Chagee, a popular Chinese milk tea chain, is facing a boycott in Vietnam after its app was found to display a map suspected of featuring China’s illegal 'nine-dash line.'

Despite the backlash, the line remains visible on its global store locator map.

The Vietnamese version of its website uses Google Maps, which does not show the illegal line.

China uses this line to absurdly claim almost the entire East Vietnam Sea.

Chagee’s first shop in Vietnam is under construction at the intersection of Dong Khoi and Nguyen Thiep Streets in District 1, Ho Chi Minh City, one of the most expensive locations in Vietnam. 

The construction site is covered with red canvas typical of the Chagee brand. Prior to Chagee leasing this prime location, it was occupied by a well-known bakery brand in Ho Chi Minh City.

According to leasing data, the rent for this location ranges from VND300 million (US$11,748) to VND400 million ($15,664) per month, with some listings offering a rent up to nearly VND1 billion ($39,163) per month for a 400m² space. 

According to a report from global real estate service firm Cushman & Wakefield, the rent on Dong Khoi Street stands at $330 per square meter per month, making it the 14th most expensive retail area in the world. 

Dong Khoi is also where many international luxury brands choose to establish their stores when entering the Vietnamese market.

According to real estate experts, leasing a location in the central area allows brands to directly reach their target customers, as there is an existing high volume of high-end customers and a large number of international tourists.

Chagee Vietnam has also posted job listings and announced prices for its milk tea, ranging from VND39,000 ($1.5) to VND79,000 ($3.1) per cup.

Chagee loses favor among Vietnamese consumers

After Vietnamese consumers discovered the 'nine-dash line' on Chagee’s app and maps, the brand immediately faced a strong backlash and outrage.

Currently, the Chagee app has been removed from the Google Play Store and App Store in Vietnam.

The official Facebook page of Chagee Vietnam is flooded with thousands of angry reactions and comments that demand the brand remove the 'nine-dash line' and apologize to Vietnamese consumers. 

Despite this, as of Sunday, Chagee Vietnam remained silent in response to the public outcry.

A representative from an international beverage brand with stores across Vietnam told Tuoi Tre (Youth) newspaper that Chagee is facing public backlash even before opening a single store in the country, highlighting its failure in managing its public image.

The brand’s silence has only intensified consumer dissatisfaction, putting it at a disadvantage as it prepares to launch in Vietnam.

This is a big brand with 5,000 stores worldwide, but they have been careless in their market entry. This suggests a difficult future for the brand in Vietnam, the international beverage brand representative added.

Chagee Vietnam Co. Ltd. was established last month, with Nguyen Anh Duy serving as the legal representative. The company is primarily registered in the restaurant and mobile food service sector.

Chagee, founded in 2017 in Yunnan, China, is now operating in China, Malaysia, Singapore, Thailand, and the U.S..

The brand positions itself as the 'Starbucks of the East' and has ambitious plans for international growth.

Chacee clarifies brand confusion

Chacee, another milk tea brand, on Sunday issued a statement clarifying that it is unrelated to Chagee. The two are separate brands with no connection. 

Chacee, a Vietnamese domestic brand, has nearly 100 stores in Vietnam and was registered in Ho Chi Minh City in 2019. 

Earlier, many consumers mistakenly left negative comments and reviews about Chacee on various platforms.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!