Agricultural price risk management in Vietnam: Challenges and the potential of commodity derivatives

This study examines the complex price risks confronting Vietnamese agriculture, highlighting the limitations of traditional risk management tools. It emphasizes the potential of commodity derivatives as a modern and effective solution for hedging price risks, which remains underutilized in the sector. While the adoption of such instruments should be considered a strategic approach, numerous barriers, including limited market infrastructure, low awareness, and regulatory constraints, hinder widespread implementation. The study concludes by proposing a roadmap to promote the application of modern financial instruments, contributing to the development of a more resilient and sustainable agricultural sector in Vietnam.