Vingroup, Vietnam’s largest conglomerate, is preparing to build a $500 million electric‑vehicle factory in the Philippines. The move is notable because the group recently reported a large after‑tax loss, yet it continues to expand its global production.

According to the Philippine department that met with Vingroup, construction of the plant could start in the first quarter of next year and last about 18 months. When finished, the factory would be able to produce roughly 200,000 vehicles each year for both the local market and export.

The Philippine government has outlined support measures for the project, including tax incentives and shorter application‑processing times. These measures help speed up the factory’s development and lower initial costs for Vingroup.

VinFast, Vingroup’s EV subsidiary, showed strong sales in the first half of 2024, with revenues rising 61 % to VND53.2 trillion (about $2.1 billion) and delivering 128,685 electric cars worldwide, a 77 % increase. At the same time, Vingroup recorded an after‑tax loss of nearly VND28.4 trillion, an improvement from a loss of more than VND38.3 trillion a year earlier, and it already runs factories in Indonesia and India with a combined capacity of 100,000 cars.

The combination of rising revenues, expanding production capacity and government incentives explains why Vingroup is willing to invest heavily in the Philippines despite recent losses. The new plant could help the group reach a larger market while spreading its manufacturing footprint across Southeast Asia.