The Golden Arches’ Twist: McDonald’s and Chagee’s Unique ‘U-Turns’ in Ho Chi Minh City

Exactly one year after announcing that it was “ending a decade-long journey with customers” and vacating the premises in the Ben Thanh quadrant, McDonald’s surprised everyone by announcing its imminent return to the same location.

According to observations, the store of this American fast-food brand is in the final stages of completion, with the promise of a comeback and the affirmation that “McDonald’s is always here.”

McDonald’s Ben Thanh was the second store the chain opened when it entered Vietnam in 2014. The store is located at 2-2A Tran Hung Dao, Ben Thanh Ward (formerly District 1), right in front of Ben Thanh Market, and next to Ben Thanh Station, a popular area for domestic and international tourists.

Last September, this location abruptly closed without providing a reason. Soon after, a new store popped up just a few hundred meters away on Pham Ngu Lao Street. Real estate insiders attributed this move to economic hardships, consumers’ tightened spending, and a simultaneous rise in rental prices by about 20%.

At that time, reports from a real estate research firm indicated that rents in this area had increased by nearly 16% within a year. The three-story building, with a total area of nearly 660 square meters and a capacity of about 260 seats, cost McDonald’s approximately $14,000–15,000 per year (over VND 350 million), with a yearly contract.

After McDonald’s departure, the premises remained vacant for an entire year. Recently, however, signs of a new McDonald’s store emerged at the same location.

According to “Good House” statistics, rental spaces around Ben Thanh Market in August 2025 vary in price from VND 35 million to VND 450 million per month, depending on size and location. Nonetheless, prime locations like the McDonald’s spot are scarce.

Another foreign F&B brand making headlines with its return to prime real estate in Ho Chi Minh City’s center is Chagee Tea. Unlike McDonald’s emotional farewell, Chagee quietly left amidst a boycott campaign in mid-March 2025, even before its grand opening.

However, passersby have recently noticed the brand’s signage and logo displayed at the building’s corner of Nguyen Thiep and Dong Khoi Streets in the Saigon Ward.

The exterior barricade on Dong Khoi Street has been removed, and inside, staff are busy with the final touches on the store.

In early March, the chain announced its official presence in Vietnam, with its first store at the corner of Nguyen Thiep and Dong Khoi Streets, one of the most expensive locations in Ho Chi Minh City. However, as the store neared completion, customers discovered that Chagee’s official fan page had shared an image of the illegal “nine-dash line.”

Faced with intense backlash and calls for a boycott, Chagee quietly locked its fan page, removed its signage, and halted construction at this location.

Ho Chi Minh City’s Department of Culture, Sports, and Tourism then coordinated with the city’s public security force to invite Chagee Vietnam Company Limited to discuss their violation of providing information and images that infringed on the country’s sovereignty. On March 26, the company was fined VND 60 million for this administrative violation.

Similarly, in July, the chain quietly opened its first store on Nguyen Duc Canh Street in Tan Hung Ward (formerly District 7). Despite the boycott from many consumers, a second store quickly followed on Nguyen Thi Minh Khai Street (formerly Ben Thanh Ward).

The reopened store at the corner of Dong Khoi could be Chagee’s third location and the most expensive address the chain has chosen for its presence in downtown Ho Chi Minh City. According to sources, the rent for this 230-square-meter, two-facade, three-story space is approximately VND 1 billion per month.