VinFast seeks Philippines EV incentives for planned Batangas plant

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VinFast seeks PH EV incentives

Highlights

VinFast plans to build an electric vehicle plant in Batangas on a 300-hectare site with construction starting Q1 2027 and aiming for 200,000-unit annual capacity.
VinFast seeks incentives under Republic Act No. 12066 and the P60-billion EVIS program, each offering up to P15 billion for four EV manufacturers.
The government aims to release EVIS program guidelines this month, potentially accelerating new EV manufacturing projects including VinFast’s entry.

Plant plan tied to incentive rollout

As reported by BusinessWorld Online, Trade Secretary Maria Cristina A. Roque said VinFast is interested in joining the EVIS program but is waiting for the government to release the implementing guidelines before applying.

Roque said Vingroup, VinFast's parent company, plans to build an electric vehicle manufacturing plant in the Philippines and is considering Batangas as its preferred location because the site needs to be beside or very close to ports. She added that the company wants a site within a Batangas economic zone that can accommodate 300 hectares.

Construction is set to begin in the first quarter of 2027 and is scheduled for completion in one and a half years. The plant is expected to produce an initial 200,000 vehicles for both domestic and export markets.

Policy support and industry impact

The project is also 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. It is likewise eligible for the green lane system for expedited permits.

VinFast is the third vehicle maker to express interest in the EVIS program, after Mitsubishi Motors Philippines Corp. and Francisco Motors Corp. Established under Executive Order No. 121, EVIS offers a P60-billion fiscal package for EV manufacturers to encourage domestic production, with the government planning four slots for four EV models worth P15 billion in incentives each.

Roque said the government is hoping to release the EVIS guidelines this month, a step that could shape the pace of new EV manufacturing commitments in the Philippines.

In our earlier report on the Philippines’ planned sovereign bond pricing reform and anticipated index inclusion, we explained that these market upgrades could broaden the investor base and improve liquidity, but won’t automatically translate into stronger factory and infrastructure investment. We also noted that deeper capital-market development and credible, productivity-boosting public spending are crucial for turning easier financing conditions into tangible business expansion.

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