Under the agreement, the parties will study, develop and operate the pork trading floor in the city in the form of spot contracts and futures contracts.

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Representatives of the municipal Departments of Industry and Trade, and Agriculture and Rural Development, and the Mercantile Exchange of Vietnam (MXV) sign a cooperation agreement on forming a pork trading floor in Ho Chi Minh City. 

The trading floor will be formed and developed based on the infrastructure of the MXV, including trading and payment systems, a goods delivery centre, and the provision of market information and transaction of all types of contracts in line with international standards.

Speaking at the signing ceremony, Deputy Director of the Ho Chi Minh City Department of Industry and Trade Nguyen Nguyen Phuong said the trading floor will allow direct pork purchases, without intermediaries, from pig farmers as well as stop at-home hog slaughtering, thereby ensuring food hygiene and safety.

Deputy General Director of MXV Nguyen Ngoc Quynh said that compared to the traditional business method, the pork trading floor will be different in the organisational model and operation as modern technology infrastructure will be applied in the transactions, adding that MXV learned a lot of valuable lessons while working with major commodity exchanges, especially the Chicago Mercantile Exchange.

Ho Chi Minh City is currently the largest pork consumption market in the country which spends 500 million USD on pork a year. However, traders account for 85% of transactions and play a dominant role in determining prices in the market. Farmers and consumers are always in a passive position.

The pork trading floor is expected to help the city implement a modern livestock plan, gradually reducing spontaneous breeding, and building industrial-scale cattle slaughterhouses.

Source: VNA