Foreign agri-mech firms motor ahead

Foreign firms are earning good profits from servicing increased mechanisation demands Photo: Le Toan

Nguyen Phuoc Tai, electrical manager of Swiss-backed Buhler Farmila Vietnam Company, told VIR that Buhler was planning to build its second plant to make rice processing machines in the southern province of Long An. The company, a joint venture between Buhler and a group of local firms, currently has a 4,500 square-metre factory in the province, producing accessories and machines for Vietnam’s rice market.

“The demand for Buhler products in Vietnam is rising, because the products can help farmers reduce post-harvest losses. Buhler is also boosting co-operation with local firms,” Tai said, adding that the company was marketing automatic new-generation rice-processing machines and rice dryers.

Hoang Van Hai, head of Japanese-Thai joint venture Kubota Vietnam Company’s northern business section, told VIR that Kubota’s turnover in Vietnam’s northern region was expected to skyrocket 320 per cent this year, up on an already impressive 300 per cent increase last year.

“Our products have proved very popular with farmers. The government is supporting farmers in their production, which has benefited us. We will continue expanding our distribution network in Vietnam, in addition to the existing 40 distribution agencies,” he said.

In late 2009 Kubota opened a $11.37 million agricultural machinery factory in the southern province of Binh Duong. This factory currently manufactures 15,000 tractors and 2,000 combined harvesters annually.

Japan’s Maruyama MFG Company’s overseas sales section Shinsuke Shirai also told VIR that this firm was considering Vietnam a new market for its numerous products like washers, weeders, sprayers, brush cutters, hedge trimmers, blowers and chainsaws.

“Maruyama has 120 years of development,” Shrirai said. “We currently have factories in Japan, China and Thailand. We are consolidating our distribution network in Vietnam before thinking about next bigger steps here. We have sought three partners in Vietnam and are seeking more,” he added.

Japan’s MaruMasu Kikai Company’s overseas manager Y. Tamura also said this firm wanted to establish a big partner network in Vietnam to sell its rice processing machines. The firm had found some partners already.

Chinese-backed Jinhua Sanren Science and Technology Company sales manager Jilly Lee also told VIR this firm “is seeking large-scale distribution partners and expanding our business in Vietnam with products including air cooled diesel engines, mini-tillers, water pumps and brush cutters.”

According to the Ministry of Agriculture and Rural Development, foreign firms are supplying over 80 per cent of the agricultural machines in Vietnam, with 60 per cent from China and 40 per cent from Japan and South Korea.

Last year Vietnam spent about $8 billion importing agricultural machines and fertiliser.

The companies said although Vietnam was an agricultural country, its agricultural machinery industry remained underdeveloped due to many reasons, including an underdeveloped supporting industries capable of manufacturing such agricultural machinery.

Japan’s Nankai Kinzoku Vietnam starting operations of a factory making agricultural machines in the southern province of Dong Nai in July 2014 was having a hard time finding local suppliers, so largely relies on importing spare parts from Japan.

“Vietnam needs to build its supporting industries,” Minister of Planning and Investment Bui Quang Vinh told the National Assembly last week. “That’s the best way to lure foreign manufacturers into the country.”