The Buon Ma Thuot Coffee and Commodity Exchange (BCCE) is scheduled to start operations on March 10 and will trade in coffee.
The BCCE, formerly known as the Buon Ma Thuot Coffee Trading Centre, has a total charter capital of 75.5 billion VND (3.5 million USD), including 42 percent sourced from the People's Committee of Dak Lak Province, reported vnexpress.vn.
The exchange will trade in two products: spots and futures, for Robusta coffee and connect to global commodity exchanges, such as the Chicago Mercantile Exchange. Following Robusta coffee, BCCE plans to trade in black pepper and rubber.
Tran Thanh Hai, BCCE General Director, said last year that Vietnam exported 1.6 million tonnes of coffee, but the export value of its coffee reached around 3.5 billion USD, which is less effective than other coffee-growing countries, especially Robusta coffee.
Hai said other coffee-growing countries could gain 10 billion USD from coffee exports each year, while Vietnam, which accounts for about half of the world' Robusta coffee output, can only earn about 3 billion USD from coffee exports.
The trading of Vietnamese coffee at the BCCE will create conditions for farmers to sell directly to buyers at the London Coffee Exchange, he said. That will help Vietnamese farmers avoid being forced to sell at low prices.
In 2008, the Buon Ma Thuot Coffee Trading Centre had no efficient operation because it lacked capital and a good operational mechanism, while many farmers could not conduct transactions at the centre.
The establishment of the BCCE is expected to solve problems for commodity transactions and help seize business opportunities. Additionally, feasible deposits in cash or coffee are considered a suitable solution for small business households in the Central Highland region.
According to the General Department of Customs, Vietnam exported 241,000 tonnes coffee, earning 511 million USD for the first two months of this year. The exports dropped 25.3 percent in volume and 16.4 percent in value against the same period of last year.-VNA
The BCCE, formerly known as the Buon Ma Thuot Coffee Trading Centre, has a total charter capital of 75.5 billion VND (3.5 million USD), including 42 percent sourced from the People's Committee of Dak Lak Province, reported vnexpress.vn.
The exchange will trade in two products: spots and futures, for Robusta coffee and connect to global commodity exchanges, such as the Chicago Mercantile Exchange. Following Robusta coffee, BCCE plans to trade in black pepper and rubber.
Tran Thanh Hai, BCCE General Director, said last year that Vietnam exported 1.6 million tonnes of coffee, but the export value of its coffee reached around 3.5 billion USD, which is less effective than other coffee-growing countries, especially Robusta coffee.
Hai said other coffee-growing countries could gain 10 billion USD from coffee exports each year, while Vietnam, which accounts for about half of the world' Robusta coffee output, can only earn about 3 billion USD from coffee exports.
The trading of Vietnamese coffee at the BCCE will create conditions for farmers to sell directly to buyers at the London Coffee Exchange, he said. That will help Vietnamese farmers avoid being forced to sell at low prices.
In 2008, the Buon Ma Thuot Coffee Trading Centre had no efficient operation because it lacked capital and a good operational mechanism, while many farmers could not conduct transactions at the centre.
The establishment of the BCCE is expected to solve problems for commodity transactions and help seize business opportunities. Additionally, feasible deposits in cash or coffee are considered a suitable solution for small business households in the Central Highland region.
According to the General Department of Customs, Vietnam exported 241,000 tonnes coffee, earning 511 million USD for the first two months of this year. The exports dropped 25.3 percent in volume and 16.4 percent in value against the same period of last year.-VNA
