Vietnam Online Food Delivery Market Outlook to 2030

Vietnam Online Food Delivery Market Overview

• The Vietnam online food delivery market is valued at USD 2 billion, with substantial growth observed over the past five years. This expansion is primarily driven by the increase in smartphone usage and internet penetration, as well as a growing shift towards convenience in urban centers. A surge in working professionals seeking ready-to-eat food solutions has also significantly contributed to the market's growth.

• Major cities like Ho Chi Minh City, Hanoi, and Da Nang dominate the market. Their dominance can be attributed to high population densities, rapid urbanization, and the fast-paced lifestyles of residents in these metropolitan areas. Moreover, these cities have well-established food delivery infrastructures and a higher concentration of restaurants, which further stimulates demand.
• The Saudi government launched the Fintech Saudi initiative to support the development of the financial technology ecosystem. In 2024, the initiative facilitated the growth of over 100 fintech startups specializing in digital payments and mobile banking, offering technical and financial assistance to innovative businesses.

Vietnam Online Food Delivery Market Segmentation

By Platform Type: The market is segmented by platform type into aggregator platforms and independent delivery platforms. Aggregator platforms currently dominate the market, with platforms like GrabFood and Now.vn leading in market share. The dominance of these platforms can be attributed to their wide reach, established partnerships with multiple restaurants, and user-friendly interfaces. Aggregator platforms also offer customers the ability to compare various restaurants, resulting in a more competitive marketplace.

By Cuisine Type: The market is segmented by cuisine type into Vietnamese cuisine, Western cuisine, and Asian cuisine. Vietnamese cuisine holds the dominant market share in the online food delivery market. The preference for traditional Vietnamese dishes such as pho, banh mi, and bun cha reflects the cultural significance of local cuisine. Additionally, Vietnamese food is more affordable compared to international cuisines, making it a popular choice for a wide range of customers. Local cuisine remains the top choice, especially for family meals and everyday orders.

Vietnam Online Food Delivery Market Competitive Landscape

The market is highly competitive, with a mix of domestic and international players. Companies such as GrabFood, Now.vn, and Baemin have secured market positions. New players continue to enter the market, contributing to increased competition.

Vietnam Online Food Delivery Market Analysis

Market Growth Drivers

• Government Vision 2030 and Financial Inclusion Initiatives: Saudi Arabia's Vision 2030 plays a critical role in promoting the growth of digital payments. One of the key aspects of this initiative is increasing financial inclusion, especially by making financial services accessible to underserved segments of the population. In 2024, the Saudi Arabian Monetary Authority (SAMA) estimated that over 17 million citizens had opened digital bank accounts, resulting in an increase in digital payment adoption.
• Rapid Expansion of E-commerce: The market is witnessing a surge due to the rapid growth of the e-commerce sector, which reached over 220 million transactions in 2024, driven by higher online retail purchases. The shift toward online shopping, catalyzed by consumer preferences for contactless payment methods and the convenience of mobile banking applications, has boosted the need for secure and efficient payment gateways.
• Increasing Cross-border Trade and Remittances: Saudi Arabia is a major hub for international trade and remittances. The Kingdom's expatriate populationestimated at over 10 million in 2024continues to drive the growth of cross-border payments, specifically remittances. Digital payment solutions such as mobile apps and online platforms have made these transactions quicker and more efficient, with the World Bank estimating that over $40 billion worth of remittances were processed through digital channels in 2024.

Market Challenges

• Regulatory Barriers for Non-Banking Entities: While the government has made strides in promoting financial inclusion, non-banking entities face regulatory challenges in entering the digital payments market. As of 2024, over 20 fintech startups reported difficulties in securing licenses from SAMA, citing lengthy approval processes and high compliance costs. These barriers limit innovation in the sector, restricting smaller players from competing with established financial institutions, thus slowing the expansion of digital payment solutions across different market segments.
• Consumer Trust in Digital Platforms: Despite the growing adoption of digital payments, there remains a considerable portion of the populationestimated at around 10 million in 2024who are hesitant to embrace cashless transactions due to concerns about privacy and the security of their personal data. Recent surveys conducted by the General Authority for Statistics (GaStat) revealed that around 35% of respondents still preferred cash over digital payment methods due to trust issues.

Vietnam Online Food Delivery Market Future Outlook

Over the next five years, the Vietnam online food delivery industry is expected to witness growth due to advancements in logistics technology, consumer demand for convenience, and an expanding variety of cuisines available through delivery platforms.

Future Market Opportunities

• Integration of AI and Machine Learning for Fraud Prevention: In the coming years, digital payment providers will increasingly adopt AI and machine learning algorithms to prevent fraud and secure transactions. By 2026, it is projected that over 10,000 financial institutions in Saudi Arabia will incorporate AI-driven security solutions, resulting in a significant reduction in payment fraud. This trend will make digital payments more secure, boosting consumer trust and leading to greater adoption across the Kingdom.
• Widespread Use of Digital Currencies: Saudi Arabia is expected to launch its digital currency within the next five years, as part of SAMA's efforts to modernize the financial system. By 2028, the use of digital currencies will likely become a common payment method, with over 50 million transactions expected annually. This will position Saudi Arabia as a leader in the adoption of central bank digital currencies (CBDCs), contributing to the digital payments market's rapid growth.