Report Overview

Rising demand for AI (artificial intelligence)-powered customer support services and rapid adoption of advancements in technology are expected to drive Vietnam conversational AI market at a robust growth rate during the forecast period between 2023 and 2029.

Vietnam Conversational AI Market - Industry Trends & Forecast Report, 2029

Vietnam conversational AI market size was estimated to be worth USD 152.72 million in 2022. During the forecast period between 2023 and 2029, the Vietnam conversational AI market size is projected to grow at a CAGR of 21.81% reaching a value of USD 604.48 million by 2029. Major growth factors for Vietnam conversational AI market include an increase in demand for customer support services driven by AI. The market has expanded because of the rising demand for Gartner chatbot solutions powered by AI. Also, the rapid adoption of omnichannel strategies is anticipated to drive the conversational AI market's growth throughout the course of the forecast period.

Vietnam Conversational AI Market – Overview

According to the definition by IBM, “Conversational artificial intelligence (AI) refers to technologies, like chatbots or virtual agents, which users can talk to.” Chatbots and virtual assistants, such as Alexa, Siri, Google Assistant, and Cortana, are some examples of conversational AI. These assistants can provide individualized replies since they comprehend natural language and human intent. Conversational AI offers numerous benefits including accuracy, efficiency, contactless customer experience, reduction in operating costs, and others.

Vietnam Conversational AI Market

Growth Drivers

Rising Demand for AI-Powered Customer Support Services

Businesses need conversational AI in customer service to enhance the whole customer experience while boosting operational effectiveness. According to the Conversation Design Institute, the operational efficiency of customer service firms that include AI in their multi-channel platform will rise by 25% by 2025. Many typical customer service interactions may be handled by conversational AI, giving clients immediate assistance and allowing humans to concentrate on more difficult duties. With rapid economic development in Vietnam, the demand for efficient customer service is anticipated to boost the conversational AI market in the country.

Restraints

Language Barrier Due to Lack of Non-English Speakers

Vietnam mainly consists of non-native English speakers with a high concentration of regional dialects. Just 1% of Vietnamese people are proficient in proper English communication. The majority of individuals are able to speak and understand the language. English is spoken by 53.8% of the population as a whole. These chatbots have been trained to only know what they have been taught. They are unable to comprehend the context that people use, which is a significant gap that can even result in an irate customer. This may act as a major restraining factor for the Vietnam conversational AI market.

Impact of COVID-19 on Vietnam Conversational AI Market

Vietnam conversational AI market witnessed boisterous growth post the COVID-19 pandemic outbreak. Conversational AI is seen as one of the key innovations that sped up digital adoption during the initial stages of the pandemic, along with telemedicine and remote-work technology. To assist ease strain on overburdened contact centers, chatbots, and virtual agents may be built and deployed quickly. While many onshore and offshore call centers closed down due to work-at-home policies and social distancing, government agencies, healthcare providers, non-profit organizations, and companies in virtually every industry were quick to adopt the conversational AI technology as an efficient method of responding to significant influxes of customer calls, which proliferated the overall market growth.

Vietnam Conversational AI Market

Segmental Coverage

Vietnam Conversational AI Market – By Component

Based on components, Vietnam conversational AI market is segmented into solutions, managed services, and professional services. The professional services are further classified into training and consulting system integration and implementation, and support and maintenance. The services segment holds the highest market share as they are helpful in improving efficiency and productivity along with improving the speed of the business and offering better customer services. However, the solutions segment also holds a substantial market share.

Vietnam Conversational AI Market – By Type

Based on type, Vietnam conversational AI market is split into chatbots and Intelligent Virtual Assistants (IVA) segments. The chatbots segment holds a higher share in the Vietnam conversational AI market by type. Vietnamese businesses are using chatbots to boost customer service and sales in addition to fulfilling marketing objectives. Also, chatbot maintenance is so reasonably priced that it helps them control their overhead cost and maximize their profit. However, IVAs are gaining huge popularity in the Vietnam market and are projected to gain significant traction during the forecast period.

Vietnam Conversational AI Market – By Deployment

Based on deployment, the Vietnam conversational AI market is segmented into Cloud and On-premises. The on-premises deployment holds a higher share of the market. Conversational AI implementation on-premises enables complete control over security precautions and gives the owner the ability to permit access or deny anybody access to data. However, the cloud deployment mode is projected to register growth at a higher CAGR during the forecast period. The cloud-based deployment makes conversational AI development easier and simpler, and the companies only need to do as much as they use. Hence, it is attracting more small and medium-sized enterprises (SMEs).

Vietnam Conversational AI Market – By Technology

Based on technology, Vietnam conversational AI market is segmented into Natural Language Processing (NLP), ML & Deep Learning, and Automatic Speech Recognition (ASR). The NLP segment accounts for the highest share in the Vietnam conversational AI market. Natural language search enables users to talk or type into a computer using their everyday language. The machine will translate the inquiry into something it can comprehend while users can talk in complete phrases in their native tongue as if they were conversing with a person. The rising focus on customer support service along with a high rural population in Vietnam with non-native English speakers acts as a major driving factor for this segment's growth.

Competitive Landscape

Major players operating in Vietnam's conversational AI market include Google LLC, Microsoft, Amazon Web Services, Inc., IBM, Oracle, Nuance Communications, Inc., FIS, and SAP SE. These companies employ various strategies to further enhance their market share, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In September 2022 - Base Business Solutions (BaseBS), a leading provider of cloud, hosted customer experience (CX), and contact center solutions in Vietnam forged its strategic partnership with Uniphore, a US-based conversational automation technology company, to enhance customer experiences, improve employee performance, and better understand customer insights to achieve superior business outcomes.

Scope of the Report

By Component

• Solutions

• Managed Services

• Professional Services

• Training and Consulting
• System Integration and Implementation
• Support and Maintenance

By Type

• Chatbots

• Intelligent Virtual Assistant (IVAs)

By Deployment Mode

• Cloud

• On-premises

By Technology

• Natural Language Processing (NLP)

• ML and Deep Learning

• Automatic Speech Recognition (ASR)