Lego opens new Vietnam factory amid Trump tariffs, will sell to Asia & not US

Lego has opened a US$1 billion (S$1.3 billion) factory in Vietnam that will sell products to consumers in the Asia-Pacific region.

It will not export to the U.S.

The 44-hectare complex — roughly equivalent to 62 soccer pitches — includes five buildings with office spaces, an energy centre, a warehouse, and more.

It officially opened its doors on Apr. 9 as the toy manufacturer's sixth factory worldwide, and second in Asia, according to a statement.

Asia-Pacific

Lego chief executive officer Niels Christiansen told Bloomberg that the company "typically produces within the region that [they] sell".

This complex will produce toys for Asia and export to countries like Australia, South Korea, India, as well as Vietnam itself, according to AFP.

Meanwhile, its Mexico factory and future Virginia plant will cater to its North American market.

Christiansen said that it is important for the company to have "very high skilled labour", and the level of labour in Vietnam is strong.

The complex will employ more than 4,000 people.

Tariff war

Under the Trump administration, the U.S. imposed "reciprocal" tariffs globally.

This includes a 46 per cent tariff on Vietnamese goods, and a 10 per cent tariff on Singapore.

On Apr. 9, Trump announced a 90-day stay of execution on all "reciprocal" tariffs, notwithstanding the 10 per cent universal tariff on all imports going into the U.S.

Apart from those in China.

He increased those to 125 per cent, with immediate effect.

Top image from Lego's website