[ 英語タイトル ] Vietnam Agricultural Tractor Market Growth, Trends and Forecast (2020 - 2025)

Product Code : MDAG0083278

Survey : Mordor Intelligence

Publish On : November, 2020

Category : Agriculture and Allied Activities

Study Area : Vietnam

Report format : PDF

Sales price option (consumption tax not included)

[Report Description]

The agricultural tractor sales recorded in Vietnam was at 4,454 units in 2019 and is expected to witness a CAGR of 2.9% during the forecast period. Rice, maize, and sugarcane are the most cultivated crops, with rice being the most mechanized crop. Most than 70% of the cultivated area under Vietnam is mechanized. About 53% of agricultural tractors have a capacity of less than 12 HP, 35% have 12 to 35 HP, and 12% have the capacity of more than 35 HP. In the Mekong Delta of Vietnam, wetland rice is the most important crop. Tractors are mainly used for mechanized land preparation for crop production, such as rice, corn, and sugarcane. Increasing farm mechanization rates, increasing costs of farm labor, and shorter replacement cycles of tractors are the major factors attributing to the growth of the tractors sales.

Key Market Trends

Shortage of Seasonal Agricultural Labor

Though agricultural wages are low and the lifestyle of laborers in the industrial background is poor, people prefer industrial jobs over agriculture, as the agricultural production in Vietnam is on the decline. This situation is leading to a shortage of agricultural labor in Vietnam, during the farming season. There is excessive production of a few products with low quality, which is unable to cater to the demand for the new products required by the Vietnamese market. The competition for exporting the products has intensified, which has led to a decrease in the prices of crops. This situation has not helped the farmers to obtain a return on investments, who are unable to pay the labor costs. Shortage of seasonal agriculture labor is the major driver for the growth of the tractors market, as the work of laborers can be replaced with tractors because using tractors will also consume less time.

Less than 35 HP Dominates the Market in terms of Revenue

Farm mechanization is increasing globally, due to a lack of farm laborers. Moreover, niche and higher horsepower segments are witnessing growth. Farmers prefer small and customized tractors for agricultural purposes due to small farmland sizes. Moreover, lesser fuel consumption by small tractors helps to empower small and marginal farmers. In this segment, the consumer bargaining power is expected to be high, as compared to high powered tractors, due to the availability of a wide range of options and substitutes. Tractor with less than 35 Hp occupy less space and can be used with greater flexibility. Ease of customization makes them more amenable to experimentation, and consequentially, manufacturers are willing to try new components and technologies in this segment before moving on to high powered ones.

Competitive Landscape

Kubota, and VEAM are the largest companies that provide tractors in the Vietnam market. More than 70% of the tractors in Vietnam are imported and only around 15% are produced domestically. VEAM is the largest domestic supplier for tractors in Vietnam. Thaco recently opened a new plant in Vietnam, with the aim of increasing its domestic market share in agricultural machinery.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support