Vietnam Agricultural Tractor Market Size

Vietnam Agricultural Tractor Market Analysis

The Vietnam Agricultural Tractor Market size is estimated at USD 623.83 million in 2024, and is expected to reach USD 798.46 million by 2029, growing at a CAGR of 5.06% during the forecast period (2024-2029).

• More than 70% of the cultivated area in Vietnam is mechanized. The rapid adoption of mechanization in the agriculture industry is driving the market growth. Agricultural machinery has played a crucial role in increasing agricultural productivity and efficiency in Vietnam. With the increasing shortage of laborers in rural areas, farmers have turned to mechanization to overcome this challenge and improve their yields. The increasing shortage of laborers in rural areas of Vietnam has been a driving force behind the growth of the agricultural machinery market. Farmers can improve productivity and efficiency, reduce production costs, and increase their yields by adopting agricultural machinery.
• The government initiatives to promote the mechanization of farms to increase the cost and time efficiency of crop production are one of the major drivers of the market. The agriculture sector of Vietnam has witnessed a substantial decline in the use of animal and human power in the agriculture sector. About 53% of agricultural tractors in the country 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.
• Tractors in the country are mainly used in mechanized land preparation for crop production of rice, corn, and sugarcane. In the Mekong Delta of Vietnam, wetland rice is the most important crop. 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 tractor sales.