets.
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