Kuehne+Nagel and LEGO Group Strengthen Partnership with New Regional Distribution Centre in Vietnam to Drive Asia-Pacific Growth
Kuehne+Nagel, one of the world’s leading logistics providers, and the LEGO Group, one of the most iconic global toy manufacturers, have taken another significant step forward in their long-standing collaboration with the launch of a new Regional Distribution Centre (RDC) in Dong Nai, Vietnam. This state-of-the-art facility will play a critical role in expanding LEGO’s supply chain capabilities across Asia Pacific, ensuring faster, more efficient, and sustainable delivery of products to millions of children and families in the region.
The new RDC, which opened in 2025, will operate as a vital logistics hub supporting LEGO Manufacturing Vietnam, the company’s latest production site located in Ho Chi Minh City. The Vietnamese factory began operations earlier this year and is strategically positioned to serve as a cornerstone of LEGO’s manufacturing footprint in Asia. By establishing the RDC just a short distance from the plant, the LEGO Group and Kuehne+Nagel are creating a tightly integrated logistics network that shortens lead times, reduces complexity, and enhances responsiveness to regional demand.
A Hub for Regional Growth
At its launch, the Dong Nai RDC is set to supply a diverse range of Asia-Pacific markets, including Australia, New Zealand, Malaysia, Singapore, and Japan. This initial coverage reflects some of LEGO’s most dynamic and mature consumer markets within the region, where demand for LEGO products has been growing steadily. The rollout does not stop there—plans are already in place to extend the centre’s reach in 2026 to include additional high-growth markets such as India, Indonesia, and others across Southeast Asia.
By gradually scaling the facility’s operations, the LEGO Group and Kuehne+Nagel can balance immediate distribution needs with long-term growth strategies. This phased approach ensures that the RDC will evolve in line with LEGO’s expanding manufacturing capacity in Vietnam and rising consumer demand across Asia-Pacific, one of the company’s fastest-growing regions globally.
A Comprehensive Logistics Partnership
Kuehne+Nagel’s role in this new setup extends far beyond basic warehousing. The company will oversee the entire end-to-end logistics chain associated with the RDC. This includes:
- Transportation of products from LEGO Manufacturing Vietnam and suppliers in Mainland China.
- Customs clearance and compliance with international trade regulations.
- Bonded warehousing, which allows storage of goods without immediate payment of duties.
- Sea freight coordination, leveraging global shipping networks to connect Vietnam with major regional markets.
- Final distribution to Local Distribution Centres (LDCs) across Asia-Pacific, where LEGO products will then be dispatched to retailers and customers.
This holistic model demonstrates why LEGO continues to place its trust in Kuehne+Nagel as a strategic partner. By outsourcing its logistics operations to an industry leader, LEGO can focus on its core mission of inspiring creativity and learning through play, while ensuring that its products are available wherever and whenever families need them.
Enhancing Supply Chain Agility
Speaking on the launch of the facility, P. Venkatram, Vice President of APAC-China Supply Chain Operations at the LEGO Group, highlighted the strategic value of the Dong Nai RDC:
“Our new regional distribution centre in Dong Nai will play a critical role in supporting long-term growth in the region by creating a shorter and more agile supply chain. We’re grateful for our continued partnership with Kuehne+Nagel, whose strong logistics expertise helps us to bring learning through play to millions of children across the region.”
The emphasis on agility reflects broader shifts in global supply chains, particularly in the aftermath of pandemic-related disruptions and rising consumer expectations. With this new RDC, LEGO is positioning itself to deliver products faster, respond more flexibly to market fluctuations, and reduce the environmental footprint associated with longer supply routes.
Capacity and Expansion Plans
The Dong Nai RDC opened with a 10,200-square-metre facility equipped with bonded storage areas, specialised packaging lines, and value-added services. These value-added services may include product labelling, quality checks, and tailored packing solutions to meet market-specific requirements.
By 2026, once the full expansion is complete, the RDC will be capable of:
- Processing over 150 containers per week
- Accommodating 33,000 pallet positions
- Operating within a 16,360-square-metre footprint
This scalability ensures the facility is well-prepared for both current and future demand, providing ample headroom to accommodate LEGO’s growing popularity and the diversification of its product portfolio.
A Shared Commitment to Sustainability
The partnership between LEGO and Kuehne+Nagel is not only about operational efficiency—it is equally about sustainability. Both companies have made strong public commitments to reducing their environmental impact, and the Dong Nai RDC exemplifies how those commitments are put into practice.
Bjoern Traemann, Managing Director of Kuehne+Nagel Vietnam, explained:
“Our partnership with the LEGO Group reflects a shared commitment to operational excellence and long-term sustainability. Beyond managing fulfilment operations, we actively support their broader sustainability goals. This includes the use of Sustainable Marine Fuel for all global full container load shipments and the deployment of electric vehicles for last-mile deliveries. We are proud to be part of a supply chain that is built for the future.”
The facility itself has been designed with sustainability at its core. It is LEED Gold-certified, demonstrating compliance with one of the world’s most recognised green building standards. Key features include:
- Solar panels that generate renewable energy on-site.
- Smart energy meters to track and optimise power consumption.
- Eco-efficient building materials and design that minimise energy loss.
These measures align with LEGO’s global ambition to make all its operations carbon-neutral and contribute positively to the communities it serves.
A Growing Global Network
The Dong Nai RDC is part of LEGO’s expanding global distribution network, underscoring the company’s commitment to bringing products closer to consumers. It is the fifth regional distribution centre worldwide and the second in Asia-Pacific, alongside an existing facility in Shanghai, China.
Other recent milestones include the opening of a new RDC in Tessenderlo, Belgium, in 2023, also operated by Kuehne+Nagel, which now supports LEGO’s European customer base. Together, these facilities reflect a global strategy of decentralised distribution, reducing reliance on single locations and ensuring resilience against disruptions.
Strategic Importance for Vietnam
Vietnam has rapidly emerged as a preferred hub for global manufacturing and logistics, thanks to its strategic location, skilled workforce, and favourable trade policies. For LEGO, the decision to establish both a manufacturing plant and a distribution centre in the country represents a long-term commitment to the region.
By anchoring its Asia-Pacific operations in Vietnam, LEGO gains access to efficient transport links, including deep-sea ports, growing road infrastructure, and proximity to high-growth consumer markets. For Kuehne+Nagel, Vietnam represents a key growth market within its global logistics network, offering opportunities to showcase its expertise in managing large-scale, sustainable supply chains.
The opening of the Dong Nai RDC is more than a milestone—it is a forward-looking investment in resilience, sustainability, and growth. As LEGO continues to expand its presence in Asia-Pacific, the partnership with Kuehne+Nagel will remain critical in ensuring that products move seamlessly from factory floor to family homes.
By 2026, when the facility reaches its full capacity, it will not only represent a cornerstone of LEGO’s Asia-Pacific operations but also a model for how global companies can combine logistics excellence, supply chain agility, and environmental responsibility.
For millions of children across Asia-Pacific, this means greater access to the beloved LEGO bricks and playsets that have inspired creativity for generations. For both LEGO and Kuehne+Nagel, it signals a shared vision of building a supply chain that is not only efficient but also sustainable and future-ready.