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

Vietnam’s largest private conglomerate, Vingroup, on Tuesday, announced that it has signed a Memorandum of Understanding (MoU) with the Government of Telangana 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 Telangana government will explore strategic opportunities across 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 Telangana’s long-term socio-economic development.

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

Telangana Chief Minister Revanth Reddy said, “The $3 billion investment by Vingroup is a massive vote of confidence in the ‘Telangana Rising’ vision… This is more than capital; it’s 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 a Vinhomes Smart City on a 1,080-hectare site, designed to accommodate around 200,000 residents. The project is expected to generate about 10,000 jobs and will include a mix of low-rise and high-rise developments built under sustainable urban planning principles.

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

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

The MoU also covers social infrastructure projects on about 70 hectares, including Vinschool integrated K-12 schools, Vinmec multi-speciality hospitals and the V-Green electric vehicle charging network. In tourism and entertainment, Vingroup’s VinWonders unit plans a theme park, zoo and safari complex spanning around 350 hectares.

In renewable energy, VinEnergo, a Vingroup subsidiary, proposes to invest in a 500 MW solar farm over roughly 500 hectares to supply green electricity for urban areas, industrial zones and the electrified mobility ecosystem. Vingroup has also proposed participation in the development of strategic connectivity infrastructure to support regional linkages and urban expansion.

Under the agreement, the Telangana government will support land identification and allocation, coordinate master planning and project structuring, assist with administrative approvals and mobilise 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 double year-on-year, while total debt stood at $12.35 billion as of September 2025. VinFast continues to report operating losses amid its global expansion.