tailieunhanh - Derivatives as the price fluctuation risk management for Vietnamese coffee exporters

Our research on derivative tools to hedge price fluctuation risk of coffee exporting corporations in Vietnam. Derivatives in Vietnam are in their developing process, the development of commodity exchanges in Vietnam is still disadvantageous. The coffee export sector has reached some significant achievements and is expected to develop. The establishment of tools to hedge price fluctuation of exporters in Vietnam is limitable. | Research in World Economy Vol. 7, No. 1; 2016 Derivatives as the Price Fluctuation Risk Management for Vietnamese Coffee Exporters Dinh Xuan Cuong1 & Nguyen Quoc Toan2 1 Vietnam National University, Hanoi, Vietnam 2 Central Economic Commission, PCV, Hanoi, Vietnam Correspondence: Dinh Xuan Cuong ., Vietnam National University, 144 Xuan Thuy Road, Cau Giay District, Hanoi, Vietnam. Received: March 13, 2016 Accepted: April 4, 2016 doi: Online Published: April 15, 2016 URL: This research is funded by Vietnam National University, Hanoi (VNU) under project number . Abstract Our research on derivative tools to hedge price fluctuation risk of coffee exporting corporations in Vietnam. Derivatives in Vietnam are in their developing process, the development of commodity exchanges in Vietnam is still disadvantageous. The coffee export sector has reached some significant achievements and is expected to develop. The establishment of tools to hedge price fluctuation of exporters in Vietnam is limitable. Keywords: commodity derivative, price risk, Vietnamese coffee 1. Introduction Vietnam is among countries having the biggest advantage in developing agriculture and Vietnam produce plays an important role in produce commodity exchange of the world. According to statistics from the ministry of agriculture and rural development, in 2014 Vietnam export output was 1908 thousand tons in crop year 2013-2014, equal 3327 million USD. The coffee industry has experienced a considerable development from a moderate producer to second biggest coffee producing country. According to International Coffee Organization (ICO), in year 2014, Vietnam continues to hold the position runner-up in coffee exports, behind Brazil but far ahead of other competitors. Despite a big advantage of coffee export, commercial contracts are conducted mainly in the traditional way, which means brokers .