Vietnamese automaker VinFast is establishing a P31.74-billion ($500-million) manufacturing facility in the Philippines that will produce four-wheeled electric vehicles (EVs), the Department of Trade and Industry (DTI) announced.

Construction is expected to begin by the first quarter of 2027 and be completed in less than two years, the DTI said in a statement on Wednesday. The agency did not disclose the plant's location.

The facility is expected to turn out an initial 200,000 vehicles, serving both the domestic market and export markets. VinFast already produces vehicles in Vietnam and has been expanding its manufacturing footprint abroad, with announced plants in the United States and India; the Philippine facility would add a new overseas base to that network.

The investment was announced following a recent meeting between Trade Secretary Maria Cristina A. Roque and Vingroup Vice Chairman Nguyen Quoc Tuan.

Alongside the car plant, VinFast is also expanding its line of electric scooters in the Philippines, with the DTI citing opportunities created by high fuel prices.

The automotive project will be entitled to incentives under Republic Act No. 12066, the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act (CREATE MORE), enacted in 2024, as well as expedited permit processing under the green lane system, the government's fast-track permitting channel for strategic investments.

"Vingroup's $500-million investment underscores the Philippines' rising status as Southeast Asia's destination of choice for advanced manufacturing and green technology," Ms. Roque was quoted as saying.

VinFast is the automotive arm of Vingroup, a conglomerate with interests in EVs, real estate, infrastructure, green energy, culture and entertainment, education, and healthcaren
Speaking to reporters on Monday, Ms. Roque added that Vingroup is interested in expanding its healthcare and entertainment businesses in the Philippines. "They're interested in setting up… theme parks and hospitals," she said.

Separately, the DTI hopes to finish negotiations for the review of the Japan–Philippines Economic Partnership Agreement (JPEPA), Ms. Roque said. The next round of talks is scheduled for Oct. 23–26 in Japan. "If all goes well, then that will be the last," she said.

The long-awaited review of JPEPA, a trade agreement signed in 2006 and in force since 2008, seeks to align the pact with current market dynamics and trade conditions.

— Beatriz Marie D. Cruz