OR Closes Café Amazon Vietnam Venture in Major Portfolio 'Cut Loss'
PTT Retail subsidiary folds joint venture (ORCG) after failing to withstand 'Red Ocean' competition; CENTEL reclaims 56 million baht capital
- PTT Oil and Retail Business (OR) is withdrawing its Café Amazon coffee brand from Vietnam by dissolving its joint venture, ORC Coffee Passion Group (ORCG).
- The primary reason for the closure is the venture's failure to compete in Vietnam's intensely competitive "Red Ocean" beverage market.
- This move is part of a broader "cut loss" strategy by the parent PTT Group to restructure its portfolio by divesting from unprofitable businesses.
- As part of the dissolution, partner company CENTEL will reclaim its 56 million baht capital investment.
PTT Retail subsidiary folds joint venture (ORCG) after failing to withstand 'Red Ocean' competition; CENTEL reclaims 56 million baht capital.
PTT Oil and Retail Business PCL (OR) is pulling its flagship coffee brand, Café Amazon, out of Vietnam, citing intense market competition and a strategic decision to restructure its portfolio and "cut losses" on non-performing assets.
OR, a subsidiary of the PTT Group, has agreed with its partner, Central Plaza Hotel Public Company Limited (CENTEL), to terminate the joint venture, ORC Coffee Passion Group Joint Stock Company (ORCG).
ORCG was established to spearhead the growth of Café Amazon in the highly competitive Vietnamese market.
The dissolution process is expected to be finalised by the end of September 2025.
Market Proves Too Competitive
Sources close to PTT told Krungthep Turakij that while the move is not a complete withdrawal from the country, it represents a crucial "reset" of strategy.
The existing joint venture model was deemed unable to secure a competitive advantage in Vietnam’s beverage arena, which is recognised as one of the most fiercely contested in Southeast Asia.
The difficulty is highlighted by the rapid closure of physical outlets.
Café Amazon branches, which numbered 22 in 2023, have already dwindled to fewer than 10 and are expected to be fully closed this month.
"A business that cannot continue must accept reality and adapt," the source noted. "Adjustment to local conditions is essential, similar to how global coffee brands must restructure their ownership in markets like China to give local partners a greater role."
PTT Group Adopts 'Cut Loss' Policy
The decision to exit the joint venture aligns with a broader, aggressive portfolio restructuring effort across the PTT Group.
According to the source, PTT is systematically terminating or divesting from several subsidiaries that are either unprofitable or no longer align with the current global economic climate.
"Before the pandemic, many businesses looked promising. But as the world economy shifts, adaptation is necessary," the source commented, citing divestments in other areas, including electric vehicle (EV) manufacturing stakes, to maintain financial stability.
CENTEL Reclaims Capital
In a filing to the Stock Exchange of Thailand (SET) on 30 September 2025, CENTEL officially confirmed the decision to liquidate the joint venture.
CENTEL's indirect subsidiary, Central Restaurants Group (Vietnam) Company Limited (CRG VN), held a 40% stake in ORCG.
CENTEL's CFO, Kan Srisompong, explicitly stated that the termination was necessary due to "fierce competition."
Crucially, CENTEL confirmed that its remaining investment value in ORCG, totalling 56.0 million baht, will be recovered upon the completion of the liquidation.
This capital will be returned to the company's working funds to strengthen other, higher-growth potential joint ventures, showcasing the Central Group's flexible approach to managing international risk.
