Vietnam to launch derivatives market in 2017

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• Vietnam sets up financial and monetary policy council

Vietnam's derivatives market, which will open in the first quarter of next year, will initially offer futures contracts on the stock markets and in government bonds.

However, once the market is fully operational and stable, more instruments will be introduced, said the State Securities Commission.

The emergence of the derivatives market will strengthen the country's stock market by providing more instruments to hedge and manage risks in a bid to attract more investors.

“This is a positive sign for Vietnam’s financial market and shows that the country’s financial infrastructure and investors' expertise have met the requirements for a fast-growing derivatives market," said Tran Viet Hung, a financial derivatives consultant at Saigon Securities Inc. "Such market should bolster, not deter, the country's stock market in a short space of time.”

The plan for opening a derivatives market was approved by former Prime Minister Nguyen Tan Dung in 2014. In Southeast Asia, only Singapore and Thailand have already opened derivatives markets.

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