Vietnam Seed Sector Analysis – Growth, Trends, and Forecast (2020 - 2025)
The Vietnamese Seed Market is estimated to register a CAGR of 8.2% during the forecast period (2020-2025). The Vietnamese seed market is highly competitive as well as consolidated as the top 8 companies in the country account for around 80% of the seed market. There are more than 260 local seed companies in Vietnam but only five of them produce seeds on a commercial scale, as, other companies don’t have funds to invest in research and development of new varieties of seeds.
Key Market Trends
Increase in FDI in the Vietnam Agriculture Sector
Although FDI inflows to the agricultural sector account for a small portion of the total foreign investment in Vietnam, the Vietnamese agricultural sector has great potential, as FDI inflows in the sector have been growing gradually, from 0.6% in 2012 to 1.2% in 2016, according to the Ministry of Planning and Investment, Vietnam. Increasing investment in agriculture
Grains and Cereals segment is leading the Vietnam Seed Industry
The grains and cereals segment of the Vietnamese seed market witnessing a healthy CAGR of 8.2% during the forecast period (2020-2025).As the world’s fifth largest rice producing country in the world, Vietnam has taken the absolute initiative in the self-supply of rice varieties. Most of the rice products exported by the Mekong Delta are produced in Vietnam. Out of the seven major hybrid rice varieties being exported at present, only the Jasmine variety is imported from abroad.
The Vietnamese seed market is highly competitive and consolidated, as the top eight companies account for about 80% of the market share. There are more than 260 local seed companies in Vietnam, but only five of them produce seeds on a commercial scale. This is primarily due to the low availability of funds to invest in R&D of new varieties of seeds. Companies, such as Takii, Sakata, and Vilmorin, operate through their subsidiaries and rely on local companies for the distribution of their products.
Reasons to Purchase this report:
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook