The Vietnam agricultural tractor market was valued at USD 38.6 million in 2017 and is expected to witness a CAGR of 12.6% during the forecast period (2018-2023). Small and middle-weight tractors seem to gain more favor, although, the size of tractors is increasing.
Tractors are increasingly being used in farm operations in Vietnam. About 53% of agricultural tractors have the 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. Currently, three tillage systems are notable: dry tillage (plowing and/or rotavating of the unsaturated field), wet tillage (puddling), or a mix of the two systems. Rotavators are majorly prevalent in Vietnam, due to the hard clay soil of Mekong River Delta. This is also the main reason that the majority of people in the country purchase implements along with the tractor. Tractors are mainly used for mechanized land preparation for crop production, such as rice, corn, and sugarcane.
Shortage of Seasonal Agricultural Labor
Agricultural wages are low and lifestyle of laborers in the industrial background is poor. However, people prefer industrial jobs over agriculture. This situation is leading to the 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 the return on investments, who are unable to pay the labor costs. Shortage of seasonal agriculture labor is the major driver for the growth of tractors market, as the work of laborers can be replaced with tractors because using tractors will also consume less time.
Lack of Awareness about Modern Agriculture Techniques
Farmers in Vietnam are less aware of the technological developments in agricultural fields, as a result of which they still follow all the customs of traditional farming techniques. Rural development in Vietnam is very poor and there are no awareness camps that educate farmers about the emerging and advanced technologies. The lack of awareness is restricting the emergence of modern agriculture techniques into Vietnam. In Vietnam, crops are grown in bulk, however, the quality of food is very low. This is due to the implementation of traditional techniques using labor instead of using all the trending agricultural techniques, which improve both production and quality.
Central Highlands Dominates the Vietnam Agricultural Tractor Market in terms of Revenue
Central Highlands is the largest agricultural tractor market in Vietnam, acquiring 47.6% of the total market share in the country in 2017, followed by South East and Mekong River Delta. Wet soil for rice crops is tilled using rotary cultivators or tilling cages attached with small tractors with 12HP engines. Tillage on fields previously under rice is done with 50HP tractors powering standard tillage implements as disc plows, disc harrows, and rotary tillers. Land preparation, which is the basic stage, is mostly mechanized by using 4-wheel tractors replacing 2-wheel tractors with productive, efficient, and favorable working conditions. The average level of tillage mechanization is targeted at over 90% by 2020. Around 19% of sugarcane, 12.5% of groundnut, 8.9% of soybean and 20.4% of maize is grown in Central Highlands.
Key Developments in the Market
February 2018 – Truong Hai Auto Corporation (THACO) opened a new agricultural machinery manufacturing plant with the enhanced annual production capacity of 2000 tractors at Chu Lai, Vietnam.
January 2018– Kubota recently launched two new tractor models the L4018VN (40HP) and L3218 (32HP) in the Vietnamese market.
Major Players of Vietnam Agricultural Tractor Market
The major players include – Belarus, Claas, Kubota, VEAM, Yanmar and others.
Vietnam Agricultural Tractor Market Report Summary
Agricultural Tractor Market
(2014 – 2023)
Largest Market Share by Revenue
Belarus, Claas, Kubota, VEAM, Yanmar, and others.
Vietnam Agricultural Tractor Market offers the latest trends, growth prospects, industry competitiveness, major players, regions’ market share and forecast to 2023.
Reasons to Purchase the Report
- To have an understanding of the fastest growing regions in the Vietnam agricultural tractor market and growth trends during the forecast period
- The report outlines drives, restraints, and trends that are currently affecting the market
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The report covers in-detail insights into the competitors’ overview and company share analysis
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3-month analyst support, along with the Market Estimate sheet (in Excel)
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1.1 Market Definition
1.2 Key Findings of the Study
2. Research Scope and Methodology
2.1 Study Deliverables
2.2 Study Assumptions
2.3 Research Methodology
2.4 Research Phases
3. Market Dynamics
3.1.1 Shortage of Seasonal Agricultural Labor
3.1.2 Favorable Government Policies
3.2.1 Lack of Awareness about Modern Agricultural Techniques
3.2.2 Fragmented Land Holdings
4. Industry Analysis
4.1 Porter's Five Forces Analysis
4.1.1 Bargaining Power of Buyers
4.1.2 Bargaining Power of Suppliers
4.1.3 Threat of New Entrants
4.1.4 Threat of Substitutes
4.1.5 Competitive Rivalry
5. Market Segmentation
5.1 By Power
5.1.1 <12 HP
5.1.2 12-35 HP
5.1.3 36-49 HP
5.1.4 50-70 HP
5.2 By Power Drive
5.3 By Region
5.3.1 Red River Delta
5.3.2 North East
5.3.3 North West
5.3.4 North Central Coast
5.3.5 South Central Coast
5.3.6 Central Highlands
5.3.7 South East
5.3.8 Mekong River Delta
6. Competitive Landscape
6.1 Most Adopted Strategies
6.2 Most Active Companies
6.3 Market Share Analysis
7. Company Profiles
7.6 ShanDong Huaxin Machinery Co. Ltd.
7.7 Truong Hai Auto Corporation (THACO)
7.8 Tong Yang Moolsan Co. Ltd.
8. Future Outlook of the Market