Foxconn, Brookfield partner on 1 GW renewable energy buildout in Vietnam

Taiwanese electronics manufacturing giant Foxconn and global investment firm Brookfield Asset Management have formed a strategic partnership to develop up to 1 gigawatt of renewable energy capacity in Vietnam, underscoring growing demand from multinational manufacturers for clean power in one of Asia's fastest-growing production hubs.

Under the agreement, the two companies will jointly invest in and manage a portfolio of utility-scale solar, wind and battery energy storage projects supported by long-term power purchase agreements (PPAs), according to a Foxconn statement released on Tuesday.

Brookfield will make its investment through the Brookfield Global Transition Fund, one of its flagship vehicles focused on accelerating the energy transition.

The renewable energy portfolio is intended primarily to support the operations of Foxconn and its supply-chain partners in Vietnam, where the company has rapidly expanded manufacturing capacity in recent years.

James Tu, Foxconn's Chief Investment Officer, said the partnership would help secure a stable and cost-competitive electricity supply to support the company's long-term growth strategy in the region.

The agreement comes as global technology manufacturers face increasing pressure from customers and investors to reduce carbon emissions across their supply chains while ensuring reliable access to electricity amid rising energy demand.

Vietnam has emerged as a key manufacturing destination for electronics companies seeking to diversify production beyond China. Foxconn, Apple's key supplier, has invested heavily in the country and now produces a wide range of products, including consumer electronics, networking equipment, and technology components.

"Brookfield's partnership with Foxconn underscores the scale of corporate demand for renewable power in Vietnam, one of Asia's fastest-growing economies," said Daniel Cheng, head of Energy for Asia Pacific at Brookfield. "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 across the region."

Cheng added that supportive policy developments across Southeast Asia are creating favorable conditions for renewable energy investment and accelerating deployment opportunities for Brookfield's transition-focused strategy.

Since beginning its investment in Vietnam in 2007, Foxconn has established a presence in Bac Ninh, Hanoi, Quang Ninh and Nghe An, with Bac Ninh emerging as its key hub.

Meanwhile, Brookfield is already active in Vietnam's renewable energy sector. The Canadian investment firm previously acquired a 100-MW wind power project in central Vietnam and has continued to expand its clean-energy footprint across Southeast Asia.