Vietnam’s total gross domestic product (GDP) may increase by 25.4 percent per year for 2011-17 period after calculation is revised. (Photo: tienphong.vn)Hanoi (VNA) - Vietnam’s total gross domesticproduct (GDP) increased by 25.4 percent per year for the 2011-17period after calculation was revised.
The revised GDP increased to 275 billion USD from current 220 billion USD as of the end of 2017. The economy’ssize at the end of the first half of 2019 exceeded 300 billion USD onthe new calculation. Vietnam’s revised per-capita GDP has reached 3,000 USD instead of 2,590 USD.
The estimate was made two weeks after the revision plan wasannounced in mid-August.
According to the General Statistics Office (GSO), the readingmay change key indicators such as end consumption,wealth accumulation, gross national income (GNI), total per-capita GDP andincremental capital-output ratio (ICOR).
The revision could boost the country’s total GDP andper-capita GDP, bringing changes to the Government’s socio-economic developmentpolicies in the future and have an impact on household spending as Vietnamapproaches the upper-middle income level.
It will not change Vietnam’s GDP growth targets and itssocio-economic development plans as changes of GDP growth rates are minimal inrecent years.
There will be opportunities to expand State budget income andGovernment’s spending. In addition, increased total GDP and per-capita GDP mayboost Vietnam’s activities and efforts in the organisations to which thecountry is a member.
According to GSO chief Nguyen Bich Lam, the revision wouldbring Vietnam’s GDP calculation more in line with international standards. Thisis the second time the GSO has conducted a review of GDP calculation. In 2013,the bureau revised Vietnam’s GDP for 2008-12 in which it re-evaluated economic activitiesof banking and finance, insurance and real estate sectors.
“As Vietnam is developing a 10-year socio-economicdevelopment strategy for 2021-30 and a five-year plan for 2021-25, it (therevision) will help the Government address the country’s future path in 5-10years,” Lam said.
GDP revision is common around the world but two-digitpost-revision GDP growth rate has often happened to emerging economies such asZambia (25 percent), Ghana (60 percent) and Nigeria (59.5 percent).
In developed economies, revised GDP growth rates have onlyincreased by a few percentage points such as the US (3.6 percent). China’srevised GDP for 2013 and 2015 rose 3.4 percent and 1.3 percent while Germany’sfigures for 2013-14 were up 3 percent and 7 percent.
In Southeast Asia, Indonesia in 2015 recorded that its revised GDP growth rate was up 6.45 percent.- VNA
VNA
