Famous Japanese coffee chain %Arabica will expand to Vietnam by franchising with The Kho Group, a Hong Kong (China)-based investment firm.

The first coffee shop will be located at the well-known “Cafe Apartments” building on Nguyen Hue pedestrian mall in Ho Chi Minh City’s downtown area.

The Café Apartments building boasts nearly 30 coffee shops, milk tea shops, and restaurants from brands such as Boo Coffee, Good Day Tea, and The Letter Café. It is also has many fashion outlets and other independent stores.

Mr. Vynce Nguyen, General Director of The Kho Group, said that %Arabica will bring a new specialty coffee experience to Vietnam’s longstanding traditional coffee market.

According to a representative of The Kho Group, %Arabica plans to open a second store in Ho Chi Minh City’s District 1 and is exploring the potential in Hanoi, Hoi An, and Phu Quoc Island.

Founded by Mr. Kenneth Shoji in 2014, %Arabica has 141 coffee shops in 20 countries and territories from Asia to Europe and the US. China is its most popular market, with 73 stores, followed by the United Arab Emirates and Kuwait.

The Kho Group Limited is a privately-owned investment holdings company based in Hong Kong (China). It has grown into a multi-faceted global organization with a diverse portfolio of investments and a significant footprint in land and property development, natural resources, agriculture, hospitality, health products, lifestyle, technology, media, and telecommunications.