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Vietnamese Agricultural Machinery Market Outlook By 2025 Ken Research

The report, titled Agricultural Machinery Market Outlook to 2025 – Agricultural Tractors Market, Combine Harvesters Market, Rice Planting Machinery Market, and Agricultural Equipment Market, provides a comprehensive analysis of the status of the agricultural machinery sector in Vietnam. The report covers various aspects including machine volume and market size, agricultural equipment production scenario in the country, target audience, growth promoters, problems and challenges for the industry, and much more. The report concludes with projections for the future of the industry, including projected revenue and volume through 2025, market segmentations, the impact of Covid-19, and analysts’ view for the future.

Vietnam Agricultural Equipment overview and size:
The Vietnamese agricultural equipment sector is in the growth phase with a revenue CAGR of 3.2 percent over the 2014-2020 period. Growing demand for food, increasing focus on reducing post-harvest losses, labor shortages, extreme climatic conditions and the signing of free trade agreements with various countries are the main reasons for the positive growth in revenue in the agricultural machinery market. Another important driver is the government initiatives to promote the mechanization of farms in order to increase the cost and time efficiency of crop production. Agricultural economists have predicted that total food demand is expected to grow between 59 and 98 percent by 2050, making mechanization a global necessity.

Segmentation of agricultural equipment in Vietnam
By Product (Tractors, Combines, Rice Planters, and Equipment): The tractor market dominated the agricultural industry in Vietnam in 2020 on the basis of value and volume. The presence of the major machine manufacturers is concentrated in the south and north. The mountains in the northern central plateau have the lowest dealer density. Combines have shown a slow growth rate due to their higher price.

Market segmentation for tractors in Vietnam
By tractor segment (2W and 4W): In terms of consumer preferences, sales of 4W tractors are growing faster than 2W, with the latter having the dominant market share in terms of volume. The low price of two wheeled tractors makes them a great choice for smallholders who own small lots.

Further segmentation of tractors according to power: The use of tractors under 12 hp is declining as most farmers are now switching to 4 W tractors. This was made possible by the government as it grants loan grants for agricultural equipment. In addition, a tractor over 35 hp is preferred only by farmers with large land holdings.

By region: The use of agricultural machinery such as tractors is increasing sharply in the highlands due to the increasing production of coffee and other crops such as pepper, tea, fruit and vegetables, flowers, rubber and cashew nuts. The Mekong Delta has gained traction for all-wheel-drive tractors due to the presence of large agricultural areas and the extensive use of tractors from 35 hp.

Market segmentation for combine harvesters in Vietnam
By region: The majority of farmers continue to use traditional methods of threshing and harvesting, particularly in the Northern Midlands and Mountains region, resulting in less use of agricultural equipment. The multifunctional use of combine harvesters is predominant in rice and corn cultivation and is mainly used in the Mekong region.

Market segmentations for rice growers in Vietnam
By region: The Mekong Delta has the highest number of rice planters due to the larger farm size. The trend towards using these machines is high in Dong Th. Due to the low sales of rice planters, some companies have started developing double-row rice planters to serve the smallholder segment in the country.

Competitive Landsce of Vietnam Agricultural Equipment
The report was dominated by Kubota, which had a majority share of the sales volume of new 4-wheel tractors in Vietnam in 2020. In 2020, Kubota also had a majority share of the combine harvesters and rice planters market in Vietnam. Both foreigners as well as domestic companies are present in the market. These actors compete for parameters such as proximity, value-added services, prices, promotional offers, and links to major financial institutions. In order to increase their income, the players offer free gifts and spare parts as part of the advertising.

Future prospects and forecasts for agricultural equipment in Vietnam
The agricultural machinery industry is expected to recover from the Covid-19 pandemic and see growth through 2025. Increasing pressure from the government for mechanization and labor shortages are likely to fuel the sale of agricultural machinery. The introduction of 4WT is also expected to increase in the forecast period. Investments in advertising and marketing activities as well as strategic partnerships between domestic and foreign players are expected in the agricultural equipment market.