On September 10, Kuehne+Nagel and the LEGO Group announced the expansion of their partnership with the inauguration of a new Regional Distribution Center (RDC) in Dong Nai, Vietnam. This marks the fifth RDC for LEGO globally and the second in the Asia-Pacific region, alongside the center in Shanghai, China.
Spanning 10,200 m², the new facility will be managed entirely by Kuehne+Nagel, overseeing operations including transportation from LEGO factories in Vietnam and mainland China, customs clearance, bonded warehousing, sea freight, and distribution to Local Distribution Centers (LDCs) across the region.
The Dong Nai center will supply products to markets such as Australia, New Zealand, Malaysia, Singapore, and Japan, with plans to expand to India, Indonesia, and other countries by 2026, once fully operational.
Inside the new LEGO Regional Distribution Center at Giang Dien Industrial Park, Dong Nai, equipped with advanced warehousing systems. (Photo: Kuehne+Nagel)
Vietnam’s logistics costs currently average 16–17% of GDP, significantly higher than the global average of 10.6%. The new Dong Nai center is expected to streamline supply chains, reduce transportation and storage costs, and support the government’s goal of lowering logistics costs to 15% by this year.
Jesper Hassellund Mikkelsen, Senior Vice President of Manufacturing Asia at the LEGO Group and General Manager of LEGO Manufacturing Vietnam, stated, “We believe Vietnam’s strategic location, skilled workforce, and commitment to sustainability provide a strong foundation for our long-term growth in the Asia-Pacific region.”
Vietnam is also poised to become a regional logistics hub. Bjoern Traemann, Managing Director of Kuehne+Nagel Vietnam, noted, “Vietnam boasts robust infrastructure, modern seaports, and international airports with global connectivity.”
These advantages have attracted high-quality foreign direct investment (FDI), with 1,238 projects recorded by the end of 2024, generating 63,515 jobs.
Stefan Paul, CEO of Kuehne+Nagel International AG, emphasized the broader impact of the Dong Nai center: “While we don’t directly engage in manufacturing, as a logistics provider, Kuehne+Nagel helps clients transport goods from Vietnam to markets like the U.S. By offering tailored logistics solutions, we contribute to government policies and attract high-tech companies to Vietnam.”
Staff working inside the LEGO Regional Distribution Center at Giang Dien Industrial Park, Dong Nai. (Photo: Kuehne+Nagel)
Kuehne+Nagel is also committed to developing local talent in Vietnam. “Over 98% of our workforce is Vietnamese, with local experts managing critical supply chain operations,” said Traemann.
Amid Vietnam’s shortage of high-quality logistics professionals, this highlights the local workforce’s ability to adopt international standards and the company’s investment in human resources.
“Our goal is to localize talent, focusing on training and nurturing the next generation of leaders,” Traemann affirmed.
To enhance local skills, Kuehne+Nagel has partnered with institutions like the Foreign Trade University (FTU), Kühne Logistics University (KLU), and the German Chamber of Commerce (AHK). Programs range from vocational training and internships to leadership development.
The Dong Nai center is equipped with cutting-edge technology, aligned with Kuehne+Nagel’s global warehouse network. “This facility features the same advanced technology used in our distribution centers worldwide,” Traemann shared.
Once operational, the center aims to meet international standards. By 2030, Kuehne+Nagel and LEGO plan for the Dong Nai facility to match the operational excellence of the first LEGO distribution center managed by Kuehne+Nagel in Tessenderlo, Belgium.
The inauguration of the Dong Nai center underscores Vietnam’s potential as a strategic logistics hub in the global supply chain. However, to capitalize on this opportunity, Vietnam must address logistics costs and infrastructure challenges to thrive in the ongoing supply chain shift.
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