South Korean food delivery giant Baemin is undergoing a strategic realignment in Vietnam, resulting in staff layoffs and a reduction in its operational footprint. This move follows the recent appointment of Cao Thi Ngoc Loan as temporary CEO after the resignation of Jinwoo Song.
Baemin has made the decision to scale back its activities in Vietnam, with specific details about the extent of job cuts yet to be disclosed. The company has already closed its operations in Hoi An, a prominent tourist destination in Central Vietnam, and has ceased operations in the northern provinces of Thai Nguyen and Bac Ninh.
At the beginning of last year, Baemin had a significant presence in Vietnam, covering 21 different localities. The company initially entered the Vietnamese market in 2019 through the acquisition of the local platform Vietnammm, diversifying its services to include shopping and cosmetics sales.
Operated by Woowa Brothers Vietnam, a collaboration between South Korean company Woowa Brothers and German multinational corporation Delivery Hero, Baemin held a 12% market share of the Vietnamese food delivery market in the previous year. In comparison, Grab had a 45% share, and ShopeeFood held 41%, as reported by Singapore-based startup research firm Momentum Works.