PTT Oil and Retail Business, a subsidiary of Thai energy major PTT, has established a joint venture with Central Restaurants Group to operate the Café Amazon brand in Vietnam, PTT said in a regulatory filing.
PTT Oil and Retail’s Singapore subsidiary PTTOR International Holdings will hold 60 per cent in the joint venture and invest no more than $2.1 million in the business.
Earlier in July, PTT Oil and Retail also signed an agreement with Kanbawza KBZ Group to expand the Café Amazon network to as many as 100 stores in Myanmar by 2023. Most recently, the group has reportedly said to increase the number of coffee shops in the Philippines by 20 more outlets in 2020 in addition to the current 15 stores.
In addition to Thailand, Myanmar and the Philippines, Café Amazon is also present in Cambodia, Laos, Japan, Oman, Singapore, and China with a total of around 3,000 stores.
Last month, the retail arm of PTT said it was in the process of filing for an IPO. There was speculation that the IPO could see the firm raise about $2 billion.
PTT Oil and Retail did not reveal when it will start to open the first coffee shop in Vietnam. The Vietnamese market is currently quite competitive with the presence of both international and domestic coffee chains.
In 2018, American giant Starbucks only managed to come in the third place in terms of annual revenue, after two local brands Highlands and The Coffee House, according to research firm VIRAC.
PTT has been in Vietnam in the oil and gas business. In 2018, it was interested in the privatisation of Vietnamese state-owned PVOil but the latter selected South Korea’s SK Energy as its strategic partner.
Meanwhile, Central Group has implemented a spate of M&A deals in Vietnam to expand its business, including the acquisition of retailers Nguyen Kim, Big C and Lan Chi.