Vietnam is rapidly turning into one of Asia’s key markets with above-average growth. Yet the success of Kuehne+Nagel’s new LEGO distribution centre in this emerging market requires more than a building and technology. The Kuehne+Nagel Experience, which strategically combines employee and customer focus with operational excellence, plays a pivotal role here. We look around the site in Đồng Nai.
If you ask Björn Traemann, Managing Director of Kuehne+Nagel Vietnam, about the secret to his site’s success, he won’t start naming processes and business figures first. It is a mindset he talks about: “In Vietnam, the glass is always half full,” he says enthusiastically. People don’t discuss problems for long here. Instead, they rise to the challenge. He believes that this energy is extremely motivating for him and the entire management team.
This drive is very obviously palpable in Đồng Nai province, a good hour by car northeast of Ho Chi Minh City. It is here, in the immediate vicinity of the LEGO Group’s new factory, that Kuehne+Nagel has set up a distribution centre which exemplifies the change global supply chains are undergoing. Strategies to diversify the markets are not abstract concepts from the top, they are actually a reality. Companies are looking for stable and capable alternatives in Southeast Asia. Vietnam offers exactly that, coupled with the population’s enormous desire to expand.
Kuehne+Nagel’s regional distribution centre for LEGO in Đồng Nai is setting new standards for logistics in Asia Pacific.
But infrastructure alone is not everything. Anyone who works with the colourful bricks quickly realises that the rules are different here. “LEGO is a real love brand,” says Björn Traemann. LEGO is the kind of customer that would make his job seem especially “cool” to his children. The brand’s emotional appeal also carries over to the workforce. It is not just about moving boxes from A to B. Products simply have to reach the children in time. Because without the logistical achievement, it is impossible to fulfil the “Learning through Play” promise.
“In Vietnam, people don’t discuss problems for long. They rise to the challenge.”
Björn Traemann, Managing Director of Kuehne+Nagel Vietnam
Vietnam has long been more than just an alternative to China. The country is a central pillar of the China Plus One strategy employed by many global corporations. Kuehne+Nagel has been on the ground there for almost 31 years and is today edging towards the number one spot in sea transportation with its strategic vision. The Company is also firmly strengthening its position in air logistics. With around 750 employees at eleven sites, Kuehne+Nagel provides the infrastructure necessary to logistically handle rapid growth in the region.
Anh Kieu, who is responsible for LEGO as a customer at Kuehne+Nagel Vietnam, also confirms this. She has accompanied the setup of the new distribution centre from the very first sketch to the start of operations. “This project serves as a benchmark for us for everything we will now do in Vietnam,” she says confidently. She adds that LEGO sets the bar high but is always fair. Their cooperative approach is particularly impressive to her. She says you feel like real partners, able to communicate openly with one another to reach the next level together. It is a collaboration that perfectly reflects the principles of the Kuehne+Nagel Experience, one of the four cornerstones of the Company’s corporate strategy.
A key link in the partnership between the LEGO Group and Kuehne+Nagel is their profound understanding of sustainability. The new site in Vietnam is physical proof of this. The facility is LEED Gold-certified, a strict standard for sustainable construction. Solar panels on the roof produce green electricity, smart energy meters monitor consumption in real time and electric vehicles are used on the last mile.
A look at a map also shows that both companies move in the same direction. The new LEGO distribution centre serves as a hub for the Asia-Pacific region, supplying markets like Australia, New Zealand, Singapore, and Japan. India and Indonesia are set to follow before 2026 is out. Kuehne+Nagel manages all the end-to-end logistics along the journey from transportation out of the factory through to customs clearance and then transportation by sea to the buyer markets. This just goes to show how digital interconnectivity via the cloud and well-coordinated physical logistics processes intertwine to improve complex flows of goods.
“Our teams go the extra mile for our customers.”
Anh Kieu, Customer Service Specialist at Kuehne+Nagel Vietnam
Projected GDP growth for
Vietnam in 2026 (World Bank).
Despite all the technology in the world, humans remain the most important factor behind success at Kuehne+Nagel Vietnam. “Our teams go the extra mile for their customers,” says Anh Kieu. For Björn Traemann, the project is evidence that Vietnam is already ready for the big stage. The partnership shows how open and fair cooperation can lead to scalable and sustainable results. It is the combination of strategic vision and steadfast optimism of the locals that makes the location so special. The glass is more than just half full here. It is starting to fill right up to the top.