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A
long line of customers gath-
ered in 35 degree heat in front
of the first Starbucks coffee
store in Vietnam before it of-
ficially opened to the public at 2pm
on February 1, 2013. More than one
hour late, a queue still stretched out-
side of the store and showed no signs
of shrinking. Most of the people were
young and many were calling friends
with news of the opening and inviting
them down.
Queuing up for a cup of coffee is
unusual in Vietnam, which is one the
world’s biggest coffee exporters and
has a well established coffee drinking
culture. It is also a sign that Starbucks
has overcome the first challenge in
drawing in locals who are accustomed
to traditionally strong Vietnamese cof-
fee. Some were skeptical about Star-
bucks’ pulling power here because the
Seattle-based company’s brew is seen
by many locals as too light.
In a Starbucks store, customers
have to queue twice, once to order and
pay, and again to wait for their drink.
They can then take their plastic cup to
their own table. In contrast, in a local
coffee shop customers simply take a
seat and a waiter will come immedi-
ately to take order. In Ho Chi Minh City,
waiters even bring a cup of light tea
while waiting for customers to choose
a drink.
For coffee connoisseurs all over Vi-
etnam, comfort comes a close second
to the quality of the roast when choos-
ing a coffee shop. They range from
sleek, air-conditioned spaces to side-
walk spots with squat wooden stools
– there is something for everyone. A
coffee shop is a social hub, where the
young and old, the rich and poor, gath-
er to discuss every aspect of life, from
politics to sports.
Starbucks is therefore facing an up-
hill battle to lure some away from all
this in favour of self service and hiked
prices for what many will perceive as an
inferior product. Nobody believes this
more than, Dang Le Nguyen Vu, found-
er and owner of Trung Nguyen, one of
Vietnam’s largest coffee shop chains.
He thinks his business remains safe;
speaking to Bloomberg, he said: “Star-
bucks is not worth worrying about… it
doesn’t sell coffee.”
Ton That Quynh Chau, 42, an
electricity engineer working at the AB
Tower building next to the Starbucks
store, says he has yet give it a try de-
spite drinking two coffees every work-
ing day - one in the morning and one
after lunch. Tran Quoc Bao, 44, an of-
fice worker in District 1, hasn’t tried
it either, but he thinks the younger
generation are more eager to sip this
American brew.
Homegrown chains Trung Nguyen
and Highlands Coffee specialise in tra-
ditional, authentic Vietnamese coffee,
which is made from robusta beans, of
which Vietnam is the world’s top ex-
porter. Robusta is stronger and cheaper
than arabica – the main ingredient of
Starbucks coffee.
Trung Nguyen already exports to 60
countries, but plans a big new push into
the U.S. in 2013, hoping eventually to
reverse the 70/30 sales split for the do-
mestic and export market, says founder
Vu. He plans to buy bean roasters in the
U.S. and open shops in Seattle as well as
in New York and Boston this year.
The coffee market in Vietnam is vast,
but the arrival of Starbucks means new
competition for the home-turf operators,
as well as foreign shops operating in
Vietnam, such as US-based Coffee Bean
& Tea Leaf and Australia’s Gloria Jean’s.
Some are wary of the proliferation
of identikit Starbucks mushrooming
39
timeout
A cafe in a Ho Chi Minh City park