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ARAB COUNTRIES – Trung Nguyen to enter UAE market

Trung Nguyen, one of Vietnam’s largest coffee chains, will bring its bittersweet brew to the Emirates, local media report.

Under a franchise agreement, Dubai-based Global Hotels Management (GHM) will invest Dh10 million in the first year, opening two Trung Nguyen coffee shops in Dubai by the third quarter.

GMH is also in talks with airlines, hotels and supermarkets to distribute the coffee with the option to expand the brand to Pakistan, Saudi Arabia, Kuwait and Bahrain.

The UAE retail coffee market is dominated by European companies such as Nestlé and Germany’s Tchibo, followed by Lebanon’s Maatouk Maison Du Café and Société Ets Michel Najjar.

In the next five years, GMH expects to open 100 coffee shops in the region, according to Nguyen Nguyen, the general manager of Ho Chi Minh City-based Trung Nguyen.