MXV to build specialised commodity trading platforms

Inside a trading room of MXV. — Photo mxv.com.vn

HÀ NỘI — Aside from increasing transaction volume, the Vietnam Commodity Exchange (MXV) is currently studying and developing specialist commodity trading systems that will highlight Việt Nam’s strengths in the coming years.

This plan is a key priority for MXV during the 2023-28 period, with the aim of developing the Vietnamese commodity trading market in accordance with international standards.

Đặng Việt Hưng, CEO of MXV, said that these specialised commodity trading platforms will address specific challenges faced by each product.

In general, the platforms will contribute to making Việt Nam’s production and trade operations transparent and modern, laying the groundwork for breakthrough development in the future.

Additionally, MXV will continue to prioritise domestic and international collaborations, particularly with Commodity Exchanges and major technology partners worldwide.

According to the plan, the MXV is set to achieve trading connectivity with Commodity Exchanges in China in the first quarter of 2024, moving towards the goal of cross-listing trading products.

The link with this populous market offers considerable potential for domestic firms and investors to improve their price hedging and investment operations.

The MXV will work closely with partners to gradually operationalise specialist commodities trading platforms.

The initial operations of the Rubber Exchange and the Pork Exchange in HCM City are expected in 2024. The Coffee Exchange and Carbon Credit Exchange are anticipated to commence operations in 2025.

The MXV and Vietnam Rubber Group have reached the testing phase of Việt Nam’s Rubber Trading System. The platform will bring transparency, expand business opportunities, improve product quality, and align the domestic rubber market with global standards.

In 2024, the MXV will also collaborate with the Ministry of Industry and Trade (MoIT) and relevant authorities to formulate new decrees, replacing Decree 158/2006/NĐ-CP, which provides detailed regulations on commercial activities through the Commodity Exchange, and Decree 51/2018/NĐ-CP, which amends Decree 158.

The efforts are aimed at enhancing the legal framework and ensuring the stable and sustainable development of the commodity trading market in Việt Nam.

“This will serve as a precedent to foster the stable and sustainable development of Việt Nam’s commodity trading market, enhancing the country’s position on the global commodity trading map,” the CEO of MXV said. — VNS