As the country’s automotive industry – as with the rest of the world – appears to be reconsidering the previously mad dash to full electric, it behooves BEV (battery electric vehicle) champions to not just make their case for the powertrain, but ensure that the transition to it is both palatable and truly viable.
This effort is even more crucial for brands that have gone all-in on electric, such as in the case of Vietnam-headquartered VinFast.
Following the start of its “Pili-Pilipinas” campaign, which gives Filipinos a voice in choosing the design of the next-generation model lines of the BEV specialist to be rolled out here, VinFast Philippines formally announced the implementation of its Residual Value Guarantee (RVG) Program. Said to be the first of its kind (and following a successful introduction in Indonesia), RVG “provides a guaranteed vehicle value of up to 90 percent of the original price. This pioneering policy provides customers greater peace of mind when transitioning to electric vehicles, accelerates the broader shift toward green mobility, and reaffirms VinFast’s long-term commitment to the Philippine market,” stated the firm in a release.
This unprecedented move is obviously about VinFast more loudly sending the message that it is confident about its vehicles that it’s willing to bet on them – as well as bet on BEVs, period.
“Are EVs really performing better than ICE (internal combustion engine) vehicles? Do I really save 70 percent on fuel cost? Do I really save 70 percent on maintenance cost? Is it safe? Will I be okay with the convenience of public charging station during those occasional long lines? Well, at VinFast, we say yes, definitely,” said VinFast Southeast Asia Chief Executive Officer Antonio “Toti” Zara III during the formal launch of the program.
When asked how VinFast is able to present the eyebrow-raising offer, Zara said, “The key enabler is the VinFast ecosystem. We want to be the biggest green mobility provider… (GSM) taxis, TNVS (transport network vehicle service, which Zara said the company secured permit for) vehicles, leasing, car rental… Every time we put in a new vehicle on the road, that means 100 percent capex (capital expenditure) for us… Frankly, for every returned vehicle, we save on capex. That’s what makes us different.”
RVG is seen as a “written promise on the future value of your investment. Each eligible vehicle with an invoice date from October 20, 2025 is guaranteed a buyback value from six up to 36 month of ownership. Notably, the program is for first owners — whether the vehicle is paid for in cash or through financing.
The buyback value is based on the net retail price multiplied by a fixed RVG rate, with net retail price being the car price, less promotional discounts before repair costs. “At six months, the RVG rate is up to 90 percent, (then 86 percent after a year, 78 percent after two years) – gradually moves to 70% at 36 months.”
VinFast makes it clear that it is a “predicable value path,” provided some parameters are met. The vehicle “needs to be in good working condition; free from major accident, flood or fire (damage); and within the mileage limit of 25,000 kilometers per year. Normal wear and tear is accepted.”
Zara explained the program is limited to three years because VinFast wants to reuse the vehicles that customers may let go of – a business model made possible of the brand’s membership in the Vingroup of companies of Vietnam. “The math won’t make sense it it’s VinFast alone,” he declared. “We cannot compete with the Chinese on sheer volume, we need to differentiate ourselves (while) we are address customer anxiety.”
He added in a company release, “When combined with our other support programs, we believe electric vehicles will soon become a natural and reliable choice for households and individual users across the Philippines. This program reflects our long-term commitment to the market and reinforces our strong belief in the quality of our products.”
