Improving Economic Trends To Propel Growth In The Vietnamese Seed Industry-Ken Research

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The practice of agriculture globally is respected as a magical power that can result in reduction of poverty, rising incomes and improved food security for nearly 80% of the world’s poor, especially for those who live in rural areas and work in the farming sector.

Over the years, according to Seed Market Research Reports, Vietnam’s agricultural sector has experienced a persistent and impressive change. The seed industry has been recently observed to shift positively, promoting a planned economy and has begun to emerge via the support of a new governing legislation. The system changes including more liberalization of input and new techniques applied in output marketing have established an institutional transformation and thereby resulted in significant development of this sector, particularly rice production.

Today, current exports average of rice stands somewhere around 6-7 million tons per annum. Vietnam is thus the world’s fifth-largest rice-producing country having local centers and institutes that have bred around 260 inbred rice varieties along with nearly 70 hybrid rice varieties as per the Vietnam Seed Industry Research Report. It has been witnessed that in order to spread seed production in the country; in-country training programs are usually organized that well make the seed growers aware about various methods involved in the evolving seed technology and with time, the number of such trainings has augmented on its own since the significance of this industry is well realized. Generally, such trainings are carried out by different organizations like: the local extensions department, the hybrid rice research center, and ADB/IRRI project. The key players that currently prevail in the Vietnamese seed industry constitute: Vietnam National Seed Joint Stock Company, Southern Seed Company, Bioseed Company Vietnam, Dekalb Vietnam Company Ltd. (Monsanto), Syngenta Vietnam,  and East-West Seed. All these players are putting in their best efforts to function effectively and end up meeting the final goal of holistic economic progress.

However, it has been identified on proper scrutiny of Vietnam Seed Industry Analysis that F1 seed production of rice has relatively dwindled in the recent years majorly due to near about 10% decline in the subsidies from government and increase in the cost of inputs like fertilizer chemicals and labor. Though, with the help of joint ventures of foreign seed production companies, which purchased exclusive rights to produce and sell hybrid rice seeds; the use of input-responsive modern varieties, sufficient fertilizers, along with a rise in the proportion of rice area under irrigation have been encountered that is expected to ameliorate the current situation in the coming years by focusing on producing high yields throughout.

Besides that, it has been investigated that maize has been Vietnam’s second largest annual crop, after rice, in terms of cultivated area and due to its increasing importance, the local maize production has not been enough to suffice the demand in the recent years; resulting in the import of maize at volumes of about 2 million tons every year and consequently, nowadays, hybrid maize has replaced the old OPV cultivars and traditional maize varieties and currently accounts for as high as 89% of the total maize grown in the country.

Even, the production of chilies and peppers have played a crucial role in the seed sector since Vietnam happens to be one of the major producers of chili and pepper, which fall under the top vegetable crops, economically. Furthermore, Vietnam Market Research Reports for Seed depict that with the motive of achieving higher efficiency and effectiveness in seed production market, the top companies are aiming to develop the overall seed production technologies. For instance: companies like Vinaseed and Thai Binh Seed have modern drying, processing and packaging systems, which can control up to 70.5% of seed production technology and these technologies are eventually bound to be triggered by innovation in the long run.

Geographically, Vietnam has been one of the largest importers of seeds in the Asia-Pacific region and nearly 83% of the total seeds are sourced by Vietnam since the country imports billions of dollars worth of products every year. According to Ken Research Seed Market Research Reports Consulting services in accordance with the stable growth rates of the market, the valuation is further envisioned to reach around USD 1.7 billion by 2020 since the demand for merchandise seeds is projected to amplify by twofold, accounting for near about 70 percent of the total plantation area in the next five years. These forecasted trends show that Vietnam possesses a lucrative soil for many multinational agriculture groups like Mosanto (US), CP Group (Thailand), Syngenta (Switzerland), Vilmorin (France), East West (the Netherlands), Bayer CropScience (Germany) and Sakata (Japan) to cultivate. Therefore, the industry is all set to open up great avenues for all the seed producers globally, as the years roll by and simultaneously continue with its expansion.

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https://www.kenresearch.com/agriculture-and-animal-care/seed/SC-104-20.html

Related Report:

https://www.kenresearch.com/agriculture-and-animal-care/seed/vietnam-seed-market-research-report/553-104.html

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