Hon Hai, Brookfield to invest in renewable energy in Vietnam

Taipei, June 9 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. has established a partnership with Brookfield, a leading global investment firm, to make renewable energy investments in Vietnam.

In a statement, iPhone assembler and AI server maker Hon Hai, also known as Foxconn globally, said the investments in renewable energy projects in Vietnam will seek to support the operations of Hon Hai and its suppliers in the Southeast Asian country.

Based on the partnership, Hon Hai said, both sides will jointly develop up to 1 gigawatt (GW) of utility-scale wind, solar and battery capacity underpinned by a long-term power purchase agreement (PPA).

In addition, the two partners will work with each other on investments and the asset management of targeted projects, Hon Hai said.

For its part, Brookfield will leverage its Catalytic Transition Fund, which invests in renewable energy development in emerging markets.

"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," Hon Hai Chief Investment Officer James Tu (杜墨璽) said in the statement.

"This initiative where we're investing and managing alongside Brookfield ensures stable and cost-effective power supply for our continued growth in the region," Tu added.

Hon Hai said the cooperation with Brookfield is expected to progress alongside Vietnam's evolving direct PPA framework.

In response, Brookfield Asia Pacific Head of Energy Daniel Cheng said the company's cooperation with Hon Hai "underscores the scale of corporate demand for renewable power in Vietnam, one of Asia's fastest-growing economies."

According to Hon Hai, Brookfield manages more than US$1 trillion in assets with a wide range of businesses such as infrastructure, energy, private equity, real estate and credit.

Hon Hai said Brookfield is a leading owner, operator and developer of clean energy assets, holding one of the world's largest renewable energy portfolios covering hydro, wind, solar, energy storage and sustainable solutions across five continents.