Promoting UK–Vietnam Cooperation to Develop the Commodity Derivatives Trading Market

On March 5 in Hanoi, the Embassy and Consulate General of the United Kingdom in Vietnam, in coordination with Boston Consulting Group, organized a capacity-building session on UK–Vietnam cooperation to promote the development of the commodity derivatives trading market in Vietnam.

Overview of the Capacity-Building Session on UK–Vietnam Cooperation

The workshop focused on discussing orientations for building a modern and transparent commodity and derivatives market capable of international connectivity—an important component in Vietnam’s roadmap for developing an International Financial Center.

Completing the foundation for developing the commodity derivatives market

Speaking at the opening of the workshop, Deputy Minister Nguyễn Sinh Nhật Tân said that Vietnam is oriented toward building an International Financial Center capable of connecting with the region and the world. Within this orientation, the commodity derivatives trading market is viewed as an important tool to enhance market transparency, support enterprises in managing price risks, and attract international investment flows.

According to the Deputy Minister, the Government has issued Decree No. 330/2025/NĐ-CP regulating the establishment and operation of commodity exchanges within the International Financial Center in Vietnam. The decree establishes a flexible legal framework aligned with international practices, while also stipulating an independent clearing house model to strengthen system safety and enhance risk management capacity.

In practice, Vietnam’s commodity derivatives trading market has been gradually expanding. In 2025, the total trading volume reached approximately 1.54 million contracts, an increase of more than 34% compared to the previous year, with total trading value estimated at over VND 1.9 quadrillion. These results show that market liquidity is improving, while also reflecting the growing demand of enterprises for using derivatives instruments to hedge against price fluctuations.

However, the linkage between derivatives trading and the domestic physical commodity market remains limited. Therefore, in the coming period, Vietnam plans to gradually pilot physical commodity trading through exchanges for several key commodities. The implementation of this model is expected to help establish domestic reference prices while enhancing Vietnam’s pricing role in the international market.

Deputy Minister of Industry and Trade Nguyễn Sinh Nhật Tân delivers remarks at the event.

The workshop program was designed with four thematic sessions focusing on key issues in the development of commodity and derivatives markets. During the discussions, experts analyzed the overall landscape of the global commodity market, shared experiences from prominent development models, and assessed Vietnam’s position in the process of integrating with international financial markets.

In addition, delegates exchanged views on market structure design, including exchange models, clearing house operation mechanisms, legal frameworks, and trading product portfolios suitable for Vietnam’s practical conditions. Risk management and market supervision were also discussed, with many international experiences shared to strengthen governance capacity when implementing derivatives markets.

Strengthening international cooperation and expanding the commodity trading ecosystem

Within the framework of the Growth Gateway program, the UK Government, Vietnam’s Ministry of Industry and Trade, and Boston Consulting Group have implemented a range of benchmarking research activities, professional training programs, and connections with exchanges, clearing houses, as well as leading technology providers from the United Kingdom.

Currently, the UK is home to many internationally reputable financial institutions such as London Metal Exchange, ICE Futures Europe, and GMEX Group. These organizations are considered exemplary models in exchange governance and the operation of clearing systems according to global standards.

The UK side affirmed its readiness to share practical experience to support Vietnam in building a market framework suited to domestic conditions while aligning with international practices.

Mr. Iain Frew – Ambassador of the United Kingdom to Vietnam shares remarks at the Capacity-Building Session on UK–Vietnam Cooperation.

A notable step forward in this process is the Vietnamese Government’s issuance of Decree No. 330/2025/NĐ-CP, creating a legal corridor for commodity exchanges to operate within the International Financial Center. The decree expands the list of tradable products, including agricultural commodities, energy, metals (excluding gold), carbon credits, and certain digital assets, while also clarifying the mechanisms for spot contracts and derivatives contracts.

According to the development orientation, from 2026 Vietnam is expected to pilot physical commodity trading for several key agricultural products, flexibly combining spot, forward, and derivatives contracts. This model is expected to connect production areas with export enterprises, processing firms, logistics providers, warehousing services, banks, and investors, thereby forming a complete market ecosystem centered around commodity exchanges.

Speaking at the event, Ambassador Iain Frew highly appreciated the role of Vietnam’s Ministry of Industry and Trade in researching international standards and promoting institutional reforms to develop the commodity derivatives trading market.

According to him, Vietnam has many advantages to become one of the region’s attractive commodity and derivatives trading hubs. The Ambassador also expressed his hope that the United Kingdom would continue accompanying Vietnam in the development of its International Financial Center and in building a modern, transparent commodity market deeply connected with the global market.

By Hien Quyen, Vietnam Business Forum