China National Machinery Industry Corporation (Sinomach) has launched an investment programme in Vietnam and Thailand for agricultural machinery
Sinomach’s decision to invest in agricultural machinery follows the 11th China-ASEAN Expo in south China, where China’s top farming equipment manufacturers are exploring investment opportunities in Southeast Asia.
According to Liu Dagong, chief economic manager of Sinomach, said that members of the Association of Southeast Asian Nations (ASEAN) must improve the levels of mechanisation and technology in agriculture.
The agriculture sector contributes largely to the economies of China and ASEAN member nations. A report in Xinhua stated that Vietnam alone exported US$27.4bn worth of farm produce in 2013, accounting for around 20 per cent of its total exports.
“China’s agricultural machinery exports increased around 12 per cent from a year ago in the first half of 2014, driven by demand from the ASEAN market, which has become one of the three largest buyers of the products,” said Liu.
In addition to Sinomach, Chinese tractor producer YTO Group Corporation has already reaped a good harvest in Southeast Asia. Its joint ventures in Indonesia and Thailand saw combined annual revenues of more than US$16.27mn in the past few years, added the report.
