VinFast, the automotive arm of the Vingroup conglomerate, formally entered the Philippines in June, signing contracts with four dealers, three in Metro Manila.

“We say that the country has potential,” VinFast Philippines’ CEO Cao Ngoc Nguyen Duy told Nikkei Asia in an interview on Thursday. “So the electric vehicle market is still very new here and there’s a lot of room to grow. That’s why we want to look at and invest in this market, and we would like to be a part of the green transformation.”

Cao was speaking on the sidelines of the Philippines EV Summit, an industry exhibition that VinFast joined for the first time.

VinFast is selling three EV models in the Philippines, the entry-level VF3 mini crossover, the VF5 crossover, and the recently launched VF7, an SUV targeted at young professionals. The VF3 is priced at 745,000 pesos ($12,850) without a battery subscription. Prices for VF7’s base version range from 1.47 million pesos to 1.76 million pesos.

“The Philippines is the first country outside of Vietnam to enjoy the VF7,” Cao said, “because we believe that the Philippines is a very important market in our global expansion.” The chief executive said the VF7 is priced so “many Filipinos can afford the car” and noted that it comes with a 10-year warranty.

VinFast already has a presence in the U.S., Canada and Europe, and recently invested in Indonesia, India and Thailand.

The EV maker’s entry into the Philippines challenges the Filipino public’s penchant for internal combustion engines. Government data shows that 14.27 million conventional vehicles were registered in 2023. As for electric vehicles, the government only knew of 7,515 existing in the country through last year.

Hurdles remain for the sector since Filipino drivers remain hesitant to go electric, especially due to battery charging concerns. Charging stations aren’t as commonplace around the metro area, though the energy department is eyeing a plan to build 65,000 hubs by 2028.

The Philippines currently has 92 charging stations, government data shows.

VinFast’s Philippine expansion plans include replicating the success of V-Green, the company’s charging station development division in Vietnam, Cao said, adding that the company might invest in stations across the country.

“With the global trend, and in the Philippine trend, people will think more about the environment, about a sustainable future,” Cao said. “So there will be a shift that we will try to” be a part of in the Philippines.

Data compiled by the Chamber of Automotive Manufacturers of the Philippines and the Truck Manufacturers Association indicated the country’s auto industry sold 344,307 vehicles this year through September, up 9.4% from the same period last year. Sales of electric vehicles, meanwhile, amounted to 10,000 units in the first nine months of 2024, according to the industry group Electric Vehicles Association of the Philippines.

Many automakers, mostly from China, are looking to challenge the status quo in the Philippines. BYD, one of the world’s largest EV makers, is selling its flagship model in Manila. Compatriots Dongfeng Motor Corp., Geely, GAC and other Chinese brands already have autos on Philippine roads.