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Home Agriculture and Animal Care In-depth Analysis of the COVID-19 impact on Vietnam Agricultural Equipment market: Ken...

In-depth Analysis of the COVID-19 impact on Vietnam Agricultural Equipment market: Ken Research

The global outbreak of Covid-19 virus has led to massive disruptions in all industries, majorly due to supply chain disruptions. The looming public health crisis has claimed over 35 lives in Vietnamas of 23rd February 2021and apart from that, it continues to pose a threat on the lives, livelihoods and businesses across the world.

Vietnam has shown the effectiveness in stopping the community transmission of COVID-19; however it has not been able to avoid the economic crisis due to the effects of lockdown. According to the estimation by the General Statistics Office of Vietnam, as of mid-April 2020, nearly 5 million people lost their jobs because of this epidemic. In the first quarter of 2020, the economic growth rate was 3.82%, the second quarter it decreased to 0.39%, the third quarter it increased again to 2.62%, bringing the growth rate of 9 months of 2020 to 2.12%. Although the growth is still positive, this is the lowest compared to the same period for during 2011-2020. Vietnam is one of the few countries with positive growth in economy.

Effect on Agricultural Machines Demand in the First Half of 2020: The imposed lockdown in the country and the social distancing norms have severely impacted the agricultural machines demand in the country. Companies that had surplus inventory as a buffer were stronger in with standing the market shock brought about by the pandemic. The companies that were completely relying on imports were impacted as during the pandemic as the supply chain was disrupted in the first and second half. Machinery manufacturers saw declines in demand for equipments during the Covid-19 pandemic as there was a fall in farmer’s income. The production capacity of various agricultural machine manufacturers was as low as due to drop in demand during Q2-20. Due to COVID-19 restrictions in the country, Import turnover of agricultural, forestry and fishery products were estimated at about USD 4.3 billion, down 6.7% compared to the same period in 2019. In addition to COVID, the impacts of climate change have shown an impact from the beginning of the year causing drought and saline intrusion in the Mekong Delta affecting the cultivation and aquaculture industries.

Effect on Machinery Demand in the First Half of 2020: Stay-at-home orders amidst the pandemic prohibited the workers to visit the manufacturing factories. This caused a decrease in the domestic production of agricultural machinery. Vietnam is highly dependent on import for the agricultural equipments and most of its demands are met from China, Japan and Korea. A disruption in supply chain effected companies which were completely relying on imports of machinery and spare parts.


Temporary & Long Term Shifts in the Business Practices: The demand for agricultural machinery is expected to remain low throughout 2020 due to reduced income and shift of farmers to other sectors in order to earn a livelihood. The demand for these machines is however expected to recover in the second half of the year due to increasing rice production and export of agricultural products. Relaxations in taxes coupled with decrease in loan interest rate for machines, the demand is expected to recover by the end of the year. The increasing number of FTA agreements signed by the government with various countries is expected to reduce the prices of these machines which are in turn expected to drive the demand for tractors, combine harvesters and transplanters. The ease in the lockdown is expected to increase the footfall for the agricultural machinery showrooms and increase average revenue per dealer in the coming future.

The industry is expected to witness steady recovery from 2021 onwards and the sales volume reaching pre-COVID levels in the next few years. In the longer run, players in the agricultural machinery industry are expected to shift towards precision agriculture features including GPS, GIS, Cabin Control for Fields, Telematics and Others which might make these machines more efficient in reducing post harvest losses in the future. Foreign players are expected to dominate the major share of consumers in the future. Strategic partnerships with local players and as well other stakeholders in the industry are expected to increase the domestic manufacturing sales volume in the future. This would be coupled with focus on increasing quality of products and continued investment in marketing and promotion to drive the sales revenue. Basis all these factors, the Vietnam Agricultural Machinery Market is expected to grow at a CAGR of 6.4% on the basis of sales revenue during the forecast period 2020-2025.

Key Segments Covered:-

By Product Type

Tractors (2W and 4W)

Combine Harvesters

Rice Transplanter


By Tractor Segment

Upto 12 Hp

Between 12-35 Hp

Above 35 Hp

By Region of Sales

Mekong Delta

Red River Delta

Northern Midlands and Mountains

North Central and Central Coast

Central Highlands

South East

By Implement Segment




Fertilizer Spreaders


Companies Covered:-

Kubota Vietnam

Yanmar Vietnam

VEAM (Vietnam Engine and Agricultural Machinery Corporation)

Thaco (LS Mtron)

Key Target Audience:-

Agricultural Equipment Companies

New Market Entrants- Domestic OEMs

New Market Entrants- Foreign OEMs

Agricultural Equipment Financing Companies

Government Bodies

Investors & Venture Capital Firms

Agricultural Equipment Manufacturers

Agricultural Equipment Distributors

Agricultural Equipment Associations

Time Period Captured in the Report:-

Historical Period – 2014-2020

Forecast Period – 2021-2025

For More Information on the research report, refer to below link:-

Vietnam Agricultural Machinery Market

Related Reports:-

Thailand Agricultural Machinery Market Outlook to 2025 – Agriculture Tractor Market (By Type: 2W and 4W Tractors, By Power: 8HP-15HP, 20HP-35HP, 36HP-47HP, 48HP-75HP, 75HP-100HP, 100HP-120HP and Above 120HP), Combine Harvester Market (By Power: 70HP & Below, 75HP-105HP and Above 105HP), By Rice Transplanters (By Rows: 4Row, 6Row and 8Row), Agriculture Implements Market

Philippines Agricultural Equipment Market Outlook to 2023- By Product Type (Tractors, Combine Harvesters, Planters, Seeders and Tillage Equipments and Tillage Equipment), By Tractor Segment (Upto 60 Hp, Between 61-130 Hp and above 130 Hp), By Production (Imported and Domestically Manufactured) and By Region (Luzon, Visayas and Mindanao)

Europe Agriculture Equipment Market Outlook to 2023 – By Type (Tractors, Harvesting Equipment, Soil Preparation and Cultivation Equipment, Haymaking Equipment, Crop Protection Equipment, Transport and Handling Equipments and Other Agricultural Equipment); and By Major Countries (Germany, France, Italy, UK, Poland, Spain and Others)

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications


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