In the News

Globalisation - Lego to build $1bn factory in Vietnam

Graham Watson

9th December 2021

Lego has decided to invest in Vietnam on the back of double digit economic growth in the region in the past two years.

Lego will invest more than US$1 billion in the project which will be near Vietnam's main business hub of Ho Chi Minh City. Production at the plant is set to begin in 2024 and is expected to create up to 4,000 #jobs over the next 15 years.

There's lots of interesting economics here: the benefits of foreign direct investment to a country such a Vietnam, moving from the multiplier effect to consider technology transfer and the extent to which the project will involve Vietnamese workers.

However, there's also an interesting point about YED: why might we be unsurprised by the fact that Lego have experienced double digit growth in Vietnam - you might, if you're an IB student think about how this might relate to the Engel curve.

More here from the Financial Times

A* Evaluation: Foreign Direct Investment I A Level and IB Economics

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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