VinFast is among Vietnamese firms being considered for investment in Philippine economic zones following a diplomatic upgrade between the two countries.
The Philippines' PEZA (Philippine Economic Zone Authority) said a recent visit by Vietnamese President Tô Lâm, which raised bilateral ties to a comprehensive strategic partnership, is expected to open fresh avenues for trade, investment and industrial collaboration.
Groundwork for the development was laid in April, when PEZA held talks with Vietnamese Ambassador to the Philippines Dr Lai Thai Binh and embassy officials on broadening investment and trade activity within Philippine ecozones.
Those discussions included plans to organise an inbound business delegation from Vietnam, with VinFast Auto among the prospective participants.
VinFast, a subsidiary of Vietnamese conglomerate Vingroup, is Vietnam's first automotive brand to enter global markets and manufactures electric cars and scooters.
PEZA said a potential investment by the company would bolster its drive to draw EV manufacturing, battery assembly, automotive electronics and charging infrastructure projects to its zones.
PEZA director general Tereso O Panga said Vietnam's emergence as a manufacturing hub creates scope for collaboration between the two ASEAN economies, noting that the Philippines' domestic consumer base, workforce and export market access could appeal to Vietnamese firms seeking a regional foothold.
This comes after the entry of two Indonesian-linked automotive companies into Philippine ecozones.
These are Diametral Involute Philippines, which focuses on machining, forging and precision components, and Astra Visteon, a joint venture between PT Astra Otoparts and Visteon Corporation that makes vehicle electronics such as speedometers and infotainment systems.
Panga added: “Following the recent entry of two major Indonesian automotive companies into the ecozones, we expect more Vietnamese manufacturing firms to consider locating in Philippine ecozones to take advantage of our growing domestic market, strategic location, skilled workforce, and preferential access to key destinations such as the US and the European Union.”
The agency added that closer cooperation among ASEAN member states could help reinforce regional supply chains and lift intra-ASEAN trade as the bloc contends with headwinds including US tariffs, geoeconomic fragmentation and supply chain disruptions.
