VNExpress-June 30

Vietnamese coffee chains are moving to establish themselves in foreign markets as part of expansion plans as well as a strategy to deal with increased domestic competition. Tea and coffee chain Phuc Long has just announced plans to open its first store in California in July. TNI King Coffee last month launched its first store in the U.S. It has already opened its first outlet in South Korea with a partner. Highlands Coffee, one of the biggest Vietnamese coffee chains, has started branching out to other markets since 2011. It now has 39 franchised outlets in the Philippines. Cong Ca Phe has six outlets in South Korea and two in Malaysia, while E-Coffee opened its first store in Laos last year. The branching out decisions of these brands have happened in the wake of heavy competition in Vietnam’s café chain industry. In 2019, Highlands Coffee saw its revenue rise 32 percent year-on-year to VND2.2 trillion ($95 million), after having risen at roughly the same rate in 2018.

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