Vietnam Agricultural Tractor Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 623.83 Million |
| Market Size (2029) | USD 798.46 Million |
| CAGR (2024 - 2029) | 5.06 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Vietnam Agricultural Tractor Market Analysis
The Vietnam Agricultural Tractor Market size is estimated at USD 623.83 million in 2024, and is expected to reach USD 798.46 million by 2029, growing at a CAGR of 5.06% during the forecast period (2024-2029).
- Mechanization's swift uptake in Vietnam's agriculture sector is propelling market growth. Agricultural machinery has been pivotal in boosting Vietnam's agricultural productivity and efficiency. Data from the Cooperative Economic and Rural Development Department, part of the Ministry of Agriculture and Rural Development, highlights that from 2011 to 2022, rice production mechanization in Vietnam achieved 94% for plowing and land preparation, and 42% for sowing. By embracing agricultural machinery, farmers are not only enhancing productivity and efficiency but also curbing production costs and boosting yields, a trend that's set to fuel the tractor market.
- Vietnam's government actively champions mechanization, aiming for heightened cost and time efficiency in crop production, further energizing the market. Urbanization and growing environmental and animal welfare sensitivities have led to a marked decline in reliance on animal and human power in agriculture. With ambitions to achieve a 70% mechanization rate in crop production by 2030 and bolster farmer incomes, Vietnam's Minister of Agriculture and Rural Development underscores the nation's goals. The surge in tractor sales can be largely attributed to escalating farm mechanization rates, increasing farm labor costs, and the trend of shorter tractor replacement cycles.
- In Vietnam, tractors play a crucial role in the mechanized land preparation for essential crops, including rice, corn, and sugarcane. Rice, with a production volume of 42 million metric tons, stands out as a leading crop in the country. Wetland rice is particularly dominant in the Mekong Delta region. Given the rising demand for these staple food crops, the tractor market is poised for growth.
Vietnam Agricultural Tractor Market Trends
Rising Tractor Sales Driven by Agricultural Labor Shortages
- In Vietnam, workers are increasingly gravitating towards industrial jobs in pursuit of better pay. This shift has led to a seasonal labor shortage in the country's farming sector. With fewer family members available for agricultural tasks, farmers have resorted to hiring external labor. Yet, the limited availability of labor has resulted in rising wages, subsequently increasing farming costs and pushing farmers towards mechanization. The Vietnamese market faces challenges, including an oversupply of low-quality products and intensified competition in exports. For instance, in October 2024, global rice prices plummeted over 10% after India lifted all curbs on exports, a move that also impacted rice export prices in Vietnam.
- Vietnam's agricultural sector is contending with a shortage of skilled labor. As workers increasingly move towards secondary and tertiary sectors—like manufacturing and services, which encompass tourism, finance, and IT—the number of agricultural laborers is dwindling. This exodus is inflating costs for Vietnam's agricultural products. Those who continue in agriculture are predominantly older and often lack technical skills beyond traditional methods. Their limited technological proficiency poses challenges in adopting modern farming techniques.
- World Bank data indicates a consistent decline in Vietnam's agricultural labor force, with the percentage falling from 34.98% in 2019 to 33.61% in 2022. By adopting agricultural tractors, farmers stand to enhance productivity, reduce production costs, and improve yields. Acknowledging these trends, the government is advocating for farm mechanization and use of agricultural tractors, with ambitions to elevate Vietnam among the world's top 15 developed agricultural nations and to establish it as a global center for agricultural logistics and processing. Consequently, the labor shortage in agriculture is fueling the growth of the tractor market, as tractors increasingly take the place of human labor.
15-30 HP Dominates the Market
- Due to the country's limited farmland sizes, Vietnamese farmers are increasingly opting for smaller, customized tractors, particularly those in the 15-30 HP range. These compact tractors not only boast lower fuel consumption but also empower the nation's small and marginal farmers. In this segment, consumers enjoy considerable bargaining power, especially when juxtaposed with the market for high-powered tractors. This advantage stems from the abundance of available options and substitutes. Tractors in the 15-30 HP range, weighing under 3,500 lbs, are both compact and versatile. Their design accommodates multiple attachments, facilitating functions from mowing and spraying to horticultural tasks and animal management. This adaptability is a key reason for their popularity among farmers.
- Vietnamese farmers deem the 15-30 HP tractors essential for crop production. The nation's increasing crop production volume in 2021 highlighted the surging demand for these tractors. As per Food and Agriculture Organization statistics, Vietnam produced 71.41 million metric tons of vegetables and 80.74 million metric tons of fruits in 2022, showcasing its potential for high-value crop production and, consequently, a heightened demand for tractors. The compact design of the 15-30 HP tractors not only conserves space but also provides flexibility. Their customizable nature encourages farmers to experiment, prompting manufacturers to trial new components and technologies in this segment before transitioning to high-powered tractors. As a result, these factors have solidified the dominance of tractors of 15-30 HP in Vietnam's market share.
Vietnam Agricultural Tractor Industry Overview
The Vietnamese agricultural tractor market is consolidated with the presence of global players in the country. Kubota Corporation, CLAAS KGaA mbH, Vietnam Engine and Agricultural Machinery Corporation, Yanmar America Corporation, and CNH Industrial are some of the major players operating in the industry. These companies are expanding their business activities by focusing on new product launches, partnerships, and investments.
Vietnam Agricultural Tractor Market Leaders
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CLAAS KGaA mbH
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Vietnam Engine and Agricultural Machinery Corporation
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Yanmar America Corporation
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CNH Industrial
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Kubota Corporation
*Disclaimer: Major Players sorted in no particular order
Vietnam Agricultural Tractor 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).
- January 2023: Yanmar America Corporation opened the DUC NAM Agent branch to serve customers in Kim Thanh district, Hai Duong province. This will expand the business and improve sales in the region.
Vietnam Agricultural Tractor Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Focus on Mechanisation
4.2.2 Rising Government Initiatives
4.2.3 Increasing Agricultural Output and Exports
4.3 Market Restraints
4.3.1 Increasing Tractor Rentals May Deter New Tractor Purchases
4.3.2 Fragmented Land Holding
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 Engine Power
5.1.1 Less than 15 HP
5.1.2 15 to 30 HP
5.1.3 31 to 45 HP
5.1.4 46-75 HP
5.1.5 More than 75 HP
6. Competitive Landscape
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Kubota Corporation
6.3.2 CLAAS KGaA mbH
6.3.3 Vietnam Engine and Agricultural Machinery Corporation
6.3.4 Yanmar America Corporation
6.3.5 CNH Industrial
6.3.6 ShanDong Huaxin Machinery Co. Ltd
6.3.7 AGCO Corporation
6.3.8 Tong Yang Moolsan Co. Ltd
6.3.9 Truong Hai Auto Corporation (THACO)
6.3.10 Deere and Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Vietnam Agricultural Tractor Industry Segmentation
A tractor is an industrial vehicle with one or two small wheels in front and two large wheels at the back for agricultural and other functions. It is used to move the attached implement that plows the field or performs other activities. For this report, tractors used in agricultural operations have been considered. The report does not cover other agricultural machinery and attachments to tractors. Tractors used for industrial and construction purposes are also excluded from the study. The Vietnam agricultural tractors market is segmented by engine power (less than 15 HP, 15 to 30 HP, 31 to 45 HP, 46-75 HP, and More than 75 HP). The report offers market estimation and forecasts in value (USD) for the above-mentioned segments.
| Engine Power | |
| Less than 15 HP | |
| 15 to 30 HP | |
| 31 to 45 HP | |
| 46-75 HP | |
| More than 75 HP |
Vietnam Agricultural Tractor Market Research FAQs
How big is the Vietnam Agricultural Tractor Market?
The Vietnam Agricultural Tractor Market size is expected to reach USD 623.83 million in 2024 and grow at a CAGR of 5.06% to reach USD 798.46 million by 2029.
What is the current Vietnam Agricultural Tractor Market size?
In 2024, the Vietnam Agricultural Tractor Market size is expected to reach USD 623.83 million.
Who are the key players in Vietnam Agricultural Tractor Market?
CLAAS KGaA mbH, Vietnam Engine and Agricultural Machinery Corporation, Yanmar America Corporation, CNH Industrial and Kubota Corporation are the major companies operating in the Vietnam Agricultural Tractor Market.
What years does this Vietnam Agricultural Tractor Market cover, and what was the market size in 2023?
In 2023, the Vietnam Agricultural Tractor Market size was estimated at USD 592.26 million. The report covers the Vietnam Agricultural Tractor Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Agricultural Tractor Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Vietnam Agricultural Tractor Industry Report
Statistics for the 2024 Vietnam Agricultural Tractor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vietnam Agricultural Tractor analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Vietnam Agricultural Tractor Market Report Snapshots
