Industry Metal Derivatives - Vietnam

Vietnam

The nominal value in the Industry Metal Derivatives market is projected to reach US$183.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.64% resulting in a projected total amount of US$219.20bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.57 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in China (US$2,835.00bn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 346.60k by 2029.

Market

Region

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Currency

Analyst Opinion

The Industry Metal Derivatives market in Vietnam is experiencing a surge in interest and activity.

Customer preferences: Investors in Vietnam are increasingly turning to metal derivatives as a way to diversify their portfolios and hedge against market volatility. With a growing economy and a young population keen on exploring different investment opportunities, there is a rising demand for these financial instruments.

Trends in the market: One notable trend in the Vietnamese metal derivatives market is the increasing popularity of gold and copper derivatives. Gold, traditionally seen as a safe haven asset, is sought after by investors looking to protect their wealth in uncertain times. On the other hand, copper derivatives are gaining traction due to the country's expanding infrastructure and construction sector, driving up demand for this industrial metal.

Local special circumstances: Vietnam's strategic location in Southeast Asia, coupled with its strong manufacturing base, positions it as a key player in the regional metal derivatives market. The government's efforts to promote economic growth and attract foreign investment are also boosting confidence among market participants. Additionally, the country's young population, tech-savvy investors, and improving regulatory environment are contributing to the development of the metal derivatives market.

Underlying macroeconomic factors: The overall economic stability and steady growth of Vietnam's economy are providing a conducive environment for the metal derivatives market to thrive. As the country continues to integrate into the global economy and strengthen its financial infrastructure, more opportunities are emerging for investors to engage in derivative trading. Moreover, the increasing presence of international financial institutions and the development of derivative products tailored to local preferences are further driving the growth of the metal 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.