Seed Sector Analysis – Vietnam Industry, Growth, Trends and Forecasts (2017 - 2022)
The Vietnamese agricultural industry is becoming increasingly attractive for foreign investments, due to the increasing flow of FDI in the agricultural sector. Trans-Pacific Partnership (TPP) and Free Trade Agreements (FTA) amongst the United States, Vietnam, Australia, Malaysia, Singapore, and other countries in the Asian region have abolished tariffs and other trade barriers between nations. These agreements, along with the availability of good weather, fertile soil, and a large workforce, has created ample opportunities for the development of Vietnamese seed industry
The agricultural sector of Vietnam has accelerated due to the subsidies, credit schemes, etc. provided by the government.
Most agriculture research in the region is carried out by seed research institutes and universities. In Vietnam, seed management is accessible at national, provincial, and district levels. At national level, the MARD (Ministry of Agriculture and Rural Development) constitutes departments such as the Crop Department. Seed management at district level is similar to that of provincial level.
Some of the important seed companies in Vietnam include Angiang Plant Protection Service, Joint Stock Company, Bioseeds Genetics Vietnam, Consulting & Investment Company for Maize Development, C.P Seeds (Vietnam) Co. Ltd., East – West Seed (Vietnam) Company, Ltd., and many others.
Major factors limiting the growth of the Vietnamese seed industry are the failure of cooperative system in distributing seeds in the commercial market and land disputes across Vietnam, due to inadequate compensation by companies. The market is driven by factors such as increase in FDI in agriculture sector and reduction in land-use fee for agricultural projects by the government. For example, if a land is used for conducting field trial for commercializing new varieties of rice seed, government will wave off the 50% of the total cost of land used for conducting the research.
The seed industry in Vietnam is segmented, based on crop type, into grains and cereals, vegetables, and others, with grains and cereals occupying the majority of the market share in Vietnam. Vietnam imports 80-95% of total vegetable seeds produced within the country.
Major Companies in the Sector Include:
• Vietnam National Seed Joint Stock Company
• Southern Seed Company
• Bioseed Company Vietnam
• Dekalb Vietnam Company Ltd. (Monsanto)
• Syngenta Vietnam
• East-West Seed
• Trang Nong Seeds Company Limited
• Thai Binh Seeds
• Bayer Vietnam Ltd.
• Viet Nong Limited
• Green Seeds Inc.
Recent Industry Insights
• Vinaseed has been planning on expanding its product portfolio in the coming years by increasing the depth of its product offering.
• In 2014, Vietnamese government began providing monetary support to various aspects of agriculture projects For instance, the government provided 70% of the expense fee for executing research for the development of new varieties of seeds, and other new technology related to agriculture.
• Key Deliverables in the Study
• Market analysis for the Vietnamese seed industry, with region-specific assessments and competition analysis.
• Market overview, identification and analysis of the macro and micro factors that affect the Vietnamese seed market and how these factors are instrumental in changing the market scenario, on both, global and regional scale.
• Extensively researched competitive landscape with profiles of major companies and their market share, along with an analysis of their current strategic interests, financial information and plans adopted by them to sustain and grow in the studied market.