HD Hyundai Construction Equipment Enters Vietnam Used Excavator Market

Expansion of Local Business with RCE Equipped with Online Platform

HD Hyundai Construction Equipment is entering the overseas used excavator sales market by partnering with an online platform service startup.

On the 29th, HD Hyundai Construction Equipment signed a "Business Agreement to Promote the Sale of Used Equipment in Vietnam" with the startup RCE at the HD Hyundai Global R&D Center in Pangyo, Gyeonggi Province. Attendees at the signing ceremony included Choi Cheol-gon, President of HD Hyundai Construction Equipment, Byun Young-hwan, Head of Korean Sales, Han Ho-jin, CEO of RCE, and Shin Young-do, Head of the Vietnam branch, along with other representatives from both companies.

RCE is a domestic startup operating a used heavy equipment sales business in the Vietnamese market using an On-Demand online direct transaction platform. On-Demand refers to providing products and services immediately in response to consumer demand through mobile technology and IT infrastructure.

Going forward, the two companies will build a 'win-win' model that pioneers new overseas markets by matching large corporation products with startup innovative platforms. HD Hyundai Construction Equipment will utilize the RCE platform and customer database (DB) to create a virtuous cycle structure of product distribution by supplying Hyundai equipment in Vietnam and exporting used equipment through domestic dealerships. RCE plans to expand its business by supplying HD Hyundai Construction Equipment’s equipment and providing technical support.

Specifically, HD Hyundai Construction Equipment will quickly supply used excavators held by domestic dealerships to Vietnam and provide service technical support and parts supply. RCE will not only sell the supplied used excavators locally but also enhance brand awareness through warranty extension programs and maintenance services. In this process, the two companies will expand cooperative projects by establishing a technical training center in Vietnam to cultivate specialized personnel.

Through this business, HD Hyundai Construction Equipment expects Vietnamese customers to experience Hyundai excavators, leading to an effect where about half of the demand converts to new equipment sales. Choi Cheol-gon, President of HD Hyundai Construction Equipment, said, "The global used heavy equipment market is worth 400 trillion won and grows at an annual rate of 3%. Based on our sales experience in Vietnam, we will actively pursue entry into the global used market."

Vietnam accounts for a significantly large proportion of the used equipment market. Of the annual excavator sales volume of 14,000 units, new equipment demand is about 800 units, while used equipment accounts for 13,200 units. The annual growth rate of used equipment sales is 7%.