BAEMIN officially closed its nearly 4-year journey of entering the Vietnamese market

DNHN - As per BAEMIN's statement, partners shall be furnished with comprehensive information about the timely completion of obligations and payment for cooperation packages.

Users and restaurant partners of BAEMIN were notified via this application on November 24 that the company would cease operations in the Vietnamese market at 0:00 on December 8, 2023, formally concluding sales spanning nearly four years. commence operations in the market. Before this date, users may continue to place orders via the application as usual.

The BAEMIN Restaurant Partner application will be unavailable to restaurant partners until December 12, 2023. As per BAEMIN's statement, partners shall be furnished with comprehensive information about the timely completion of obligations and payment for cooperation packages. Upon completion of the reconciliation, the organization guarantees that all debts will be paid in full throughout the remaining operating period, and prepaid advertising and marketing expenses for December 2023 will be refunded.

Previously, the Korean food delivery giant announced that it would streamline its operations by the end of September 2023. Ms. Cao Thi Ngoc Loan, Interim CEO of Baemin Vietnam, lamented, "Unfortunately, the demanding food delivery landscape in Vietnam, characterized by intense competition and elevated consumer expectations, has expedited this decision."

With the official launch occurring in June 2019 in Ho Chi Minh City, Baemin entered the Vietnamese market, contending with prominent food delivery platforms including Grab, Gojek, and ShopeeFood. The operation of this application is entrusted to Woowa Brothers Vietnam, which is a subsidiary of Woowa DH Asia. Woowa DH Asia is a collaborative effort between the globally renowned delivery platform Delivery Hero and the Korean food delivery unicorn Woowa Brothers. Its services span over fifty countries.

As of early 2022, this application had established itself as the most extensively utilized food delivery platform in Vietnam, encompassing 21 provinces and cities, including Hanoi and Da Nang. Baemin offers several supplementary services in addition to its primary domain of food delivery. These include grocery shopping, operating online grocery stores, and the retail of cosmetics.

Nevertheless, even though rivals frequently implement enticing promotions and incentives to entice clients, Beamin does not prioritize this policy.

Niklas Ostberg, co-founder, and chief executive officer of Delivery Hero, once told Reuters that the organization's outlook in Asia is favorable, except in Vietnam, where they have no faith that their operations will ever be profitable.

According to data from Momentum Works, Baemin will hold a meager 12% share of the food delivery market in Vietnam in 2022, whereas Grab and ShopeeFood will each account for 45% and 41%, respectively.

Despite the cessation of operations by Beamin in Vietnam, Woowa DH Asia continues to provide food delivery services in additional Asian markets, including Japan and Korea.

Phuong Thu (T/h)