Vietnam's Vingroup Looks Abroad as Home Market Slows

Vietnam's largest conglomerate, Vingroup, is expanding its presence into global markets through nearly two dozen projects in at least 15 countries. This international push comes as the company's domestic business slows, particularly its flagship real estate division, which has long funded its diversification into automaking and technology.

Opportunities for large-scale developments in Vietnam have become more challenging as the country's property market cools. Vingroup's electric vehicle company, VinFast, is also experiencing financial losses. To secure the necessary capital for its ambitions in electric vehicles, artificial intelligence, and robotics – industries crucial for Vietnam's goal of becoming a leading Asian economy – Vingroup is now seeking revenue streams overseas.

International Projects

In Uzbekistan, Vingroup has agreements to build a "Vietnam Town" in the capital, Tashkent, a development that will combine residential areas, commercial centers, schools, hospitals, and EV charging stations. This project is modeled after Vingroup's successful integrated developments in Vietnam.

Other international ventures include tourism initiatives such as a zoo in India and smart-city projects across Africa. The company also plans to develop motors and moving parts for robots in Germany.

Vingroup's electric vehicle arm, VinFast, is establishing an EV factory in Indonesia and is already operating an EV taxi service in the Philippines. In India, VinFast's factory in Tamil Nadu is central to its investments, which also include smart city developments, hospitals, schools, theme parks, and zoos in partnership with state governments. The company also launched an electric taxi service in New Delhi.

In Africa, Vingroup has an agreement with the Democratic Republic of Congo to develop a large riverfront city near Kinshasa. VinFast also intends to supply electric vehicles and buses to the DRC as the country aims to replace its fossil-fueled vehicles with EVs. Additionally, Vingroup and Ghana's Jospong Group are distributing VinFast vehicles, including cars, scooters, bikes, and buses, across West Africa. This move into Ghana is seen as strategic due to the country's EV tax incentives and its sizable car market.

Domestic Market Challenges

The pressure on Vingroup stems partly from a slowdown in profits from Vinhomes, its real estate arm. Home prices in Vietnam's major cities have surged, with new developments predominantly catering to affluent buyers, leading to a shortage of affordable housing. While construction has expanded outside major urban centers, demand has not kept pace, resulting in a surplus of unoccupied apartments.

VinFast reported a net loss of $3.87 billion in 2025. Despite delivering a record 196,919 vehicles, more than double the previous year, the company incurred costs of $5.13 billion. The automaker also recorded a $236 million write-down for its delayed North Carolina factory. Initially aiming to compete with global automakers in the U.S. market after its Nasdaq listing in 2023, weak sales led VinFast to shift its focus to emerging markets in Asia.

Vingroup's strategy appears to be based on replicating its successful real estate development model, which integrates housing with essential services and goods like electric vehicles, in other developing economies. The conglomerate's founder, Pham Nhat Vuong, began his career by producing instant noodles in Ukraine before developing large housing projects in Vietnam and subsequently adding services such as hospitals and shopping malls.

However, replicating this success abroad may present challenges. In regions like the Democratic Republic of Congo, which has a large population, factors such as limited smartphone penetration and inadequate income levels may hinder the adoption of services like ride-hailing, despite the market's size. Furthermore, large-scale megaprojects in the DRC have historically seen many signed agreements fail to materialize.