Vietnam’s Vingroup to develop US$3 billion ecosystem in Telangana, strengthens India push

VinFast, despite its ongoing global expansion, continues to report widening losses

[HANOI] Vietnam’s largest conglomerate Vingroup on Tuesday (Dec 9) signed a memorandum of understanding with Telangana’s state government for a proposed US$3 billion investment to establish a multi-sector ecosystem in the southern Indian state.

The projects would cover 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.

Telangana’s government will facilitate the allocation of land, the fast-tracking of approvals and coordinate planning, according to the statement.

“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 US$3 billion plan marks Vingroup’s biggest potential investment outside Vietnam, exceeding a US$2 billion VinFast factory under construction in North Carolina, United States.

The move extends Vingroup’s presence in India, where its electric vehicle (EV) arm, VinFast, has a manufacturing facility in Tamil Nadu.

Last week, VinFast announced a US$500 million expansion of the Tamil Nadu plant as it ramps up plans to tap India’s fast-growing EV market.

For the first nine months of 2025, Vingroup reported a net profit of 7.565 trillion dong (S$287.42 million), nearly double its earnings from the same period in 2024.

However, the expansion has contributed to a rise in debt, which totalled US$12.35 billion as at September 2025, with approximately half tied to bank loans and syndicated credit facilities.