Vietnam Agricultural Machinery Market Outlook to 2020 – Government Initiatives to Increase Mechanization and Enhancing Credit Availability to Drive Future Growth” provides a comprehensive analysis of the agricultural machinery market in Vietnam. The report covers aspects such as the market size on the basis of sales volume and revenue for tractors, combine harvesters, rice transplanters and tractor implements (rotavators, disk harrows, disk ploughs, fertilizer spreaders and others). The segmentation for Tractors, Combine Harvesters and Rice Transplanters has been created on the basis of Horsepower while the segmentation for Tractor Implements has been showcased by products. The report also covers the market share, competitive landscape and working business model of major manufacturers, along with warranty policies and distribution channels of agricultural equipments. In addition to this, the report also covers the country overview, government regulation and agricultural overview of Vietnam. GDP, per capita income and population demographics are analyzed in country overview. Land under cultivation, changes in cropping patterns, farm holding structure and scale of mechanization are covered in agricultural overview. Regulatory policies, the import duty structure, certification and emission standard, subsidies and financing options are covered in government regulation. This report will help industry consultants, agricultural machinery manufacturers and dealers, retail chains, potential entrants and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future.
Market for agricultural machinery in Vietnam has enhanced by a CAGR of ~ % over the period 2010-2015.Sales for new agricultural machinery and tractor implements were recorded at ~ in Vietnam during 2010.Sales revenue amounted to USD ~ million in 2010.
Sales of new two wheel tractors in Vietnam were recorded at ~ units in 2015. This has resulted in a revenue generation of USD ~ million in 2015. Usage of 7-12 HP agricultural tractors in Vietnam has declined as the average farm size and horse power requirement of people in the county has enhanced.Two wheel tractors/power tillers of category 12-26 HP have accounted for a sales volume share of ~ % in Vietnam during 2015.
The rice transplanter market of Vietnam has augmented from USD ~ thousand in 2010 to USD ~ thousand in 2015, showcasing a CAGR of ~ % during the review period. While sales of new rice transplanters have increased from ~ in 2010 to ~ in 2015. 4-Row (walk behind) rice transplanters have accounted for the largest share of ~ % in the sales volume during 2015.
Combine harvester market has been the second largest segment of the agricultural equipment market of Vietnam over the period 2010-2015. The market for combine harvesters in the country has alleviated from USD ~ million in 2010 to USD ~ million in 2015. Such growth in revenues has projected CAGR of ~ % over the period 2010-2015. Sale of new combine harvesters in Vietnam has been reported at ~ in 2015.
Tractor implements are indispensible requirements for farmers in Vietnam. A tractor without an implement has no major use in farming. Therefore the market for implements has enhanced in line with the tractor market over the period 2010-2015. Revenue of the new tractor implements market have augmented from USD ~ million in 2010 to USD ~ million in 2015, reporting a CAGR of ~ % during the review period. Rotavators have accounted for the largest share of ~ % in the sales volume of the total implements during 2015. Rotavators market in the country has been estimated at USD ~ million in 2015.
Agricultural Machinery Market in Vietnam has been dominated by Kubota which has captured a share of ~ % in the sales of new 4 wheel tractors in Vietnam during 2015. It has accounted a sales volume share of ~ % and ~ % in combine harvester and rice transplanter market of Vietnam during 2015. Kubota has ~ exclusive dealers located throughout the country. Kubota has been followed by Yanmar which has accounted for a market share of ~ %, ~ % and ~ % in the sales of new 4 wheel tractors, combine harvesters and rice transplanters during 2015 respectively.
In the two wheel tractor/power tiller market, Kubota has been given tough competition by a domestic Player, VEAM (Iseki) which has garnered a market share of ~ % in the two wheel segment. On the other hand Kubota has contributed ~ % to the sales of new two wheel tractors in the country during 2015. VEAM has the largest dealer network in the country.
Kubota is the most dominant player in the agricultural machinery market of Vietnam as of 2015. Their business model in a nutshell can be simply described as ‘manufacture and sell through a large dealer network’. Yanmar’s business model in Vietnam is considerably different from Kubota. Yanmar does not have a manufacturing facility in Vietnam and therefore follows an ‘import oriented business model.’For agricultural machinery, VEAM follows an import oriented business model. VEAM is in collaboration with Iseki of Japan, which acts as the provider of all its agricultural products. It imports CKD Iseki tractors from Japan and sells in Vietnam.
Various methods such as proximity of dealers to farmers, road shows, salesmen, tie ups with local agri associations and others are used by OEM’s o reach out to the farmers in Vietnam.
As of 2015, ~ % of the machinery in Vietnam is owned, while the remaining ~ % is hired. As of 2015, Private households own ~ % of four-wheel tractors (with capacity more than 35 hp), ~ % of 12-35 hp tractors, ~ % of two-wheel tractors (with capacity under 12 hp). The remaining share has been accounted by enterprises, cooperatives, and farms.
It is essential to understand the decision making process of farmers in the procurement of agricultural equipments. Region and land holding size are the primary factors that determine the type of agricultural machines a farmer would like to purchase. Apart from this, certain secondary factors such as the type of crop, fuel efficiency of the desired equipment, cost of implements, brand and the credit availability will determine the quantity and types of machinery that would be demanded by the farmer. Usage pattern of farm equipments play an essential role in understanding the intensity of farming that occurs in a given year. It has been estimated that tractors are used for ~ to ~ hours a year. On an average, the tractors used for agriculture in Vietnam have a lifespan of ~ hours. Combine harvesters are used only during the harvest season due to which their average usage a year amounts to ~ to ~ hours. Rice can be planted and harvested a maximum of 2-3 times a year due to which the usage pattern for Rice Transplanters ranges from ~ to ~ hours a year.
Key Topics Covered in the Report:
- The Gross Domestic Product on the Basis of Nominal and Purchasing Power Parity (PPP) in Vietnam, 2010-2015, 2016, 2020 and 2015
- Key Factors Expected To Drive Growth in GDP
- Contribution to GDP of Vietnam by Agriculture, Manufacturing and Service Sector, 2010-2020
- The Population Dynamics in Vietnam on the Basis of Rural to Urban and Agriculture to Non-Agriculture, 2010-2020
- The GDP Per Capita on the Basis of Nominal and Purchasing Power Parity (PPP) in Vietnam, 2010-2015, 2016, 2020 and 2015
- The Logistics Cost for Transporting a Tractor by Road in Vietnam, 2015
- Total Land Under Cultivation and Distribution by Major Crops (Rice, Cassava, Rubber and Sugarcane)
- Changing Cropping Pattern in Vietnam and Factors Driving Change
- Nature of Ownership[, Farm Holding Structure and Regulatory Policies Impacting Farm Holding Structure in Vietnam
- Agricultural Practice in Vietnam on the basis of Scale of Mechanization, Extensive and Intensive and Irrigated Land
- Government Policy impacting the Agricultural Equipment Market in Vietnam on the basis of Import Duty Structure, Subsidies, Taxes Certification and Emission Standards
- Vietnam Agricultural Equipment Market Size on the Basis of Revenue in USD Million and Sales in Units, 2010-2015
- Vietnam Agricultural Equipment Market Segmentation By Major Products on the Basis of Revenue in USD Million, 2010 and 2015
- Vietnam Tractor Market Size on the Basis of Revenue in USD Million and Sales in Units, 2010-2015
- Vietnam Tractor Market Segmentation by Power on the Basis of Sales Volume, 2010-2015
- Vietnam Combine Harvester Market Size on the Basis of Revenue in USD Million and Sales in Units, 2010-2015
- Vietnam Combine Harvester Market Segmentation by Power on the Basis of Sales Volume, 2010-2015
- Vietnam Rice Transplanter Market Size on the basis of Revenue in USD Million , 2010-2015
- Vietnam Rice Transplanter Market Segmentation by power on the Basis of Sales Volume, 2010 and 2015
- Vietnam Tractor Implements Market Size on the Basis of Revenue in USD Million, 2010-2015
- Vietnam Tractor Implements Market Segmentation By Major Products
- Market Share and competitive Landscape of Leading Manufacturers in Vietnam Agricultural Equipment Market on the Basis of Sales Volume in Units,2015
- Competitive Landscape of Major Manufacturers in Vietnam Agricultural Equipment Market, 2015
- Price Range for Agricultural Equipments in Vietnam - Dealer Price and Retail Customer Price, 2015
- Tractor and Tractor Implements Channel Strategies in Vietnam
- After Sales Warranty and Support Policies for Agricultural Equipments in Vietnam, 2015
- Export-Import of Agricultural Equipments in Vietnam, 2010-2015
- Decision Making Process and Usage Pattern for Agricultural Equipments in Vietnam, 2015
Ankur Gupta, Head Marketing & CommunicationsAnkur@kenresearch.com
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