On June 28, 2024, in Ho Chi Minh City, the Vietnam Commodity Exchange (MXV) and the Vietnam Rubber Industry Group (VRG) successfully organized a conference to introduce and collect opinions on the rubber trading floor with the participation of more than 100 guests representing leaders of enterprises operating in the Vietnamese rubber industry.
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| Conference to introduce and collect opinions on Rubber Exchange. |
Listing Vietnamese rubber on the stock exchange
Currently, Vietnam is the third largest rubber exporter in the world. According to statistics from the General Department of Customs, in May, our country exported 84,467 tons of rubber, with a turnover of 134.65 million USD, up 14.8% in volume and 14.5% in value over the same period in 2023. In the first 5 months of the year, Vietnam's rubber exports earned nearly 860 million USD, up 6.0% over the same period in 2023.
At the same time, Vietnam is also the leading country in rubber productivity in the Asian region. Vietnam's rubber output has grown by about 10-15% per year since 2000. Vietnam mainly produces natural rubber, accounting for about 80% of total output. By 2022, the current rubber plantation area will reach about 912,000 hectares.
With such a large market position and scale, Vietnam has not yet truly mastered the world rubber price. Vietnam's rubber market still has many limitations, due to the lack of initiative in listing rubber prices on the centralized market.
Specifically, the products are not consistent in quality, specifications, and standards. The traditional and simple business method; traders control the market and prices, leading to farmers often being at a disadvantage. In addition, the lack of transparency in market information makes it difficult to orient and develop the Vietnamese rubber industry.
Regarding this issue, speaking at the Conference, Mr. Le Thanh Hung, General Director of VRG said that listing Vietnamese rubber products on the exchange will solve the limitations of traditional rubber trading methods, when we have a centralized, public and transparent trading market.
“The parties will apply the market organization model that is operating effectively in the world and use the most advanced transaction technology infrastructure, helping to protect the interests of buyers and sellers, while improving product quality. This is a very important step to promote the sustainable development of the rubber industry, contributing to enhancing the position and competitiveness of Vietnam's special products in the international market,” Mr. Le Thanh Hung added.
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| Mr. Le Thanh Hung, General Director of VRG spoke at the Conference. |
To effectively implement the listing of special products such as rubber, MXV has cooperated closely with VRG. Rubber products will be listed based on MXV's modern information technology infrastructure, while VRG plays an important role in consulting, inspecting and standardizing product quality.
Trading through the floor is an inevitable trend
Speaking at the Conference, Mr. Duong Duc Quang, Deputy General Director of MXV said that with the experience of organizing a market with more than 30,000 trading accounts, operating continuously 24 hours a day from Monday to Friday every week, along with modern information technology infrastructure, meeting international standards, MXV believes it can cooperate with VRG to organize effective listing and trading of Vietnamese rubber products.
Representing MXV, Mr. Duong Duc Quang introduced to all guests an overview of rubber trading on the floor, the trading system and operating procedures. Accordingly, the trading floor operates according to the bidding and negotiation trading methods, in the form of Spot Contracts and Futures Contracts. Rubber products will be coded according to type and manufacturing enterprise.
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| Mr. Duong Duc Quang, Deputy General Director of MXV introduced the Rubber Exchange. |
“The difference when listing rubber trading compared to traditional business methods lies in the organizational model, operation method and application of advanced technology infrastructure in trading. These are experiences that MXV has drawn from the largest rubber markets in the world,” Mr. Duong Duc Quang added.
On the sidelines of the conference, representatives of guest businesses raised many questions about the listing of rubber on the exchange. After sharing from representatives of MXV, businesses all expressed their desire to soon implement the listing of this commodity.
In the third quarter, MXV and VRG will coordinate to complete the procedures and regulations for trading Vietnamese rubber products, and at the same time, deploy the trial operation of listing and trading of products. It is expected that in the fourth quarter, this product will be officially listed and traded.
Source: https://congthuong.vn/nang-cao-vi-the-nganh-cao-su-viet-nam-thong-qua-san-giao-dich-328835.html
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