On March 6-7, 2024, representatives from the Ministry of Industry and Trade, the Vietnam Commodity Exchange (MXV), and the Vietnam Maritime Corporation met with the Dalian Commodity Exchange (DCE) in China to discuss strategies for comprehensive cooperation and development of the Vietnam-China commodity trading market.

Sharing Experience in Market Management and Organization

The Dalian Commodity Exchange (DCE), established in February 1993, is one of the three largest commodity exchanges in China. With its long history and well-organized operational system, DCE ranks among the top 10 commodity exchanges globally.

This was the first official meeting between DCE and the Vietnamese market operators, marking a potential opportunity for collaboration between Vietnam and China. At the Ministry of Industry and Trade, DCE shared important insights into the policies and regulations implemented by the Chinese government in managing and organizing commodity markets. DCE President Ran Hua stated, "The legal framework is crucial for the stable and sustainable development of commodity trading markets. Given the continuous market fluctuations, policies and regulations must be adjusted swiftly to keep pace with global developments."

The Ministry of Industry and Trade indicated that in 2024, it will collaborate with relevant authorities to develop a new decree to replace Decree 158/2006/ND-CP and Decree 51/2018/ND-CP, aiming to enhance the legal framework for the development of the commodity trading market in Vietnam. Since the Chinese market has many similarities with Vietnam, the experiences shared by DCE are invaluable and can be applied to improve market management and organization in Vietnam.

Potential for Cooperation in Various Fields

Regarding market operation, DCE exchanged practical experiences with the Ministry of Industry and Trade and MXV on implementing various functions such as trade management, risk management, transaction clearing, and price insurance.

In China, the first contracts listed on commodity exchanges primarily belonged to agricultural products. Key agricultural commodities like wheat, corn, and soybeans have long been emphasized by the Chinese government for their strategic importance in economic development. DCE's corn and soybean contracts are among the top products by trading volume worldwide.

During the meeting, Mr. Dang Viet Hung, General Director of MXV, noted: "MXV is currently working with various organizations and government agencies to establish specialized commodity exchanges for Vietnam's key products. In the near future, we will soon launch trading platforms for Rubber and Pork in Ho Chi Minh City."

These products are also closely linked to the Chinese market. China is the world's largest producer of pork and importer of rubber. "DCE and MXV have the potential to collaborate on interlinked trading, cross-listing products between the two exchanges. Chinese traders could purchase high-quality Vietnamese commodities that meet standards and are listed by MXV on specialized exchanges," affirmed Mr. Ran Hua.

Furthermore, DCE expressed readiness to send top experts to Vietnam to share knowledge and experience with the commodity trading market. DCE will also collaborate with MXV to organize international seminars featuring leading global experts. These seminars aim to enhance the quality of human resources in Vietnam's commodity trading market and elevate Vietnam's position on the global trading map.

Developing Trade and Port Logistics

On March 7, 2024, DCE, MXV, and the Vietnam Maritime Corporation (VIMC) discussed plans for developing physical commodity logistics in Vietnam. Both MXV and DCE affirmed that logistics is an essential part of any commodity trading market's operation and a critical function ensuring seamless trading activities.

Following positive discussions, the three parties visited Haiphong Port. With its favorable geographical location, Vietnam's port operations have flourished since the early 2000s. Haiphong Port is a major port system with 50 berths capable of accommodating ships over 130,000 tons, connecting cargo from Haiphong directly to various continents. With substantial investment and professional operations, Haiphong Port is well-positioned to develop a logistics service sector, aiming to become a regional and international logistics hub in the future.

The collaboration between MXV, DCE, VIMC, and Haiphong Port will lay a solid foundation for the comprehensive development of Vietnam's commodity trading market. This is a crucial and important factor in the country's economic and trade integration, enhancing Vietnam's position and serving as a launchpad for international commodity trading.

Source: MXV