Published by Ken Research
Posted on October 11, 2021
Vietnam News
Key Findings
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 machines decreased 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 machines in 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:-
Companies Covered:-
Key Target Audience:-
Time Period Captured in the Report:-
Key Topics Covered in the Report:-
For More Information on the research report, refer to below link:-
Vietnam Agricultural Machinery Market
Related Reports:-
The revenues from the overall agriculture machinery market increased at a positive single-digit CAGR of 2.7% during the period 2013 – 2019. The contribution of the tractor market to the overall market stood at more than 50.0% in 2019. Combine Harvesters have been the second-largest category, to the overall revenues of the agriculture equipment market largely due to rising government support, growing per capita income, and rising demand for rice in the country. The revenue from the tractor market in Thailand increased at a CAGR of 4.6% during the period 2013 – 2019. Tractors have been segmented on the basis of power and those that range from 20 to 75 hp were most preferred in Thailand, accounting for the highest total tractor sales volume.
Agricultural Equipment Market started to boom with the introduction of rice combine harvesters by Kubota in 2010. During the initial years, farmers were hesitant in adopting these equipments as they had no knowledge about usage of these equipments and also feared losing their job. However, growing support from the government and private investors, helped in enhancing farm mechanization in the country.
Europe agriculture equipment market was observed at a highly maturity stage though the farming sector within Europe has never stopped working towards innovation for agriculture equipment and every cycle brings in new technological innovation. Increasing presence of both international as well as domestic players coupled with new government initiatives has created a positive impact on the market. Europe agriculture equipment industry revenue has increased at a positive CAGR during the review period 2013-2018. The European agriculture market witnessed a decline in 2016 in terms of revenue but gradually recovered during 2017-2018. There has been a shift towards mechanization in the market as modern farm machines are now equipped with advanced technologies which aid in simplifying the farming activities. In addition to that, government support in the form of subsidies has further encouraged the growth of agriculture industry within European region
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Support@kenresearch.com
+91-9015378249
Vietnam News
Key Findings
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 machines decreased 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 machines in 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:-
Companies Covered:-
Key Target Audience:-
Time Period Captured in the Report:-
Key Topics Covered in the Report:-
For More Information on the research report, refer to below link:-
Vietnam Agricultural Machinery Market
Related Reports:-
The revenues from the overall agriculture machinery market increased at a positive single-digit CAGR of 2.7% during the period 2013 – 2019. The contribution of the tractor market to the overall market stood at more than 50.0% in 2019. Combine Harvesters have been the second-largest category, to the overall revenues of the agriculture equipment market largely due to rising government support, growing per capita income, and rising demand for rice in the country. The revenue from the tractor market in Thailand increased at a CAGR of 4.6% during the period 2013 – 2019. Tractors have been segmented on the basis of power and those that range from 20 to 75 hp were most preferred in Thailand, accounting for the highest total tractor sales volume.
Agricultural Equipment Market started to boom with the introduction of rice combine harvesters by Kubota in 2010. During the initial years, farmers were hesitant in adopting these equipments as they had no knowledge about usage of these equipments and also feared losing their job. However, growing support from the government and private investors, helped in enhancing farm mechanization in the country.
Europe agriculture equipment market was observed at a highly maturity stage though the farming sector within Europe has never stopped working towards innovation for agriculture equipment and every cycle brings in new technological innovation. Increasing presence of both international as well as domestic players coupled with new government initiatives has created a positive impact on the market. Europe agriculture equipment industry revenue has increased at a positive CAGR during the review period 2013-2018. The European agriculture market witnessed a decline in 2016 in terms of revenue but gradually recovered during 2017-2018. There has been a shift towards mechanization in the market as modern farm machines are now equipped with advanced technologies which aid in simplifying the farming activities. In addition to that, government support in the form of subsidies has further encouraged the growth of agriculture industry within European region
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Support@kenresearch.com
+91-9015378249
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