Vietnam's Vingroup Eyes Global Expansion Amid Domestic Slowdown

HANOI, Vietnam – Vietnam's largest privately held company, Vingroup, is embarking on an ambitious global expansion, planning nearly two dozen projects across at least 15 countries. This international push comes as its domestic real estate market cools and its electric vehicle (EV) arm, VinFast, faces financial challenges.

Vingroup’s strategy hinges on leveraging international markets to generate the capital needed for its long-term investments in emerging industries such as electric vehicles, artificial intelligence, and robotics, which are central to Vietnam’s aspirations of becoming a major Asian economy.

International Projects Underway

In Uzbekistan, Vingroup has agreed to construct a "Vietnam Town" in the capital, Tashkent. This development is envisioned to mirror Vingroup's successful integrated projects in Vietnam, featuring residential areas, commercial centers, educational institutions, healthcare facilities, and EV charging infrastructure. The Central Asian nation has been actively seeking foreign investment and encouraging private enterprise since 2017, and is looking to diversify trade relationships beyond Russia.

Elsewhere, Vingroup's global ventures include tourism projects like a zoo in India and smart city initiatives in Africa. The company is also exploring plans to develop motors and moving parts for robots in Germany.

In India, Vingroup's investments are substantial, with its EV factory in Tamil Nadu leading the charge. The company has launched an EV taxi service in New Delhi and has agreements with state governments to develop smart cities, hospitals, schools, theme parks, and zoos. Bilateral trade between India and Vietnam has seen significant growth, tripling to a record $16.4 billion in 2025.

In Africa, Vingroup has entered into an agreement with the Democratic Republic of Congo to develop a large-scale riverfront city near Kinshasa. Vinfast also plans to supply the DRC with electric vehicles and buses as the country aims to transition its vehicle fleet away from fossil fuels. Vingroup and Ghana's Jospong Group are already distributing Vinfast vehicles across West Africa, capitalizing on Ghana's EV tax incentives and sizable market.

Domestic Challenges and Strategic Shift

Vingroup's move overseas is partly a response to a slowdown in its core real estate business. Profitability from its property development arm, Vinhomes, has decelerated. While construction has boomed in Vietnam, a lack of affordable housing and an oversupply of high-end units have led to many apartments remaining vacant, according to industry analysts.

In response to these domestic market shifts, Vinhomes announced in June that it would cease expanding its domestic land bank and instead concentrate on developing existing projects within Vietnam.

VinFast, Vingroup's EV manufacturer, posted a net loss of $3.87 billion in 2025, despite delivering a record 196,919 vehicles. The company incurred significant costs for its production, and its delayed North Carolina factory faced a $236 million write-down. Initially aiming for the U.S. market, weak sales prompted VinFast to redirect its focus toward emerging markets in Asia.

Vingroup's founder, Pham Nhat Vuong, built the conglomerate's success by creating integrated communities in Vietnam, offering a range of services and goods. The company appears to be betting that this replicable model can achieve similar success in other developing economies.

However, replicating this success internationally may present hurdles. Experts note that while some African markets, like the DRC, offer large populations, the limited widespread smartphone use and inadequate income levels in many regions may hinder the adoption of ride-hailing services, a component of Vingroup's integrated urban development plans. Large-scale projects in some African nations have also historically faced challenges in materializing beyond initial agreements.