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Starbucks Brings its Culture to Vietnam The South-east Asian nation - known for its nerve-jangling strong coffee, often sweetened with condensed milk - has its

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Starbucks Brings its Culture to Vietnam The South-east Asian nation - known for its nerve-jangling strong coffee, often sweetened with condensed milk - has its own deep-rooted coffee culture that could prove challenging to Starbucks, the Seattle-based coffee chain. The company launched a flagship two-storey store in Ho Chi Minh City in February. So far sales at the new location are exceeding expectations, according to Starbucks' Chief Executive and Chairman Howard Schultz. Starbucks decorated the downtown store with local art and artefacts to create a distinctly Vietnamese flavour. It also came up with a drink, the the Asian Dolce Latte, to appeal to local palates. For food, it serves roast-duck wraps and French-style baguettes. But some say the chain could do more. One customer said, 'Starbucks should use drip filters perched on top of glass mugs, the way the Vietnamese do.' He added, 'If Starbucks wants to succeed in Vietnam, they have to change the way they serve,' he said. Starbucks is attracted by rapid economic growth in Vietnam and the low costs of opening and running a coffee outlet. It is a market that has huge potential sales in a country of nearly 90 million people and a desire to buy in to global brands like Starbucks. There are challenges though; the regulatory framework around business start-ups is quite bureaucratic and there is some unease amongst local politicians about the opening of a Starbucks. 1) Define the term 'economic growth'. 2) Outline two reasons why Starbucks might be attracted to open outlets in Vietnam. 3) Analyse two problems Starbucks might face when opening outlets in Vietnam

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