| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 425 Million |
| Market Size (2030) | USD 560 Million |
| CAGR (2025 - 2030) | 11.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Vietnam Agricultural Machinery Market Analysis
The Vietnam Agricultural Machinery Market size is estimated at USD 425 million in 2025, and is expected to reach USD 560 million by 2030, at a CAGR of 11.5% during the forecast period (2025-2030).
The farming machinery market in Vietnam is a critical component of the country’s agriculture sector, which is a significant contributor to the national economy. Agriculture accounts for around 14% of Vietnam’s GDP, with rice, coffee, rubber, and other crops being the major products. As the demand for agricultural productivity increases, the adoption of modern farming machinery becomes a key driver in improving efficiency, reducing labor costs, and enhancing crop yields.
Labor shortages, particularly in rural areas, and rising labor costs are pushing farmers to adopt mechanized solutions. For instance, as per World Bank data, the number of people employed in the agriculture sector dropped from 35% in 2019 to 34% in 2022. Mechanized equipment like tractors and harvesters help reduce reliance on manual labor, increase operational efficiency, and lower production costs. As labor availability declines, especially in regions with high migration to cities, rice farmers in the Mekong Delta have increasingly adopted combined harvesters to reduce labor time and improve harvesting efficiency.
With Vietnam’s growing domestic and export markets for crops like rice, coffee, cocoa, and fruits, there is increasing pressure to improve yield quality and volume. For instance, according to FAOSTAT, rice production was 42,660,798.11 metric tons in 2022, which increased by 43,497,624.81 metric tons in 2023. This has led to greater reliance on modern farming machinery to handle larger-scale production. The growing export demand for Vietnamese rice has led to the adoption of high-efficiency harvesters in the Mekong Delta to meet quality and quantity standards set by international buyers.
Vietnam Agricultural Machinery Market Trends
Harvesting Machinery Holds Significant Position
Harvesting machinery plays a crucial role in the Vietnamese farming sector. As agriculture is a key part of Vietnam’s economy, efficient and modern harvesting machinery helps improve productivity, reduce labor costs, and increase the overall efficiency of farming operations. Given that Vietnam’s agriculture often involves small- to medium-scale farms, machinery like combine harvesters and rice harvesters has become more critical in ensuring timely harvests, particularly during the peak seasons.
Vietnam’s agricultural sector, which plays a critical role in the country’s economy, faces significant challenges due to a labor shortage. As rural areas experience demographic shifts, particularly with young people migrating to urban centers for better opportunities, the reliance on traditional, manual labor for farming activities has become increasingly unsustainable. This has driven a rapid rise in farm mechanization, such as harvester machinery, as farmers and the government seek ways to maintain productivity, reduce reliance on human labor, and ensure that the agricultural sector remains competitive. Below is an in-depth exploration of how mechanization addresses the labor shortage and transforms farming practices in Vietnam. For instance, as per World Bank data, the number of people employed in the agriculture sector dropped from 35% in 2019 to 34% in 2022.
Rice cultivation forms the foundation of Vietnam's agricultural sector, with labor shortages during peak harvesting periods driving harvester machinery adoption. While rice harvesting traditionally required substantial manual labor, the increasing use of combine harvesters has enabled farmers to reduce workforce costs and accelerate harvesting operations. The Mekong Delta, Vietnam's primary rice-producing region, has witnessed significant adoption of combine harvesters. These machines deliver higher efficiency compared to manual harvesting, reducing operation time and decreasing dependence on seasonal agricultural workers.
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Row Crop Tractors Dominate the Market
Vietnam’s agricultural sector is diverse, with crops like rice, maize, soybeans, vegetables, and fruits being produced across the country. The use of row crop tractors is particularly important in regions with large-scale rice cultivation, as well as areas that produce maize, vegetables, and other crops grown in rows. These tractors are well-suited to the small and medium-sized farms that dominate the landscape in Vietnam, providing an effective solution for land preparation, planting, and crop management.
The row-crop tractor is specifically tailored to grow crops that meet all agricultural demands, such as plowing, harrowing, leveling, pulling seed drills, weed control, and running various machines, like water pumps, and belt pulley threshers. These tractors are provided with replaceable driving wheels of different tread widths. They have a high ground clearance to save crop damage. In terms of consumer preferences, sales for 4W tractors are growing faster than that of 2W but the latter has the dominant market share in terms of volume. The low price of two-wheel tractors makes them a great choice for small-hold farmers who own small pieces of land. Technological advancement for developing more efficient products, while keeping in mind the country-specific requirements, will provide opportunities for the future growth of the sector.
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Vietnam Agricultural Machinery Industry Overview
The agricultural machinery market in Vietnam is moderately consolidated with few players cornering the majority of the market share. New product launches, partnerships, and acquisitions are the major strategies adopted by the leading companies in the market, in the country. Along with innovations and expansions, investments in R&D and developing novel product portfolios are likely to be crucial strategies in the coming years. Kubota, CLAAS KGaA mbH, Yanmar, Iseki, and CNH, are the largest companies that provide agricultural machinery in the Vietnamese market. The major players are ready for investment and various companies are adopting different strategies to increase their market presence in this market in Vietnam.
Vietnam Agricultural Machinery Market Leaders
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CLAAS KGaA mbH
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Kubota Corporation
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Yanmar Vietnam
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Iseki Corporation
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Vietnam Engine and Agricultural Machinery Corporation (VEAM)
- *Disclaimer: Major Players sorted in no particular order
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Vietnam Agricultural Machinery Market News
- January 2023: New Holland, the subsidiary tractor brand of CNH Industrial revealed a prototype T7 methane power tractor that runs on a liquified version of the gas, giving longer working times to fill. The new tractor has four times the fuel storage of the firm's existing methane-powered T6, which utilizes compressed gas (CNG).
- December 2022: THACO Industries, a new subsidiary of automaker THACO Group, has invested USD 550 million for the mass production of agricultural machinery and supporting industrial products such as auto parts and components, semi-trailers, and other supplemental machinery for export and domestic sale in the country.
Vietnam Agricultural Machinery Industry Segmentation
Agricultural machinery relates to the mechanical structures and devices used in farming or other agricultural operations. 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) for all the above segments.
| Product Type | Tractors | Engine Power | Less than 15 HP |
| 15 to 30 HP | |||
| 31 to 45 HP | |||
| 46-75 HP | |||
| More than 75 HP | |||
| Rice Transplanters | |||
| Harvesting Machinery | |||
| Haying & Forage Machinery | |||
| Other Product Types |
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Vietnam Agricultural Machinery Market Research Faqs
How big is the Vietnam Agricultural Machinery Market?
The Vietnam Agricultural Machinery Market size is expected to reach USD 425 million in 2025 and grow at a CAGR of 11.5% to reach USD 560 million by 2030.
What is the current Vietnam Agricultural Machinery Market size?
In 2025, the Vietnam Agricultural Machinery Market size is expected to reach USD 425 million.
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.
What years does this Vietnam Agricultural Machinery Market cover, and what was the market size in 2024?
In 2024, the Vietnam Agricultural Machinery Market size was estimated at USD 376.13 million. The report covers the Vietnam Agricultural Machinery Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Vietnam Agricultural Machinery Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Vietnam Agricultural Machinery Industry Report
The report on Agriculture Machine Manufacturers in Vietnam provides a comprehensive industry analysis, covering various segments such as tractors, rice transplanters, harvesting machinery, haying and forage machinery, and other product types. This market overview offers insights into the market share and market size, highlighting the importance of market growth and industry trends in the sector. The report includes detailed industry statistics and market data, essential for understanding the market segmentation and market value.
With a focus on market forecast and market outlook, the report presents a thorough industry outlook and industry forecast, essential for market predictions and understanding the market leaders in the industry. The industry reports and market reports provide a historical overview and a market review, ensuring a detailed industry research and market analysis.
The report also emphasizes the significance of industry information and industry research, offering a report example and a free report PDF download for further reference. The market forecast outlook and market segmentation are crucial for understanding the market trends and industry sales, providing valuable insights for research companies and report pdf enthusiasts.
Overall, this report serves as a vital resource for anyone interested in the global market of agricultural machinery in Vietnam, offering a detailed market overview and industry outlook to guide future market strategies and growth rate predictions.
