The new facility has more than 12,000 solar panels on its roof.

Lego has opened a $1 billion factory in Vietnam, its second facility in Asia, as the Danish toymaker looks to expand its reach in the region.

Vietnam has become an increasingly attractive investment destination in recent years, although its appeal has been somewhat diminished for international firms exporting to the US due to the huge 46% duty imposed by Washington on Vietnamese goods.

Lego's new factory will serve consumers in Asia and will not export products to the United States, AFP reported.

Lego CEO Nils Christiansen said it was important for the company "to have proximity to some of the countries where we have a lot of revenue and a lot of Lego fans."

"It was also important to be able to have a very highly skilled workforce, and the level in Vietnam is great," he added.

Lego has invested $1 billion in the project in the southern province of Binh Duong, which it says will employ more than 4,000 people. It also plans to have the factory running on 100 per cent renewable energy by early 2026.

The new site has more than 12,000 solar panels on the roof.

The company currently has six factories around the world, including in Europe, Mexico and China.

Christiansen pointed out that two years ago there was huge customer growth, particularly from China, and although it has slowed recently, he sees the Asia-Pacific region as "a really big opportunity".

Lego products produced at the new factory will be destined for customers in Australia, Japan, South Korea and India, as well as Vietnam itself, he said. | BGNES