Vietnam Natural Language Generation (NLG) Market Outlook to 2030

• The Vietnam Natural Language Generation (NLG) Market was valued at USD 125 million in 2023. This growth is driven by the increasing adoption of AI technologies across various sectors, such as finance, healthcare, and customer service.

• IBM Corporation, Automated Insights, Narrative Science, Arria NLG, and AX Semantics are the major players in the Vietnam NLG market. Their continuous innovation and extensive research and development efforts contribute significantly to the market's growth.
• In 2023, IBM announced a partnership with FPT Software, a leading IT services provider in Vietnam, to integrate IBM’s NLG technology into FPT’s digital transformation services. This collaboration aims to enhance the efficiency and accuracy of automated content generation for FPT’s clients in various sectors, including finance, retail, and telecommunications.
• The Ho Chi Minh City region dominates the Vietnam NLG market, accounting for the highest market share in 2023. The region's dominance is attributed to its status as the economic hub of Vietnam, with a high concentration of tech companies and startups.

Vietnam's Natural Language Generation market is segmented into product type, application, and region.

• By Product Type: The Vietnam NLG market is segmented by product type into software, services, and platforms. In 2023, software solutions held the dominated the market due to the demand for sophisticated NLG software that can integrate with existing business systems and provide scalable solutions is the primary driver for this segment's dominance.

• By Application: The market is segmented by application into customer service, healthcare, finance, and others. In 2023, the customer service segment dominated the market due to the growing need for personalized and timely customer interactions is the main reason for the high adoption of NLG in this segment.

• By Region: The market is segmented by region into North, South, East, and West. In 2023, the South region held the largest market share. The region's technological infrastructure, investment in innovation, and presence of major tech companies contribute to its leading position. 

• Arria NLG: Arria NLG launched an upgraded version of its NLG platform in 2023, incorporating advanced machine learning algorithms. This upgrade aims to enhance the contextual accuracy and personalization of generated content, setting new standards in the NLG market and attracting more businesses to adopt the technology.
• AX Semantics: In 2024, AX Semantics announced its expansion into the Vietnamese market, aiming to provide NLG solutions to local businesses across various sectors. This expansion is expected to drive the adoption of NLG technologies in Vietnam, contributing to the market's growth and development.

Vietnam Natural Language Generation Market Growth Drivers:

• Adoption of AI in Customer Service: In 2024, the number of businesses integrating AI for customer interactions is expected to reach 4,000. This trend is driven by the need for automated, yet personalized, customer support. The Vietnamese government's digital transformation strategy has further boosted this adoption, with significant investments in AI infrastructure.
• Increased Investments in Healthcare: The healthcare sector in Vietnam is increasingly investing in AI-driven solutions, including NLG. By 2024, healthcare institutions are projected to spend USD 2.3 billion on AI technologies to improve patient care and administrative efficiency. This investment is aimed at automating the generation of medical reports, patient records, and diagnostic summaries, significantly enhancing the sector's operational capabilities.
• Expansion of E-commerce Platforms: The rapid growth of e-commerce in Vietnam has fueled the demand for NLG solutions to automate product descriptions, customer reviews, and marketing content. By the end of 2024, the number of e-commerce businesses is expected to surpass 15,000, driving the need for efficient content generation tools. The rise of online shopping has created a robust market for NLG applications in the retail sector.

Vietnam Natural Language Generation Market Challenges:

• High Cost of Raw Materials: The Natural Language Generation (NLG) market in Vietnam faces challenges due to the high cost of raw materials. In 2024, the cost of key fruits such as oranges and apples surged to 10,000 VND per kilogram due to unfavourable weather conditions and supply chain disruptions. This increase in raw material costs puts pressure on manufacturers' profit margins and could potentially lead to higher consumer prices.
• Competition from Fresh Juices: The preference for fresh juices poses a challenge to the Natural Language Generation (NLG) market. In 2024, fresh juice sales reached 200 million litres, overshadowing the demand for concentrates. Consumers perceive fresh juices as healthier and more natural, making it challenging for Natural Language Generation manufacturers to capture a larger market share.

Vietnam Natural Language Generation Market Government Initiatives:

• Digital Transformation Strategy: The government's digital transformation strategy includes a budget of USD 5 billion for digital economy projects in 2024. This strategy focuses on integrating AI technologies, including NLG, into public and private sectors to drive efficiency and innovation. The initiative also aims to create a conducive environment for tech startups and enterprises.
• National AI Strategy: The National AI Strategy, launched in 2023, includes a comprehensive framework to advance AI research, development, and deployment in Vietnam. With an allocated budget of USD 1 billion over five years, the strategy aims to position Vietnam as a leader in AI technologies, including NLG, by providing incentives for research, development, and innovation in this field.

Vietnam's natural language generation market is expected to reach USD 435 million by 2028. The market is also likely to shift towards more organized with established players and online platforms expanding their reach.

Vietnam Natural Language Generation Future Market Trends:

• Integration of NLG with Other AI Technologies: Over the next five years, the integration of NLG with other AI technologies, such as natural language processing (NLP) and machine learning (ML), will become more prevalent. This integration will enhance the capabilities and accuracy of NLG systems, enabling more sophisticated and personalized content generation for various applications.
• Growing Demand for Multilingual NLG Solutions: As businesses expand globally, the demand for multilingual NLG solutions will increase. By 2028, the number of businesses requiring NLG systems that can generate content in multiple languages is expected to reach 10,000. This trend will drive the development of more advanced NLG technologies capable of handling diverse linguistic and cultural nuances.