Representatives from the Ministry of Industry and Trade, Mercantile Exchange of Vietnam (MXV), and Vietnam Maritime Corporation (VIMC) convened in a pivotal meeting with the Dalian Commodity Exchange (DCE) on March 6-7, 2024. The primary objective of this meeting was to strategically devise and establish a comprehensive cooperation plan aimed at fostering the development of the Vietnam-China commodity trading market.

Share experiences in management and market organization

This marked the inaugural official engagement between DCE and the entities responsible for organizing and operating the commodity trading market in Vietnam. It presents an invaluable opportunity for potential collaboration between the markets in Vietnam and China. DCE, recognized as one of the largest Commodity Exchanges in China since its establishment in February 1993, holds a prominent position among the top 10 globally.

During the meeting at the Ministry of Industry and Trade, DCE shared valuable insights into the policies and regulations implemented by the Chinese government for managing and organizing the commodity trading market. Mr. Ran Hua, Chairman of DCE, underscored the importance of a robust legal framework for the stable and sustainable development of the commodity trading market. He also emphasized the need for agile adjustments to policies and regulations to align with global developments in the dynamic market.

Ministry of Industry and Trade and Vietnam Commodity Exchange welcomed Dalian Commodity Exchange

The representative from the Ministry of Industry and Trade expressed their commitment to working closely with relevant agencies in 2024 to develop a new Decree, replacing Decree No. 158/2006/ND-CP and Decree No. 51/2018/ND-CP. This new Decree aims to enhance the legal framework and stimulate the growth of the commodity trading market in Vietnam. Given the similarities between the Chinese and Vietnamese markets, the experiences shared by DCE hold great value and can be thoroughly researched and applied to market management and organization in Vietnam.

Potential for collaboration across various fields

In terms of market operations, DCE has collaborated with the Ministry of Industry and Trade and MXV to share practical experiences in various areas such as transaction management, risk management, clearing, and hedging.

DCE's expertise, particularly in agricultural products, aligns with the strategic focus on economic development by the Chinese Government. DCE's corn and soybean contracts are globally recognized for their high trading volumes.

In the course of the discussions, Mr. Dang Viet Hung, CEO of MXV, highlighted intentions to create dedicated commodity exchanges for Vietnam's primary products, such as the Rubber Exchange and Pork Exchange in Ho Chi Minh City. These commodities share close ties with the Chinese market, the world's largest producer of pork and importer of rubber. Emphasizing the prospect of collaboration, Mr. Ran Hua underscored the potential for DCE and MXV to streamline transactions and cross-list products. This collaboration would enable Chinese traders to acquire Vietnam's superior goods listed on specialized exchanges facilitated by MXV.

Dalian Commodity Exchange working at the Headquarter of Mercantile Exchange of Vietnam

Moreover, DCE expressed its readiness to dispatch esteemed specialists to Vietnam to exchange and impart their expertise in commodity trading. This collaboration will also involve organizing global conferences in partnership with MXV, featuring numerous experts to enhance the competency of human resources in Vietnam's commodity trading market.

Developing trade and seaport logistics

On March 7, 2024, DCE and MXV engaged in discussions with Vietnam Maritime Corporation (VIMC) regarding the strategy for advancing physical cargo delivery services in Vietnam. Both MXV and DCE emphasized the significance of physical goods delivery as an essential component of any commodity trading market's operational framework, ensuring smooth trading activities.

After the meeting, the three parties toured Hai Phong port together. Nestled in a strategically advantageous geographical position, the import operations of raw materials at Vietnam's seaports have witnessed substantial growth since the early 2000s. Hai Phong port, in particular, stands out with its expansive seaport system featuring 50 ports, designed to handle ships surpassing 130,000 tons. This infrastructure efficiently facilitates the seamless transportation of goods from Hai Phong to diverse continents. Backed by strategic investments and adept operations, Hai Phong port is well-positioned to capitalize on its favorable conditions, aspiring to emerge as a pivotal regional and international logistics hub in the future.

Dalian Commodity Exchange and Mercantile Exchange of Vietnam worked with Vietnam Maritime Corporation

The collaboration between MXV, DCE, VIMC, and Hai Phong port will establish a robust foundation supporting the comprehensive growth of Vietnam's commodity trading market. This collaboration is a crucial element in the country's economic and trade integration efforts, bolstering its position and serving as a springboard for Vietnam's commodity trading endeavors to expand globally.

Huong Nguyen