Vietnamese people’s love for coffee borders on obsession. Many can skip breakfast, but not their morning coffee—without it, the day simply cannot begin. That’s why coffee shops and street stalls are everywhere. But for Vietnamese, coffee is not just a drink; it’s a deeply ingrained daily ritual.
- Cà phê sữa đá (iced milk coffee): a national favorite, made with strong drip coffee, condensed milk, and ice—both energizing and refreshing.
- Cà phê trứng (egg coffee): hot coffee topped with whipped egg yolk, rich and velvety, and uniquely Vietnamese.
Beyond a daily habit, coffee is also a pillar of Vietnam’s economy. As the world’s second-largest coffee exporter after Brazil, Vietnam earns more than USD 3 billion annually from coffee exports. Its robusta output ranks first worldwide, accounting for about 40% of global production.
In Ho Chi Minh City, one must not miss the famous Cafe Apartment—an entire building filled with coffee shops. It has become not just a local attraction but also a cultural landmark symbolizing Vietnamese coffee heritage.
It’s in this coffee-rich culture that Vietnam has nurtured its own “Starbucks.” On nearly every street corner, you’ll spot that familiar red oval logo with the words Highlands Coffee. It’s more than just a brand—it has become part of urban daily life. And behind it lies a journey that blends national pride with international capital.
From a Small Shop in Hanoi to 700 Stores Nationwide
In 1999, Vietnamese-American entrepreneur David Thái founded Highlands Coffee in Hanoi. At first, it was a small packaged coffee business. A few years later, he opened the first physical coffee shop near Saigon Notre-Dame Cathedral in Ho Chi Minh City.
Much like Starbucks in its early days, Highlands expanded quickly: from Hanoi to Ho Chi Minh, from office towers to shopping malls, from universities packed with students to must-stop tourist destinations.
By 2024, Highlands Coffee had over 700 stores across Vietnam and had begun expanding into the Philippines, Singapore, and other markets, making it one of Southeast Asia’s most iconic homegrown coffee chains.
It Is and Isn’t Starbucks
- Local Culture Repackaged
Highlands doesn’t simply copy Western coffee culture; it adapts to Vietnamese habits. While Starbucks sells lattes, Highlands champions Cà phê sữa đá—iced coffee with condensed milk and ice cubes, infused with local memories. A 39,000 VND iced coffee is modern in packaging but still carries the “soul” of street-side brews. It’s a cup of coffee steeped in national identity. - Not Just Coffee, but a Social Hub
Unlike quiet, “third space” cafés, Highlands outlets are lively, more like modern Vietnamese teahouses. Friends meet, companies hold meetings, students revise, couples date—all under one roof. This approachable, communal vibe is something Starbucks has struggled to replicate in Vietnam. - Pricing that Hits the Sweet Spot
Highlands prices average 40,000–60,000 VND, squarely within the middle-class comfort zone: not cheap, not expensive, but just enough to carry status. Starbucks, by contrast, charges 80,000–120,000 VND—often seen as “only foreigners can afford it.”
The Capital Behind Highlands: Half Vietnamese, Half Filipino?
In 2012, Filipino fast-food giant Jollibee Foods Corporation acquired a controlling stake in Highlands Coffee through its subsidiary, Superfoods Group. In 2013 Go Nuts Donuts announced a major partnership with Highlands Coffee, Go Nuts Donuts with its 26 stores will serve Highlands Coffee products including Vietnamese signature coffees and ice blended Classic “Freeze”. At the same time Highlands Coffee stores are stocking a tempting range of irresistible Go Nuts Donuts. This raised doubts over whether Highlands could still be considered a “national brand.”
Highlands’ management, however, repeatedly stressed: “Highlands Coffee is Vietnamese. It is ours.”
In 2022, they even launched a new slogan and brand identity to strengthen emotional ties with consumers. The capital may be global, but the culture must remain local—that, they argue, is the key to their market dominance.
Starbucks vs. Highlands: A Contest Without Winners
Although Highlands is often dubbed “Vietnam’s Starbucks,” the two brands differ greatly in approach, positioning, and cultural DNA:
| Dimension | Highlands Coffee | Starbucks |
|---|---|---|
| Country of origin | Vietnam (founded by a Viet Kieu entrepreneur) | United States |
| Entry year | 2002 (first store) | 2013 (entered Vietnam) |
| Store count | 700+ nationwide | 80+ (mostly big-city malls & CBDs) |
| Signature drinks | Iced milk coffee, lotus tea, durian milk tea | Latte, Americano, Frappuccino |
| Target audience | Middle class, students, office workers | Expats, affluent locals |
| Store vibe | Lively, social, “hangout” style | Quiet, businesslike, “third place” |
| Price range | Mid-range (30K–60K VND) | Premium (80K–120K VND) |
This is not about one brand replacing the other. Instead, both represent coexisting urban lifestyles.
Highlands’ Next Step: An IPO?
Behind its rapid expansion, Highlands is quietly evolving from a retail coffee chain into a manufacturing and export powerhouse. In 2024, it opened a world-class roasting plant in Ba Ria–Vung Tau Province with an annual capacity of 75,000 tons. The facility will supply both domestic outlets and international markets including Europe, the U.S., and Japan.
This signals that Highlands Coffee is not just “Vietnam’s Starbucks” but a bridge for Vietnamese coffee to reach the world.
Industry insiders speculate that these moves may be laying the groundwork for an eventual IPO.
