Commodities trading floors aim to start operatations soon

The Government may grant licences to investors interested in opening commodity transaction floors, Vo Van Quyen from the Department of Domestic Market told the newspaper Dau tu (Investment)

Commodity transaction floors allow for advanced transactions to take place in many countries. But in Viet Nam it seems the idea is just now gaining attention. What are your thoughts about this situation?

I must say that there are a lot of commodity trading floors, but I’m afraid to say that they do not operate like transaction floors. These trading floors allow for members of the business community to meet and work out deals. Our existing coffee trading floor has been built to facilitate trade for forward and future contracts.

What’s the significance of using forward contracts?

Buying and selling commodities with forward contracts contributes a significant amount of capital to our economy. This form of trading is rather popular in our country nowadays, which proves that Viet Nam is developing well.

Have many investors come to the ministry in order to apply for permits to open transaction floors?

Dozens of Vietnamese and foreign investors have come to the ministry to inquire about judiciary procedures and learn more about Viet Nam’s commitments to the World Trade Organisation’s policies.

Why did you say that there are no real commodity trading floors in Viet Nam? Have there been any problems with licensing?

I can say frankly that there are no problems at all with the permit procedure.

Our principle is to grant permits to competent investors only. Why? This is a very complicated issue and it has a great impact on society. Before granting a permit to any investor, we have to carefully consider the floor’s commodity transactions, its activities, information infrastructure, human resource and other important factors.

In what fields does the Ministry of Industry and Trade want to have the transaction floors in?

Any field will do, but we will give priority to agriculture products and raw materials that could be used in domestic production.

We believe that if we have transaction floors for agriculture products, then the floors will help Vietnamese farmers sell their products at better prices. The raw materials’ trading floor would also help stabilise production. — VNS

Tags: Vietnam Commodities trading floors