PASAY CITY - The Department of Trade and Industry (DTI) is considering the establishment of economic zones specifically dedicated to electric vehicle (EV) manufacturing, including parts and components.
According to a new release by the Philippines News Agency, Undersecretary Rafaelita Aldaba said during an interview at the 11th Philippine Electric Vehicle Summit that having such zones could significantly reduce logistics costs, making e-vehicles more competitively priced compared to internal combustion engine vehicles. The idea is part of the Electric Vehicle Incentives Scheme (EVIS), designed to boost local production of e-vehicles and related components.
The DTI plans to coordinate with investment promotion agencies that manage ecozones, such as the Philippine Economic Zone Authority (PEZA), to streamline processes and offer incentives to potential investors. Companies are incentivized to set up operations within such zones, as these ecozones provide a one-stop-shop service, simplifying business activities in the country. Depending on the impact of their projects on the economy, businesses in these zones could also be eligible for fiscal and non-fiscal benefits under the Corporate Recovery and Tax Incentives for Enterprises law.
Under the EVIS initiative, the Philippine government aims to produce 4 million e-vehicles locally, with the necessary raw materials, parts, and components also being manufactured within the country.