ASEAN Finance / Foxconn: Responding to Vietnam's Direct Power Purchase Agreements, Advancing Local Renewable Energy

According to CNA, Foxconn held the 'Vietnam Energy Transition Forum' in Hanoi on October 16, gathering key supply chain partners to discuss Vietnam's energy market trends, the framework of Direct Power Purchase Agreements (DPPA), and new models for renewable energy investment. The event aligns with Foxconn's long-term sustainability goals for 2030 and its vision of achieving net-zero emissions by 2050.

At the forum, Foxconn announced a strategic partnership with Brookfield, a major Canadian asset management firm. The two companies plan to jointly develop renewable energy projects totaling 1 gigawatt (GW) in Vietnam, including wind, solar, and energy storage, based on long-term power purchase agreements (PPAs).

Foxconn invited industry and technology experts to the Hanoi forum to share practical, implementable green energy solutions under Vietnam's newly promoted DPPA framework. These solutions aim to help supply chain partners fulfill their ESG-related decarbonization commitments.

The company noted that Vietnam's advancing renewable energy policies and DPPA system are gradually increasing the feasibility for businesses to procure green power locally. However, practical implementation still faces challenges such as regulatory changes, grid conditions, and long-term supply stability.

In response to Vietnam's regulatory liberalization and rising green power demand from the supply chain, Foxconn plans to establish a green energy investment platform in the country. By combining Foxconn's expertise in renewable energy investment with Brookfield's asset management capabilities, the platform aims to lower the barriers for industrial investors to access green power, enabling both Foxconn and its supply chain to move toward net-zero emissions collectively. The initiative will also support Vietnam's energy infrastructure development.

Through diversified measures—including building on-site solar installations, increasing green power procurement, and establishing a green investment platform—Foxconn aims to create a comprehensive energy transition program for Vietnam's industrial chain and expand the use of renewable energy.