Agricultural Product Derivatives - Vietnam

Vietnam

The nominal value in the Agricultural Product Derivatives market is projected to reach US$87.51bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.25% resulting in a projected total amount of US$113.00bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.28 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$12,320.00bn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 343.10k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Vietnam has seen a notable rise in the Agricultural Product Derivatives market in recent years.

Customer preferences: Investors in Vietnam have shown a growing interest in Agricultural Product Derivatives as a way to diversify their portfolios and hedge against risks. The market offers opportunities for speculation and profit-making, attracting both institutional and individual investors.

Trends in the market: One of the key trends in the Agricultural Product Derivatives market in Vietnam is the increasing adoption of technology. Online trading platforms and digital tools have made it easier for investors to participate in the market, leading to higher trading volumes. Additionally, the introduction of new derivative products tailored to the Vietnamese market has further boosted market activity.

Local special circumstances: Vietnam's agricultural sector plays a crucial role in the country's economy, making Agricultural Product Derivatives particularly relevant. The market allows stakeholders in the agricultural industry to manage price volatility and secure their revenues. Moreover, the government's efforts to promote derivatives trading and enhance market infrastructure have contributed to the market's growth.

Underlying macroeconomic factors: The economic growth and stability in Vietnam have created a favorable environment for the development of the Agricultural Product Derivatives market. As the country continues to attract foreign investments and diversify its economy, the demand for risk management tools like derivatives is expected to increase. Additionally, the growing sophistication of market participants and regulatory reforms are likely to drive further expansion in the Agricultural Product Derivatives market in Vietnam.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.