The Vietnamese Agricultural Machinery Market 2018-2023: Expected to Register a CAGR of 14.5% - ResearchAndMarkets.com
DUBLIN--(BUSINESS WIRE)--Sep 27, 2018--The “Vietnamese Agricultural Machinery Market - Growth, Trends, and Forecast (2018 - 2023)” report has been added to ResearchAndMarkets.com’s offering.
The Vietnamese Agricultural Machinery Market was valued at USD 115.2 million in 2017 and is expected to register a CAGR of 14.5% during the forecast period (2018-2023).
Custom hiring of agriculture machinery can be observed in Vietnam as the local production of agriculture machinery is low. Agricultural co-operatives and private enterprises are the providers of machinery for hiring. Organizations that offer hiring services have efficient machinery in tillage, harvesting, threshing, drying, storage of grains, and transportation. These organizations are available especially in Mekong River Delta and Red River Delta.
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. To make this expensive machinery affordable to farmers, the government is implanting supporting schemes. This is one of the major factors driving the growth of the market studied.
The tractor segment is the major segment of the Vietnamese agricultural machinery market and accounts for nearly half of the market share. The segment was valued at USD 38.6 million in 2017, and is projected to register a CAGR of 12.6% during the forecast period.
Though agricultural wages are low and lifestyle of laborers in 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 shortage of agriculture labor in Vietnam, during the farming season. Shortage of seasonal agriculture labor is the major driver for the implementation of machinery in agriculture, as the work of laborers can be replaced with machines. Using machines will also consume less time.
Vietnam has the practice of sharing the property equally among their children. This is one of the main reasons for fragmented land holdings in Vietnam. Inter farm fragmentation and intra farm fragmentation lands can be seen in Vietnam. As the inheritance of property from the ancestors in every generation is increasing, so is the number of owners for the same land, which is reducing the size of each plot. It is harder and less economic for farmers to use modern agriculture machines in small plots, as it is difficult and time consuming to maintain boundaries and transport between plots.
Major Developments in the MarketThe bank for agriculture and rural development of Vietnam (Agribank) and Tata international Vietnam has signed a cooperation agreement to support the farmers for purchasing the equipment using agribank’s financial services. The Vietnam Engine and Agricultural Machinery Corporation will trade USD 1.33 billion shares on unlisted public company market (UPCoM).
Key Topics Covered
2. Research Scope and Methodology
3. Market Dynamics
4. Industry Analysis
5. Market Segmentation
6. Competitive analysis (2012-2018)
7. Analysis of Machinery Buyer Behavior
8. Market Insight on Major Crops (by Region): Area, Mechanization Rate, Farming Practices, and Farmer Classification
9. Future of the Market
For more information about this report visit https://www.researchandmarkets.com/research/blxhxz/the_vietnamese?w=4
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Related Topics:Agricultural Machinery and Equipment
KEYWORD: VIET NAM ASIA PACIFIC
INDUSTRY KEYWORD: NATURAL RESOURCES AGRICULTURE
SOURCE: Research and Markets
Copyright Business Wire 2018.
PUB: 09/27/2018 04:31 PM/DISC: 09/27/2018 04:31 PM