Vietnam Reviews Draft Law on Commodity Derivatives Trading

On November 11, the second session of Vietnam’s 16th National Assembly heard the proposal and review report on the draft Law on Commodity Derivatives Trading. The draft seeks to establish a legal framework for market organization, trading infrastructure, clearing and risk management, while helping establish reference prices for Vietnamese commodities. National Assembly Chairman Trần Thanh Mẫn chaired the session.

A National Assembly session reviewing the draft law on commodity derivatives trading.（VietVance）

Justice Minister Hoàng Thanh Tùng said the draft has 8 chapters and 57 articles covering market development, infrastructure, protection of participants and state management responsibilities. Vietnam has export strengths in agricultural products such as coffee, rice, pepper and cashew nuts, but existing derivatives trading still relies mainly on overseas exchanges, and products based on the country’s leading commodities remain limited. He said an effectively organized and managed market could help businesses and producers hedge against price fluctuations.

Justice Minister Hoàng Thanh Tùng presents the draft law on commodity derivatives trading.（VietVance）

Vietnam’s commodity derivatives market development plan for 2026 to 2030 aims to bring 10 domestically produced commodities into trading by 2030, establish reference prices for 3 to 5 of them, and reach an annual trading volume of 8 million to 10 million contracts. These are development targets; the proposed law is still under review.

Phan Văn Mãi, chairman of the National Assembly’s Economic and Financial Committee, said the reviewing body supported drafting the law but recommended further checks on its consistency with existing legislation and an assessment of requirements concerning foreign exchange management, anti-money laundering, national defense and security. The committee also recommended distinguishing derivatives trading from spot trading and identifying the lead agency for oversight across departments.

Phan Văn Mãi, chairman of the National Assembly’s Economic and Financial Committee, presents the committee’s review of the draft.（VietVance）

For exchange-traded and over-the-counter trading, the committee recommended assessing arrangements under which the commodity exchange and clearing center would operate as state-owned enterprises, and carefully examining specific financial risk limits for controlled pilot programs. The financial, technical and risk management requirements for exchanges, clearing centers and members, as well as rules on margins, position limits, physical delivery and oversight, also need further refinement.

Source: VietVance