Kuehne+Nagel to put new Lego distribution center in Vietnam

The facility, which supports the Lego Group's newly opened factory in Ho Chi Minh City, will serve as a logistics hub for Asia Pacific. At launch, it supplies markets including Australia, New Zealand, Malaysia, Singapore and Japan, with India, Indonesia and others to follow in 2026.

It is the Lego Group's fifth RDC worldwide and second in Asia, underscoring how multinationals are anchoring more of their logistics infrastructure in Vietnam.

The Lego Group and Kuehne+Nagel inaugurate the new regional distribution center (RDC) in Giang Dien Industrial Park, Dong Nai Province, Sept. 9, 2025. Photo courtesy of Kuehne+Nagel

According to Kuehne+Nagel, Vietnam sits on major shipping routes, has a 3,200-km coastline, and is within short reach of China, ASEAN, Australia and India—some of the world's fastest-growing consumer markets. This proximity is proving valuable as multinationals diversify in response to tariffs and geopolitical risks, shifting parts of their supply chains to Vietnam to cut lead times, minimize disruption and serve customers faster.

"The reason we decided to have a factory and set up a second RDC in Vietnam was that it is very close to the markets of distribution—sending out from Vietnam to Australia, New Zealand and Malaysia—we can simply take lead time out, sending LEGO products to markets faster," said Jesper Hassellund Mikkelsen, Senior Vice President of Asia Operations and General Manager of LEGO Manufacturing Vietnam at the LEGO Group. "It also improves resilience in case of disruptions, and importantly, allows us to better serve our customers in Asia."

Giang Dien Industrial Park facility in Dong Nai Province, spanning 10,200 sq.m at the time of opening. Photo courtesy of Kuehne+Nagel

Vietnam's exports reflect this momentum. In the first eight months of 2025, the country's exports reached US$305.96 billion, up 14.8% year-on-year, even after the United States imposed a 20% tariff on Vietnamese goods in August. Electronics, apparel and components remain key export sectors, backed by a rising number of multinational factories.

Kuehne+Nagel is deeply embedded in these flows. "We operate the largest charter fleet operation out of Vietnam, with 12 Boeing 747s departing Hanoi for the U.S. every week, primarily serving high-tech companies and hyperscalers," said Stefan Paul, Chief Executive Officer of Kuehne+Nagel International AG.

Vietnam also benefits from favorable demographics, with a median age of about 33 and a labor force participation rate of 68.2% as of Q1 2025, according to the General Statistics Office. "Vietnam is a young and growing country with roughly 100 million people, over 60% of whom are in the workforce, and a young population, very eager, very hungry to grow," Paul said.

For logistics operators, this energy is a competitive edge. "You have a workforce which is extremely eager to help and co-create solutions," said Bjoern Traemann, Managing Director of Kuehne+Nagel Vietnam.

The LEGO Group also sees talent as decisive. "It doesn't help that we have a factory and a distribution center if we cannot tap into a pool of talented people," Mikkelsen noted. The company has launched training programs to prepare employees for high-tech production roles at its Ho Chi Minh City facility. Kuehne+Nagel, meanwhile, is building academic partnerships to strengthen its talent pipeline; in March, the company met with Foreign Trade University Campus II in Ho Chi Minh City to discuss cooperation in internships, recruitment and aligning supply-chain curricula with industry needs.

Employees in training. Photo courtesy of Kuehne+Nagel

Vietnam has pledged net-zero emissions by 2050 and recently launched a pilot carbon trading scheme. Solar and wind power are expanding rapidly, increasing their share in the energy mix. The LEGO Group has made sustainability a cornerstone of its Vietnam operations: its Ho Chi Minh City factory, which officially began production in April, features more than 12,400 rooftop solar panels and is the company's most sustainable factory to date.

"It's important that the RDC was built and operates in line with the Lego Group's sustainability ambitions and also supports Kuehne+Nagel's commitment to sustainability," said Mikkelsen. "One of the reasons new employees say they want to join the LEGO Group is because we take the sustainable transition seriously."

Kuehne+Nagel has set similar targets, committing to cut global CO2 emissions by 33% by 2030 against a 2019 baseline. "It sounds easy on paper, but technically this is brutal hard work," Paul said. "You need to transform transport operations, the way you work, and the fuel you consume. But we are committed to doing this together with our customers."

The new Dong Nai RDC embodies that commitment. It is a LEED Gold–certified facility equipped with solar panels and smart energy meters to optimize power consumption and reduce emissions.

Inside Lego's new regional distribution center, designed to handle up to 33,000 pallets at full capacity. Photo courtesy of Kuehne+Nagel

Despite optimism, challenges remain, from infrastructure and connectivity issues to traffic congestion near ports and the sheer scale gap with China. But Kuehne+Nagel is confident these are manageable. "These challenges are being addressed, and they will be resolved over time," Traemann said.

The company aims to triple its Vietnam business within the next five to six years. To measure progress, it tracks customer satisfaction via Net Promoter Score (NPS) and employee engagement through Great Place to Work certification, which it has already earned in 64 of its 100 markets worldwide.

"Our business is still a people business," Traemann added. "If you take care of your people, they take care of customers."

With the Lego Group and Kuehne+Nagel expanding operations, Vietnam's emergence as a regional logistics hub is steadily taking shape.