Two months after announcing its downsizing, Korean food delivery app Baemin announced that it will officially cease operations in the Vietnamese market from December 8. This information has also been sent to Baemin's customers.

Baemin is known as a fast food delivery application, appearing in Vietnam in mid-2019 after acquiring Vietnammm.com. Baemin is operated by Woowa Brothers Vietnam, a member of a joint venture between Woowa Brothers - the leading food delivery company in Korea and Delivery Hero - a German food delivery technology group, operating in more than 50 countries.

In Vietnam, Baemin focuses on food delivery, and some other services such as: grocery shopping, online grocery store, and cosmetics sales.

Although it has only been around for 4 years, Baemin has caught the attention of Vietnamese consumers. It is the brand's representative characters such as the adorable Fat Cat and the witty Green Hat Shipperman, along with many humane messages and sympathetic sayings, close to Vietnamese culture.

In a recently released message, Baemin said the unit decided to withdraw from Vietnam due to the difficult economic situation globally, as well as the fierce competition in the local market.

In fact, Vietnam’s food delivery market has been booming in the years before and during the pandemic. Many domestic and foreign companies have poured money into capturing market share with a series of huge promotions.

The level of competition in this field in Vietnam is very high. Big competitors such as Grab, ShopeeFood, Gojek continuously launch big promotions to develop market share, thereby making it difficult for other brands including Baemin to compete.

Currently, the two giants Grab and ShopeeFood account for more than 85% of the food delivery market share in Vietnam.

With a small market share, Baemin has difficulty because it does not provide other services such as car booking, delivery... Although it has a good impression on consumers, because it has few promotions compared to other competitors, Baemin has not attracted many customers.

Baemin withdrew from Vietnam amid difficult economic times both domestically and globally.

In September, Baemin's leadership also sent a notice to employees, sharing that it had to temporarily reduce operations due to many challenges in the delivery market in Vietnam.

Previously, sharing with Reuters, Delivery Hero General Director Niklas Östberg said that business operations in Vietnam "will never be profitable", while assessing the company's prospects in Asia as positive.

Vietnam is considered a large retail consumer market in the region with a population of hundreds of millions of people, but the level of competition is also very high with the appearance of many international corporations with strong financial potential that can support long-term operations. Therefore, many large and reputable enterprises have had to leave the market.

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