Vingroup, the Vietnamese conglomerate behind electric vehicle (EV) brand VinFast, plans to invest US$ 500 million in establishing a manufacturing facility in the Philippines.

The plant will have an initial annual production capacity of 200,000 vehicles for domestic and export markets.

Construction is scheduled to begin in the first quarter of 2027 and is expected to take between one year and 18 months to complete, according to the Department of Trade and Industry (DTI). The department has not disclosed the facility's location.

The investment was announced following discussions between Trade Secretary Maria Cristina A. Roque and Vingroup Vice-Chairman Nguyen Quoc Tuan, who also chairs Green and Smart Mobility (GSM) Global. The project will be eligible for incentives under Republic Act No. 12066, or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act.

Green and Smart Mobility (GSM), operating as as Green SM or redundantly Green GSM and formerly Xanh SM in Mainland Southeast Asia, is a taxi and ridesharing company in Vietnam. It operates in two main fields: electric taxis and rental of electric cars and electric motorcycles from VinFast, with an investment scale of 10,000 cars and 100,000 motorcycles.

It will also qualify for expedited permit processing through the government's green lane system. However, it remains unclear whether Vingroup will pursue the investment under the Electric Vehicle Incentive Strategy (EVIS), the government's PHP 60 billion (US$ 945 million) programme intended to attract automotive manufacturers to establish production facilities in the country.

''Vingroup's US$ 500 million investment underscores the Philippines' rising status as Southeast Asia's destination of choice for advanced manufacturing and green technology, the DTI is fully mobilized to provide end-to-end facilitation, ensuring a competitive ecosystem for global innovators scaling their manufacturing footprint in our country,'' Roque said in a statement.

In addition to the vehicle manufacturing project, Vingroup plans to expand its electric scooter business in the Philippines. The DTI cited high fuel prices as a factor supporting the planned expansion.

Vingroup is also considering opportunities in other sectors in the Philippines, particularly healthcare and entertainment. Roque said the conglomerate had expressed interest in developing hospitals, theme parks and other entertainment facilities in the country during earlier discussions.

''They're interested in setting up not just [manufacturing for] the electric vehicles, but also entertainment [facilities], theme parks and then also the hospitals,'' Roque said in an earlier interview.

Vingroup has business interests in electric vehicles, real estate, infrastructure, green energy, culture and entertainment, education, and healthcare. Its tourism and leisure businesses include Vinpearl, which operates resorts, hotels and amusement parks, while Vinmec operates hospitals.

VinFast recorded a 4,610% increase in battery-electric vehicle (BEV) sales in the Philippines during the first three quarters of 2026 compared with the corresponding period in 2025. The growth placed VinFast eighth among the country's best-selling automotive brands and ranked it first in the BEV segment.