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Energy sector focuses on risk management
A conference designed to raise awareness in the energy sector of ways to minimise the negative impacts of global oil price fluctuations took place in Ha Noi on Thursday.
"Risk management during oil price volatility in Viet Nam" was jointly organised by BIDV Insurance Co (BIC) and Ginga Viet Nam Holdings, who have already signed a contract with the Bank for Investment and Development of Viet Nam (BIDV) to set up BIDV Energy Co Ltd.
BIDV Energy, which is expected to launch this year, will be the first enterprise in Viet Nam to specialise in hedging in the energy sector, particularly oil.
It has an investment capital at US$1 million, of which BIDV holds a 49 per cent stake, while foreign partners hold the remainder. Hedging involves buying a commodity in advance to mitigate against future price rises.
At the conference, experts from Mabanaft Singapore Co and Barclays Singapore Bank gave advice on hedging solutions and derivatives – which is also designed to minimise future losses due to price fluctuations.
Tran Hong Diep, director of Viet Nam Ginga, said: "The conference is rather important because risk management for price volatility still remains unfamiliar in Viet Nam."
He said risk management in the energy sector was going to become increasingly important when the Government removes subsidies on fuel imports in order to ease the burden on the State budget.
VNN
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