Revitalised coffee exchange to boost industry in Viet Nam

THE NEW Buon Ma Thuot Coffee and Commodity Exchange (BCCE) is now operating in Buon Ma Thuot City in the Central Highlands Province of Dak Lak, according to a report by Vietrade.

The BCCE will facilitate commodity trading based on spot and future contracts for products such as Robusta coffee, black pepper and rubber latex. Through it, traders can purchase coffee from growers and sell it directly to coffee exchange floors in London, explained Tran Thanh Hai, the general director. More importantly, Vietnamese farmers will benefit as they can begin to sell their products at fair prices.

(Photo: Coffee © Johanna Goodyear | Dreamstime Stock Photos)

According to Mr Tran, Viet Nam earned $3.5 billion in exports of 1.6 million tonnes of coffee in 2014, which he pointed out was low compared to those posted by countries selling coffee including Robusta. He hopes that figures will improve with BCCE managing trade.

The BCCE has a charter capital of VND75.5 billion (US$3.5 million), of which the People’s Committee of Dak Lak Province holds 42%, and the remainder is from Viet Nam Gold Business Corp, Simexco Daklak and Long Yen Construction, Trade and Service Co.  The Exchange was formerly operating under the name Buon Ma Thuot Coffee Trading Centre, which a few years ago was troubled by funding and operational difficulties. Now revitalized, it expects to perform better in driving exports.