Fierce battle for market share between coffee chains in Vietnam
Vietnam's food and beverage (F&B) industry finally got back on its feet last year following the Covid-19 pandemic, and large coffee chains such as Highlands Coffee, Phuc Long and Katinat have been working tirelessly ever since to capture market share.
A recent report by iPOS.vn on the 2023 F&B market showed that there were 317,299 coffee and tea shops in Vietnam, an annual increase of 1.26%.
This increase was lower than predicted at the start of the year because many chains had closed stores and downsized.
Although the overall number of stores did not increase by much, revenues still raced into double digits, up 11.6%, reaching VND590 trillion ($24.1 billion).
Highlands Coffee retained the number one spot, with 777 stores operating in provinces and cities nationwide, according to its website.
This marked an increase of more than 170 stores compared to 2022, while the company was also operating more than 50 outlets in the Philippines.
Highlands has a policy of expanding in existing territory, rather than developing a diverse menu like its competitors.
The company also invested down the chain, spending VND500 billion ($19.64 milion) on a coffee roasting factory in Ba Ria-Vung Tau province with a capacity of nearly 10,000 tons per year in the first phase, which could increase by 75,000 tonnes.
Phuc Long also had a busy year, opening around 25 flagship stores in the last six months of 2023, aiming to make the brand the second-largest beverage chain in Vietnam.
By May 15, Phuc Long had 157 stores and about 45 integrated kiosks in Winmart+ stores.
Trung Nguyen of 'coffee king' Dang Le Nguyen Vu had a different business approach, although it had almost as many stores as Highlands. Last year, it had about 700 stores, including 108 Trung Nguyen Legend stores, 548 E-Coffee stores, and other outlets overseas.
Overseas expansion is a key part of Trung Nguyen Legend's business strategy.
VTC News online newspaper quoted Trung Nguyen as saying that the business was planning to develop 1,000 Trung Nguyen Legend coffee spaces in China and about 100 stores in the U.S.
The most unexpected newcomer was Katinat Saigon Cafe, which opened new stores in prime locations in the centre of Ho Chi Minh City and Hanoi.
Katinat remains a small coffee chain and at the end of 2021, it had just 10 stores in HCMC, but over the past year it has been accelerating fast. The pace of new store openings is only just behind that of Highlands Coffee and Phuc Long.
The Coffee House also surprised the market, but in the opposite direction.
At the end of 2022 it had 155 coffee shops, while today it has only 133.
As for Starbucks, it currently has 108 stores after entering the Vietnamese market 11 years ago, seemingly taking a slow and steady approach to expansion.
- Read More
Mega Long Thanh airport first phase should be completed in Sept 2026: senior parliament official
Relevant agencies should prepare to complete the first phase of the $14-billion Long Thanh International Airport project on September 2, 2026, as soon as the Vietnamese National Assembly approves changes to the project, said a senior parliament member.
Infrastructure - Mon, November 4, 2024 | 12:44 pm GMT+7
Fed rate cuts, upgrading efforts to lure foreign investors back into Vietnam stock market: VinaCapital
The U.S. Fed’s rate cut cycle and the Vietnamese government’s fresh efforts to upgrade the local stock market status are likely to bring foreign investors back into the stock market next year, according to VinaCapital.
Finance - Mon, November 4, 2024 | 11:42 am GMT+7
Foxconn’s subsidiary Shunsin to invest $80 mln in northern Vietnam to produce integrated circuits
Shunsin Technology (Bac Giang, Vietnam) Limited, a subsidiary of Taiwanese giant Foxconn, will invest $80 million in Vietnam’s northern province of Bac Giang to produce integrated circuits (IC).
Industries - Mon, November 4, 2024 | 10:44 am GMT+7
Q3 earnings of Vietnam’s listed firms up 21.6%: FiinGroup
Net profits of listed companies in Vietnam increased 21.6% year-on-year in the third quarter of this year, maintaining a stable growth rate since the start of this year, according to local financial data provider FiinGroup.
Finance - Mon, November 4, 2024 | 9:31 am GMT+7
Thailand SCG’s revenue in Vietnam up 15% to $1.1 bln in Jan-Sept
Thailand’s Siam Cement Group (SCG) recorded a revenue of THB36.71 billion ($1.08 billion) in Vietnam in the first nine months of this year, up 14.7% year-on-year.
Companies - Mon, November 4, 2024 | 8:00 am GMT+7
Nghiem Xuan Thanh appointed Party chief of Khanh Hoa province
Nghiem Xuan Thanh, Party chief of Hau Giang province, was appointed by the Politburo, the country’s supreme decision-making body, to be Khanh Hoa province’s Party chief for the 2020-2025 term.
Politics - Sun, November 3, 2024 | 7:45 pm GMT+7
Thailand seeks FTA negotiations with Eurasian Economic Union
Thailand is holding talks with Russia to expedite negotiations for a free trade agreement (FTA) with the Eurasian Economic Union (EAEU).
Southeast Asia - Sun, November 3, 2024 | 7:20 pm GMT+7
Indonesia attracts foreign investment in technology sector
As many as 19 Australian companies have expressed an interest in investing in Indonesia's technology sector, Communication and Digital Affairs Minister Meutya Hafid said on Thursday.
Southeast Asia - Sun, November 3, 2024 | 7:18 pm GMT+7
Robots work hard, don’t argue: Viettel exec counsels effective use of technology
Small businesses in logistics should look to use existing tools, software and technology solutions effectively, says Dinh Thanh Son, deputy CEO of Viettel Post.
Companies - Sun, November 3, 2024 | 4:30 pm GMT+7
Vietnamese multi-sector group Masan uses AI to forecast product sales: executive
AI has helped Masan Group forecast the number of items likely to be sold during peak season based on available data and to optimize product placement, says An Luong, head of the corporation’s artificial intelligence & data science division.
Companies - Sun, November 3, 2024 | 2:51 pm GMT+7
Vietnam needs large, specialized logistics centers to compete better: official
Vietnam needs large-scale, specialized logistics centers that will enable greater competitiveness of local economies and enterprises, says Tran Thanh Hai, deputy head of the Ministry of Industry and Trade's agency of foreign trade.
Economy - Sun, November 3, 2024 | 11:00 am GMT+7
Vietnam manufacturing sector sees 35% increase in Q3 job orders: Adecco
Vietnam’s manufacturing and sourcing sectors saw a substantial 35% year-on-year increase and a 52% quarter-on-quarter increase in Q3/2024 job orders, global workforce solutions provider Adecco said in a reseach report released Thursday.
Economy - Sun, November 3, 2024 | 9:00 am GMT+7
Construction majors to continue capitalizing on public investment projects
Vietnamese construction giants are expected to continue capitalizing on public investment projects for the remainder of this year after delivering strong performances in the third quarter, analysts say.
Companies - Sun, November 3, 2024 | 8:00 am GMT+7
Former Government Office chairman receives $7,900 bribe from property project
Mai Tien Dung, former Minister-Government Office Chairman, received a bribe worth VND200 million ($7,900) from Nguyen Cao Tri, owner of the Dai Ninh eco-resort and urban area project in Lam Dong province.
Society - Sat, November 2, 2024 | 9:13 pm GMT+7
Thai food giant CP enters public-private partnership to promote food system transformation
Thai-invested C.P. Vietnam Livestock JSC and the Partnership for Sustainable Agriculture Vietnam (PSAV) signed a memorandum of understanding Friday on working together to advance sustainable agriculture in the country.
Companies - Sat, November 2, 2024 | 7:16 pm GMT+7
Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year
Vietnam’s central province of Quang Ngai will work with the investor to have construction of VSIP II Quang Ngai, a facility based on the Vietnam-Singapore Industrial Park (VSIP) model, begin in August 2025.
Industrial real estate - Sat, November 2, 2024 | 3:47 pm GMT+7