How is the Vietnam Agricultural Equipment Market Positioned?
Overview: Mechanization levels in Vietnam have increased considerably over the period 2014-2020. Soil preparation and harvesting for all the major cops in the country are more mechanized now compared to 2014. Mechanization levels are expected to incline further over the next few years and reach a benchmark level by the year 2030. Mekong Delta and Red River Delta are the most mechanized areas of the country as of 2020.
Vietnam imports majority of machinery and equipment for agriculture, mainly from China, Japan, and Korea. The competitiveness of domestic machines is also low because the cost is higher than imported products. Also, due to lack of solid basis in metallurgy, the domestic players are not able to provide the same quality as that of Japanese and Korean players.
Market: Market for agricultural machinery in Vietnam has enhanced by a CAGR of ~% over the period 2014-2020. Sales for new Combine Harvesters, Transplanters, Tractors and implements were recorded at ~ in Vietnam during 2020. Sales revenue amounted to VND~ million in 2020.
Increasing demand for
food, reduction in post harvest losses, shortage of labour, extreme climatic
conditions and signing of free trade agreement with various countries are the
main reasons behind positive growth in agricultural machinery revenue. However,
the agriculture in the country is constantly affected by drought and salt water
intrusion which hampers the growth of this market.
Vietnam Agricultural
Machinery Market Segmentation
By Product Type: Tractors market dominated the agricultural equipment industry in Vietnam in 2020 on the basis of value and volume. This is majorly due the fact that their use is not limited to agriculture and can be used for transport of agri-produce as well.
Tractor Market By Type: Majority of the market is dominated by 2 wheel tractors in terms of volume, majorly due to their low price. However 4 wheel tractors with lower HP are replacing the hand tractors.
Tractor Market By Power: The market for agricultural tractors has witnessed a gradual change over the period 2014-2020. Use of tractors 12 HP or below has declined over the period 2014-2020 while use of larger tractors has increased during this period. Tractors of power between 12 HP to 35 HP has accounted for the largest share.
By Region
of Tractor Sales: Demand for 2W tractor
was observed to be highest in Northern Midlands and Mountains. Red River Delta experienced
decline in demand due to increasing fragmentation of land in the region which
inhibits farmers to purchase new equipments.
Combine
Harvester Market By Region: Mekong
Delta has the highest number of Combine Harvester owing to higher land holding
farm size. Other regions prefer to rent a combine harvester owing to its high
price.
Rice
Transplanter Market By Region: Mekong Delta has the highest number of Rice Transplanters owing to higher
land holding farm size.
Implements
Market By Type: Demand for
tractor implements is complimentary to the sale of 2W & 4W tractors since
majority of farmers procure implements along with tractors. Rotavator &
Ploughs are the most preferred and demanded tractor implement as they help in
seedbed preparation and ploughing of land.
Competition Scenario In Vietnam Agricultural Equipment Market
The Vietnam agricultural
equipment market is concentrated among top 2 major manufacturers (Kubota and
Yanmar) accounting for ~% of the sales volume for 4W Tractors, ~% of the sales
volume for 2W Tractors, ~% for Combine Harvesters and ~% for Rice Transplanters
in 2020. Both domestic as well as foreign companies have entered the market
over the past five years to tap the potential in this sector. These players
compete on parameters Product Portfolio, Distribution Network, Pricing,
Discounts, and Geographical Location, value Added Services, Collaborations
& Partnerships and After Sales Service.
Vietnam Agricultural Machinery Market Future Outlook and Projections
The agricultural
machinery market in Vietnam is expected to grow at a CAGR of ~% on
the basis of revenue and ~% on the basis of volume over the forecast period
2020-2025. However, the growth was slightly constrained in the year 2020due to
the COVID-19 pandemic. This is likely to effect the growth in the year 2021 as
well. Market has been anticipated to pick up from 2022 and growth significantly
over the period 2022-2025. Companies are expected to focus on wider
distribution network including expansion to northern midland and mountains and
invest in research and development to come up with innovative products. The
forecast period is also expected to witness collaboration or acquisitions among
foreign and domestic players in the industry.
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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