Vingroup signs MoU with Telangana for proposed USD 3 billion multi-sector investment

December 9, 2025 Electric cars 5 min read

Vingroup has signed a Memorandum of Understanding (MoU) with the Government of Telangana at the Telangana Rising Global Summit for a proposed investment of USD 3 billion. The investment is planned to be implemented in phases to develop a multi-sector ecosystem in the state.

Under the MoU, both parties will collaborate to explore opportunities in sectors including smart urban development, electric mobility, healthcare, education, tourism, renewable energy, charging infrastructure across approximately 2,500 hectares in Telangana, and electric taxi services. The collaboration aims to support Telangana’s development and growth objectives.

In electric mobility, Vingroup proposes to introduce a large-scale electric taxi fleet and mobility-as-a-service platform using VinFast vehicles through GSM in Telangana. The group may also explore potential opportunities related to EV manufacturing at a later stage.

For urban development, Vingroup proposes the development of the Vinhomes Smart City project designed to accommodate approximately 200,000 residents on a 1,080-hectare site. The project is expected to create around 10,000 jobs and include a mix of low-rise and high-rise buildings and integrated amenities.

Vingroup proposes to develop Social infrastructure facilities across approximately 70 hectares, including the Vinschool K-12 education system, Vinmec hospitals, and the V-Green EV charging network.

Through VinWonders, Vingroup proposes to develop an integrated tourism and entertainment complex, including a theme park, zoo, and safari, across approximately 350 hectares.

In renewable energy, Vingroup through VinEnergo proposes to invest in a 500 MW solar farm across approximately 500 hectares to support energy requirements for urban areas, industrial zones, and the electric mobility ecosystem.

In addition to these initiatives, Vingroup is also exploring participation in strategic infrastructure projects intended to improve regional connectivity.

The Government of Telangana has committed to supporting land identification and allocation, master planning and project structuring, facilitation of approvals, and development of associated infrastructure. The government will also assess applicable incentives under current policies and coordinate through project implementation stages.

A. Revanth Reddy, Chief Minister, Telangana said, “The USD 3 billion investment by Vingroup is a massive vote of confidence in the ‘Telangana Rising’ vision, particularly our focus on sustainable urban development and green infrastructure. 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, directly improving the quality of life for our citizens. Our government guarantees accelerated execution to ensure this global vision becomes a local reality.”

D. Sridhar Babu, Industries Minister, Telangana, stated that the proposed investment spans multiple sectors including smart cities, solar power, and social infrastructure, and is expected to create economic opportunities in the state.

Sanjay Kumar, IAS, Special Chief Secretary, Telangana, said the state welcomes Vingroup’s entry and expects the cooperation to support sustainable urban development.

Mr. Pham Sanh Chau, CEO of Vingroup Asia and VinFast Asia, stated: “Vingroup sees tremendous potential in Telangana and we aspire to build a long-term partnership with the state government. With our proven track record in delivering mega urban developments, large-scale infrastructure and a comprehensive electric mobility ecosystem, we believe that our collaboration with Telangana will generate tangible value, promote sustainable development and enhance the quality of life for local residents.”

Separately, on December 4, 2025, VinFast signed a MoU with the Government of Tamil Nadu to expand its existing facility in Thoothukudi (SIPCOT Industrial Park), allocating approximately 200 hectares (about 500 acres) of additional land adjacent to the current plant. VinFast entered the Indian market with the inauguration of its EV facility in Thoothukudi under a planned investment commitment of up to USD 2 billion. As the second phase of this commitment, the company will invest USD 500 million in the facility to expand manufacturing capabilities and increase annual production volume.

Under this expansion plan:

VinFast will invest USD 500 million to add production lines for electric buses and e-scooters (electric two-wheelers), covering manufacturing, assembly, testing and related operations.

The expanded facility is expected to scale up its annual production capacity from 50,000 electric vehicles to 150,000 units.

The Tamil Nadu government will provide support through land allocation, necessary infrastructure (electricity, water, roads, drainage, waste management) and applicable incentives under state policy.