INVESTMENT
Investment is the entire amount of capital spending (expenditure) to increase or maintain capacity and resources for production, including: investment to generate fixed assets, investment to increase current assets, spending on purchasing rare and precious assets, reserves gold in the form of goods, storage of commodities in the resident and other investment to improve people’s knowledge, enhance social welfare, improve the ecological environment, support people’s welfare, etc.
Investment does not include investments which transfer the right of use or ownership among individuals, households, enterprises or organizations…without increasing fixed assets and current assets in the locality, such as the transfer of land, houses, shops, equipments and other used fixed assets.
The ratio of investment to GDP is the percentage between investment and GDP in a given period.
Formula:
| The ratio of investment to GDP (%) | = | Investment at current prices in the year | × 100 |
|
GDP at current prices in the same year |
Inward foreign direct investment to Viet Nam is total amount of cash and legal objects of foreign investors who have been put into Viet Nam and invested in approved projects in the form of money, machinery, equipment, supplies, materials, fuels, finished goods, semi-finished goods, value of industrial property rights, technical know-how, technical processes and services, intellectual property rights and other legal properties.
Outward foreign direct investment of Viet Nam is total cash and objects that the Vietnamese invest abroad and in approved projects that have been approved, in the form of foreign currency, machinery, equipment, supplies, materials, fuels, finished goods, semi-finished goods, value of industrial property rights, technical know-how, technical processes and services, intellectual property rights and other legal properties.
Incremental Capital Output Ratio (ICOR) is a general economic indicator which refers to the number of investment units that are required to produce and additional unit of gross domestic product (GDP).
ICOR is calculated as below:
|
ICOR |
= | V1 |
|
G1 – G0 |
ICOR: Incremental Capital Output Ratio;
V1: Investment in reference year;
G1: GDP in reference year;
G0: GDP in previous year of reference year;
Indicators of investment and GDP which serve ICOR calculation were calculated at constant 2010 prices.