Vingroup Vietnam signss pact with Maharashtra India to explore $6.5 billion in investments

Vingroup, Vietnam's biggest conglomerate, signed on Friday a memorandum?of?understanding? with India's Maharashtra state government. The two parties agreed to explore $6.5 billion in investments that would help build a'multi-sector eco-system' in the financial capital.

Vingroup will now have a stronger presence in India. Its electric vehicle unit VinFast has a manufacturing plant in Tamil Nadu and plans to create a $3 billion eco-system in Telangana.

Vingroup will invest in a variety of sectors, including urban development, electric mobility and renewable energy, as well as public infrastructure, under the agreement.

The company plans to invest $1.5 billion in 60,000 electric taxis for urban development.

Vingroup didn't provide any details about the investment disbursement schedule, but said that it is expected to create up to tens thousands of jobs in the next three to five years.

Maharashtra, India's biggest state economy, accounts for 14% of India's GDP. Mahindra & Mahindra, Tata Motors and other major domestic EV manufacturers have strong manufacturing presences in Maharashtra.

Vingroup has operations in industrials, green energy and real estate. The company is focusing on expanding into overseas markets with India as a strategic priority.

(source: Reuters)