return icon

For every three coffee chains that join the market, two leave

Entering the food and beverage sector in 2012 and opening a series of cafes, Phuc Long once caught the special attention when stating that it would compete with Starbucks, which set foot in Vietnam in 2013.

And it once again drew the public’s attention in mid-2019 when it gave back the retail premises at the Phu Dong roundabout to the landlord and shut down another shop in HCM City.




Not only Phuc Long, but many other coffee brands have had to scale down their business. Gloria Jean’s Coffee, New York Dessert Coffee and Coffee Bar left the market. South Korean Bene, which made a noisy debut in Vietnam, had to leave also.

Other coffee chains such as Highlands Coffee, The Coffee House, Starbucks, Trung Nguyen and Cong Ca Phe still exist. The Coffee Bean & Tea Leaf has closed some shops, but still has several that are open. 

Entering the food and beverage sector in 2012 and opening a series of cafes, Phuc Long once caught the special attention when stating that it would compete with Starbucks, which set foot in Vietnam in 2013.

Highlands Coffee has just opened its 300th shop. Starbucks has 49 shops after six years of presence in Vietnam. The Coffee House, with 145 shops, is marching towards the central and northern regions. Meanwhile, Trung Nguyen had 66 Trung Nguyen Legend shops and 36 E-Coffee shops by June 2019.

According to Virac, a market analysis firm, the revenue of Highlands Coffee increased by 31 percent in 2018 and the chain is No 1 in the market with the revenue of VND1.6 trillion.

The second position in 2018 belonged to The Coffee House with revenue of VND669 billion. Starbucks fell to the third position with revenue of VND600 billion. Meanwhile, Phuc Long, despite the great efforts to compete with Starbucks, was inthe fourth position with VND473 billion. Trung Nguyen, after a lot of changes in business strategy, had turnover of VND350 billion.

The competition in the market is getting fierce. To stand firmly in the No 1 position, Highlands Coffee accepted to take a loss for a long time and only began making a profit in 2017 with VND132 billion. The profit reduced slightly in 2018 with VND129 billion.

One of the biggest problems coffee chains face is the high rent.

According to Savills, the retail premises rent on Nguyen Hue, Ngo Duc Ke and Phan Xich Long streets are between $6,000 and $20,000 a month. The rent keeps increasing because the brands with powerful financial capability are willing to spend big money to obtain advantageous sites. 

Mai Lan


Coffee chains move to streets to sell their products

Coffee chains move to streets to sell their products

Highlands Coffee, Vinacafe and Passio all have been selling coffee in vending machines and at new coffee stalls in places with heavy traffic.

Low coffee prices upset farmers in spite of bumper crop

Low coffee prices upset farmers in spite of bumper crop

At this time, coffee farmers in Binh Phuoc, Dong Nai and Dak Nong provinces are entering harvest season. 


Vietnam weighs electricity price hikes in 2023

Vietnam is considering hiking electricity tariffs this year as the last adjustment took place almost four years ago while input costs of power generation have soared since.

Biggest spring blood donation event to kick off on February 6

The Xuan hong (red spring) festival – the biggest annual blood donation campaign of the season – will begin on February 6, expecting 6,000 units of the vitality liquid.

Vietnam-Asia trade reaches nearly 475.3 billion USD in 2022

Vietnam’s merchandise trade with Asia reached 475.29 billion USD in 2022, increasing by 9.6% compared to 2021 and accounting for the highest proportion (65.1%) in the country's total import-export value.

Revised Law on Medical Examination and Treatment promulgated

The Presidential Office on February 3 announced the Acting President’s order to promulgate the Law on Medical Examination and Treatment that was adopted by the 15th National Assembly at its second extraordinary session.

Volatile real estate market puts pressure on business results

Volatile real estate market caused revenue and profit of realty businesses to decrease sharply in the fourth quarter of 2022.


CNTraveler picks Con Dao one of best island vacations globally

Six businesses lose fuel distribution licenses

The Ministry of Industry and Trade has revoked the fuel distribution licenses from six local businesses, with effect on February 27.

ChatGPT and AI booms in Vietnam

AI and ChatGPT technologies are forecasted to explode, creating a new wave of technology this year.

Fruit exports to China increase sharply

The recovery of exports to China will contribute to boosting Vietnam's fruit and vegetable industry in 2023.

Former chairs, vice chairs of Thai Nguyen disciplined

Prime Minister Pham Minh Chinh has taken disciplinary measures against two former chairmen, two former vice chairmen and one vice chairman of the People’s Committee of Thai Nguyen Province.

Hotel in Da Lat fined for discriminating against foreign tourists

The People's Committee of Da Lat City in the Central Highlands province of Lam Dong on Wednesday fined Nguyen Thi Kim Thoa, director of Dream Flower Hotel Ltd. Co, for discriminating against tourists.

State Treasury to auction VND400 trillion G-bonds this year

The Vietnam State Treasury (VST) has announced a plan to auction VND400 trillion worth of government bonds on the Hanoi Stock Exchange this year.

Ministry proposes adjusting fuel prices every Thursday

According to MoIT, shorter price cycles are better at keeping domestic prices closer to the global oil prices, even during holidays (except Tet) to minimise the risk of market disruptions.

Indian journalist impressed by Ha Long Bay cruise

Aatreyee Mohanta, an Indian journalist of Telegraph India, enjoyed plenty of quintessential experiences in Vietnam as she travelled on the Aspira Cruise around Vietnam’s Ha Long Bay,


Heavyweight shares help stop market from a fall