Vietnamese firm plans to enter Phl EV industry
‘The Philippines welcomes investments in the electric vehicle sector as we position the country to be a hub for smart and sustainability-driven manufacturing and services industries in Southeast Asia’
Cognizant of the Philippine government’s aim to modernize the country’s transportation system, a Vietnamese firm has signified its interest in the entering the local electric vehicle industry. This was announced at the sidelines of President Ferdinand Marcos Jr.’s official visit to Hanoi on Monday.
The pronouncement of the Vingroup Company, Vietnam’s largest private company, to enter the Philippine EV market is also in line with the Department of Trade and Industry’s efforts to promote investments in the green metals industry.
Trade Secretary Alfredo Pascual welcomed the entry of VinFast, a subsidiary of the Vingroup Company planning to sell and launch electric vehicles in the country through dealership
business by April 2024. Other investment opportunities
“The Philippines welcomes investments in the EV sector as we position the country as a hub for smart and sustainability-driven manufacturing and services industries in Southeast Asia. Hence, we encourage you to explore other investment opportunities besides EV sales and dealerships,” he said.
Pascual highlighted the government’s initiatives in promoting the country’s EV industry through the Public Utility Vehicle Modernization Program and the E-Trike Project of the Department of Energy, which have been successful in increasing the number of e-jeepneys and e-tricycles.
Through the Corporate Recovery and Tax Incentives for Enterprises or CREATE Act, EV projects in the Strategic Investment Priority Plan may avail up to 17 years of incentives and 40 years of qualified government support.
Furthermore, completely built-up units of certain EVs may now be imported duty-free under Executive Order 12.
Last October 2023, the Board of Investments assisted VinFast in their due diligence visit to the country, particularly facilitating six meetings between them and local nickel mining companies.
Partnership with CAMPI
They also arranged meetings for partnership opportunities with the Chamber of Automotive Manufacturers of the Philippines Inc. or CAMPI and the Department of Transportation for VinFast’s interest in the Philippine EV industry.
Highlighting the current administration’s steadfast efforts to create a conducive environment for investments, Secretary Pascual discussed the Ease of Doing Business Act and the recent Executive Order 18 on Green Lanes for Strategic Investments.
Pascual said that this can support VinFast’s outlook to diversify its market and explore mineral processing in the Philippines.
Tourism, healthcare
Besides the EV industry, the DTI secretary also encouraged the Vingroup Company to look for investment opportunities in the tourism and healthcare sectors.
After affirming the government’s support in the entry of VinFast in the Philippines, Secretary Pascual underscored, “As we work to increase our FDIs from Vietnam and advance our economic cooperation, we hope that VinFast will make it happen in the Philippines.”