Vietnam Opens Its First Commodity Exchange
Jan. 14 – Licensed last year by the Ministry of Industry and Trade (MoIT), Vietnam’s first commodity exchange became operational on January 11 in Ho Chi Minh City.
The Vietnam Commodity Exchange (VNX), with a registered capital of US$7.5 million, is allowed to exchange all types of commodities under MoIT regulations. According to its general director Nguyen Duy Phuong, the VNX will initially trade coffee and rubber. Steel will become another commodity on the trading list in the second quarter of 2011. All three commodities are Vietnam’s major exports.
The VNX will operate transactions through futures contracts, swaps and brokerage. It also offers services like goods evaluation, investment consulting, risk management, derivatives and financial support. In addition to being a trading platform, the VNX also functions to ensure a balance between supply and demand, provide industrial and economic information, and help producers avoid pricing risks.
In a statement, Phuong commented that the VNX is an important milestone for Vietnam since it provides a new investment channel for the country’s commodity markets.
Phuong also mentioned that another VNX trading center will be opened in Hanoi in the future.
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