Vietnam Agricultural Tractor Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)

The Vietnam Agricultural Tractors Market is Segmented by Engine Power (Less than 15 HP, 15 to 30 HP, 31 to 45 HP, 46-75 HP, and More than 75 HP).

Market Snapshot

Vietnam Agricultural Tractor Market Overview
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 2.9 %

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Market Overview

The Vietnamese agricultural tractor market is projected to register a CAGR of 2.9% during the forecast period (2021-2026).

The COVID-19 had a direct and negative impact on this industry due to the disruptions in the supply chain and delays in the manufacturing of tractors. The dealership network was badly affected, leading to a sharp decline in the sales of tractors in the first quarter of 2020.

Rice, maize, and sugarcane are the most cultivated crops, with rice being the most mechanized crop. More than 70% of the cultivated area under Vietnam is mechanized. About 53% of agricultural tractors have a capacity of less than 12 HP, and 35% have 12 to 35 HP, while 12% have a capacity of more than 35 HP. In the Mekong Delta of Vietnam, wetland rice is the most important crop. Tractors are mainly used in mechanized land preparation for crop production of rice, corn, and sugarcane. The increasing farm mechanization rates, rising costs of farm labor, and shorter replacement cycles of tractors are the major factors attributing to the growth of tractors sales.

Scope of the Report

In the report, the tractors used in agricultural operations, especially four-wheeled tractors, are considered. The report does not cover other agricultural machinery and attachments to tractors. Tractors used for industrial and construction purposes are also excluded from the study.

Engine Power
Less than 15 HP
15 to 30 HP
31 to 45 HP
46-75 HP
More than 75 HP

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Key Market Trends

Shortage of Agricultural Labor

In Vietnam, people prefer industrial jobs over agriculture, as agricultural production is declining. This situation is leading to a shortage of agricultural labor in Vietnam during the farming season. There is excessive production of a few products with low quality that cannot cater to the demand for the new products in the Vietnamese market. The competition for exporting the products intensified, which led to a decrease in the prices of crops. This situation has not helped the farmers, who cannot pay the labor costs, obtain a return on investments. There is a continuous decline in the labor force that depends on agriculture in Vietnam. Thus, the shortage of agriculture labor is acting as a primary driver for the growth of the tractors market, as the laborers' efforts can be replaced with tractors.

Vietnam Agricultural Tractor Market Latest Trends

Less than 35 HP Dominates the Market in terms of Revenue

Farm mechanization is increasing due to a lack of farm laborers in Vietnam. Farmers prefer small and customized tractors for agricultural purposes due to small farmland sizes. Additionally, lesser fuel consumption by small tractors helps to empower small and marginal farmers. In this segment, the consumer bargaining power is expected to be high, as compared to high-powered tractors, due to the availability of a wide range of options and substitutes. Tractors with less than 35 Hp occupy less space and can be used with greater flexibility. The ease of customization makes the farmers more amenable to experimentation, and consequentially. Therefore, manufacturers are willing to try new components and technologies in this segment before moving on to high-powered ones. Therefore, these factors lead the less than 35 hp tractors to hold the major market share in the country

Vietnam Agricultural Tractor Market Share

Competitive Landscape

The Vietnamese agricultural tractor market is consolidated with the presence of global players in the country. Kubota, CLAAS, Yanmar, and VEAM are some of the major players operating in the industry. These companies are expanding their business activities by focusing on new product launches, partnerships, and investments. However, more than 70% of the tractors in Vietnam are imported for domestic use in agriculture.

Recent Developments

In February 2018, Truong Hai Auto Corporation (THACO) established a new agricultural machinery manufacturing plant with an enhanced annual production capacity of 2000 tractors at Chu Lai, Vietnam.

In January 2018, Kubota launched two new tractor models—L4018VN (40HP) and L3218 (32HP)—in the Vietnamese market.

Table of Contents


    1. 1.1 Market Definition and Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition


    1. 5.1 Engine Power

      1. 5.1.1 Less than 15 HP

      2. 5.1.2 15 to 30 HP

      3. 5.1.3 31 to 45 HP

      4. 5.1.4 46-75 HP

      5. 5.1.5 More than 75 HP

  6. 6. Competitive Landscape

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Kubota Tractor Corporation

      2. 6.3.2 CLAAS KGaA mbH

      3. 6.3.3 Vietnam Engine and Agricultural Machinery Corporation

      4. 6.3.4 Yanmar America Corporation

      5. 6.3.5 Belarus

      6. 6.3.6 CNH Industrial

      7. 6.3.7 ShanDong Huaxin Machinery Co. Ltd

      8. 6.3.8 AGCO Corporation

      9. 6.3.9 Tong Yang Moolsan Co. Ltd

      10. 6.3.10 Truong Hai Auto Corporation (THACO)



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Frequently Asked Questions

The Vietnam Agricultural Tractor Market market is studied from 2016 - 2026.

The Vietnam Agricultural Tractor Market is growing at a CAGR of 2.9% over the next 5 years.

CLAAS KGaA mbH, Vietnam Engine and Agricultural Machinery Corporation, Yanmar America Corporation, Kubota Tractor Corporation are the major companies operating in Vietnam Agricultural Tractor Market.

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