Vietnam’s Toy Market: An Overview 2025

In this article, Vietnam Briefing looks at Vietnam’s toy market and the challenges and opportunities it presents for foreign firms.

With a population of 101.1 million in 2024 and a consistently high birth rate of about 1 million annually, Vietnam presents a significant market for children’s toys. In addition to this demographic trend, increasing disposable incomes are driving demand for toy products among Vietnamese parents.

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The rapid diversification of global supply chains is prompting manufacturers to seek alternatives to China for production. This shift is encouraging major toy brands such as LEGO, Mattel, and Hasbro to establish operations in Vietnam.

The convergence of these factors positions Vietnam to effectively capitalize on the emerging trends in the toy industry, which now prioritizes licensed toys, STEM-based products, and sustainable manufacturing practices.

Market overview

According to a recent report by StrategyHelix Group, the toy and game market in Vietnam is experiencing an accelerating growth momentum driven by a youthful population and rapid urbanization.

The market is expected to undergo rapid expansion, projected to increase from US$2,342.7 million in 2024 to US$4,218.6 million by 2030, with a compound annual growth rate (CAGR) of 10.3 percent during the period from 2025 to 2030.

Key players in Vietnam’s toy industry

The White Paper on Vietnam’s Toy Industry Manufacturing, issued by Asia Toy & Play Association (ATPA) earlier this year, noted that Vietnam’s toy manufacturing sector has advanced notably in meeting international standards, establishing its role as a competitive player globally.

This evolution is reflected in the rising number of both local and foreign-owned manufacturers setting up operations in Vietnam, attracted by the country’s cost benefits, improving infrastructure, and strategic position. The industry comprises a mix of small and medium enterprises (SMEs) and large multinational firms, collectively enhancing Vietnam’s reputation as a key global hub for toy production.

Lego

The LEGO Group has made a significant investment in Vietnam with the construction of its first factory in the country, located in the Vietnam-Singapore Industrial Park III (VSIP III) in Binh Duong Province. This state-of-the-art factory is designed to be the company’s most sustainable to date, maximizing the use of renewable energy on-site. The factory began ramping up operations earlier this year and will officially open later in H1 2025.

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The 44-hectare facility will employ over 4,000 people in the coming years and incorporate advanced manufacturing technologies, including high-tech production equipment and renewable energy systems.

The LEGO Group has also launched a comprehensive training program for its workforce in Vietnam. This initiative combines local on-the-job training with hands-on learning at the company’s global factories, ensuring employees are equipped to operate high-tech equipment and maintain the company’s stringent quality standards. 

Bandai Namco

Bandai Namco, a prominent Japanese toy maker known for its popular toys and collectibles like Ultraman, Kamen Rider, and Tamagotchi, does not have an exclusive distributor or official store in Vietnam. However, their products are easily available at major retailers such as My Kingdom and Kid’s Land, as well as through family and individual retailers nationwide.

Mattel

Mattel’s Vietnam operations are managed from the Hai Phong office, where the team handles product design, development, quality engineering, supply planning, logistics, and office management. Since 2018, the company has expanded its network of contract manufacturers across Northern and Central Vietnam. Currently, Mattel produces a wide variety of finished goods in Vietnam, including items for iconic brands like Barbie (such as the Barbie Dream House) and Hot Wheels.

Hasbro

Over recent years, Hasbro has increased its toy manufacturing presence in Vietnam, working closely with key OEMs and third-party facilities. These partners play a vital role in producing toys for Hasbro’s international brands, delivering millions of toys each month to markets worldwide while meeting strict safety and quality standards.

Vietnam has become an essential hub for Hasbro’s global toy production, with its importance continuing to grow, mirroring the rapid expansion of the local toy industry. Strong collaborations with the local supply chain help Hasbro efficiently fulfill global demand while maintaining high standards, cementing Vietnam’s role as a major production center.

Market trends

Growing preference for educational toys

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Vietnam’s toy market is currently trending towards educational toys, which encompass both physical and mental development. In 2022, Metric reported that sales revenue from educational toys took the lead, reaching VND450 billion (US$18.75 million). Following closely in second place were outdoor and exercise toys, generating nearly VND430 billion (US$17.9 million).

This is a combination of many factors, including rising awareness among parents about the educational and cognitive benefits of toys, the cultural emphasis on education and academic success in Vietnam, and the encouragement of physical education in children for well-rounded development.

Surging popularity of e-commerce platform

Another key trend is the rising popularity of e-commerce platforms, driven by their convenience, which aligns with modern fast-paced lifestyles, competitive pricing, and frequent promotions, as well as the shift in consumer behavior post-COVID-19.

According to Metric’s data, the combined sales of toys in 2022 on major platforms such as Shopee, Lazada, Tiki, and Sendo amounted to 24,974,800 products. This suggests an average purchase of almost 3,000 toy products per hour. In particular, Shopee holds the largest market share at 78.4 percent, with the remaining 21.6 percent split between Lazada, Tiki, and Sendo.

Sustainability gains prominence

Sustainability is emerging as a key differentiator for Vietnam’s toy manufacturing industry. The country is increasing investment in eco-friendly production, from recyclable materials and renewable energy to sustainable packaging solutions. As global toy brands place greater emphasis on ESG commitments, Vietnam’s growing focus on green and responsible manufacturing aligns with international trends.

Beyond production capacity, the modern toy sector in Vietnam is evolving to meet stringent health, safety, security, and environmental (HSSE) standards, while fostering workforce development and job creation. With rising global demand for high-quality, safe, and innovative toys, Vietnam is well-positioned to become one of the world’s leading toy production centers and a key destination for sustainability-driven foreign direct investment.

Challenges for investors in the toy industry

Market fragmentation

The children’s toy market in Vietnam is experiencing intense competition, fueled by the country’s expanding middle class and increasing disposable incomes. The fragmented nature of the market poses challenges for both local and international players in establishing a strong presence.

Lao Dong Thu Do Newspaper noted that while local companies are striving to meet demand by emphasizing cultural relevance, affordability, and traditional craftsmanship, global players leverage established brands and advanced technologies to dominate both the high-end toy market with high-quality products and the low-cost segment through mass production.

Prevalence of counterfeit products

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During the introduction conference of the tiNiToy brand, Benjamin Tng, Managing Director of Distribution at N KID Group, a renowned children’s entertainment company, noted that up to 70 percent of Vietnam’s children’s toy market consists of unbranded items, raising concerns about toy safety.

Addressing this issue, during an interview with An Ninh Thu Do Newspaper, consumers in Hanoi expressed difficulty distinguishing between fake and genuine toys, as both types fulfill children’s needs. Moreover, many parents appear unaware of the harmful effects associated with using counterfeit toys for their children.

Another significant factor adding to the widespread availability of counterfeit products is their lower prices, which serve as an incentive, particularly for those with lower incomes, when buying toys for their kids. According to Mr. Do Viet Tung, Lego’s External Affairs Director, counterfeit Lego sets may cost only VND 200,000 – 300,000 (US$8.3 – 12.5) per set, while authentic Lego products range from VND 700,000 – 800,000 (US$29.2 – 33.3) for small sets and go up to several million Vietnamese Dong for large, detailed sets.

Public concerns regarding toxic chemicals

The prevalence of non-branded items in the market raises concerns about product quality, particularly regarding lead poisoning.

Dr. Nguyen Thi Huu from the Department of Pediatrics, Viet Duc University Hospital emphasized that many toys of unknown origin are often made from poor-quality plastic and leaded metal, posing significant toxicity risks. Given the habit of young children sucking on toys, prolonged use can adversely impact brain development and lead to intestinal diseases, tuberculosis, pneumonia, and allergies.

A report by the Research Centre for Gender, Family, and Environment in Development and the Department of School Hygiene and Health found that 37.5 percent of toy samples in preschools in Nam Dinh Province contained lead with an average lead content of 2,207.83 mg/kg, significantly exceeding the regulated limit of 90 mg/kg.

Another study by a group of scientists presented at the 5^th International Scientific Conference and the 9^th National Scientific Conference on Occupational Health and Environment found that 9.7 percent of toys in Hanoi kindergartens contained lead. The average lead content of these toys was 625.3 mg/kg, seven times higher than the safety standard for children’s toys.

These findings have prompted Vietnamese parents to raise their standards for toy safety, and have led to increased government scrutiny and inspection of toy products marked by the introduction of the National Technical Regulation on the Safety of Toys QCVN 3:2019/BKHCN in 2019.

Conclusion

The toy industry in Vietnam is experiencing promising growth, positioning itself to capitalize on the rising demand within the nation. Given the intense competition, foreign companies often seek local distributors and retailers with robust connections and expansive networks to effectively distribute their products to consumers.

Investors who are considering investment opportunities and wish to connect with potential partners should consult with the experts at Dezan Shira & Associates for more comprehensive insights and guidance on navigating this promising market.

(This article was originally published on February 5, 2024. It was last updated on October 24, 2025.)
(With inputs from Vu Nguyen Hanh.)

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