Vietnam’s Vingroup to build $3bn multi-sector ecosystem in Telangana

Vietnam’s largest conglomerate Vingroup on Tuesday signed a memorandum of understanding with the Telangana state government for a proposed $3 billion investment to develop a multi-sector ecosystem in the southern Indian state. The agreement marks the group’s biggest potential investment outside Vietnam.

The projects will span smart urban development, electric mobility, healthcare, education, tourism and renewable energy across approximately 2,500 hectares (6,177 acres), the company said in a statement.

According to the statement, the Telangana government will support the initiative by facilitating land allocation, fast-tracking approvals and coordinating planning efforts.
“We are committed to … positioning Telangana as the gateway for Vietnamese and South-East Asian investment into India’s fastest-growing economy,” said Sanjay Kumar, Special Chief Secretary to the Government of Telangana.

The proposed $3 billion commitment surpasses Vingroup’s $2 billion VinFast factory under construction in North Carolina in the United States. It also extends the conglomerate’s presence in India, where VinFast operates a manufacturing facility in Tamil Nadu.

Last week, VinFast announced a $500 million expansion of the Tamil Nadu plant as it accelerates plans to participate in India’s fast-growing EV market. The statement did not detail the investment disbursement timeline.

For the first nine months of 2025, Vingroup reported a net profit of 7.565 trillion dong ($287.42 million), nearly double its earnings from the same period in 2024. The group’s expansion, however, has contributed to rising debt, which totalled $12.35 billion as of September 2025, with around half linked to bank loans and syndicated credit facilities. VinFast continues to report widening losses amid its global expansion.

The new Telangana projects will include a 1,080-hectare smart city, a 350-hectare theme park and a 500 MW solar farm intended to support sustainable development. VinFast’s affiliate GSM also operates large-scale electric taxi fleets, adding to the ecosystem planned for India.

“We see tremendous potential in Telangana,” Pham Sanh Chau, CEO of Vingroup Asia and VinFast Asia, said in the statement, highlighting the partnership’s emphasis on sustainability.

With a population of about 38.5 million, Telangana has emerged as a significant investment and technology hub in southern India. The agreement underscores Vingroup’s strategic focus on India at a time when global automakers are competing to capture market share in the expanding EV sector.

(With inputs from Reuters)