After five years of trying to compete with local coffee chains, Thailand’s Cafe Amazon appears set to exit the market.

Central Plaza Hotel Public Company Limited (Centel) is withdrawing from the Cafe Amazon joint venture in Vietnam, signalling a strategic shift in response to the country’s intensely competitive coffee market.

The move involves dissolving ORC Coffee Passion Group Joint Stock Company (ORCG), the entity operating Cafe Amazon in Vietnam. 

ORCG was a joint venture between Centel’s indirect subsidiary, Central Restaurants Group (Vietnam), which held 40 per cent, and PTTOR International Holdings (Singapore), a subsidiary of the Thai-listed PTT Oil and Retail Business, which holds 60 per cent.

In a Bangkok Stock Exchange filing, Centel cited the need to “realign business priorities” and adapt to market challenges. As of August 31, its investment in the venture stood at THB 56 million (US$1.72 million). 

This decision ends CEentel’s role in Cafe Amazon’s expansion in Vietnam, which began in 2020 with ambitions to become a leading global coffee brand. However, rising competition from international and local chains proved too tough.