Vietnam’s tractor market, which reached 5,015 units in 2023, is projected to expand to 6,128 units by 2029, growing at a compound annual growth rate (CAGR) of 3.40 percent, according to a report from Research and Markets. The report attributes the market’s steady growth to increasing agricultural mechanisation, rising food demand, government support, and advancements in tractor technology.
It goes on to say that mechanisation has become a cornerstone of Vietnam’s agricultural transformation, with over 70 percent of cultivated land now relying on machinery instead of manual labour. Tractors play a crucial role in tasks like ploughing, tilling, and harvesting, particularly in the production of rice, corn, and sugarcane. This shift has significantly boosted efficiency and productivity in the sector.
Furthermore, growing food demand, driven by Vietnam’s expanding population and rising incomes, has further accelerated the need for advanced farming practices, including the adoption of tractors. To support farmers, the government has introduced various schemes offering subsidies and financial assistance for purchasing agricultural machinery, fostering mechanisation in rural areas.
With these trends, Vietnam’s tractor market is positioned to play a pivotal role in modernising agriculture and ensuring food security in the coming years.
See also: Agriculture Industry in Vietnam