In the second part of 2019, Lego Group will construct a $1 billion factory in the southern province of Binh Duong.

Wednesday, it inked a memorandum of understanding with the Vietnam-Singapore Industrial Park Joint Venture Company to construct its sixth and first carbon-neutral facility worldwide.

This will be the company’s second Asian facility after opening one in China in 2016. Since 2019, Lego has enjoyed double-digit growth in the area.

Lego’s Chief Operations Officer Carsten Rasmussen told Reuters that the company’s Chinese production is on track to fall short of demand in the mid to long term.

“Growth in China and Asia is phenomenal, and we can see that we will require additional capacity over time,” he added, citing a growing middle class and high birth rate in the area compared to more mature markets in Europe and North America.

This is the most recent implementation of Lego’s decade-old policy of locating manufacturing near major markets, which has helped the company control costs and protect it from external variables.

“It shortens our delivery time to clients and allows us to respond quicker to demand, but it also makes us more robust,” Rasmussen explained.

The facility is slated to operate in 2024 and employ around 4,000 individuals.

Lego items are available in more than 130 countries.