Thai Cafe Amazon expands business in Vietnam
Thai giant calls Vietnam a bright spot for investment amid the global Covid-19 pandemic.
Thai coffee chain Cafe Amazon announced its plan to open more stores nationwide in the coming time, especially in Ho Chi Minh City and neighboring provinces which are favorite locations for launching new outlets this year.
| Cafe Amazon will open new stores in Ho Chi Minh City and neighbouring provinces this year. Photo: Cafe Amazon Vietnam |
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Cafe Amazon in Vietnam, established in 2019 by PTT Oil and Retail Business (PTTOR), is a subsidiary of Thai energy giant PTT and Central Plaza Hotel (Centel). It has an investment of US$3.5 million.
The brand will open more stores in the form of franchise.
The brand has already opened three stores at Go! shopping mall in the southern provinces of Ben Tre, Tra Vinh and Tien Giang and one in Ho Chi Minh City.
The investors of the coffee chain saw that Vietnam has a high economic growth with government policies favoring businesses.
“The coffee market in Vietnam is highly competitive with the presence of local and international brands thanks to high demand of Vietnamese consumers,” a representative from the Thai coffee chain told Hanoitimes.
The expansion in Vietnam is part of the investors’ plan for fostering investment in overseas markets. Vietnam is the 11th largest market of the brand owning more than 3,000 outlets across Asia.
| Source: Statista. Chart: Phi Nhat |
Revenue of coffee and tea retailers in Vietnam is estimated at US$1 billion in 2020, according to a recent report.
Local insiders has commented that the success of a chain model mainly comes from location, which accounts for the majority of operating costs. Large outlets come at a high cost and is why many foreign brands have had to withdraw from Vietnam.
“It is a challenge for the newcomer like Cafe Amazon Vietnam to take its position in the market,” said an anomyous insider told Hanoitimes.
