Vietnam's VinFast rockets as Philippines' CARS stalls

Manila: In the high-stakes race for electric vehicle (EV) dominance in the Asean (Association of Souteast Asian Nations), Vietnam scripted a blockbuster while the Philippines hit rewind. 

Picture 2017: Vietnam unleashes state-backed incentives with $1.5 billion fuelling VinFast's birth — tax exemptions, low-interest loans, a full ecosystem blitz of chargers and service hubs propelling EVs.

Manila policymakers were busy propping up dodos, i.e. internal combustion engines (ICE) with multi-year, multi-billion subsidies for select Japanese carmakers making petrol engines, i.e. Toyota Vios and Mitsubishi Mirage, despite signs it's backpedalling to irrelevance.

Vietnam’s EV boom, meanwhile, has ignited.

It hit warp speed in 2025, snatching up to 33% of all new car sales by mid-to-late year — eclipsing EU/US numbers, turbocharged by VinFast dominance and strategic government perks.

Vinfast is also rapidly expanding its footprint in the Philippines, via an aggressive $1-billion investment in taxi fleets and a fast-expanding charging infrastructure.

Hanoi did not invest directly in the parent firm VinGroup, but VinFast does get significant backing from its parent conglomerate, Vingroup, and its billionaire founder, Pham Nhat Vuong (estimated net worth: $31 billion), with Vuong personally injecting billions.

Vietnam's government provides indirect support, though, via policy: subsidies, facilitating favourable conditions, including massive charging stations rollout.

In the Philippines, VinFast is rapidly expanding its footprint, aiming to lead in electric vehicle adoption through an aggressive $1 billion investment in taxi fleets and charging infrastructure, while local Philippine automotive manufacturing (CARS program) faces challenges

Following the outbreak of the US-Iran war, when the Department of Trade and Industry (DTI) has finally scrapped of the ICE industry incentives, known as CARS/RACE.

Across the pond, the Philippines clung to industry dinosaurs, with CARS (Executive Order 182, issued 2015) and RACE programmes (2025) — ₱27 billion dangled for foreign OEMs chasing 200,000 ICE Vios/Mirage units per year and 40-60% local parts.

What this meant, in essence, is that Manila dreamt of “national champions” out of Japanese carmakers, while completely ignoring home-grown ones like Francisco Motors, exporting EVs to Africa.

Under EVIDA (RA 11697), Philippine vehicle EV sales clocked up 6% (2025) vs 43% in Singapore and 33% in Vietnam, as per a PwC's ASEAN-6 eReadiness Report, released on January 9, 2026.

The PwC report assessed EV readiness, consumer behaviour, and infrastructure maturity across Indonesia, Malaysia, Thailand, the Philippines, Vietnam, and Singapore.

It showed Vietnam was the fastest-growing and “most electrification-driven” market among Asean's six major automotive markets. 

The ICE industry claims 8,000 workers are directly employed in the Philippines’ vehicle manufacturing, with an additional thousands in “support industries” (i.e. oil change, repairs).

VinFast's new Ha Tinh plant alone expected to up to 15,000 jobs.

A World Bank report estimates Vietnam's EV sector could generate 6.5 million jobs by 2050.

Vietnam’s masterstroke shines in outcomes: 200,000 EVs sold in 2025, 15,000 chargers planned, battery FDI pouring in — capped by buybacks at 90% value, 10-year warranties, and free charging. 

Philippines countered feebly with EVIDA law — it law, but only by default. Duterte did not sign it before leaving office in 2022.

Under the Philippine Constitution, the president has 30 days from receipt to act. If no action (signing or veto) is taken within this period, it "lapses" into law.

Perks like tariffs and parking, are offered under EVIDA. Without a long-term manufacturing strategy, it leaves critical minerals found in the country aside, exported mostly to China as raw materials, and shipped back as finished products.

Manila decision to set aside the CARS/RACE subsidy, is a merciful reset from this ICE subsidy trap.

Vietnam's playbook:

Projections show further national EV fleet penetration by 2030, EV domination by 2040 — local factories, consumer adoption, and ASEAN leadership in EVs locked in.

The Philippines playbook:

Post-CARS/RACE veto; adherence to EVIDA (mandatory charging stations in certain establishments such as government buildings and malls), possible local battery manufacturing, charging infrastructure rollout (via PPP), potential for local nickel processing.