Market Size of Vietnam Agricultural Machinery Industry
| 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 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 Size Summary
The agricultural machinery market in Vietnam is experiencing significant growth, driven by factors such as population increase, urbanization, and the need for higher productivity due to diminishing agricultural land. As agriculture remains a cornerstone of Vietnam's economy, contributing substantially to GDP and employment, the demand for mechanization is on the rise. The government is actively supporting this trend by implementing schemes to make machinery more affordable for farmers, which is crucial given the high level of mechanization in the country. The market is characterized by a shift towards custom hiring of machinery, facilitated by agricultural cooperatives and private enterprises, particularly in key regions like the Mekong River Delta and Red River Delta. This shift is further propelled by a labor shortage in agriculture, as more individuals move to sectors offering better income prospects, necessitating the increased use of machinery to maintain productivity.
The market is moderately consolidated, with major players like Kubota, CLAAS KGaA mbH, Yanmar, Iseki, CNH, and VEAM dominating the landscape. These companies are focusing on strategies such as new product launches, partnerships, and acquisitions to enhance their market presence. Technological advancements, particularly in developing efficient and country-specific agricultural machinery, are expected to drive future growth. The demand for row-crop tractors is particularly strong, as they meet various agricultural needs and are increasingly preferred due to their efficiency and adaptability. The market is also witnessing investments in research and development, with companies like THACO Industries and Kubota exploring innovative solutions such as autonomous farm tractors to address labor shortages. These developments underscore the dynamic nature of Vietnam's agricultural machinery market, poised for continued expansion and modernization.
Vietnam Agricultural Machinery Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitutes
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Product Type
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2.1.1 Tractors
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2.1.1.1 Engine Power
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2.1.1.1.1 Less than 15 HP
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2.1.1.1.2 15 to 30 HP
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2.1.1.1.3 31 to 45 HP
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2.1.1.1.4 46-75 HP
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2.1.1.1.5 More than 75 HP
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2.1.2 Rice Transplanters
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2.1.3 Harvesting Machinery
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2.1.4 Haying & Forage Machinery
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2.1.5 Other Product Types
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Vietnam Agricultural Machinery Market Size 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.
