Recognize opportunities and challenges from commodity trading investment channels

To help managers, businesses and investors in Nghe An better understand commodity trading - an investment channel with many opportunities but not yet known to many people, on the morning of July 29, the Department of Science and Technology coordinated to organize a workshop with the theme "Commodity tradingin Vietnam - Opportunities, potentials and challenges for Nghe An".

Chairing the workshop. Photo: Phu Huong

Co-chairing the workshop were Mr. Tran Quoc Thanh - Director of the Department of Science and Technology; Mr. Nguyen Ngoc Quynh - Deputy General Director of the Vietnam Commodity Exchange; Mr. Tran Van Binh - General Director of SCE Commodity Exchange Joint Stock Company.

The Vietnamese commodity trading market is organized and managed by the Vietnam Commodity Exchange, licensed by the Ministry of Industry and Trade, connecting with foreign commodity exchanges, providing tools for investors to conduct transactions.

Quite a number of delegates attended the workshop on the morning of July 29. Photo: Phu Huong

If in the past, commodity transactions were carried out physically, now most of the trading activities are carried out online. This method of commodity trading will provide services linking the product value chain (farmers - producers, processors - suppliers - investors and banks), promoting trading activities to become fast, convenient and a tool to insure the input material prices of producers.

This is considered a new financial investment channel with many opportunities, potentials and also challenges for investors and commodity manufacturers in Vietnam.

Delegates attending the workshop expressed their opinions on the issue of bringing Nghe An agricultural products into trading. Photo: Phu Huong

Established in 2010, Vietnam Commodity Exchange operates cooperatively based on modern technology platforms, new management methods; developing strategic and key products of the country such as rice and gasoline. Since 2018, with Decree No. 51/2018 of the Government, the activities of Vietnam Commodity Exchange have been more diversified in commodities, higher liquidity, expanding cooperation with investors and businesses around the world. The company is expected to open an official branch in Nghe An in the near future.

The activities of the Vietnam Commodity Exchange focus on Vietnam's agricultural products with export strengths. The commodities traded here are divided into 4 groups: Agricultural products (soybeans, raw rice, corn, etc.); industrial materials (cotton, coffee, rubber, cocoa, sugar, etc.); metals (platinum, copper, silver, etc.) and energy (crude oil, natural gas, blended gasoline, etc.).

Speaking at the workshop, Mr. Tran Quoc Thanh emphasized: Not onlyreference channelEffective prices to provide people and businesses to adjust production and business plans; and commodity trading is also a new and attractive financial investment channel, not only for businesses but also for individual investors, some products can even be put on the floor for sale; high liquidity.

Rough rice is one of the agricultural products that the Vietnam Commodity Exchange focuses on trading. Photo: Phu Huong