Delivery Hero-owned food-delivery company Baemin is set to cease business in Vietnam next month, after four years in the market. 

The rumour of Baemin’s withdrawal from the country was sparked in September when the company reduced the geographical scale of its operations and laid off numerous staff.

“Dear partners, Baemin regrets to announce that our parent company, Delivery Hero, has decided to withdraw from Vietnam effective December 8, 2023,” the brand said in a statement. “This decision to leave Vietnam was driven by the difficult economic situation globally, as well as the fierce competition in the market.”

Baemin, founded by startup Woowa Brothers, was acquired by Delivery Hero in 2019 under a US$4 billion deal. Despite its late arrival in comparison to other food delivery players, Baemin made an impression among a large number of Vietnamese users.

However, the Vietnam market – like others in the Southeast Asian region – is highly competitive with multiple multinational players battling for customers.

The German food delivery giant Delivery Hero has reduced its operations in the Asia Pacific region to streamline and flex its operations.

Delivery Hero was reported to be in talks with investors to sell a portion of its Asian operations under the Foodpanda brand, including in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines, and Thailand.