Brookfield and Foxconn form renewable energy partnership in Vietnam

Brookfield and Foxconn form renewable energy partnership in Vietnam

Brookfield, a leading global investment firm, on June 9 announced a strategic partnership with Hon Hai Technology Group (Foxconn), the world’s largest electronics manufacturer, to invest in and develop renewable energy projects in Vietnam.

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The partnership will jointly develop up to 1 GW of utility-scale wind, solar and battery capacity, underpinned by a long-term power purchase agreement. Both parties will collaborate on the investment and asset management of targeted projects.

Brookfield’s stake in the partnership will be made through its Catalytic Transition Fund, its primary vehicle for investing in and facilitating the transition to net-zero in emerging markets and developing economies including Southeast Asia.

Daniel Cheng, head of Energy at Brookfield Asia Pacific said, “Brookfield’s partnership with Foxconn underscores the scale of corporate demand for renewable power in Vietnam, one of Asia’s fastest-growing economies. As global manufacturers increasingly turn to renewables for its cost-competitiveness, speed to market and energy security benefits, we’re seeing strong and rising demand for long-term supply from across the region."

“Policy momentum around Southeast Asia is also providing a second-order tailwind for renewables development and our Catalytic Transition strategy, which has been very active over the past 12 months,” said Cheng.

James Tu, chief investment officer of Foxconn, said, “We are pleased to be a strategic partner to Brookfield to secure long-term access to renewable energy for our operations and supply chain in Vietnam. This initiative, where we’re investing and managing alongside Brookfield, ensures stable and cost-effective power supply for our continued growth in the region.”

The partnership is expected to progress alongside Vietnam’s evolving direct PPA framework.

VIR