▶ Enters into an “Agreement on Promoting the Sale of Used Construction Equipment in Vietnam” with used construction equipment trading platform operator RCE
▶ Agreement expected to secure demand for the distribution of used construction equipment and new vehicles in Vietnam
▶ Constructing a product virtuous cycle through the export of used equipment by domestic dealers
▶ Match large companies with startups that own innovative platforms, a “win-win” for penetrating overseas markets
HD Hyundai Construction Equipment is set to venture into overseas markets for buying and selling used excavators through a strategic partnership with an online platform service startup.
On November 29, HD Hyundai Construction Equipment officially entered into an “Agreement on Promoting the Sale of Used Construction Equipment in Vietnam” with RCE, an online platform service startup. The signing ceremony was held at the HD Hyundai Global R&D Center in Pangyo, Gyeonggi-do.
In Vietnam where approximately 14,000 excavators are sold each year—800 new and 13,200 used—the significance of the used equipment market is evident as it constitutes a substantial portion of the construction market. The annual growth rate of sales of used construction equipment in Vietnam is reported to be 7%.
The signing ceremony was attended by President Choi Cheol-gon of HD Hyundai Construction Equipment, Director Byun Young-hwan who leads the domestic sales team, CEO Han Ho-jin of RCE, and President Shin Young-do of the Vietnam subsidiary of HD Hyundai Construction Equipment. As a Korean startup company, RCE specializes in selling used construction equipment in Vietnam through an online trading platform that employs an on-demand method.
This agreement has been established as a framework for a “win-win” model between a conglomerate with marketable products and an innovative startup owning a trading platform. Through this strategic collaboration, the two companies aim to explore jointly and seize opportunities in overseas markets.
By harnessing the capabilities of RCE's platform and customer database, HD Hyundai Construction Equipment seeks to establish a virtuous product cycle that seamlessly connects Hyundai equipment distribution with the business of domestic dealers engaged in exporting used construction equipment. This collaboration enables RCE to enhance its business operations by leveraging the stable equipment supply and technical support provided by HD Hyundai Construction Equipment.
Under this agreement, HD Hyundai Construction Equipment will undertake the swift shipment of used excavators stored by domestic dealers to Vietnam. The company will provide services, technical support, and excavator parts to ensure smooth operation. On the other hand, RCE, beyond selling high-quality Hyundai-supplied excavators to local customers in Vietnam, is committed to enhancing its brand awareness through initiatives such as warranty extension program, equipment services, and customer management.
Additionally, both companies have future plans for collaboration, including the establishment of a technical training center in Vietnam. This center will play a crucial role in expanding the market for used excavators in the country by training experts in construction equipment. It will also offer tailored financial packages and equipment monitoring services.
HD Hyundai Construction Equipment expects that, by distributing used excavators in Vietnam, at least half of the customers who experience Hyundai excavators will make the decision to purchase a new Hyundai excavator.
“The global market for used heavy equipment is estimated to be worth KRW 400 trillion, growing at 3% annually. Building on our experience selling in Vietnam, we shall actively expand to the global used equipment market," said President Choi Cheol-gon of HD Hyundai Construction Equipment at the agreement signing ceremony.
*On-demand: providing services and products immediately to customers by leveraging mobile technologies and IT infrastructure.
■ Photo caption: On November 29 at the HD Hyundai Global R&D Center, HD Hyundai Construction Equipment signed an agreement with RCE on promoting the sale of used construction equipment in Vietnam. <From right to left> President Choi Cheol-gon of HD Hyundai Construction Equipment, CEO Han Ho-jin of RCE.