The global outbreak of Covid-19 virus has led to massive disruptions in all industries, majorly due to supply chain disruptions. The looming public health crisis has claimed over 35 lives in Vietnamas of 23rd February 2021and apart from that, it continues to pose a threat on the lives, livelihoods and businesses across the world.
Vietnam has shown the effectiveness in stopping
the community transmission of COVID-19; however it has not been able to avoid
the economic crisis due to the effects of lockdown. According to the estimation
by the General Statistics Office of Vietnam, as of mid-April 2020, nearly 5
million people lost their jobs because of this epidemic. In the first quarter
of 2020, the economic growth rate was 3.82%, the second quarter it decreased to
0.39%, the third quarter it increased again to 2.62%, bringing the growth rate
of 9 months of 2020 to 2.12%. Although the growth is still positive, this is
the lowest compared to the same period for during 2011-2020. Vietnam is one of
the few countries with positive growth in economy.
Effect on Agricultural
Machines Demand in the First Half of 2020: The imposed lockdown in the country and the
social distancing norms have severely impacted the agricultural machines demand in the country. Companies that had surplus
inventory as a buffer were stronger in with standing the market shock brought
about by the pandemic. The companies that were completely relying on imports
were impacted as during the pandemic as the supply chain was disrupted in the
first and second half. Machinery manufacturers saw declines in demand for equipments
during the Covid-19 pandemic as there was a fall in farmer’s income. The
production capacity of various agricultural machine manufacturers was as low as
due to drop in demand during Q2-20. Due to COVID-19 restrictions in the country,
Import turnover of agricultural, forestry and fishery products were estimated
at about USD 4.3 billion, down 6.7% compared to the same period in 2019. In
addition to COVID, the impacts of climate change have shown an impact from the
beginning of the year causing drought and saline intrusion in the Mekong Delta affecting
the cultivation and aquaculture industries.
Effect on Machinery
Demand in the First Half of 2020: Stay-at-home orders amidst the pandemic prohibited
the workers to visit the manufacturing factories. This caused a decrease in the
domestic production of agricultural machinery. Vietnam is
highly dependent on import for the agricultural equipments and most of its
demands are met from China, Japan and Korea. A disruption in supply chain
effected companies which were completely relying on imports of machinery and
spare parts.
The industry is expected to witness steady
recovery from 2021 onwards and the sales volume reaching pre-COVID levels in
the next few years. In the longer run, players in the agricultural machinery
industry are expected to shift towards precision agriculture features including
GPS, GIS, Cabin Control for Fields, Telematics and Others which might make
these machines more efficient in reducing post harvest losses in the future. Foreign
players are expected to dominate the major share of consumers in the future. Strategic
partnerships with local players and as well other stakeholders in the industry
are expected to increase the domestic manufacturing sales volume in the future.
This would be coupled with focus on increasing quality of products and continued
investment in marketing and promotion to drive the sales revenue. Basis all
these factors, the Vietnam Agricultural Machinery Market is expected to grow at
a CAGR of 6.4% on the basis of sales revenue during the forecast period 2020-2025.
Key Segments Covered:-
By Product Type
Tractors (2W and
4W)
Combine
Harvesters
Rice Transplanter
Implements
By Tractor Segment
Upto 12 Hp
Between 12-35 Hp
Above 35 Hp
By Region of Sales
Mekong Delta
Red River Delta
Northern Midlands
and Mountains
North Central and
Central Coast
Central Highlands
South East
By Implement Segment
Rotavator
Plough
Harrow
Fertilizer
Spreaders
Others
Companies Covered:-
Kubota Vietnam
Yanmar Vietnam
VEAM (Vietnam Engine and
Agricultural Machinery Corporation)
Thaco (LS Mtron)
Key
Target Audience:-
Agricultural Equipment
Companies
New Market Entrants-
Domestic OEMs
New Market Entrants-
Foreign OEMs
Agricultural Equipment
Financing Companies
Government Bodies
Investors & Venture
Capital Firms
Agricultural Equipment
Manufacturers
Agricultural Equipment
Distributors
Agricultural Equipment
Associations
Time
Period Captured in the Report:-
Historical Period – 2014-2020
Forecast
Period – 2021-2025
For More Information on the research report,
refer to below link:-
Vietnam Agricultural Machinery Market
Related
Reports:-
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