On September 25, in Ho Chi Minh City, the Ministry of Industry and Trade held a workshop to develop a draft Decree on the trading of goods through the Commodity Exchange.
The workshop on drafting the Decree replacing Decree No. 158/2006/ND-CP and Decree No. 51/2018/ND-CP on the trading of goods through the Commodity Exchange was held by the Domestic Market Department (Ministry of Industry and Trade) at the Southern Office of the Ministry of Industry and Trade (District 1, Ho Chi Minh City).
Speaking at the opening of the workshop, Mr. Bui Nguyen Anh Tuan – Deputy Director of Domestic Market Department, said: “HouseholdThe draft is a step in the process of seeking the Ministry’s opinion. After that,During the workshop, the Ministry will synthesize, receive and explain all comments, including written comments or comments through direct and indirect channels to the Ministry, the Drafting Committee and the Editorial Team.We hope that from your perspectives, experiences and knowledge, we can help give constructive opinions to achieve the set goals.”.
Mr. Bui Nguyen Anh Tuan also informed that before the workshop took place, he had received many written opinions from representatives of associations, industries, and businesses directly involved in the purchase and sale of goods through local commodity exchanges.
“DThis is a new field, so there are still difficulties and problems.So, receiving direction from the Government, Ministry of Industry and Trade will perform replacement of those nDecrees and regulations to suit the current legal context“, Mr. Bui Nguyen Anh Tuan shared and emphasized that he really hopes to hear frank opinions, helping the Drafting Committee to review the contents being included in the draft.
Representatives of the Drafting Committee and Editorial Team also presented the viewpoints and orientations for drafting the Decree and the contents of the draft Decree so that the units attending the workshop could have a more general view of the draft Decree replacing Decree No. 158/2006/ND-CP and Decree No. 51/2018/ND-CP on the purchase and sale of goods through the Commodity Exchange.
| Representatives of the Drafting Committee and Editorial Team also presented the viewpoints and orientations for drafting the Decree and the contents of the draft Decree. (Photo: Tan Hiep) |
Many quality contributions
On the association side, Mr. Le Viet Anh, General Secretary of the Vietnam Pepper and Spice Association, shared some ideas to contribute to the draft Decree such as in Article 27, Clause 5, the collection of membership fees, transaction fees, information service fees and other service fees according to the Charter of the Commodity Exchange and according to the provisions of law. The fee level needs to be agreed upon between the participants and the exchange according to the State’s regulations to attract businesses and farmers to participate in transactions. Low trading volume and failure to meet expectations have made it impossible for the exchange to maintain effective operations.
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| Mr. Le Viet Anh, General Secretary of the Vietnam Pepper and Spice Association, shared some ideas to contribute to the draft Decree. (Photo: Tan Hiep) |
Mr. Le Viet Anh also raised issues that are difficult to implement such as: Article 32, Clause 2, Section c) Total actual delivery volume of agricultural products is from 100,000 tons of goods or more in the previous year or 12 months immediately before the time of notification; Section d) Total transaction value of futures contracts for agricultural products is from 10,000 billion VND or more and the total actual delivery volume of agricultural products reaches from 50,000 tons of goods in the previous year or 12 months immediately before the time of notification.
“For the pepper industry, this is difficult to do when the actual volume of goods that must be traded through the floor reaches a minimum of 50,000 tons while most of the cultivation and production are small-scale households with an average area of 1.1 hectares/household and pepper import-export businesses are mostly very small-scale enterprises. To reach the required volume of 50,000 tons, many farmers and businesses need to participate in transactions on the floor.”representative of Vietnam Pepper and Spice Association informed.
According to the Vietnam Pepper and Spices Association, it is necessary to build a stricter management and supervision mechanism to ensure transparency and fairness in transactions through the Commodity Exchange. This includes applying modern technology to monitor, manage risks and prevent market manipulation.
At the same time, to attract businesses and farmers to participate in the Commodity Exchange, it is necessary to promote training and consulting programs to help them understand the benefits and how to participate in trading through the exchange. Training a team of professional staff to support investors in the trading process is also a very important issue…
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| The workshop received 8 comments from the units. (Photo: Tan Hiep) |
At the workshop, Dr. Tran Van Binh – Research expert in the field of commodity trading, gave his opinion on the futures commodity company in Article 35 of the Draft Decree: “After being assessed by the Ministry of Industry and Trade for a license to operate a futures commodity trading business, if eligible, submit an application to the Ministry of Industry and Trade for a license to operate a specialized commodity trading floor. This regulation should also clearly state Article 52 of the draft Decree on member rights (if eligible to submit an application for a license to operate a specialized commodity trading floor). such as coffee, rice, paddy, rubber…)”.
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| Dr. Tran Van Binh – Research expert in the field of commodity trading gave his opinions and suggestions at the workshop. (Photo: Tan Hiep) |
Mr. Binh also asked about the operating regulations that need to clarify some issues such as currently, what legal framework does the Vietnam Commodity Exchange rely on to require member companies operating under the Enterprise Law such as the Vietnam Commodity Exchange to provide audited financial statements…?
At the same time, this expert in the field of commodity trading also emphasized that in Chapter 8 on Management of training in business and futures brokerage, specifically Article 96, it is necessary to clearly state that the units eligible for training are research institutes, institutes, and economic departments of universities. This needs to be clearly stated in the Decree to avoid spontaneous training organizations, which disrupt the market.
“In Article 49 of Approval of membership of the Commodity Exchange, when a futures company is granted a certificate of eligibility to trade in futures by the Ministry of Industry and Trade, it shall register as a member on a voluntary basis. The Commodity Exchange shall not collect any fees except for the membership guarantee fee and annual fees.”Dr. Tran Van Binh shared.
On the business side, Mr. Bui Van Phi Long, Director of TVT Commodity Trading Investment Company Limited, shared that limiting qualifications such as needing to graduate from high school to participate in the market is unreasonable.
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| Mr. Bui Van Phi Long, Director of TVT Commodity Trading Investment Company Limited. (Photo: Tan Hiep) |
This business representative believes that it is necessary to expand the market participants to include small traders and farmers so that they have a channel for goods insurance. “Hopefully, the policy of amending and supplementing the new decree will create conditions for people to have more tools to ensure goods and avoid risks in production.”Mr. Bui Van Phi Long shared.
Closing the workshop, Mr. Bui Nguyen Anh Tuan – Deputy Director of the Domestic Market Department said that the number of comments was relatively large, coming from representatives of associations, businesses and experts interested in trading activities through the Commodity Exchange. “The Ministry of Industry and Trade is always receptive, always ready to listen to discussions and ready to explain unclear issues.”Mr. Bui Nguyen Anh Tuan said.
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| The comments are necessary materials for the Drafting Committee to research, review, and report to competent authorities (Photo: Tan Hiep) |
According to Deputy Director Nguyen Anh Tuan, the comments are necessary materials for the Drafting Committee to study, review, and report to competent authorities. Next, the Ministry of Industry and Trade will organize a workshop to develop a draft Decree to replace Decree No. 158/2006/ND-CP and Decree No. 51/2018/ND-CP on the purchase and sale of goods through the Commodity Exchange on September 27, 2024.
According to Industry and Trade Newspaper
