16:45 24/04/2023

% Arabica to offer a new coffee experience in Vietnam

Linh Tong

Mr. Vynce Nguyen, General Director of The Kho Group, the franchise investor of famous Japanese coffee chain % Arabica in Vietnam, tells VET about its business plan in the Vietnamese market.

Why did % Arabica choose Vietnam as its next destination?

Vietnam is one of the largest coffee drinking populations in the world. The founder, back in 2019, came to Vietnam and fell in love with its history and culture. Vietnam was always in mind when % Arabica was expanding across Asia. We also wanted to expand our global presence. Vietnam is a significant coffee producer and consumer, making it a strategic market for % Arabica to expand its global presence. By establishing a presence in Vietnam, % Arabica could increase its brand recognition and customer base.

How would you assess Vietnam’s coffee chain market?

Vietnam is the world’s second-largest coffee producer, and coffee is an essential element of Vietnamese culture. The coffee chain market has experienced significant growth in recent years, reflecting the country’s love of the coffee culture and the rise of middle-class consumers, with coffee shops becoming increasingly common in cities and towns throughout the country. Vietnam’s coffee chain market is very competitive, with local brands as well as international chains competing for customers. It’s fierce but there’s always room for new chains as long as there is a uniqueness to the brand and strong brand following.

The coffee chain market in Vietnam is expected to continue growing in the years to come, driven by the country’s young and growing population and rising disposable incomes. The growth in e-commerce and online food delivery platforms has also made it easier for consumers to access coffee chain products. However, the market is facing challenges, such as rising competition, changing consumer preferences, and the need for continued innovation and differentiation, which I believe our brand is known for. Nonetheless, the coffee chain market in Vietnam is poised for continued growth and presents opportunities for both local and international brands.

What are the brand’s goals and expectations in entering Vietnam?

We want to introduce Vietnam to high quality Arabica coffee, and % Arabica is known for its high-quality coffee beans and unique brewing methods. In entering Vietnam, we aim to introduce Vietnamese consumers to a new level of coffee experience and establish ourselves as a premium coffee brand. Our goal is to open stores in iconic areas in cities such as Hanoi, Da Nang, and Hoi An, and on Phu Quoc Island. We are currently location-scouting in these areas.

As a foreign coffee chain, how will % Arabica win over Vietnamese consumers?

It’s been quite a challenge, as Vietnam is known for its Robusta beans and we only focus on Arabica beans, which are known to have a sweeter taste and are not as bitter. We are very lucky, as the brand is already well known and has a very strong presence in Asia. We understand it may take some time, but we are focusing on quality, design, and sustainability, which make % Arabica stand out.