Xanh SM cooking up plan to join food-delivery market

Nguyen Van Thanh, global CEO of GSM, said, "Xanh SM brand is researching the food delivery sector in Vietnam, which holds tremendous potential for development. We are currently looking for people with experience in building, operating, and managing food delivery services to explore the possibilities."

According to Momentum Works, Vietnam’s food delivery market saw the highest growth in the region last year, reaching a total gross merchandise value of $1.8 billion, an on-year increase of 26 per cent.

Grab was the market leader last year with a 48 per cent share, while ShopeeFood came close behind with 47 per cent. The remaining share belonged to BeFood (4 per cent) and Gojek (1 per cent). However, Gojeck pulled out of the Vietnamese market last September.

Baemin, the South Korean food delivery firm, also announced its departure from the Vietnamese market in 2023. Its strategic exit was a response to the global economic difficulties and the cut-throat competition in the Vietnamese market.

According to Statista, the food delivery market is projected to generate a revenue of $2.78 billion here this year. It is expected to experience an annual growth rate for the 2025-2029 period of more than 9.6 per cent, resulting in a projected market volume exceeding $4 billion by the end of the decade.

The market is highly competitive, with international and domestic players coming and going, while offering various discounts and promotions to attract customers. Furthermore, demand has seen a shift towards healthier food options with many more healthier food choices being offered, catering to the increasing demand for healthy food among Vietnamese consumers.

Grab’s insights into Vietnam's food delivery market Ma Tuan Trong, country commercial head at Grab Vietnam, talks to VIR’s Linh Le about the evolution of Vietnam’s food delivery market, GrabFood’s strategic priorities, and the company’s expansion into smaller markets.

Vietnamese companies vie for online food delivery market Vietnamese ride-hailing companies are vying for a share in the online food delivery market, which is currently dominated by foreign groups.

Vietnam’s food delivery market saw the highest growth in the region Vietnam’s food delivery market reached a total gross merchandise value (GMV) of $1.8 billion in 2024, where Grab and ShopeeFood accounting for 95 per cent of the market share.