Developing Vietnam’s Commodity Derivatives Market: Lessons from Japan and China

In the context of globalization, commodity derivatives have become vital tools for price risk management, especially for export-oriented economies like Vietnam. This paper reviews the development of commodity derivatives markets in Japan and China to draw lessons for Vietnam’s market growth and international integration. Japan, through the Tokyo Commodity Exchange (TOCOM), has a history dating back to the seventeenth century, focusing on energy and precious metals. Its success relies on a strict legal framework, adoption of blockchain technology, and an efficient clearing system. China, via the Shanghai Futures Exchange (SHFE), Dalian Commodity Exchange (DCE), and Shanghai International Energy Exchange (INE), has achieved rapid growth through international investor participation, diverse products (agricultural goods, metals, energy), and advanced technologies such as artificial intelligence and big data. Both emphasize transparent supervision and position limits to manage risks. In Vietnam, the Mercantile Exchange of Vietnam (MXV) has made progress but remains small compared to its agricultural export potential. Key challenges include low liquidity, limited stakeholder awareness, and incomplete regulations. Lessons for Vietnam include: diversifying products, prioritizing key exports like coffee and rubber and emerging areas like carbon credits; applying modern technologies for efficiency and transparency; improving the legal framework in line with global standards; strengthening risk management; and raising awareness through education and media. Implementing these measures can enhance MXV’s liquidity, support international integration, and contribute to Vietnam’s sustainable economic growth. Keywords: Commodity derivatives, Vietnam’s commodity market, Japan’s experience, China’s experience, Market development.