{"id":759,"date":"2026-04-13T11:28:10","date_gmt":"2026-04-13T02:28:10","guid":{"rendered":"https:\/\/india-marketing.jp\/?post_type=vietnam-news&p=759"},"modified":"2026-08-02T01:23:21","modified_gmt":"2026-08-01T16:23:21","slug":"chinese-milk-tea-sea-expansion-vietnam","status":"publish","type":"vietnam-news","link":"https:\/\/india-marketing.jp\/en\/vietnam-news\/chinese-milk-tea-sea-expansion-vietnam\/","title":{"rendered":"Why is Mixue \"shrinking\" in SEA and heading for the US and South Korea: a turning point for Chinese milk tea seen through the Vietnam market"},"content":{"rendered":"
\nThis article is based on what we could verify As of August 1, 2026<\/strong> This article is based on public materials and news reports from Vietnam. Vietnam's tax system, regulations, and administrative divisions change frequently, so information here may have been updated since publication. For actual business decisions, please confirm the latest details with the relevant government authorities or local experts as primary sources.\n<\/div>\n\n\n\n

Who:<\/strong> Major Chinese milk tea chains such as Mixue, Chagee, and HeyTea
\nWhat:<\/strong> are adjusting and scaling back store openings in Southeast Asia (SEA) while shifting toward aggressive expansion in the US and South Korea
\nWhen:<\/strong> The strategic shift is gathering full momentum through 2025-2026
\nWhere:<\/strong> SEA markets such as Vietnam and Indonesia, versus developed-country cities such as New York and Seoul
\nWhy:<\/strong> Because SEA's tea beverage market has reached a state of \"saturation,\" with more than 60 brands and over 6,100 stores
\nHow:<\/strong> In SEA: closing unprofitable stores and improving operational efficiency; in the US and South Korea: brand messaging through large flagship stores<\/p>\n\n\n\n

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What is happening on Vietnam's street corners<\/h2>\n\n\n\n

Walk through the busy districts of Hanoi or Ho Chi Minh City and red-and-white Mixue signs catch your eye everywhere. In the early 2020s, Chinese milk tea chains rushed into the Vietnamese market with overwhelming momentum. Priced close to local street-stall charm and decorated in a clean, Instagram-friendly cafe style, they won over young consumers.<\/p>\n\n\n\n

But in 2025-2026, the tide is turning. In its 2025 interim earnings, Mixue officially acknowledged that \"store counts in Vietnam and Indonesia declined year over year\" and disclosed that it is carrying out a strategic adjustment. Meanwhile, the company is accelerating store openings in New York and Seoul, South Korea.<\/p>\n\n\n\n

This is not simply a \"withdrawal from Vietnam.\" It is a move that marks a structural turning point for the Chinese tea-chain business.<\/p>\n\n\n\n

The reality of market saturation: what the numbers of 60 brands and 6,100 stores mean<\/h2>\n\n\n\n

According to a survey reported by VnExpress on April 13, 2026, By the end of 2024, more than 60 Chinese brands had already rolled out more than 6,100 stores across Southeast Asia<\/strong>.<\/p>\n\n\n\n

Considering this figure against Vietnam's population (about 100 million) and its concentration in urban areas, a clearer picture emerges of what is happening. In Ho Chi Minh City's (population about 9 million) main commercial districts, milk tea shops line the streets every few hundred meters. And the competition isn't just among Chinese brands. Vietnamese local milk tea brands (Gong Cha Vietnam, The Coffee House's tea line, and others), Korean brands (the CJ group), and even local independently owned shops are all sharing the market.<\/p>\n\n\n\n

In this state of \"overcrowding,\" opening new stores does not necessarily translate into higher sales. Instead, \"cannibalization\" occurs, with stores eating into each other's existing customers. Mixue's move to start cutting back its store count in Vietnam is the result of this rational judgment.<\/p>\n\n\n\n

Why the \"US and South Korea\": the logic of a blue-ocean strategy<\/h2>\n\n\n\n

The next markets Chinese tea chains have chosen are the United States and South Korea. There is a clear logic behind this choice.<\/p>\n\n\n\n

US market: 18% growth, heading to a $2.9 billion market by 2029<\/h3>\n\n\n\n

The US fresh tea beverage market grew 18.2% year over year in 2025, reaching 7,845 stores<\/strong>. Industry forecasts see the market growing to a scale of $2.9 billion (about 430 billion yen)<\/strong> by 2029.<\/p>\n\n\n\n

Looking at actual opening-day figures shows just how large that demand is.<\/p>\n\n\n\n

\n\n\n\n
Brand<\/th>Store location<\/th>Opening-day results<\/th><\/tr>\n<\/thead>\n
HeyTea<\/td>New York, Times Square<\/td>Sold over 3,500 cups, averaging 2,000 cups per day afterward<\/td><\/tr>\n
Chagee<\/td>United States (multiple cities)<\/td>Over 5,000 cups on opening day<\/td><\/tr>\n
Auntea Jenny<\/td>United States<\/td>3,024 orders and $65,000 in sales on opening day<\/td><\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n\n\n\n

Pricing is also interesting. At Mixue's New York store, milk tea starts at $3.49. Against local coffee and caffeine-free drinks priced at $6-7, the value proposition of \"affordable, delicious Asian tea\" is working. HeyTea, by contrast, is priced higher at an average of $10, yet demand remains strong even there.<\/p>\n\n\n\n

South Korean market: fusion with K-culture<\/h3>\n\n\n\n

In South Korea too, Chagee plans to open three stores in Seoul in Q2 2026. HeyTea, Mixue, ChaPanda, and Auntea Jenny are already operating there. A Seoul university student commented, \"I couldn't find milk tea of this quality in Korea,\" and this cultural novelty carries real appeal.<\/p>\n\n\n\n

The difference from SEA is \"competitive density.\" In Vietnam and Indonesia, dozens of brands are already fighting it out, but South Korea is still close to a blue ocean. Concentrating management resources on a market where first-mover advantage can be captured is a rational strategy.<\/p>\n\n\n\n\n\n

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