Vietnam's beverage chain market has topped $1.3 billion (about 200 billion yen), growing into the third-largest in Southeast Asia. While domestic brands like Highlands Coffee and Phuc Long surge ahead, overseas chains have withdrawn one after another. Along with local reactions, we explain points that help Japanese travelers choose a café.
News overview
According to a report by Singapore-based research firm Momentum Works, Vietnam's coffee and tea chain market has exceeded $1.3 billion, making it the third-largest market in Southeast Asia after Indonesia and Thailand.
Breaking it down, the coffee chain market stands at about $725 million (up 27% year on year) and the tea chain market at about $617 million (up 28%), both posting high growth rates.
By number of stores, Milano Coffee boasts the country's largest network at about 2,500 outlets, followed by Highlands Coffee with about 985. In the tea segment, ToCoToCo operates about 1,000 stores as the largest player.
What stands out is the polarization between surging domestic brands and struggling overseas ones. While Phuc Long and Katinat aggressively open new stores, China's Mixue has scaled back, and Thailand's Café Amazon decided to withdraw in November 2025 after five years in the market. This is no longer a competition over store counts—we've entered an era where the quality of service and brand experience decide who wins.
Vietnamese readers' reactions
In response to this news, a range of opinions have been shared online in Vietnam.
Reader A:"Highlands is convenient because it's everywhere, but lately Katinat is more stylish and popular with young people. The taste is good too."
Reader B:"It's surprising Milano has as many as 2,500 stores. Many are small local shops so they don't stand out, but they support ordinary people's coffee culture."
Reader C:"It's a shame Café Amazon pulled out. But competition among cafés in Vietnam is really fierce—it's not a market where foreign brands can win."
Reader D:"Vietnamese people are particular about coffee. There are so many local chains cheaper and tastier than Starbucks, so there's no reason to go out of your way to an expensive foreign brand."
Reader E:"There are too many tapioca-type chains too. ToCoToCo is cheap, but honestly they all taste about the same. Differentiation is the challenge going forward, I think."
Impact and key points for Japanese tourists
If you want to enjoy café-hopping on your trip to Vietnam, it helps to keep the following points in mind.
Start with the standby, Highlands Coffee.You'll find one almost without fail near airports, shopping malls, and tourist spots, complete with Wi-Fi and air conditioning. The menu has English support, soVietnamese Coffeeit's a chain that's easy to order from even for beginners. Prices run around 40,000 to 60,000 dong per cup (about 250 to 370 yen).
For a stylish café, Katinat is on the rise.Centered on Ho Chi Minh City, Katinat is known for its refined interiors and photogenic drinks that look great on social media. It's a spot where you can experience Vietnam's youth culture.
To taste authentic Vietnamese coffee, go to Phuc Long.A long-established brand founded in 1968, it's well regarded for the quality of its tea leaves andCoffee Beans.lotus tea(tra sen) and other menu items unique to Vietnam are also plentiful.
If you're after a local experience, Milano Coffee.It's not aimed at tourists, but drinking coffee among the locals at a small back-alley shop can be a precious time to feel everyday Vietnam. At 20,000 to 30,000 dong per cup (about 120 to 190 yen), it's a bargain.
For tapioca milk tea lovers, ToCoToCo and Gong Cha.Taking a breather with a cold milk tea between walks through Vietnam's hot streets is also recommended. Gong Cha, familiar in Japan too, operates about 50 to 70 stores in Vietnam.
Reference:Thị trường chuỗi đồ uống ở Việt Nam quy mô hơn 1,3 tỷ USD
