According Ministry of Agriculture and Rural Development in 2020, the level of mechanization in agriculture is increasing in the pre- and post-harvest stages. Specifically, the rate of mechanization of agricultural land preparation reached 94%; 42% of sowing and planting care reached 77% and that of rice harvest reached 65%.
Compared to 2011, in 2019,
the number of tractors across the country increased by about 48%, combine
harvester increased by 79%, and agricultural dryer increased by 29%. The farm
power availability reached about 2.4 HP / ha cultivated.
The Ministry of Industry and
Trade assessed that the level of equipment for Vietnam's agriculture only
reached 1.4 horsepower (HP) for cultivation, much lower than countries like
Thailand with 4 HP / ha; China 8 HP / ha; Korea 10 HP / ha.
Shortage of Labour: Due to
rapid urbanisation, most of the farmers are shifting to construction and
services sector in hopes of earning more wages. Consequently, this has led to a
shortage of agriculture labour in Vietnam. This has acted as a major driver for
the implementation of machinery in agriculture. The transition of occupational
structure from agriculture to other sectors is rapidly occurring in the four
regions: The Red River Delta, the North Central and the Central Coastal areas,
the Mekong River Delta, and the South East.
Two Wheel Tractors to Dominate the
Sales Volume in the Market: Field size and shape in Vietnam is tiny and
dispersed. As per International Rice Research Institute, the country has 70
million pieces of land; therefore there is 0.7 ha of land available for every
family, which is made up of 3–4 pieces of land. Due to this fragmentation of land,
farmers often buy two wheel tractors which are convenient for small pieces of
land and are also economical.
Sluggish Growth Rate of Rice
Transplanters: Sale of Rice Transplanters in Vietnam is expected to increase at a
slower rate in future as compared to tractors as farmers lack the technical
knowledge to use the machines and are not aware of the benefits of modern
methods of sowing rice.Due to its limited use to rice farming they prefer to
rent or buy a second hand rice transplanter.
Declining Agricultural Machine Demand due to Covid-19: The demand for agricultural machines decreased during the
corona virus pandemic. This was due to low production and also due to closure
of dealerships and retail shops during lockdown. This was further fuelled by decrease in farmer’s income which led to
postponing of agricultural machinery purchases. Also, Vietnam has recently
recovered from a drought and Mekong Delta is currently under salt water
intrusion which has led to a decline in production. Apart from production and
utility issues, agricultural equipment companies experienced cash flow
difficulties due to the fact that most of the imports were banned and local
manufacturing and assemblies were shut down. The demand for machines in the country
remained low at the starting of 2020, however there was increase in demand in
the second half of the year post ease in confinement. Slow recovery is expected
in 2021. The manufacturers are expected to shift focus towards 4 wheel tractors
along with launch of precision agricultural products in accordance with Vietnam
Agriculture 4.0 agenda.
Analysts at Ken Research in their latest publication “Vietnam
Agricultural Machinery Market Outlook To 2025 – Agriculture Tractor Market (By
Type: 2W And 4W Tractors, By Power: Below 12 HP, 12HP-35HP, And Above 35HP, By Region: Central
Highlands, North Central & Central Coast, Mekong Delta, Northern Midlands
and Mountains, Red River Delta and South East),
Combine Harvester Market, Rice Transplanters Market and Agriculture
Implements Market (By Product Type: Rotavator, Plough, Harrow, Fertilizer Spreaders and Others)”observed that Vietnam
is a growing agricultural machinery market in South East Asia and is slowly
recovering from the economic crisis after pandemic. The increasing credit
availability in the country along with exemption in taxes is driving the growth
of the industry. Increasing focus on promotional and marketing activities, new
product launches, partnerships & collaborations are expected to drive the
industry in the future. The Vietnam Agricultural Machinery Market is expected
to grow at a CAGR of 6.4% on the basis of sales revenue over the forecast
period 2020-2025.
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:-
Contact
Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
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