Lao Practices
in Measuring Production
of Manufacturing
International Workshop
From Data to Accounts: Measuring Production in
National Accounting,
Beijing, China
8-9 June 2009
1
Presentation Outline
1.
2.
3.
4.
5.
6.
Economic Structure
Introduction to Lao Statistics System and
SNA compilation
Scope of Manufacturing
Data Collection
Data Compilation
Key Issues and Areas for improvement
2
Lao PDR: Economic Structure, 2002-Est.2007
100.0%
Taxes on products
and Import duties
80.0%
Service
60.0%
Industry
40.0%
20.0%
Agriculture, Forestry
and Fishing
0.0%
2002
2003
2004
2005
2006
EST
2007
3
Contribution of Manufacturing to GDP
30.00%
Construction
25.00%
20.00%
Electricity and
Water
15.00%
Manufacturing
10.00%
5.00%
Mining and Quaying
0.00%
2002
2003
2004
2005
2006
Est.
2007
• VA of manufacturing is accounted for about 8 % of the GDP
and 40- 45% of the total Industrial sector Value Added over the
years
4
Introduction- Lao Statistics system is
decentralized (Horizontal and Vertical lines)
•
The Department of Statistics (DoS), Ministry of Planning and
Investment (MPI) is the coordinating body of production and
dissemination of statistics and information within the national
statistical system and also directly responsible in Producing Price
Index (CPI), National Accounts, Poverty , Population and Demographics
Statistics.
•
The responsibility of sector oriented statistics lies with the line
ministries include MOF, BOL. ( Horizontal)
•
Every ministry who collects data does that through their
provincial planning departments. Thus the DoS uses staff at the
provincial planning department under the Ministry of Planning
and Investment (MPI) to which DoS belongs (Vertical)
5
Introduction- Lao Statistics system
is decentralized ( con’d)
•
Two parallel systems of data collection partly
overlapping, partly complementing each other in
administrative (routine) data collected by the line
ministries and survey data by the DoS.
•
The first part (Horizontal) is financed through
Central Government but relies heavily on donor
support. And the vertical is financed by the
provincial and district budgets.
6
Introduction-NA compilation
practices

National Accounts compilation officially started
in 1990

Used the value added coefficient (GVAR) in
calculating GDP by production approach , and
the administrative data was main source.

Used the 1968 SNA guidelines, But the
framework has not been fully adopted.
7
Introduction-NA compilation practices
•
In 1997, DoS has achieved several main sources included
census and surveys ;
•
In 1997 is the year DoS attempted to adopt the 1993 SNA
framework and successfully achieved the first benchmark.
•
Since 1997, the National Accounts complication used the
1993 SNA framework. DoS completed compilation
exercises for product and expenditure approaches.
•
The series of estimation ( constant and current price) are
available for the years 1997, and 2002-2005. However,
based on the 1993 SNA framework, some of the basic
concepts were not yet applied by NSC.
8
Scope of Manufacturing and
Boundaries
•
Group of manufacturing activities is defined
based on ISIC ( Section-C )


•
Surveys for 1997 and 2002-2005 reference years,
ISIC Rev.3, 2 digits is applied.
2006 (Survey and Economic Census) and 2007 , ISIC
Rev.4, 4 digits is applied.
Classification of boundaries of a Unit

Using the Value of Value added to define main and
secondary activity carried out by a unit, ( e.g
Manufacturing and Trade of Motor Vehicle) as to
determine where unit should be classified
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Basic Characteristics of manufacturing
Enterprises & Establishment, EC 2006
Total Enterprises &
establishment , EC 2006
126,913 units
Number of Manufacturing
Enterprises &
establishments
24,331 units (19%)
Employment in
manufacturing
30% of total formal employment (345,772
persons)
Basis characteristics
93% is small scale, whose number of employees
less then 5 persons, while large scale unit is
accounted for only 0,2%.
90% is owned by domestics private. Only 1%
of total who has been practiced progressive
business accounting.
10
Data collection
Data
Data sources
1. Number of establishment and
enterprises
2. Production in Quantity and
Value
Administrative data
(Ministry of Industry and
Commerce)
1. Total sale and other revenue
2. Intermediate consumption /
Inputs
3. Employment
4. Wage and other expenses
5. Changing in inventory (stock)
6. Fixed asset
Surveys:
Economic Census,06
Annual Establishments
Survey 1997, and
2002-2007
11
Data Compilation
•The
estimates are restricted to
the use of production account
•Value
added is complied at
aggregated level (two digits of
ISIC). However, for the
publication, VA of manufacturing
is grouped for Food &Beverage
and Others( Non-food).
Gross Output
Total Value of
output at basic
price
Less
Total IC at
purchasers’ price
Gross Value added GVA at basic price
•
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Key Issues and Areas for Improvement

The Enterprise & Establishment annual surveys improve period
data for the accounts but there are some quality problems
(coverage, timeliness, coding enumerators qualification,...)

Creating a systematic & updating the Business Register Statistics as
to assure appropriate sample frame, procedures

Data and information sharing system among producers ( DoS,
MOF, Tax department, MIoC)

Encouraging and improving response rate of the survey
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Key Issues and Areas of Improvement

Difficulties in measuring output for mixed nature of industries
(manufacture and Trade,…). Extensive case study is required

Compiling price deflators Producer Price Index and appropriate price
deflators include the Volume production index

Resources are Constraint, included HRD (recruitment new staff and
develop skill through job training )

Working with Survey team and MIoC Consolidating and rationalizing
the system of industrial statistics( manufacture ) that better serve the
users with fast and accurate statistics in the future.

Specific training in classification matters of involved stakeholders
14
Thank you
15