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SLICE OF LIFE
around the country, especially in light
of the words of John Culver, president
of Starbucks China and Asia Pacific, at
the launch of the store in Ho Chi Minh
City. He said his company “will aggres-
sively grow” in Vietnam and there will
soon be “hundreds of Starbucks stores”
here. Jinlong Wang, senior vice presi-
dent of Starbucks and president for Asia
Pacific, said, “We will offer a community
gathering place where people come to-
gether, connect with family and friends
and celebrate the local Vietnamese cof-
fee culture and heritage.”
Starbucks operates its stores in Vi-
etnam via its long-term franchise re-
lationship with Hong Kong Maxim’s
Group. Wang said his firm has granted
Coffee Concepts (Vietnam) Limited, a
Hong Kong Maxim’s Group subsidiary,
the license agreement for the Vietnam
market. The new company will be the
licensee operating Starbucks stores in
the country.
Speaking about the potential in Vi-
etnam, Culver said: “Vietnam is one of
the most dynamic and exciting markets
in the world and we are proud to add
Vietnam as the 12th market across the
China and Asia Pacific region.”
Newcomers like Starbucks might
be well advised to adopt a long-term
strategy to take a strong foothold in
the local market, as US food giant KFC
did. KFC opened its first stores in Ho Chi
Minh City years ago and didn’t expand
significantly for a few years. But more
recently, it has grown rapidly, not only
in Ho Chi Minh City, but also in Hanoi.
This move paved the way for the entry
of new chains at a furious pace, includ-
ing Carl’s Jr., Burger King, Pizza Hut, and
Subway. Pizza delivery king Domino’s
(DPZ) now has 14 stores in Ho Chi Minh
City alone.
Dunkin’ Donuts, also from the U.S.,
is set to face-off with Starbucks here. The
parent company of the chain, Dunkin’
Brands Group Inc., said late this January
that it signed a franchise deal to de-
velop the brand here, with the first loca-
tions planned for Ho Chi Minh City. The
Dunkin’ restaurants in Vietnam will of-
fer coffee and baked goods, doughnuts,
breakfast and bakery sandwiches, frozen
drinks, iced tea and other beverages.
The American group is the parent
company of two globally recognised
brands – Dunkin’ Donuts and Baskin-
Robbins ice-cream. Baskin-Robbins en-
tered Vietnam in January 2012 and
has 14 outlets situated in Ho Chi Minh
City, including five in District 1 alone.
They serve ice-cream, sundaes and
desserts, as well as drinks like milk
shakes and smoothies.
Le Quoc Vinh, CEO of Le Group of
Companies – a local media company –
said the entry of a big brand name like
Starbucks would attract the youth who
are drawn to what’s new. However,
Vinh believes Starbucks is not only a
brand for the young, but for business
people too. “A lot of Vietnamese en-
joy sipping a strong coffee in a tradi-
tional shop or on the sidewalk for a
few hours. But, in a more modern and
industrialised society, people need a
beautiful space, with quick and profes-
sional service which Starbucks and oth-
er brands like Coffee Bean can offer.”
High profile economist, Pham
Chi Lan, thinks Starbucks will lead
to change. “Traditional coffee shops
can exist alongside the international
brands, but they need to adapt to to-
day’s rapid pace of life,” she said.
Whether this is true, particularly
given the coffee giant’s lentgthly dou-
ble queue system, remains to be seen.
40
timeout
A Trung Nguyen shop
A modern cafe