Key Findings

• According 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%.
• Compared to 2011, in 2019, the number of tractors across the country increased by about 48%, combine harvester increased by 79%, and agricultural dryer increased by 29%. The farm power availability reached about 2.4 HP / ha cultivated.
• The Ministry of Industry and Trade assessed that the level of equipment for Vietnam's agriculture only reached 1.4 horsepower (HP) for cultivation, much lower than countries like Thailand with 4 HP / ha; China 8 HP / ha; Korea 10 HP / ha.

Shortage of Labour: Due to rapid urbanisation, most of the farmers are shifting to construction and services sector in hopes of earning more wages. Consequently, this has led to a shortage of agriculture labour in Vietnam. This has acted as a major driver for the implementation of machinery in agriculture. The transition of occupational structure from agriculture to other sectors is rapidly 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.

Two Wheel Tractor to Dominate the Sales Volume in the Market: Field size and shape in Vietnam is tiny and dispersed. As per International Rice Research Institute, the country has 70 million pieces of land; therefore there is 0.7 ha of land available for every family, which is made up of 3–4 pieces of land. Due to this fragmentation of land, farmers often buy two wheel tractors which are convenient for small pieces of land and are also economical.

Sluggish Growth Rate of Rice Transplanters: Sale of Rice Transplanters in Vietnam is expected to increase at a slower rate in future as compared to tractors as farmers lack the technical knowledge to use the machines and are not aware of the benefits of modern methods of sowing rice.Due to its limited use to rice farming they prefer to rent or buy a second hand rice transplanter.

Declining Agricultural Machine Demand due to Covid-19: The demand for agricultural machinesdecreased during the corona virus pandemic. This was due to low production and also due to closure of dealerships and retail shops during lockdown. This was further fuelled by decrease in farmer's income which led to postponing of agricultural machinery purchases. Also, Vietnam has recently recovered from a drought and Mekong Delta is currently under salt water intrusion which has led to a decline in production. Apart from production and utility issues, agricultural equipment companies experienced cash flow difficulties due to the fact that most of the imports were banned and local manufacturing and assemblies were shut down. The demand for machinesin the country remained low at the starting of 2020, however there was increase in demand in the second half of the year post ease in confinement. Slow recovery is expected in 2021. The manufacturers are expected to shift focus towards 4 wheel tractors along with launch of precision agricultural products in accordance with Vietnam Agriculture 4.0 agenda.

Analysts at Ken Research in their latest publication "Vietnam Agricultural Machinery Market Outlook To 2025 – Agriculture Tractor Market (By Type: 2W And 4W Tractors, By Power: Below 12 HP, 12HP-35HP, And Above 35HP, By Region: Central Highlands, North Central & Central Coast, Mekong Delta, Northern Midlands and Mountains, Red River Delta and South East),   Combine Harvester Market,  Rice Transplanters Market and Agriculture Implements Market (By Product Type: Rotavator, Plough, Harrow,  Fertilizer Spreaders and Others)" observed that  Vietnam is a growing agricultural machinery market in South East Asia and is slowly recovering from the economic crisis after pandemic. The increasing credit availability in the country along with exemption in taxes is driving the growth of the industry. Increasing focus on promotional and marketing activities, new product launches, partnerships & collaborations are expected to drive the industry in the future. The Vietnam Agricultural Machinery Market is expected to grow at a CAGR of 6.4% on the basis of sales revenue over the forecast period 2020-2025.

Key Segments Covered:-

• By Product Type
  • Tractors (2W and 4W)
  • Combine Harvesters
  • Rice Transplanter
  • Implements
• By Tractor Segment
  • Upto 12 Hp
  • Between 12-35 Hp
  • Above 35 Hp
• By Region of Sales
  • Mekong Delta
  • Red River Delta
  • Northern Midlands and Mountains
  • North Central and Central Coast
  • Central Highlands
  • South East
• By Implement  Segment
  • Rotavator 
  • Plough 
  • Harrow 
  • Fertilizer Spreaders
  • Others

Companies Covered:-

• Kubota Vietnam
• Yanmar Vietnam
• VEAM( Vietnam Engine and Agricultural Machinery Corporation)
• Thaco (LS Mtron)

Key Target Audience:-

• Agricultural Equipment Companies
• New Market Entrants- Domestic OEMs
• New Market Entrants- Foreign OEMs
• Agricultural Equipment Financing Companies
• Government Bodies
• Investors & Venture Capital Firms
• Agricultural Equipment Manufacturers
• Agricultural Equipment Distributors
• Agricultural Equipment Associations

Time Period Captured in the Report:-

• Historical Period – 2014-2020
• Forecast Period – 2021-2025

Key Topics Covered in the Report:-

• Executive Summary
• Research Methodology
• Vietnam Agriculture Equipment Market Overview
• Vietnam Agriculture Equipment Market Size, 2014-2020
• Vietnam Agriculture Equipment Market Segmentation, 2020
• Growth Drivers in Vietnam Agriculture Equipment Market
• Issues and Challenges in Vietnam Agriculture Equipment Market
• Regulatory Framework in Vietnam Agriculture Equipment Market
• Snapshots on Equipment Financing and Rentals, After Market Services and Second Hand Purchases
• Ecosystem and Value Chain of Agricultural Equipment Industry in Vietnam
• Farmers Purchase Decision Making Parameters
• Cross Comparison between Major Players and Company Profiles & Product Portfolios
• Future Market Size and Segmentations, 2021-2025F
• Covid-19 Impact on the Industry & the Way Forward
• Analysts' Recommendations
• Vietnam Agricultural Machinery Industry
• Vietnam Agricultural Equipment Market
• Vietnam Agricultural Machinery Market
• Number of Agricultural Equipment Companies in Vietnam
• Number of Online Agricultural Equipment Companies in Vietnam
• Agricultural Equipment Domestic Players Vietnam
• Agricultural Equipment Foreign Players Vietnam
• Second Hand Agricultural Equipment Vietnam
• Financing of Agricultural Equipments Vietnam
• Financing of Agricultural Machinery Vietnam
• Interest Rate on Agricultural Machines Vietnam
• Region with Highest number of Tractors Vietnam
• Region with Highest number of Combine Harvesters Vietnam
• Region with Highest number of Rice Transplanter Vietnam
• Kubota Number of Dealers Vietnam
• Kubota Best Selling Products Vietnam
• Yanmar Number of Dealers Vietnam
• Kubota Best Selling Products Vietnam
• Thaco Number of Dealers Vietnam
• VEAM Number of Dealers Vietnam
• Logistics Charges for Import of Agricultural Equipment Vietnam
• Import Procedure of Agricultural machinery in Vietnam
• Tractor Sales Vietnam
• Combine Harvester Sales Vietnam
• Rice Transplanter Sales Vietnam
• Kubota Market Share
• VEAM Apotek Market Share
• Thaco Market Share
• Yanmar Market Share
• Agricultural Mechanization Present Status Vietnam
• Future plan of Agriculture Mechanization in Vietnam

Source from: Ken Research(2021). The Implementation of Supporting Policies by Government to Reduce Losses in Agriculture has contributed to Improving the Level of Mechanization in Vietnam: Ken Research. Retrieved from: Cision, PRNewswire (June 22, 2021). https://www.prnewswire.com/news-releases/the-implementation-of-supporting-policies-by-government-to-reduce-losses-in-agriculture-has-contributed-to-improving-the-level-of-mechanization-in-vietnam-ken-research-301317249.html