INTERNATIONAL WORKSHOP ON
MEASURING GDP BY FINAL
DEMAND APPROACH
Shenzhen, China
25-27 April 2011
Ha Quang Tuyen - Duong Manh Hung
National Account Department
General Statistics of Vietnam
Contents
1. Introduction
2. Compiling GDP by final expenditure
(Gross capital formation)
3. Future forward
1. Introduction
• Centralized Statistical System of Viet Nam is divided
into three levels: Center statistics; provincial statistics
and district statistics.
• To gain the statistical information, GSO Vietnam has
based on the statistical system from the centre to the
provinces and districts and line ministries.
• SNAD is a department of GSO
• Apply SNA since 1993
Some main achievements of National account of
Viet Nam
SNA statistics has done
The General Statistics Office has been compiled several
accounts, such as:
• GDP by production approach annually and
quarterly;
• GDP by final consumption approach annually;
• Production account;
• Distribution of Income Account;
• Redistribution of Income Accounts
• Rest of the World Account;
• IO tables for the year 1989, 1997, 2000, 2007
ACCOUNTS
NATIONAL
Q
GDP by production approach
GDP by Expenditure approach
GDP by Income approach
Consolidated Accounts:
I: Production Account
II: Generation of Income Account
III: Allocation of Primary Income Account
IV: Secondary Distribution of Income Account
V: Use of Disposable Income Account
IV: External Transactions
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REG’L
A
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Gross capital formation
• Fixed capital formation
= Book value of fixed capital assets at end of year
- Book value of fixed capital assets at beginning of
year
+ Loss in value due to prices changes
- Gain in value due to price changes
Data sources
• Census
• The rural, agricultural and fishery census
• The establishment census of Vietnam
• Surveys
• The enterprises surveys
• The non-farm individual business establishment
survey
• Administration report
Capital investment method
• This method requires information on construction
investment and working capital during the year.
Construction investment comes from many sources such
as: State budget, preferential credit and trade credit,
own–funds, non-state sources, foreign direct investment,
households and other sources.
• Fixed capital formation does not include total
construction investment, because a part of the capital
does not increase fixed assets such as capital for buying
goods for projects, capital to purchase land for a
construction project, capital to built temporary
accommodation for construction workers.
•
Fixed capital formation method
• Fixed capital formation
= Total construction investment during the year
- (Minus) Capital outlays not increasing fixed assets
+ (Plus) Investment capital not included in total
construction investment (Capital formation of animals,
Capital formation of orchards, Village budget for
construction, Value of compensation and materials of
residents for construction, irrigational works, welfare
constructions etc. and charges for transferring
ownership of assets during the year for secondhand
assets, dwellings, buildings and land)
Data source
• Information is obtained on capital investment from the annual
reports of investment and construction statistics. Estimates of fixed
capital formation are based on data for actual fixed capital
formation or obtained by collecting detailed information on the
structure of capital investment for some projects in order to
calculate a ratio of fixed capital formation to total capital
investment.
• Data sources for fixed capital formation of animals, and the costs of
ownership transfer of secondhand assets, dwellings, buildings and
land during the year were mentioned above.
• For the village budget for construction and the value of materials,
and working time of residents for construction of irrigation works,
welfare constructions etc. data are obtained from a survey to obtain
the ratio of fixed capital formation over the value of total
construction investment.
Change in inventories
• This item is subdivided into 4 groups
▫ Raw materials, semi-finished products, finished
products bough by production units and used as
Intermediate Consumption to create new
products.
▫ Work-in-progress products
▫ Cattle and poultry
▫ Finished goods in stock.
Changes in inventories method
Changes in inventories
= Value of inventories at the end of accounting
period
- Value of inventories at the beginning of
accounting period
+/- Revaluation of inventories
VALUABLES
• Stones and precious metals like as diamonds,
platinum, silver and gold that are not held by
enterprises for use as an input into the
production process.
• Paintings, sculptures, etc., recognized as works
of art and antiques.
• Valuables not elsewhere classified, such as
collections and jewellery of significant value
fashioned out of precious stones and metals.
Data sources
• Capital formation of valuables is calculated as
the value of acquisitions less disposals of
valuables during the year. The information is
based on the household income and outlay
survey
ESTIMATES AT CONSTANT PRICES
• Fixed capital formation
▫ For fixed capital formation of dwellings, constructions and other
architectural work and unfinished construction use the deflator for
construction to convert capital formation at current prices to constant
prices.
▫ For fixed capital formation of machinery and equipment, the price index
of machinery and equipment can be used to convert capital formation at
current prices to constant prices.
▫ For fixed capital formation of agricultural products, divide into fixed
capital formation of cultivation and husbandry, and then use the price
index of cultivation and the price index of husbandry to convert capital
formation from current prices to constant prices, respectively.
▫ Use consumer price indices to convert intangible fixed capital formation,
capital formation of development lands, plantations, orchards and
capital formation of cost of ownership transfer at current prices to
constant prices
• Changes in inventories
▫ For materials, raw materials, fuels and semi-finished products
and finished products use the price index of materials for each
group to convert the current price estimates to constant prices.
▫ For capital formation of unfinished products use the price index
of the main materials from which the products are made to
convert from current prices to constant prices. Nevertheless, it is
very difficult to define the main materials used to produce
unfinished products, so use the price index of a corresponding
group of goods. For changes in inventories of finishing products
use the price index of Gross Output for the industry producing
those products to convert from current prices to constant prices.
▫ For changes in inventories of animals for meat use the price index
of Gross Output of livestock products to convert from current
prices to constant prices.
• Valuables
As no other relevant price indexes are available,
use the price index for gold to convert valuables
from current prices to constant prices.
Compilation issues the GDP in Vietnam
Gross domestic product by expenditure category
at current prices
Trill.VND
2007
2008
2009
2010
Gross domestic
product
839.2
1143.8
1485.0
1658.4
Gross capital formation
298.5
493.3
589.7
632.3
Gross fixed capital
formation
275.8
437.7
514.0
572.5
22.7
55.6
75.8
59.8
584.8
809.9
1091.9
1206.8
51.7
69.2
90.9
104.5
533.1
740.6
1001.0
1102.3
-35.1
-181.3
-225.8
-171.7
-9.0
21.9
29.2
-9.1
Changes in inventories
Final consumption
State
Private
Trade balance (goods &
services)
Statistical discrepency
Structure of gross domestic product by expenditure
category at current prices
%
2007
2008
2009
2010
100.00
100.00
100.00
100.00
Gross capital formation
43.13
39.71
38.13
38.88
Gross fixed capital
formation
38.27
34.61
34.52
35.56
4.86
5.10
3.61
3.32
70.81
73.53
72.77
73.04
6.05
6.12
6.30
6.53
64.76
67.40
66.47
66.51
-15.85
-15.21
-10.35
-10.05
1.91
1.97
-0.55
-1.88
Gross domestic product
Changes in inventories
Final consumption
State
Private
Trade balance (goods &
services)
Statistical discrepancy
Gross domestic product by expenditure category
at constant 1994 prices
Trill.VND
2007
2008
2009
2010
Gross domestic product
461.3
490.5
516.6
551.6
Gross capital formation
203.2
215.9
225.3
248.7
Gross fixed capital
formation
181.7
188.6
205.1
227.5
21.5
27.3
20.2
21.3
335.8
366.6
381.4
418.3
30.3
32.5
35.0
39.3
305.5
334.0
346.4
379.0
-86.8
-101.8
-93.4
-102.8
9.2
9.7
3.4
-12.6
Changes in inventories
Final consumption
State
Private
Trade balance (goods &
services)
Statistical discrepancy
Growth rate of gross domestic product by expenditure
category at constant 1994 prices
2007
2008
%
2009
2010
8.46
6.33
5.32
6.78
Gross capital formation
26.80
6.27
4.31
10.41
Gross fixed capital
formation
24.16
3.82
8.73
10.89
54.56
26.98
-26.18
5.44
10.63
9.17
4.03
9.68
8.90
7.42
7.60
12.28
10.80
9.34
3.68
9.41
184.19
17.23
-8.19
10.02
Gross domestic product
Changes in inventories
Final consumption
State
Private
Trade balance (goods &
services)
Future forward
• Conduct survey on “Compiling Quarterly GDP by
final expenditure” , 2011
• SNA2008, 2014
Thank you very much
for your attention