Thailand's Centel exits Cafe Amazon joint venture in Vietnam on fierce competition

Thailand’s Central Plaza Hotel Public Company Limited (Centel) is withdrawing from its joint venture operating the Cafe Amazon chain in Vietnam, signaling a strategic shift in response to the country’s increasingly crowded coffee market, according to a filing with the Stock Exchange of Thailand.

The move involves dissolving ORC Coffee Passion Group Joint Stock Company (ORCG), the entity operating Cafe Amazon in Vietnam.

ORCG was formed between Central Restaurants Group (Vietnam) - an indirect Centel subsidiary holding a 40% stake - and PTTOR International Holdings (Singapore), a unit of PTT Oil and Retail Business (PTTOR) listed in Thailand, which owned the remaining 60%.

Centel said in its filing that the withdrawal aims to “realign business priorities” and adapt to market challenges. As of August 31, Centel’s investment in ORCG was valued at THB56 million baht ($1.72 million).

This move ends Centel’s role in Cafe Amazon’s expansion in Vietnam, which began in 2020 with ambitions to become a leading global coffee brand. However, rising competition from international and local chains proved too tough.

Café Amazon, one of Thailand’s largest coffee chains under PTTOR, entered Vietnam in late 2020, with ambitions for nationwide growth. Before scaling back, the chain operated roughly a dozen stores in southern Vietnam, primarily in Ho Chi Minh City.

The retreat highlights the fierce competition in Vietnam’s coffee market, long dominated by local giants such as Highlands Coffee, Phuc Long, and The Coffee House, alongside international players including Starbucks.