Vingroup to build USD 500M EV plant in Philippines

MANILA — Vietnamese conglomerate Vingroup plans to invest USD 500 million in an electric vehicle (EV) manufacturing plant in the Philippines, with an initial annual production capacity of 200,000 vehicles, the Department of Trade and Industry (DTI) announced.

The investment marks a major expansion of the company’s Southeast Asian operations and could strengthen the Philippines’ position as a regional manufacturing hub for electric vehicles and clean transportation technologies.

Vingroup, the parent company of Vietnamese EV manufacturer VinFast, already has manufacturing operations in Indonesia and India as it expands its presence in the global electric mobility market.

The proposed Philippine facility will produce electric vehicles for both domestic consumers and export markets, potentially creating opportunities for local suppliers and businesses involved in automotive manufacturing.

Construction is scheduled to begin in the first quarter of 2027, with development expected to take 12 to 18 months.

Based on that timeline, the facility could be completed between early and late 2028, depending on construction progress and regulatory approvals.

Beyond four-wheeled electric vehicles, Vingroup also plans to introduce its electric scooters to the Philippine market, expanding transportation options for consumers seeking alternatives to gasoline-powered vehicles.

The investment was discussed during a meeting between DTI officials and Nguyen Quoc Tuan, vice chairman of Vingroup and chairman of GSM Global.

During the meeting, the DTI outlined government support mechanisms and fiscal incentives available to major investors, including tax benefits under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

The law, officially Republic Act 12066, seeks to make the Philippines more competitive in attracting investments by improving the country’s fiscal incentives system and streamlining investment-related procedures.

The DTI also presented the government’s Green Lanes for Strategic Investments program under Executive Order 18, which aims to accelerate the processing of permits, licenses and other regulatory requirements for qualified investment projects.

Issued in February 2023, the executive order established mechanisms to reduce bureaucratic delays and facilitate major investments considered important to economic development.

Trade Secretary Cristina A. Roque said the planned facility demonstrates growing investor interest in the Philippines as a destination for advanced manufacturing and green technology.

“Vingroup’s USD 500 million investment underscores the Philippines’ rising status as Southeast Asia’s destination of choice for advanced manufacturing and green technology. Under President Marcos Jr.’s administration, our mandate is clear: to translate investor confidence into immediate operational momentum. The DTI is fully mobilized to provide end-to-end facilitation, ensuring a competitive ecosystem for global innovators scaling their manufacturing footprint in our country,” said DTI Secretary Cristina A. Roque.

The proposed investment comes as the government seeks to develop a domestic EV manufacturing industry and attract companies capable of producing vehicles and components for local and international markets.

The Philippines has also been developing its Electric Vehicle Incentive Strategy (EVIS), a program intended to encourage investment in EV manufacturing and strengthen the local automotive supply chain.

However, the DTI has not clarified whether Vingroup intends to participate in the EVIS program or what additional incentives the proposed project might receive.

The government has also been promoting electric mobility through Republic Act 11697, or the Electric Vehicle Industry Development Act, which establishes a national policy framework for EV adoption, charging infrastructure and industry development.

The law forms part of broader efforts to reduce dependence on petroleum-based transportation and encourage cleaner energy technologies.

Despite the investment announcement, several major details remain undisclosed, including the proposed plant’s location, projected employment, specific vehicle models and expected export destinations.

The DTI has also not provided estimates of local parts sourcing or the share of production intended for Philippine consumers.

These details will help determine the project’s eventual contribution to employment, domestic manufacturing and the country’s automotive supply chain.

For the DTI, Vingroup’s planned investment represents an opportunity to attract advanced manufacturing technologies while supporting the Philippines’ transition toward cleaner transportation and a more diversified industrial economy.