JAKARTA - Vietnam's top conglomerate, Vingroup, inked a deal Tuesday, December 9, with India's Telangana state for a $3 billion plan. 

A key project is Vinhomes Smart City, a residential area for 200,000 people on 1,080 hectares with low-rise and high-rise buildings. It is set to create 10,000 jobs. Vingroup also plans India's first large-scale electric taxi fleet using VinFast vehicles, plus schools under Vinschool, hospitals via Vinmec, and EV charging stations on 70 hectares.

State leaders pledged fast land deals and paperwork to speed things up. They want Telangana to link Vietnam and Southeast Asia businesses to India's hot economy.

Vingroup's VinFast already runs an EV plant in nearby Tamil Nadu and just added $500 million more to grab a slice of India's electric car boom.​

Details show a 1,080-hectare neighborhood area, 350 hectares for a fun park, and a 500-megawatt solar setup for clean power. 

Vingroup's Asia boss Pham Sanh Chau said the spot has huge upside for green projects. The firm earned $287 million profit in early 2025, double last year, but owes $12 billion, half in bank loans. Its VinFast cars lose cash even with taxi fleets rolling out worldwide.

India and Vietnam’s trade has grown fast, reaching about USD 15–16 billion in 2024–2025, with Vietnam selling more to India than it buys. 

India has around USD 2 billion in investments in Vietnam, mostly in energy, minerals, food processing, and IT, while Vietnam has invested modestly in India, excluding the major EV plant project by VinFast.