BAEMIN Vietnam fasts forward for sustainable development

This event was part of the TECHFEST Vietnam 2022, organized by Industry & Trade Newspaper (Báo Công Thương) in collaboration with Vietnam E-commerce and Digital Economy Agency - Ministry of Industry and Trade, and the National Agency for Technology Entrepreneurship and Commercialization Development – Ministry of Science and Technology. Participating in the seminar were leaders from state management agencies, associations, organizations, and representatives of businesses operating in the field of e-commerce.

Mr. Jinwoo Song, CEO of BAEMIN Vietnam, said: “The online food delivery market in Vietnam has three factors that contribute to its strong potential: Customers’ readiness, well-built infrastructure, and highly skilled technology experts. First of all, I noticed that the Vietnamese market and consumers have a high level of readiness, the consumers are tech-savvy and can catch up with trends quickly. They are open to new cultures and always push businesses to invest in developing new features. In terms of infrastructure, with the outstanding development of digital banks and online payment platforms, applications can serve customers faster and more conveniently. In addition, delivery shippers in Vietnam are also particularly attentive, and well-trained, with great customer service skills. As for the technology factor, the workforce of technology engineers in Vietnam has increased greatly in the number of talents. With a high level of skills and expertise, this talent factor makes the Vietnamese market even more attractive.”

Having said that, the current biggest challenge for the online food delivery market is sustainable development as it is now driven mainly by the promotion wars among different technology applications. Investing in promotional codes helps applications quickly dominate the market, gain a larger number of users, and increase the number of orders. However, the disadvantage of focusing on promotional codes is that it only serves short-term purposes and sends out misleading signals to consumers and stakeholders.

Mr. Song also added: “Apps with more incentives will attract users. However, if users stick with an application just because there is a good promotion, they will turn away when the promotion is no longer available. That's why at BAEMIN, we care and focus on the user's in-app experience."

In the context that the online food delivery market is constantly growing, it is of necessity to aim at improving competitiveness for sustainable development. In order to improve competitiveness, the state management agencies need to create favorable conditions and each e-commerce platform will need to play their parts as well.

“In addition to the current policies and regulations on e-commerce, there’s an urgent need to complete the legal framework in accordance with the actual context. Furthermore, there should be a streamlined contact point (such as a dedicated governmental organization) to support the e-commerce platforms as they often have to deal with varied stakeholders such as merchant partners and rider partners.” – the CEO of BAEMIN suggested.

“For e-commerce businesses, the core factor to improve competitiveness is to focus on users’ experience in-app, satisfying their needs and retaining their loyalty. With its technology nature, applications need to take advantage of and enhance high-tech techniques to give users the best experience. What’s more, e-commerce businesses need to be socially responsible and really aim for sustainable development," added Mr. Jinwoo Song.

Besides focusing on customer experience and being a socially responsible business, BAEMIN aims to develop a comprehensive ecosystem and accompany partners and the community. “With rider partners, we create a cohesive community that always puts customers first and is willing to participate in volunteer activities for the community. With merchant partners, we want to equip them with relevant knowledge to develop their businesses through the BAEMIN Academy initiative as well as organize practice exchange meetings so that partners can share success stories together. Also, putting the users at the center allows us to come up with new products, such as MamaWoo (home-meal replacement) or monthly themed in-app activities. For the community, we have been working closely with competent associations to support the community and the vulnerable on special occasions.”

In the coming time, BAEMIN application will continue to develop new verticals to meet the changing needs of users and help them lead happier and more convenient lifestyles.