| Promoting the comprehensive development of the commodity trading market in Vietnam The commodity trading market is on the rise |
On March 6-7, 2024, representatives of the Ministry of Industry and Trade, the Vietnam Commodity Exchange (MXV) and Vietnam National Shipping Lines met and worked with the Dalian Commodity Exchange, China to plan a comprehensive cooperation strategy to develop the Vietnam - China commodity trading market.
Sharing experience in market management and organization
Dalian Commodity Exchange (DCE) was established in February 1993 and is one of the three largest commodity exchanges in China. With a long history of development and a well-organized and operational system, DCE is currently in the top 10 largest commodity exchanges in the world.
This is the first time DCE has had official working sessions with agencies and units that are organizing and operating the commodity trading market in Vietnam, thereby opening up potential cooperation opportunities between the Vietnamese and Chinese markets.
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| Ministry of Industry and Trade and Vietnam Commodity Exchange welcomed and worked with Dalian Commodity Exchange |
At the headquarters of the Ministry of Industry and Trade, DCE shared many important contents about the policies and regulations that the Chinese government has been applying in the management and organization of the commodity trading market. Mr. Ran Hua - Chairman of DCE said: "The legal corridor is the foundation for the stable and sustainable development of the commodity trading market. With the constant fluctuations of the market, policies and regulations need to be adjusted quickly and promptly to keep up with the pace of development of the world".
The representative of the Ministry of Industry and Trade also said that in 2024, the Ministry of Industry and Trade will coordinate with relevant agencies to develop a new Decree, replacing Decree 158/2006/ND-CP and Decree 51/2018/ND-CP to complete the legal framework to promote the development of the commodity trading market in Vietnam. The Chinese market has many similarities with Vietnam, so the experiences shared by DCE are very valuable and can be studied and applied in market management and organization in Vietnam.
Potential for cooperation in many fields
Regarding market management, DCE has exchanged and shared practical experiences with the Ministry of Industry and Trade and MXV in implementing operations such as: transaction management, risk management, transaction clearing, price insurance, etc.
In China, the first contracts listed on the Commodity Exchanges were mainly agricultural products. The main agricultural products traded such as wheat, corn, soybeans, etc. have long been highly regarded by the Chinese government as strategically important in economic development. DCE corn and soybean contracts are continuously the leading products in terms of trading volume in the world.
Sharing at the meeting, Mr. Dang Viet Hung, General Director of MXV said: “ MXV has been coordinating with relevant organizations, ministries, departments and branches to build specialized commodity exchanges for Vietnam’s strong products. In the near future, we will soon launch the Rubber Exchange and Pork Exchange in Ho Chi Minh City”.
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| Dalian Commodity Exchange works at the Headquarters of Vietnam Commodity Exchange |
These products are also related to and traded with the Chinese market. China is currently the largest pork producer and rubber importer in the world. “ DCE and MXV have the potential to cooperate to connect transactions and cross-list products between the two Exchanges. Chinese traders can buy Vietnam’s strong physical products that meet appropriate standards and are listed by MXV on specialized Exchanges,” Mr. Ran Hua affirmed.
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| Mr. Ran Hua – Chairman of Dalian Commodity Exchange |
In addition, DCE said it would be willing to send leading experts to Vietnam to share and provide knowledge and experience for the commodity trading market. At the same time, DCE will also coordinate with MXV to organize international seminars with the participation of many of the world's leading experts. The seminars are an opportunity to improve the quality of human resources for the commodity trading market in Vietnam, raising Vietnam's position on the world commodity trading map.
Development of seaport trade and logistics
Also on March 7, 2024, DCE and MXV discussed with Vietnam National Shipping Lines (VIMC) about the plan to develop physical cargo delivery in Vietnam. Both MXV and DCE affirmed that physical cargo delivery is an indispensable part of the operating model of any commodity trading market and is an important business, ensuring the continuity of commodity trading activities.
After positive exchanges, the three sides visited Hai Phong port. With a favorable geographical location, the import of raw materials at Vietnam's seaports has been developing vigorously since the early 2000s. In particular, Hai Phong port is a large seaport system with 50 wharves, the wharves are capable of receiving ships of more than 130,000 tons, bringing goods from Hai Phong directly to the continents. With careful investment and professional operations, Hai Phong port is assessed to have all the favorable factors to develop the logistics service industry, aiming to become a regional and international logistics center in the future.
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| Dalian Commodity Exchange and Vietnam Commodity Exchange work with Vietnam National Shipping Lines |
The cooperation between MXV, DCE, VIMC and Hai Phong port will create a solid foundation for the comprehensive development of the commodity trading market in Vietnam. This is a necessary and important factor in the process of economic and trade integration of the country, raising the position and being a launching pad for Vietnamese commodity trading activities to reach international level.
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