VinGroup, Vietnam’s largest conglomerate with interests spanning technology, industrial sectors, real estate development, retail, healthcare, and hospitality, has shown keen interest in establishing an EV battery manufacturing facility in the Philippines. Its automotive arm, VinFast, is anticipated to establish a subsidiary in the country to oversee EV marketing, dealership operations to be launched in April 2024 as well as the exploration of partnerships in energy storage and nickel processing.
VinFast representatives visited the Philippines in October 2023 and met local mining companies to explore mineral processing which is part of the EV supply chain. The Philippines boasts significant reserves of nickel, cobalt, and copper, which are integral to EV production. Furthermore, the Philippine government acknowledged that VinFast’s timely expression of interest aligns with the ongoing implementation of the Public Utility Vehicle Modernization Program (PUVMP). This initiative aims to revamp and modernize all public utility vehicles, with a focus on buses, jeepneys, and tricycles. However, the government stressed its commitment to maintaining an open market to accommodate multiple suppliers in the EV industry, thereby expediting the full implementation of the PUVMP.
As per the Department of Trade and Industry (DTI), various measures have been implemented to enhance the attractiveness of the Philippine EV sector. These include Executive Order (EO) 12, which removes duties on completely built-up units of specific EVs, and the provision of green lane treatment and processing for strategic investments such as mineral processing.
The Philippines’ net foreign direct investment (FDI) inflows of USD5.88 billion in the third quarter of last year surpassed Malaysia’s USD 4.99 billion and Thailand’s USD 4.44 billion.
Source: Philippine News Agency, Philippine Star
