0
Several parties will analyze, build, and operate a pork trading floor in Ho Chi Minh City and may introduce financial products such as spot trading contracts and futures contracts for pork products.
Ho Chi Minh City is currently the largest pork consumption market in Vietnam. Every weekday, the people of the city consume approximately 9,000 pigs. Additionally, in a typical 2-day weekend, they consume about 10,000 pigs.
Ho Chi Minh City's pork market sells 20,000 billion VND per year (Approx. 833 million USD). However, traders account for 85% of those transactions and play a dominant role in price makers, while farmers and consumers take the backseat.
A specialized pork exchange will be established and developed on the Commodity Exchange of Vietnam (MXV). The pork exchange will be different compared with the traditional business commodities method in terms of the organizational model, operation, and modern technological infrastructure. The plan will be implemented in 3 phases: bilateral bid trading, centralized spot trading, and centralized forward trading. In all stages, an independent unit will be created with the purpose of enhancing traceability, quantity control, quality control, and effective logistics and storage systems.
Mr. Nguyen Ngoc Hoa, Chairman of the Board of Members of Ho Chi Minh City State Financial Investment Company (HFIC) affirmed: “The construction of the pork trading floor will put the interests of the city people first. Participants need to quickly study and develop a project so that the exchange can go into operation soon.”
The livestock industry in Ho Chi Minh City is developing toward fully automated slaughtering and meat preservation by refrigerated vehicles. The pork exchange is expected to make a precise contribution to helping the city implement modern livestock planning, gradually reduce spontaneous breeding, and the building of livestock and poultry slaughtering facilities on an industrial scale. More importantly, this is an important basis for the formation of a sustainable pig farming industry in neighboring provinces.
August 14, 2023/ Báo Nhân Dân (People's Newspaper)/ Vietnam.
https://nhandan.vn/
