Vietnam Seed Sector Analysis - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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 eight 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 Vietnamese 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 grew gradually, from 0.6% in 2012 to 1.2% in 2016, according to the Ministry of Planning and Investment, Vietnam.

Grains and Cereals Segment is Leading the Vietnamese Seed Industry

The grains and cereals segment of the Vietnamese seed market is likely to witness 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.

Competitive Landscape

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.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support