A 200,000-car plant for a 33,000-EV market: Inside VinFast’s Philippine gamble

The Vietnamese conglomerate Vingroup is set to invest US$500 million in a flagship electric vehicle (EV) plant located in the Philippines. The plant, which aims to produce 200,000 vehicles per year, is scheduled to commence construction in the first quarter of 2027 and begin manufacturing by 2028. In addition to cars, the factory will also produce electric scooters for the Philippine market.

Trade Secretary Cristina Roque emphasized that the investment showcases the country's growing role as a Southeast Asian hub for advanced manufacturing and green technology. The plant's capacity to produce 200,000 vehicles a year far exceeds the projected EV market sales in the Philippines, which amount to 32,776 by 2026 and 91,730 by 2030.

The export-friendly nature of the plant, along with tax breaks and faster permitting processes, could make it a more valuable asset as the import exemptions for battery EVs in the Philippines are set to expire in 2028. VinFast is not the only player in the Philippine EV market, as Chinese brands like BYD, MG, GAC Aion, and Chery already have a presence in the country.

However, VinFast has been successful in Vietnam, where it accounts for 42% of domestic car sales, and has a strong charging network and taxi fleets. The company's expansion in the Philippines faces competition from Japanese incumbents like Toyota and Mitsubishi, which dominate the market with hybrids.