Thai-based coffee chain, Café Amazon, known for its rapid expansion across Asia, is set to withdraw from Vietnam after 5 years struggling to compete with domestic players in the highly competitive market.
Parent company Central Plaza Hotel Public Company Limited (Centel) has announced that it will exit the joint venture in Vietnam, citing a need to refocus on its business strategy. The decision includes dissolving ORC Coffee Passion Group JSC (ORCG), the entity responsible for Café Amazon’s operations in the country.
The joint venture was established between Centel’s indirect subsidiary, Central Restaurants Group (Vietnam), which owned 40%, and PTTOR International Holdings (Singapore), a subsidiary of PTT Oil and Retail Business, which held the remaining 60%.
So far, total investment in the joint venture amounted to Bt 56 million (US$1.74 million).
