Illustrative image (Photo: VNA) Since its debut in 2006, trade through the exchange has been steadily growingwith MXV reporting a 36% growth year-on-year in 2022.
The exchange has successfully connected to many of the world's largest commoditymarkets including the Chicago Mercantile Exchange (CME Group), the London MetalExchange (LME), the Intercontinental Exchange (ICE), the Singapore Exchange(SGX), the Osaka Exchange (OSE), and the Bursa Malaysia Derivatives Exchange(BMD), said Tran Duy Dong, head of the domestic market department under the Ministryof Industry and Trade.
"MXV's success is a clear indication of Vietnam's greater role in globaltrade. Large international exchanges not only view Vietnam as a market withgreat potential, but they are also willing to collaborate with us to turn MXVinto a leading exchange in the region," he said.
At the workshop, trade experts from CME said global trade will likely remainunpredictable for the rest of 2023. For example, global oil prices reached apeak of 83.38 USD per barrel in April, only to hit a new low of 63.57 USD amonth later on May 4.
Global macroeconomics still holds too many variables, primarily related to theUS' economic performance and China's recovery. While there have been more downsthan ups in the global market so far this year, there are still reasons to beoptimistic about the resilience of the economy in the medium and long term,said Erik Norland, Executive Director and Senior Economist at CME Group.
The MXV Index, which represents 31 traded commodities in Vietnam, has decreasedby more than 10% compared to the end of 2022. Among them, agriculture andenergy experienced the most drastic price drops by 13% and 17%, respectively.
Experts said prices likely won't stabilise until global macroeconomicconditions improve.
In recent months, however, raw material prices have been on the rise, with manybeing Vietnam's strong products including coffee, rubber and black pepper.
Meanwhile, pressure on the country's animal feed industry has been lessened asglobal prices for input materials went down significantly. Imported corn pricesat ports such as Cai Lan and Cai Mep have dropped below 280 USD per tonne,compared to the price of over 330 USD per tonne earlier this year, which translatedinto lower prices for animal feed in the domestic market.
A report by the General Department of Vietnam Customs showed Vietnam imported2.81 million tonnes of corn in the first four months of the year, a 9.3%increase from the same period last year. Imports of wheat and soybeans alsoincreased by 6.7% and 1.6%, respectively.
However, experts have warned of a reverse trend during the second half of 2023and one that businesses must take measures to mitigate its damage.
Dang Viet Hung, director-general of MXV, urged Vietnamese businesses to takefull advantage of the current favourable conditions while laying the groundworkto prepare for the second half of the year.
By the end of 2022, Vietnam remained the largest exporter of Robusta coffee,the third-largest exporter of rubber, the sixth-largest importer of corn, andthe third-largest importer of soybean worldwide./.
VNA
