HANOI (Reuters): Vietnam's largest conglomerate Vingroup on Tuesday 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 $3 billion plan marks Vingroup's biggest potential investment outside Vietnam, surpassing a $2 billion VinFast factory under construction in North Carolina, United States.
The move extends Vingroup's presence in India, where its electric vehicle arm, VinFast, has a manufacturing facility in Tamil Nadu.
Last week, VinFast announced a $500 million expansion of the Tamil Nadu plant as it ramps up plans to tap India's fast-growing EV market.
The statement did not provide details on 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.
However, the expansion has contributed to a rise in debt, which totaled $12.35 billion as of September 2025, with approximately half tied to bank loans and syndicated credit facilities.
VinFast, despite its ongoing global expansion, continues to report widening losses.
In addition to VinFast's existing operations, including its affiliate GSM's deployment of large-scale electric taxi fleets, the projects in Telangana will feature a 1,080-hectare smart city, a 350-hectare theme park, and a 500 MW solar farm to power sustainable initiatives.
"We see tremendous potential in Telangana," Pham Sanh Chau, CEO of Vingroup Asia and VinFast Asia, said in the statement, emphasizing the partnership's focus on sustainable development.
Telangana, with a population of about 38.5 million, has rapidly emerged as a key investment and technology hub in southern India. The agreement highlights Vingroup's strategic focus on India as automakers worldwide compete to capture market share in the booming EV sector.
(Reporting by Phuong Nguyen; Editing by Martin Petty and Saad Sayeed) - Reuters
