VinFast Surges Ahead as Philippine EV Efforts Lag

Apr 24, 2026

74 min

Apr 24, 2026 05:30

Vietnam's VinFast rockets as Philippines' CARS stalls

## Vietnam's Electric Vehicle Success

Vietnam's VinFast has rapidly become a dominant force in the electric vehicle (EV) market, thanks to strategic government support and significant investments. Since its inception in 2017, VinFast has benefited from $1.5 billion in state-backed incentives, including tax breaks and low-interest loans. By 2025, EVs accounted for 33% of new car sales in Vietnam, surpassing figures in the EU and US.

VinFast's expansion isn't limited to Vietnam. The company is investing $1 billion in the Philippines to develop taxi fleets and charging infrastructure, aiming to lead in EV adoption there as well.

## Challenges in the Philippines

In contrast, the Philippines has struggled to keep pace. The country's Comprehensive Automotive Resurgence Strategy (CARS) focused on internal combustion engines (ICE), offering billions in subsidies to Japanese carmakers like Toyota and Mitsubishi. However, this approach has been criticized for failing to foster local innovation.

The Philippines recently shifted focus with the Electric Vehicle Industry Development Act (EVIDA), which aims to boost EV adoption. Despite this, EV sales in the Philippines only reached 6% in 2025, compared to 33% in Vietnam.

## Future Prospects

Vietnam's approach has positioned it as a leader in the ASEAN EV market, with projections showing continued growth. The Philippines, meanwhile, is attempting to pivot towards EVs, but faces challenges in infrastructure and policy alignment.

The race for EV dominance in Southeast Asia highlights the importance of strategic government support and investment in fostering a successful transition to electric vehicles.

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