Vietnamese automaker VinFast has expressed interest in joining the Philippine government's Electric Vehicle Incentive Strategy (EVIS) program as it prepares to build an electric vehicle (EV) manufacturing plant in the country.

Trade Secretary Maria Cristina A. Roque told reporters last week that the automaker is awaiting the release of the EVIS guidelines before applying to the program. "They're definitely interested to join the EVIS but the guidelines aren't out yet," she said.

VinFast's parent company, Vingroup, recently announced plans to build a P32-billion EV manufacturing facility in the Philippines. According to Ms. Roque, the company is considering Batangas as the location for the planned plant.

"They're looking at Batangas, that's their preferred location because they need to be beside or very close to the ports," she noted. VinFast wants the facility to rise within a Batangas economic zone that can accommodate 300 hectares, she added.

Construction of the facility is scheduled to begin in the first quarter of 2027 and will be completed in one and a half years. The plant is expected to produce an initial 200,000 vehicles for both the domestic and export markets — a dual-market plan that helps explain the company's preference for a location beside or very close to the ports.

The project will also be entitled to perks under Republic Act No. 12066, or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act, and will be eligible for the green lane system of expedited permits. That puts a baseline of tax incentives and faster permitting in place alongside any future EVIS award for the facility.

VinFast is the third vehicle maker to express interest in the EVIS program, following 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. The government plans to offer four slots for four EV models, each of which will receive P15 billion worth of incentives. With three suitors now lined up for four slots, the program still has unclaimed room as officials work to draw manufacturers into domestic EV production.

Ms. Roque said the government is hoping to release the EVIS guidelines this month. Until then, VinFast's formal application — and the allocation of the four P15-billion-per-model slots — cannot move forward.

— Beatriz Marie D. Cruz, BusinessWorld

Source: BusinessWorld