Growtech | Exhibition 2026

Agricultural mechanics: What position is Vietnam in?

2020-08-04 - 6 years ago

According to experts' calculations, although the market capacity for machinery and equipment serving the agricultural sector is only about 500 million USD / year, the added value for agricultural products and foodstuffs due to the mechanization of the industry may reached 5 billion USD / year.

The potential is so, but up to now, many agricultural machines in the country cannot be produced and must be imported from other countries.

Nearly 70% of machines are imported

According to a report from the Ministry of Industry and Trade, the average level of agricultural motivation in Vietnam reached 1.6 horsepower (HP) / hectare cultivated, much lower than Thailand (4 HP / ha), China (8 HP / ha), Korea (10 HP / ha).

Vietnam has to import nearly 70% of agricultural machinery, most of which are sourced from China. Currently, Vietnamese agricultural machines only account for nearly 30% of the market share, 60% are imported from China, the rest are Japan and South Korea. Comparing the same type, the machine produced domestically is 15-20% more expensive than the Chinese one. In the Mekong River Delta, the mechanization of cultivation is carried out mainly in the rice and sugar industry. In contrast, this rate is still very low compared to other upland crops in the Northwest and Central Highlands.

 

Harvest winter-spring rice in the field of My Thanh Nam commune, Cai Lay district (Tien Giang). Photo: Minh Tri / VNA

Also according to information from the Ministry of Agriculture and Rural Development, for movers and tractors, up to now, the domestic mechanical industry has produced diesel engines with a capacity of up to 30 horsepower, accounting for over 30% of the market. domestic part. For the combine harvester for rice, domestic mechanics account for 15% of the market share. There are 15 businesses, but only 3 are Tu Sang 2 in Tien Giang; Phan Tan in Dong Thap, An Giang Mechanic has a capacity of about 1,000 units / year. Truong Hai Auto Joint Stock Company (THACO) has a joint venture with Korea to assemble agricultural machinery and equipment.

Mr. Phan Tan Ban, Director of Phan Tan Agricultural Mechanical One Member Company Limited, said that the mechanical engineering industry of agricultural machinery in Vietnam is too out of date and about to go into a dead end compared to the growth rate of the countries in the country. area. Thanks to the State's policies, the mechanization is increasing in each stage. However, nowadays, most of the machines for mechanization are imported ones. Domestically produced agricultural machinery is almost increasingly absent from the market and gradually lost its position.

The main cause of this situation is that Vietnam has not yet developed a number of key industries in mechanical engineering in general and agricultural mechanics in particular, leading to a lack of orientation and concentration in the development of the industry. . Investment resources for mechanics and metallurgy are still low compared to other economic and industrial sectors. Most of the machinery is outdated, the equipment has to be imported from outside asynchronously, lack of raw materials ... This causes domestic enterprises to regularly produce in a passive state, with low productivity and quality, and products generally do not meet the increasingly high requirements of the market.

Mr. Phan Tan Bang pointed out that a finished product will include many constituent details. The company itself cannot produce it all because of its spread and huge investment costs. Highly demanding details in terms of structure, raw materials, all depend entirely on Chinese goods, lack of stability. Therefore, when the domestic production of agricultural machinery is not durable enough, instability will affect the reputation of domestic machines. If importing goods from Japan or Korea, the price is very high, leading to an increase in the price, the product is not price competitive.

“Another fundamental reason is that the specificity of the agricultural machinery industry is the large investment capital, while the low profit is subject to fierce competition from many imported machines such as Japan, Korea, China ... so few people will invest ”, added Mr. Braat.

Mr. Nguyen Chi Sang, Vice Chairman of the Vietnam Association of Mechanical Enterprises, said that the market capacity of each product in the mechanical engineering industry is still small, not economical in production investment, for example. such as manufacturing and assembling cars or agricultural machines, tractors.

The investment capital for mechanical projects is very large. Vietnamese enterprises often do not have enough capacity to invest, while the State's resources and support are very limited; Along with that, the supporting industry for the mechanical engineering industry has not yet met the requirements of supplying raw materials, components and spare parts to manufacturers of complete products. The basic mechanical sub-sectors such as embryo production, pressure machining, precision machining, heat treatment, surface treatment and mold manufacturing ... are underdeveloped.

Businesses need a mechanism

According to the forecasts of the Ministry of Agriculture and Rural Development, the demand for tractors and agricultural machines will increase more in the period from now to 2025. Specifically, rice transplanters will increase rapidly on average from 500 to 1,000 units / year ( transplanters 6-8 rows) synchronous with the tray plating production technology; Combined rice harvesting machines (with a working width of 1.8-2m) increased from 2,000-3,000 units / year, mainly concentrated in the Mekong River Delta, Red River Delta, Central Coast and other provinces. concentrated rice export.

Machines for harvesting sugarcane, coffee, corn, beans, and peanuts have demand of increasing 3-5 times compared to present. The types of machinery and equipment for waste treatment in livestock are increasing rapidly.

Mr. Nguyen The Ha, Director of the Bui Van Ngo Institute of Technology said that the Mekong Delta region needs tens of thousands of equipment for mechanization of agriculture, thousands of production lines and processing of agricultural products, chemical. This is a large market with an expected value of up to billions of dollars that the city engineering industry. Ho Chi Minh City and the Mekong Delta region need to develop.

According to Mr. Phan Tan Ban, Director of Phan Tan Agricultural Mechanical One Member Company Limited, in order to revive the mechanical engineering industry for agriculture, the enterprise needs support from the State, relevant ministries and branches. In the immediate future, it is necessary to focus on promoting capital and human resources on small producers with development capacity, because it is these small producers that fully understand the difficulties and concerns that the mechanical engineering industry. machine builders are having. During the struggle to find a foothold with modern imported machines, some of these small manufacturers have identified their competitiveness and found suitable products to survive and thrive. And obviously, they have their own products and achieved certain successes.

Mr. Vu Huu Le, Director of Hong Ha Mechanical and Construction Co., Ltd. (Yen Bai province) said that the Government should have instructions for ministries, institutes and provinces to have projects and projects on developing machinery. mechanical improvement tools serving the economy in general and mountainous provinces in particular. For example, Yen Bai has a lot of cinnamon, then set a target for the year to complete the systems of drying cinnamon, chopping cinnamon branches ...

In addition, because small businesses are still weak, it is very necessary that the Government have preferential policies for loans, in terms of premises, taxes for mechanical factories and companies to manufacture machinery for agriculture. , farmer, rural.

According to the Ministry of Industry and Trade, agricultural mechanical development policies need to focus on perfecting land regulations in order to form a mechanism to encourage land accumulation for agricultural production towards large-scale commodity production. meeting the requirements of quantity and quality for processing factories and creating markets for the application of agricultural mechanization.

Regarding the supporting mechanisms, the Ministry of Agriculture and Rural Development said that it will assume the prime responsibility for, and coordinate with concerned ministries and agencies in, proposing the Government to establish a "special preferential credit package" for implementation. financial support, loans with preferential interest rates for the purchase of machinery and equipment for agricultural production, contributing to promoting agricultural mechanization and stimulating investment demand in manufacturing agricultural machinery and equipment.



+84 28 3622 2588+84 24 3516 2063