UK Ambassador to Vietnam Iain Frew addresses the event. — VNA/VNS Photo

HÀ NỘI — Việt Nam and the UK are strengthening cooperation to advance the development of a modern derivatives commodity market, seen as a key component in Việt Nam’s roadmap to build an International Financial Centre.

The British Embassy in Việt Nam and the British Consulate-General in Việt Nam, in coordination with Boston Consulting Group (BCG), held a capacity-building session under the UK–Vietnam Growth Gateway initiative in Hà Nội on Thursday to discuss strategies for developing a transparent and globally connected commodity and derivatives market.

Opening the event, Deputy Minister of Industry and Trade Nguyễn Sinh Nhật Tân said Việt Nam aims to establish an international financial centre capable of linking regional and global markets, with derivatives trading playing an important role in enhancing market transparency, supporting enterprises in managing price risks, and attracting international investment flows.

He noted that the Government has issued Decree No. 330/2025/NĐ-CP governing the establishment and operation of commodity exchanges within Việt Nam’s international financial centre, introducing a flexible legal framework aligned with international practices and establishing an independent clearing house model to strengthen risk management and system safety.

An overview of the event. — VNA/VNS Photo

Việt Nam’s commodity derivatives market recorded about 1.54 million contracts traded in 2025, up more than 34 per cent year-on-year, with total transaction value estimated at over VNĐ1.9 quadrillion, reflecting improving liquidity. However, the linkage between derivatives trading and the domestic physical commodity market remains limited.

To address this, Việt Nam plans to pilot physical commodity trading on exchanges for several key products, helping form domestic benchmark prices and enhance the country’s pricing influence in global markets.

The programme featured four thematic sessions covering global commodity and derivatives market trends, development models, and international experiences. Discussions also examined market structure, including exchange models, clearing mechanisms, legal frameworks and suitable product portfolios for Việt Nam.

Participants highlighted the importance of strengthening risk management and market supervision, while promoting international cooperation to attract global investors and trading members to boost market liquidity.

Under the Growth Gateway programme, the UK government, Việt Nam’s Ministry of Industry and Trade and BCG have conducted comparative studies, professional training and connections with leading UK exchanges, clearing houses and technology providers.

The UK is home to globally recognised institutions such as the London Metal Exchange, ICE Futures Europe and GMEX Group, whose governance and clearing systems are widely regarded as global standards.

UK Ambassador to Việt Nam Iain Frew praised the Vietnamese Ministry of Industry and Trade, particularly the Agency for Domestic Market Surveillance and Development, for studying international standards and advancing institutional reforms to support the derivatives commodity market.

He expressed confidence that Việt Nam has strong potential to become an attractive commodity and derivatives trading hub in the region, reaffirming the UK’s commitment to supporting Việt Nam in building an international financial centre and a modern, transparent commodity market. — VNA/VNS