Vietnam Agricultural Machinery Market Size

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.