Ghaziabad Online

The Implementation of Supporting Policies by Government to Reduce Losses in Agriculture has contributed to Improving the Level of Mechanization in Vietnam: Ken Research

 Breaking News
  • No posts were found

The Implementation of Supporting Policies by Government to Reduce Losses in Agriculture has contributed to Improving the Level of Mechanization in Vietnam: Ken Research

September 15
00:46 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
The report covers various aspects including volume of machines & market size, production scenario of agricultural equipments in the country, target audience, growth facilitators, issues & challenges faced by the industry and more.
Vietnam Agricultural Equipment sector is in the growing phase with a revenue CAGR of 3.2% during 2014-2020. Increasing demand for food, rising focus on reducing post-harvest losses, shortage of labour, extreme climatic conditions and signing of free trade agreement with various countries are the main reasons behind positive growth in agricultural machinery market revenue.
  • 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 Tractors 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:-

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

For More Information on the research report, refer to below link:-

Vietnam Agricultural Machinery Market

Related Reports:-

Thailand Agricultural Machinery Market Outlook to 2025 – Agriculture Tractor Market (By Type: 2W and 4W Tractors, By Power: 8HP-15HP, 20HP-35HP, 36HP-47HP, 48HP-75HP, 75HP-100HP, 100HP-120HP and Above 120HP), Combine Harvester Market (By Power: 70HP & Below, 75HP-105HP and Above 105HP), By Rice Transplanters (By Rows: 4Row, 6Row and 8Row), Agriculture Implements Market

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.

Philippines Agricultural Equipment Market Outlook to 2023- By Product Type (Tractors, Combine Harvesters, Planters, Seeders and Tillage Equipments and Tillage Equipment), By Tractor Segment (Upto 60 Hp, Between 61-130 Hp and above 130 Hp), By Production (Imported and Domestically Manufactured) and By Region (Luzon, Visayas and Mindanao)

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 Outlook to 2023 – By Type (Tractors, Harvesting Equipment, Soil Preparation and Cultivation Equipment, Haymaking Equipment, Crop Protection Equipment, Transport and Handling Equipments and Other Agricultural Equipment); and By Major Countries (Germany, France, Italy, UK, Poland, Spain and Others)

 

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

[email protected]

+91-9015378249

Media Contact
Company Name: Ken Research Private Limited
Contact Person: Ankur Gupta
Email: Send Email
Phone: 919015378249
Address:Unit 14, Tower B-3 Spaze i Tech park Sohna Road
City: Gurugram
State: Haryana
Country: India
Website: www.kenresearch.com


Warning: count(): Parameter must be an array or an object that implements Countable in /home/ghaziabadonline/public_html/wp-content/themes/legatus-theme/includes/single/post-tags.php on line 5
Share