Director General of GSO Nguyen Bich Lam announced the official results of the GDP size revision
On December 13, 2019, in Hanoi, the General Statistics Office (GSO) held a press conference to announce the results of gross domestic product (GDP) revision for the 2010-2017 period. Mr. Nguyen Bich Lam, Director General of GSO chaired this event. Attending this were representatives of international organizations under the United Nations, representatives of relevant Ministries and line-ministries, representatives of units under the GSO, and press agencies.
At the press conference, Director General of the GSO Nguyen Bich Lam announced the official results of the revision of GDP scale for 2010-2017. According to the GSO, in the context that Vietnam is developing the 10-year Socio-Economic Development Strategy (SEDS) for 2021-2030 and the 5-year Socio-Economic Development Plan (SEDP) for 2021-2025, the GDP revision at this time is in line with international practices and has a important significance serving as a basis for giving the right orientations for the country’s development in the next 10 years and concretizing for the 5-year period 2021-2025.
Representatives of the GSO answered the reporters’ questions
After this reassessment, the GDP size of the whole economy at current prices gained an average increase of 25.4% per year in the 2010-2017 period, equivalent to an increase of VND 935 trillion annually, of which 2011 recorded the highest growth rate of 27.3% and 2015 saw the lowest rate of 23.8%. The GDP size in 2017 was revised up to VND 6,294 trillion from the previously announced figure of VND 5,006 trillion. The change in structure of GDP reflected more clearly the shifting trend of the economy. In particular, in the 2010-2017 period, compared to the previously announced figure, the structure of the agriculture-forestry-fishery in GDP dropped from 17.4% to 14.7% (down 2.7 percentage points) per year; the industry and construction increased from 33.0% to 34.8% (up 1.8 percentage points); the services saw the growth from 39.2% to 41.2% (up 2 percentage points); products taxes less subsidies on production increased in scale compared with the previous data but its structure in GDP decreased from 10.4% to 9.3% on average in the whole period. After this revision, the annual GDP growth rate had no much change compared to the announced data, the annual GDP in the period of 2011-2017 had a slight increase, in accordance with the annually published growth trend, up 0.13 – 0.48 percentage point, of which the highest increase was recorded in 2016 with 0.48 percentage point.
Overview of the press conference
The GSO also pointed out 05 main groups of reasons leading to changes in GDP scale, including 4 groups that increase GDP scale and 1 group that reduce GDP scale: (1) Supplementing information from the results of censuses made the annual GDP size increase by VND 589 trillion, accounting for 63% of the average growth rate of the country’s GDP after revision; (2) Supplementing information from administrative records caused the annual increase of VND 305 trillion in GDP scale, accounting for 32.6% of the average increase rate of GDP after revision; (3) Updating the new theory of the 2008 national account system made the GDP size increase by VND 98 trillion per year, accounting for 10.5% of the average increase rate of GDP after revision; (4) Reviewing and updating the Vietnam Standard Industrial Classification led to the annual GDP scale increase of VND 75 trillion, accounting for about 8% of the average growth rate of GDP after revision; (5) Updating the economic structure made a change in the intermediate cost (IC) coefficient and the price indexes of the whole country, causing the average GDP scale to decrease about VND 131 trillion per year, equivalent to a drop of about 14%.
The purpose of the revision of the GDP size is to properly assess the picture and capacity of the economy and to evaluate the effectiveness of economic policies. The results of this revision are used to formulate goals in the SEDS for 2021-2030 and the SEDP for 2021-2025, not to assess the completion of socio-economic development targets for 2011-2020 period and socio-economic development plans for 2011-2015 and 2016-2020.
At the end of the press conference, representatives of the GSO took time to answer questions related to the results of the GDP scale revision from the reporters and editors attending.
Mr. Nguyen Bich Lam, Director General of GSO expressed his thanks to the International Monetary Fund (IMF), the United Nations Development Program (UNDP) and international organizations for supporting the GSO in the process of revising this important indicator scientifically and in line with international practices.