The year 2023 saw significant fluctuations in the global economy and the world commodity market. The MXV-Index ended the year with a 13% decrease, but many commodities experienced fluctuations of over 30%. In Vietnam, seamless and stable commodity trading with the global market was a highlight in trade and investment activities over the past year.

Growing Trading Activity

According to the Vietnam Commodity Exchange (MXV) year-end report for 2023, the average daily trading value at MXV exceeded 4 trillion VND, with some days reaching nearly 10 trillion VND. After a slight decline in Q1 2023, trading volumes at MXV recovered and stabilized in the second half of the year.

By the end of 2023, the market had nearly 30,000 active trading accounts, a 20% increase from the previous year. Mr. Đặng Việt Hưng, CEO of MXV, stated: “In general, trading activities connected with the global market have stabilized and run smoothly without any issues in 2023. The market will continue to expand and develop in line with global trends.”

Currently, MXV lists 45 products linked with most of the world's major commodity exchanges, divided into four groups: Agricultural Products, Energy, Metals, and Industrial Raw Materials.

Since June 2023, MXV has listed commodity options contracts. After more than 6 months of implementation, these options contracts have attracted significant interest from domestic businesses and investors, as evidenced by consistent monthly growth in trading volumes. “The options products traded at MXV have high liquidity, providing businesses with effective price hedging tools and helping investors diversify their portfolios,” Mr. Đặng Việt Hưng added.

Development of Specialized Commodity Exchanges

In addition to expanding trading scale, in 2023, MXV focused on researching and laying the foundation for specialized commodity exchanges for Vietnam’s key products. This is one of MXV’s major plans for the 2023–2028 period, aimed at developing Vietnam’s commodity trading market to international standards.

“Specialized commodity exchanges will address many specific issues for each commodity. Overall, they will make Vietnam's production and trade activities more transparent and modern, setting the stage for breakthrough development in the future,” Mr. Đặng Việt Hưng affirmed.

After a long period of research and cooperation, MXV and the Vietnam Rubber Group have entered the trial phase of the Vietnam Rubber Exchange. The Rubber Exchange will ensure transparent and public pricing, help businesses expand and create more industry links, and enhance the reputation and quality of Vietnamese rubber products. Modern, fast, and accurate trading methods will gradually help the domestic rubber market catch up with global market development.

Also in 2023, a delegation from the global non-profit organization Dubai Chambers visited Vietnam and worked at MXV. Prior to this, both sides had held several productive meetings to develop a coffee exchange to international standards. As the world’s largest exporter of Robusta coffee, establishing a coffee exchange is an inevitable trend for the Vietnamese market, which will support farmers and businesses in their production and export activities.

Looking ahead to 2050, green transition will be a global economic trend. At the Climate Change Summit held during COP26, Prime Minister Pham Minh Chinh committed that Vietnam will achieve net-zero emissions by 2050. In this process, a carbon credit exchange will play a crucial role in connecting buyers and sellers. MXV has been researching and building a carbon credit exchange suitable for Vietnam’s realities to provide the highest benefits to market participants.

In addition, starting from August 2023, MXV has worked with the Department of Industry and Trade, the Department of Agriculture and Rural Development, and other departments in Ho Chi Minh City to develop the Ho Chi Minh City Pork Exchange. Mr. Đặng Việt Hưng stated: “This exchange model, with modern technology and operations, is expected to prevent price manipulation, protect interests, and enhance food safety and quality. Additionally, the scale of Ho Chi Minh City’s livestock industry will gradually advance.”

Major Goals for 2024

Since Decree 51/2018/ND-CP, the commodity trading market has made encouraging progress, recognized by state management agencies, domestic businesses, investors, and international organizations. However, given the market's development and the constantly changing global market, in 2024, MXV will collaborate with the Ministry of Industry and Trade and relevant agencies to develop a new decree to replace Decree 158/2006/ND-CP and Decree 51/2018/ND-CP, aiming to完善 the legal framework and ensure the stable and sustainable development of Vietnam’s commodity trading market.

“This will lay the foundation for the stable and sustainable development of Vietnam’s commodity trading market and enhance Vietnam’s position on the global commodity trading map,” Mr. Đặng Việt Hưng confirmed.

Additionally, MXV will continue to strengthen domestic and international cooperation, focusing on major commodity exchanges and global technology partners. According to the plan, in Q1 2024, MXV will complete trading linkages with commodity exchanges in China, aiming to list cross-traded products. This linkage with the populous market will open unprecedented opportunities for domestic businesses and investors to optimize price hedging and investment efficiency.

MXV will actively cooperate with partners to gradually launch specialized commodity exchanges. The Rubber Exchange and Ho Chi Minh City Pork Exchange are expected to begin operations in 2024. The Coffee Exchange and Carbon Credit Exchange are anticipated to operate in 2025.

With over 13 years of development, MXV has been and continues to be the leading force in Vietnam’s commodity trading market. As traditional investment channels show signs of stagnation, commodity trading is becoming a bright spot in trade and Vietnam’s economy. Strengthening comprehensive international cooperation in areas such as trading, information technology, training, and communication will help elevate Vietnam’s position on the global commodity trading map and contribute to the country's economic integration.

Source: MXV