Vingroup signs MoU with Telangana for $3 billion, plans smart cities, EV taxis, solar power

Vingroup, Vietnam’s largest private conglomerate, on Tuesday announced that it has signed a memorandum of understanding (MoU) with the Telangana government for a proposed investment of $3 billion to develop a multi-sector ecosystem in the southern Indian state.

The agreement was signed at the Telangana Rising Global Summit, and the investment will be implemented in phases. The MoU strengthens economic ties between India and Vietnam and expands Vingroup’s footprint in India, where Vinfast already operates a manufacturing facility in Tamil Nadu and last week announced a $500 million expansion of that plant.

Under the MoU, Vingroup and the Government of Telangana will explore strategic opportunities in smart urban development, electric mobility, healthcare, education, tourism, renewable energy and charging infrastructure over approximately 2,500 hectares.

The projects also include the introduction of electric taxi services with the stated objective of supporting the long-term socio-economic development of Telangana.

According to a Reuters report, the proposed investment is Vingroup’s largest potential project outside Vietnam, surpassing the $2 billion VinFast electric vehicle plant currently under construction in North Carolina, United States. The statement did not give details on the investment disbursement timeline.

Telangana Chief Minister Revanth Reddy said, “The $3 billion investment by Vingroup is a huge vote of confidence in the ‘Telangana Rising’ vision… This is more than capital; it is a partnership to build a futuristic, net-zero city and introduce India’s first large-scale electric taxi fleet.”

A central component of the plan is the development of Vinhomes Smart City on a 1,080 hectare site, which is designed to accommodate approximately 200,000 residents. The project is expected to create around 10,000 jobs and will include a mix of low-rise and high-rise buildings under sustainable urban planning principles.

In electric mobility, Vingroup through its partner GSM plans to deploy India’s first large-scale electric taxi fleet using Vinfast vehicles. The group may also explore electric vehicle manufacturing opportunities in the future.

“Vingroup sees tremendous potential in Telangana and we look forward to building a long-term partnership with the state government,” said Pham Sanh Chau, CEO of Vingroup Asia and Vinfast Asia.

The MOU also includes social infrastructure projects on approximately 70 hectares, including Vinschool integrated K-12 school, Vinmake multi-specialty hospital and V-green electric vehicle charging network. In tourism and entertainment, Vingroup’s Vinwonders unit is planning a theme park, zoo and safari complex spread over about 350 hectares.

In renewable energy, VinEnergo, a subsidiary of VinGroup, proposes to invest in a 500 MW solar farm on approximately 500 hectares to supply green power to urban areas, industrial areas and the electrified mobility ecosystem. Vingroup also proposes participation in the development of strategic connectivity infrastructure to support regional connectivity and urban expansion.

Under the agreement, the Telangana government will support identification and allocation of land, coordinate master planning and project structuring, assist in administrative clearances and mobilize relevant agencies to develop connecting infrastructure.

For the first nine months of 2025, Vingroup reported a net profit of 7.565 trillion dong ($287.42 million), nearly doubling year-on-year, while total debt as of September 2025 stood at $12.35 billion. Vinfast continues to report operating losses amid its global expansion.