Vingroup is steering its global ambitions deeper into India after signing a memorandum of understanding with the Telangana state government for a proposed $3 billion investment that would create a sprawling multi-sector ecosystem across the southern state.
It is the Vietnamese conglomerate’s most ambitious foreign plan yet, eclipsing even the $2 billion VinFast plant rising in North Carolina.
The company said the projects would span smart urban development, electric mobility, healthcare, education, tourism, and renewable energy, spread across roughly 2,500 hectares. Telangana’s government, eager to anchor more global capital within its borders, is committed to helping the conglomerate secure land, accelerate regulatory clearances, and coordinate long-term planning.
Sanjay Kumar, Telangana’s Special Chief Secretary, said the intention is to turn the state into a natural entry point for Vietnamese and Southeast Asian companies targeting India’s fast-growing market.
“We are committed to positioning Telangana as the gateway for Vietnamese and South-East Asian investment into India’s fastest-growing economy,” he said.
Vingroup, which has built a reputation at home as Vietnam’s most influential conglomerate, is now moving aggressively to establish a regional footprint. India has grown increasingly central to those plans. Its EV subsidiary, VinFast, already operates a major manufacturing facility in Tamil Nadu, and just last week announced a $500 million expansion to scale production in an EV market where global automakers are jockeying for early advantage.
The Telangana plan widens that presence beyond vehicles. The proposal includes a 1,080-hectare smart city project, a 350-hectare theme park, and a 500 MW solar farm to power the wider ecosystem. Plugging into the government’s development push also gives Vingroup a chance to embed its healthcare, education, and tourism businesses—sectors that have helped underpin its expansion across Asia.
Pham Sanh Chau, CEO of Vingroup Asia and VinFast Asia, said the group sees “tremendous potential in Telangana,” stressing that the partnership was aimed at long-term sustainable development.
India offers both scale and momentum. Telangana alone has a population of around 38.5 million and has become one of southern India’s busiest investment hubs, home to global technology giants, fast-growing EV activity, and industrial clusters that have drawn sustained foreign interest.
Vingroup’s expansion, though, comes with financial undercurrents that investors continue to track. The company reported a net profit of 7.565 trillion dong ($287.42 million) for the first nine months of 2025—almost double what it posted during the same period in 2024. But growth has pushed up leverage. Total debt stood at $12.35 billion as of September 2025, with nearly half tied to bank loans and syndicated credit lines.
The EV arm, VinFast, remains a pressure point. Despite expanding into the United States, Southeast Asia, and now India, its losses continue to deepen. The company is still betting that scale, especially in price-sensitive and fast-growing markets like India, will help turn the curve.
VinFast’s affiliate GSM has also been pushing large-scale electric taxi fleets in multiple markets. The Telangana plan is expected to offer new terrain for that model.
The agreement did not include a timeline for the deployment of funds, but the scale signals a long-horizon bet on India’s economic trajectory. It also shows how Vietnamese corporations are broadening their global sweep, leveraging domestic strength to challenge competitors far beyond Southeast Asia.
The deal lands at a moment when states across India are fiercely competing for manufacturing and green-tech investment. The state government has spent years cultivating the identity of a technology-forward hub, and Vingroup’s interest gives it another marquee name to anchor that narrative.
The push into Telangana reinforces a broader strategy for Vinigroup: that India, with its booming consumer market and rising EV appetite, is too big a stage to sit out.
