VIETNAM automaker VinFast is establishing a P31.74-billion manufacturing facility in the Philippines which will produce four-wheeled electric vehicles (EVs), the Department of Trade and Industry (DTI) said.
Construction is expected to begin by the first quarter of 2027 and will be completed in less than two years, the DTI said in a statement on Wednesday. It did not provide information on the plant’s location.
The plant, whose dollar value was given at $500 million, is expected to produce an initial 200,000 vehicles to serve the domestic and export markets.
The investment was announced following a recent meeting between Trade Secretary Maria Cristina A. Roque and Vingroup Vice Chairman Nguyen Quoc Tuan.
The automaker is also expanding its line of electric scooters in the Philippines, the DTI said, citing the opportunities created by high fuel prices.
The car project will be entitled to incentives under Republic Act No. 12066 or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act, as well as expedited permit processing under the green lane system.
“Vingroup’s $500-million investment underscores the Philippines’ rising status as Southeast Asia’s destination of choice for advanced manufacturing and green technology,” Ms. Roque was quoted as saying.
VinFast is a conglomerate with interests in EVs, real estate, infrastructure, green energy, culture & entertainment, education, and healthcare.
Speaking to reporters on Monday, Ms. Roque added that Vingroup is interested to expand its healthcare and entertainment businesses in the Philippines.
“They’re interested in setting up… theme parks and hospitals,” she said.
Separately, the DTI hopes to finish negotiations for the review of the Japan–Philippines Economic Partnership Agreement (JPEPA), Ms. Roque said.
The next round of talks is scheduled for Oct. 23-26 in Japan.
“If all goes well, then that will be the last,” Ms. Roque said.
The long-awaited review of JPEPA, which came into force more than a decade ago, seeks to align the pact with current market dynamics and trade conditions. — Beatriz Marie D. Cruz