HCMC – The United Kingdom and Vietnam are strengthening cooperation to develop Vietnam’s commodity derivatives market, with the UK offering to share practical experience to help build a regulatory framework aligned with domestic conditions and international practices.
The UK Embassy and Consulate General in Vietnam, together with Boston Consulting Group (BCG), held a capacity-building session in Hanoi on March 5, focusing on the development of a modern and transparent commodity and derivatives market connected to global markets.
Commodity derivatives trading plays an important role in improving market transparency, helping businesses manage price risks, and attracting international investment flows, the Vietnam News Agency quoted Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan as saying at the event.
Vietnam is planning to build an International Financial Center capable of linking regional and global markets, Tan added.
The Government has issued Decree 330/2025/ND-CP regulating the establishment and operation of commodity exchanges within the international financial center. The decree introduces a flexible legal framework aligned with international practices and establishes an independent clearing house model to strengthen system safety and risk management.
According to data presented at the event, the commodity derivatives market recorded around 1.54 million contracts traded in 2025, up more than 34% from a year earlier. The total trading value was estimated at over VND1.9 quadrillion.
However, the connection between derivatives trading and the domestic physical commodity market remains limited.
Authorities plan to gradually pilot physical commodity trading on exchanges for several key products to help establish domestic reference prices and strengthen Vietnam’s role in global commodity pricing.
The program included four discussion sessions on global commodity and derivatives markets, development models, and international experience. Participants also discussed exchange structures, clearing mechanisms, legal frameworks, and suitable trading products for Vietnam.
Risk management and market supervision were also discussed, along with measures to attract international investors and trading members to improve market liquidity.
The cooperation is part of the Growth Gateway program involving the UK Government, Vietnam’s Ministry of Industry and Trade, and BCG. Activities include comparative research, professional training, and connections with exchanges, clearing centers, and technology providers in the UK.
The UK hosts several globally recognized financial institutions, including the London Metal Exchange (LME), ICE Futures Europe, and GMEX Group, known for their governance models and clearing systems.
UK representatives said they are ready to share their experience to help Vietnam develop a market framework suitable for domestic conditions while aligning with international standards.
Under current plans, Vietnam will begin piloting physical trading for key agricultural commodities from 2026, combining spot, forward, and derivatives contracts.
The model is expected to connect production areas with exporters, processors, logistics providers, warehouses, banks, and investors, forming a broader ecosystem around commodity exchanges.
Increasing the share of exported commodities traded through exchanges could help improve export prices, stabilize export activities, and generate positive spillover effects for finance, logistics, and domestic markets.
At the event, UK Ambassador to Vietnam Iain Frew praised the Vietnamese Ministry of Industry and Trade, particularly the Agency for Domestic Market Surveillance and Development, for studying international standards and promoting institutional reforms to develop the derivatives trading market.
He said the UK believes Vietnam has strong potential to become an attractive regional hub for commodity and derivatives trading and expressed interest in continuing cooperation as Vietnam develops its international financial center and modern commodity market.
