Why is the derivatives market "exploding" in Vietnam?

Abundant supply of goods, combined with vibrant trading activities, are the reasons why the derivatives market has grown strongly in recent years.

Talking to reporters of the Industry and Trade Newspaper on the sidelines of the training session on Market Analysis Methods and Building Trading Ideas organized by the Vietnam Commodity Exchange (MXV) on the morning of March 19 in Hanoi, economic expert, Dr. Nguyen Minh Phong said that the good news is that the derivatives market in Vietnam is gradually taking shape and growing. In 2025, Vietnam will have an advantage in the world commodity supply chain, which is an important condition for commodity trading activities through the Exchange to grow strongly in the future.

Dr. Nguyen Minh Phong talks to the press (Photo: Ha Anh)

“ Along with the general trend of developing the primary market in the stock market, the development of the derivatives market on commodity exchanges is in line with the world trend in ensuring future price stability, preventing exchange rate risks, limiting negative impacts from market fluctuations, and creating new investment opportunities for investors. This is also a channel to promote the circulation of goods, ” said Dr. Nguyen Minh Phong.

Recently, in addition to building a derivatives exchange with many commodities connected to the world such as crude oil, soybeans, coffee, etc., MXV is also coordinating with localities to pilot the construction of an exchange with domestic agricultural commodities such as pork and rice.

Dr. Nguyen Minh Phong said that this is a good direction because Vietnam is an agricultural powerhouse, exporting many types of agricultural products to the world, so when building a derivatives market with strong products such as rice, coffee, cashews, etc., it can contribute to controlling world prices, helping businesses and people benefit from these products instead of being controlled by world prices and other countries, even though they do not have large export volumes like us.

Training on market analysis methods and building trading ideas held on the morning of March 19 (Photo: Ha Anh)

In addition, the biggest benefit of trading on commodity exchanges is price insurance, so it can limit the situation of erratic price fluctuations of products. Therefore, the construction of derivative commodity exchanges should be expanded to many products that our country has advantages in agricultural products such as coffee, rice, tea, pepper, cashew nuts, etc.

Along with the development of the derivatives market, currently, the authorities have been building a legal framework to manage this form of business. Dr. Nguyen Minh Phong expressed the view that it is necessary to "popularize education" in the field related to the derivatives market to create awareness for the whole society to absorb the institutions and operate the new market safely and effectively.

Source: https://congthuong.vn/tai-sao-thi-truong-hang-hoa-phai-sinh-bung-no-tai-viet-nam-378978.html