HCMC – The Ministry of Industry and Trade is collecting feedback on a draft law on commodity derivatives trading, which is expected to establish a legal framework for the commodity derivatives market amid rising demand for price risk hedging tools among import-export firms.
According to the drafting agency, Vietnam’s commodity derivatives market has grown rapidly in recent years, particularly in sectors such as agricultural products, energy and metals. Still, existing regulations are mainly based on the Law on Commerce, which provides only general principles for trading through commodity exchanges and has yet to fully address specific features of derivatives transactions, including margin requirements, central clearing, risk management and market supervision.
The draft law is expected to comprise 12 chapters with 70 to 75 articles. It sets out provisions on the organization and operation of commodity derivatives exchanges, clearing and settlement centers, the rights and obligations of market participants, as well as mechanisms for management, supervision and systemic risk control.
The draft also introduces a legal basis for new derivatives products such as carbon credits, green financial products, rare metals and other specific assets that currently lack a clear regulatory framework. The move is intended to prepare for the formation of a carbon market and price risk management instruments in the context of the green transition.
Under the proposed operating principles, transactions must be conducted through licensed exchanges or linked with foreign exchanges. Clearing and settlement activities must be carried out through licensed clearing centers. The draft emphasizes compliance with international standards on information transparency and risk governance, and strengthens measures against market manipulation, fraud and conflicts of interest.
The issuance of a separate law is also aimed at ensuring consistency with the Law on Securities, the Law on Credit Institutions and the Law on Anti-Money Laundering, which contain specific provisions on financial derivatives and market supervision. The ministry said that continued regulation under the 2005 Law on Commerce could lead to overlaps and inconsistencies in management.
Amid strong volatility in global commodity prices, import-export enterprises increasingly require tools to hedge price and exchange rate risks. The ministry said the development of a comprehensive legal framework is necessary to support risk management, attract investors, enhance international connectivity and strengthen economic security, instead of merely amending existing legislation.
