VIETNAM AGRICULTURAL TRACTOR MARKET GROWTH, TRENDS AND FORECAST (2019 - 2024)

Vietnam Agricultural Tractor Market - Segmented by Power, Power Drive, and Region

Market Snapshot

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Study Period:

2016-2024

Base Year:

2018

Key Players:

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Market Overview

Vietnam agricultural tractor market was valued at USD 40.9 million in 2018 and is expected to register a CAGR of 11.5% during the forecast period (2019-2024). 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 the capacity of <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.

Scope of the Report

For the purpose of this report, the tractors used in agricultural operations, especially four-wheeled tractors, 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 market is segmented on the basis of power (<12 HP, 12-35 HP and others), power drive (2WD and 4WD) and region.

Region
Red River Delta
North East
North West
North Central Coast
South Central Coast
Central Highlands
South East
Mekong River Delta
By Power
<12 hp
12-35 hp
50-70 hp
>70 hp

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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 an 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.  
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Less than 35 HP Dominates the Vietnam Agricultural Tractor 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.
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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.

Major Players

  1. KUBOTA TRACTOR CORPORATION
  2. CLAAS KGaA mbH
  3. Vietnam Engine and Agricultural Machinery Corporation
  4. Yanmar America Corporation

* Complete list of players covered available in the table of contents below

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Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

    2. 4.2 Restraints

    3. 4.3 Porter Five Forces Framework

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products and Services

      5. 4.3.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Tractor Population and Yearly Sales (in Unit and Value)

    2. 5.2 Region

      1. 5.2.1 Red River Delta

      2. 5.2.2 North East

      3. 5.2.3 North West

      4. 5.2.4 North Central Coast

      5. 5.2.5 South Central Coast

      6. 5.2.6 Central Highlands

      7. 5.2.7 South East

      8. 5.2.8 Mekong River Delta

    3. 5.3 By Brand

    4. 5.4 By Power

      1. 5.4.1 <12 hp

      2. 5.4.2 12-35 hp

      3. 5.4.3 50-70 hp

      4. 5.4.4 >70 hp

    5. 5.5 Power Drive

  6. 6. Competitive Landscape

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 KUBOTA TRACTOR CORPORATION

      2. 6.3.2 CLAAS KGaA mbH

      3. 6.3.3 Vietnam Engine and Agricultural Machinery Corporation

      4. 6.3.4 Yanmar America Corporation

      5. 6.3.5 Belarus

      6. 6.3.6 CNH

      7. 6.3.7 ShanDong Huaxin Machinery Co. Ltd.

      8. 6.3.8 AGCO Corporation

      9. 6.3.9 TONG YANG MOOLSAN CO LTD

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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