Vietnam Agricultural Machinery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 11.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Vietnam Agricultural Machinery Market Analysis
The Vietnam Agricultural Machinery Market is projected to register a CAGR of 11.5% during the forecast period.
- Vietnam is one of the Southeast Asian countries, which depends on agriculture as the state's primary source of income. The agriculture sector represents 14% of the GDP and employs around 36% of the nation's workforce, according to a World Bank study of 2020. The factors that are driving this market are population growth, urbanization, and higher productivity demand with the shrinking agricultural land, which have led to the growth in demand for agricultural machinery.
- According to FAO, rice, maize, soybeans, sugarcane, sesame seeds, cassava, beans, banana, pepper, and many others are the major crops produced in the country. In 2021, rice production accounted for the highest yield volume among main crops in Vietnam, amounting to just under 43.9 million metric ton, followed by the yield volume of cassava amounting to around 10.7 million metric ton. In that year, the yield for rice increased by approximately 2.6 percent compared to the previous year.
- Most than 70% of the cultivated area under Vietnam is mechanized. To make this expensive machinery affordable by farmers, the government is implanting supporting schemes. This is one of the major factors driving the growth of the market. Custom hiring of agriculture machinery can be observed in Vietnam as the local production of agriculture machinery is low. Agricultural co-operatives and private enterprises are the providers of machinery for hire. Organizations that offer hiring services have efficient machinery in tillage, harvesting, threshing, drying, storage of grains, and transportation. These organizations are concentrated especially in Mekong River Delta and Red River Delta.
Vietnam Agricultural Machinery Market Trends
This section covers the major market trends shaping the Vietnam Agricultural Machinery Market according to our research experts:
Increasing Farm Mechanization with Shortage of Labor
According to the 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%.
Vietnam is facing an acute shortage of labor in agriculture with the population shifting to construction and other fields expecting better income. This has been a crucial factor in the increased use of machinery across various processes. The shift in occupational structure from agriculture to different sectors is mainly 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. Shortage of seasonal agriculture labor is the major driver for the implementation of machinery in agriculture, as the work of laborers can be replaced with machines.
According to the Ministry of Industry and Trade, in 2019, the number of tractors across the country increased by about 48%, combine harvesters increased by 79% and agricultural dryers increased by 29%. The farm power availability reached about 2.4 HP/ha cultivated. However, Vietnam is still far behind the average level of equipment for agriculture when compared to Thailand with four HP/ha, China eight HP/ha, and Korea 10 HP/ha.
Row Crop Tractors Dominate the Market
With the rising unavailability of farm laborers and the growing farm mechanization of agriculture, the demand for row-crop tractors boosts the sales of the Vietnam agricultural machinery market. The increasing demand for low power under limited arable land, precision, handling, and efficiency has shaped the development of the modern planter tractor, and it continues to drive the development of these tractors.
The row-crop tractor is specifically tailored to grow crops that meet all agricultural demands, such as ploughing, harrowing, leveling, pulling seed drills, weed control, and running various machines, like water pumps, and belt pulley threshers. These tractors are provided with replaceable driving wheels of different tread widths. They have a high ground clearance to save crop damage. In terms of consumer preferences, sales for 4W tractors are growing faster than that of 2W but the latter has the dominant market share in terms of volume. The low price of two-wheel tractors makes them a great choice for small-hold farmers who own small pieces of land. Technological advancement for developing more efficient products, while keeping in mind the country-specific requirements, will provide opportunities for the future growth of the sector.
Vietnam Agricultural Machinery Industry Overview
The agricultural machinery market in Vietnam is moderately consolidated with few players cornering the majority of the market share. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market, in the country. Along with innovations and expansions, investments in R&D and developing novel product portfolios are likely to be crucial strategies in the coming years. Kubota, CLAAS KGaA mbH, Yanmar, Iseki, CNH, and VEAM are the largest companies that provide agricultural machinery in the Vietnamese market. The major players are ready for investment and various companies are adopting different strategies to increase their market presence in this market in Vietnam.
Vietnam Agricultural Machinery Market Leaders
CLAAS KGaA mbH
Kubota Corporation
Yanmar Vietnam
Iseki Corporation
Vietnam Engine and Agricultural Machinery Corporation (VEAM)
*Disclaimer: Major Players sorted in no particular order
Vietnam Agricultural Machinery Market News
- December 2022: THACO Industries, a new subsidiary of automaker THACO Group, has invested USD 550 million for the mass production of agricultural machinery and supporting industrial products such as auto parts and components, semi-trailers, and other supplemental machinery for export and domestic sale in the country.
- October 2020: Kubota has collaborated with the US chipmaker Nvidia to develop highly sophisticated self-driving autonomous farm tractors. The tractors are equipped with Nvidia graphics processing units and artificial intelligence, coupled with cameras to instantly process collected data to provide a labor-saving solution that will help address the shortage of workers in Vietnam's and Japan's agricultural industry.
Vietnam Agricultural Machinery Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Tractors
5.1.1.1 Engine Power
5.1.1.1.1 Less than 15 HP
5.1.1.1.2 15 to 30 HP
5.1.1.1.3 31 to 45 HP
5.1.1.1.4 46-75 HP
5.1.1.1.5 More than 75 HP
5.1.2 Rice Transplanters
5.1.3 Harvesting Machinery
5.1.4 Haying & Forage Machinery
5.1.5 Other Product Types
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Kubota Corporation
6.3.2 CLAAS KGaA GmbH
6.3.3 Vietnam Engine and Agricultural Machinery Corporation (VEAM)
6.3.4 Yanmar Vietnam
6.3.5 Vietnam Agrotech Co., Ltd
6.3.6 CNH Industrial
6.3.7 ShanDong Huaxin Machinery Co. Ltd.
6.3.8 Iseki Corporation
6.3.9 Truong Hai Auto Corporation (THACO)
6.3.10 Tong Yang Moolsan Company Limited
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Vietnam Agricultural Machinery Industry Segmentation
Agricultural machinery relates to the mechanical structures and devices used in farming or other agricultural operations. Farm machines include a great variety of devices with a wide range of complexity: from simple hand-held implements used since prehistoric times to the complex harvesters of modern mechanized agriculture. The Vietnam Agricultural Machinery Market is Segmented by Product Type (Tractors, Rice Transplanters, Harvesting Machinery, Haying & Forage Machinery, and Other Product Types). The report offers the market size and forecasts for volume in (units) and value in (USD million) for all the above segments.
| Product Type | |||||||||
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| Rice Transplanters | |||||||||
| Harvesting Machinery | |||||||||
| Haying & Forage Machinery | |||||||||
| Other Product Types |
Vietnam Agricultural Machinery Market Research FAQs
What is the current Vietnam Agricultural Machinery Market size?
The Vietnam Agricultural Machinery Market is projected to register a CAGR of 11.5% during the forecast period (2024-2029)
Who are the key players in Vietnam Agricultural Machinery Market?
CLAAS KGaA mbH, Kubota Corporation, Yanmar Vietnam, Iseki Corporation and Vietnam Engine and Agricultural Machinery Corporation (VEAM) are the major companies operating in the Vietnam Agricultural Machinery Market.
What years does this Vietnam Agricultural Machinery Market cover?
The report covers the Vietnam Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Agricultural Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Vietnam Agricultural Machinery Industry Report
Statistics for the 2024 Vietnam Agricultural Machinery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vietnam Agricultural Machinery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
