Food delivery spending in Vietnam surges by 30%

DNHN - Grab and Shopee Food dominate Vietnam’s food delivery market with 47% and 45% market share respectively. The remaining 8% is shared between BaeMin (which ceased operations in Vietnam in late 2023) and GoJek.

In 2023, Vietnamese people ordered food on apps like Grab, Shopee Food, etc. with a total value of up to 1.4 billion USD, equivalent to 35,000 billion VND, or about 90 billion VND per day.

The information is mentioned in the report on food delivery applications in Southeast Asia recently published by Momentum Works.

According to Momentum Works’ report, the total gross merchandise value (GMV) on the platforms in 2023 continued to set a new record, reaching 17.1 billion USD, an increase of 5% compared to the same period last year.

Except for Vietnam, most food delivery markets in Southeast Asia have stagnated.

Last year, Vietnam’s GMV unexpectedly increased by 30% despite the cost-cutting trend of the platforms. However, compared to neighbouring markets such as Thailand, Malaysia, Singapore, the Philippines or Indonesia, Vietnam’s GMV scale is still quite modest.

Grab and Shopee Food dominate Vietnam’s food delivery market with 47% and 45% market share respectively. The remaining 8% is shared between BaeMin (which ceased operations in Vietnam in late 2023) and GoJek.

Grab’s success is not only limited to Vietnam but also extends to many other countries in the Southeast Asian region such as Thailand, Malaysia, the Philippines, Singapore and Indonesia. Meanwhile, Shopee Food, after acquiring Now, has dominated the Vietnamese market but has not yet been able to compete with Foodpanda in other countries.

In the whole Southeast Asian region, Grab leads the food delivery market with a total GMV of 9.4 billion USD, far ahead of other competitors such as Foodpanda (2.7 billion USD), Gojek (1.8 billion USD), Shopee Food (1.5 billion USD), Lineman (1.3 billion USD), etc.

The boom in the food delivery market brings many benefits to consumers, restaurants and food delivery platforms. However, this market is also facing some challenges such as fierce competition, high costs and food safety issues.

“With the increasing consumption of F&B products, the low penetration rate of food delivery services and the ongoing merger trend, food delivery platforms in the region have a lot of room for development. While focusing on core competencies, leading companies also need to keep an eye on potential market changes and emerging challenges,” said Jianggan Li, CEO of Momentum Works.

Tu Anh