Vietnam AI in Retail Market Set to Achieve Remarkable Growth, Surging from USD 86.62 Million in 2023 | Astute Analytica

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This impressive growth underscores the increasing adoption of artificial intelligence technologies across Vietnam's retail sector.

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This impressive growth underscores the increasing adoption of artificial intelligence technologies across Vietnam's retail sector. AI-driven solutions such as personalized recommendations, inventory optimization, dynamic pricing, and smart checkout systems are transforming the retail landscape, enhancing operational efficiency, and elevating customer experiences.

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The Vietnamese government has recognized AI as a pivotal technology for economic growth, leading to substantial investments in the AI in retail market. In 2023, the government allocated $415 million specifically for AI research and application through the National Strategy on AI Development until 2030. This initiative includes grants and incentives for retailers adopting AI technologies, making it financially feasible for companies like VinCommerce to integrate AI into their operations. The government's support extends to collaborations with international tech firms, facilitating knowledge transfer and technology exchange which enhances the local AI capabilities within the retail sector.

This investment in the AI in retail market has led to the establishment of AI-focused innovation hubs, such as the Hanoi Innovation Centre, which supports retail tech startups. As a result, over 150 startups focusing on AI solutions for retail emerged in 2023, attracting venture capital funding totaling $300 million. These startups are developing applications ranging from AI-driven customer service bots to intelligent supply chain management systems, directly contributing to modernizing Vietnam's retail infrastructure. Furthermore, government-led training programs aim to address the talent gap by producing 50,000 AI professionals by 2025. Educational institutions are partnering with retailers to provide practical AI implementation experience. For example, the collaboration between FPT University and Saigon Co.op involves training students who then contribute to developing AI solutions that have already improved inventory turnover rates by 18% in participating stores.

Key drivers of this market expansion include the rapid digital transformation in Vietnam, a growing e-commerce ecosystem, and increasing investments in AI infrastructure by leading retailers. The integration of AI-powered analytics to understand consumer behavior and tailor marketing strategies further accelerates the adoption of these advanced technologies.

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Other Prominent Players

As businesses continue to innovate, Vietnam's AI in retail market is expected to play a crucial role in shaping the future of the country's retail industry.

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• Hardware
• Camera and Imaging Devices
• Sensors
• AI Chips
• Data Loggers
• Service Robots
• Smart Shelves & Labels
• Displays
• Scanners
• POS Systems
• Others
• Solution/ Software
• AI Platform/Tools
• Chatbots & Virtual Assistants
• Others
• Services
• Professional Services
• Managed Services

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• Natural Processing Language (NLP)
• Machine Learning (ML)
• Computer Vision (CV)
• Data Mining
• Deep Learning
• Robotic Process Automation (RPA)
• Others

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• Cloud-Based
• On-Premises

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• Front-End
• Customer Service
• AI-based Chatbots
• Virtual Assistants
• Sales & Marketing
• Personalized Recommendations
• Predictive Analytics
• Visual Search and Image Recognition
• In-Store Operations
• Autonomous Checkout Systems
• Smart Shelves
• Heatmap
• People Counting
• Consumer Behavior Analysis
• Others
• Back-End
• Supply Chain & Inventory Management
• Fraud Detection & Prevention
• Demand Forecasting
• Price Optimization
• Warehouse Automation
• Workforce Management
• Others

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• Specialized Retail
• Supermarkets/Hypermarkets
• Omnichannel Retailers

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