VIETNAM: Chagee, a well-known Chinese milk tea brand, is facing a wave of backlash in Vietnam just as it prepares to expand into the Southeast Asian market.
The controversy erupted after users in Vietnam downloaded the brand’s app to claim free drinks ahead of the grand opening, only to discover a map within the app featuring the contentious ‘nine-dash line’—a symbol of China’s disputed territorial claims in the South China Sea. The map, which many see as an assertion of China’s illegal sovereignty over a large part of the East Vietnam Sea, sparked immediate outrage among Vietnamese netizens.
According to the latest Tuoitrenews report, the Chagee app has been removed from app stores in Vietnam since the discovery, but the damage may already be done. Social media users in Vietnam are flooding forums and online groups with calls for a nationwide boycott of the brand. Thousands of angry comments have inundated Chagee Vietnam’s official Facebook page, and the company has yet to issue a response to the controversy.
Brand damage and future in Vietnam
The backlash has not only affected Chagee’s public image but has also raised questions about the brand’s future in Vietnam. Experts in the food and beverage industry have warned that the incident could have long-lasting repercussions beyond just a marketing misstep. Le Minh Vu, managing partner at FnB Academy, emphasised that Chagee’s failure to respect local sentiment could lead to severe consequences for the brand’s reputation in the region.
“Chagee should withdraw from the Vietnamese market over issues unrelated to their products or services—these are issues that cannot be easily corrected,” Vu stated. In Vietnam, businesses are expected to adhere to local laws and cultural sensitivities, with the potential for serious legal and business consequences if they fail to do so.
Chagee, which has grown rapidly since its founding in 2017 in Yunnan, China, with over 6,000 stores worldwide, had high hopes for its expansion into Vietnam. However, the controversy casts doubt on whether the brand can recover from the fallout, and it may find itself facing obstacles that extend well beyond its competitive position in the market.