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Vingroup, Vietnam's largest conglomerate, has moved forward with a plan to invest USD 3 billion in Telangana to build a multi-sector ecosystem spanning smart urban development, electric mobility, healthcare, education, tourism and renewable energy. The agreement with the state government covers around 2,500 hectares and represents the group's largest potential investment outside Vietnam. The development strengthens Vingroup's growing presence in India, where VinFast already operates a facility in Tamil Nadu and recently announced an additional USD500 million expansion. While Vingroup continues to grow internationally, its rising debt and VinFast's widening losses remain key financial pressures.
Vingroup, Vietnam's largest conglomerate, signed a memorandum of understanding with the Telangana government earlier this week for a proposed USD 3 billion investment to develop a wide-ranging multi-sector ecosystem in the state. The plan covers nearly 2,500 hectares and includes smart urban projects, electric mobility initiatives, healthcare, education, tourism and renewable energy. Telangana has committed support in land allocation, quicker approvals and coordinated planning. Advertisement
Sanjay Kumar, Special Chief Secretary to the Telangana government, conveyed that the administration aimed to position Telangana as an entry point for investment from Vietnam and Southeast Asia into India. The proposed USD3 billion ecosystem would become Vingroup's largest overseas investment, surpassing the ongoing USD2 billion VinFast plant being built in North Carolina.
The announcement builds on the group's increasing activity in India. VinFast already operates a manufacturing facility in Tamil Nadu, and the company recently confirmed a USD500 million expansion to accelerate its plans for India's rapidly growing EV market. Additional details on the disbursement or rollout timeline were not included in the statement.
For the first nine months of 2025, Vingroup reported a net profit of 7.565 trillion dong (approximately USD 287.42 million), almost double the earnings from the same period a year earlier. However, the company also reported total debt of USD12.35 billion as of September, with about half linked to bank loans and syndicated credit facilities. VinFast continues to face widening losses despite its global expansion efforts.
The Telangana initiative will include a 1,080-hectare smart city, a 350-hectare theme park and a 500 MW solar farm to support renewable energy needs. These plans add to existing ventures such as the large-scale electric taxi fleets operated by VinFast affiliate GSM. Pham Sanh Chau, CEO of Vingroup Asia and VinFast Asia, expressed confidence in Telangana's potential and highlighted the partnership's emphasis on sustainable development.
Telangana, home to nearly 38.5 million people, has become a significant investment and technology hub in southern India. The agreement reflects Vingroup's broader strategy to grow its India footprint at a time when automakers worldwide are competing for share in the country's expanding EV market.
Source Reuters
5th Jun, 2025
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