en.Wedoany.com Reported - Hon Hai Technology Group (internationally known as Foxconn) and Brookfield have announced a partnership to develop up to 1 GW of utility-scale renewable energy capacity in Vietnam. The project will combine wind, solar, and large-scale battery storage.
Manufacturing is one of the world's largest sources of carbon emissions. According to the World Economic Forum, the sector accounts for approximately 20% of all carbon emissions. Data from the U.S. government shows that manufacturing consumes 54% of global energy. The United Nations revealed last year that over 50% of global manufacturing occurs in Asia, with Vietnam emerging as a growing force in this market.
The collaboration adopts a long-term power purchase agreement model. This deal could signal a shift in corporate-led energy procurement approaches across the region.
Foxconn, the world's largest electronics manufacturer with operations in 24 countries, may be adopting a more deliberate approach to managing energy across its facilities. According to data from the non-profit organization Greenpeace, the company currently sources only 8% of its electricity from renewables, compared to 24% for competitor Luxshare Precision.
Brookfield will deploy capital through its Catalytic Transition Fund. This vehicle is designed to channel private capital into clean energy projects in emerging markets and is backed by $1 billion in catalytic capital from ALTÉRRA. Its structure aims to attract additional private investment by improving risk-adjusted returns in markets that have historically been difficult to finance.
Daniel Cheng, Brookfield's Head of Energy for Asia Pacific, believes this deal reflects a regional trend. He stated that as global manufacturers increasingly turn to renewable energy for cost competitiveness, speed to market, and energy security advantages, demand for long-term supply across the region is strong and growing. He also noted that policy developments around direct power purchase agreement frameworks in Southeast Asia represent a "second-order tailwind" for the fund's activities over the past year.
Foxconn is including supply chain partners in the deal. The partnership aims to cover Foxconn's operations in Vietnam and extend its clean energy access to its broader supplier network in the country.
James Tu, Chief Investment Officer of Foxconn, described the arrangement as a collaboration where both parties are actively engaged in the outcomes. He stated that this is a strategic partnership to secure long-term renewable energy for operations and supply chains in Vietnam, involving co-investment and co-management with Brookfield to ensure stable and cost-effective power supply for sustained growth in the region.
The advancement of this partnership will proceed in tandem with Vietnam's evolving direct power purchase agreement framework. This regulatory structure allows large energy users to contract directly with renewable energy generators, bypassing traditional utility arrangements. The framework is still maturing, and the development pace of the 1 GW project pipeline will depend on how quickly the regulatory environment catches up with commercial demand. Vietnam's power system faces capacity pressures, and the country's ability to attract such structured long-term investments may indicate progress in its energy transition at an industrial scale.
Brookfield describes this deal as a complement to one of the world's largest renewable energy portfolios, spanning hydropower, wind, solar, and storage across five continents. For Foxconn, this announcement may signal that energy procurement decisions for major manufacturers are moving from the periphery to the core of corporate strategy.
