Feb 14, 2019 / 11:23
Vietnam to include informal economic sector into GDP calculation by 2020
The statistics figure would be updated annually into the GDP, GRDP and key social-economic indicators, which will later be released on a quarterly basis.
Prime Minister Nguyen Xuan Phuc has approved the proposal to calculate the unobserved economic sector, with a view to including these statistics into gross domestic product (GDP) calculation by 2020.
Based on the proposal, five components of an unobserved economy include shadow economy, illegal economy, informal sector, household production for self-consumption and economic activities that are missed out by data collection programs.
The General Statistics Office (GSO) is tasked with pilot measurement of the sector, starting in 2019. The statistics figure would be updated annually into the GDP, GRDP and key social-economic indicators, which will later be released on a quarterly basis.
In a meeting with the outgoing Chief Representative of the IMF in Vietnam Jonathan Dunn on February 13, Phuc requested support from the International Monetary Fund (IMF) in calculating and updating information on the country’s unobserved economic sector, which allegedly makes up a large proportion of the GDP.
At the meeting, Dunn said, by reviewing the informal economic sector, the IMF would help Vietnam calculate the nominal GDP more accurately. He added that even the statistics of the formal economy calculated in the GDP are unable to fully reflect factors which are only updated every 10 years.
A study by Fulbright University in 2018 estimated that Vietnam’s informal economic sector made up 25 – 30% of the GDP and 57% of the total workforce.
Vietnam's nominal GDP in 2018 stood at VND5,535.3 trillion (US$237.64 billion), expanding 7.08% from 2017, marking a 10-year high growth rate. The GDP per capita was US$2,587, up US$198 compared to 2017, according to the GSO.
Illustrative photo.
|
The General Statistics Office (GSO) is tasked with pilot measurement of the sector, starting in 2019. The statistics figure would be updated annually into the GDP, GRDP and key social-economic indicators, which will later be released on a quarterly basis.
In a meeting with the outgoing Chief Representative of the IMF in Vietnam Jonathan Dunn on February 13, Phuc requested support from the International Monetary Fund (IMF) in calculating and updating information on the country’s unobserved economic sector, which allegedly makes up a large proportion of the GDP.
At the meeting, Dunn said, by reviewing the informal economic sector, the IMF would help Vietnam calculate the nominal GDP more accurately. He added that even the statistics of the formal economy calculated in the GDP are unable to fully reflect factors which are only updated every 10 years.
A study by Fulbright University in 2018 estimated that Vietnam’s informal economic sector made up 25 – 30% of the GDP and 57% of the total workforce.
Vietnam's nominal GDP in 2018 stood at VND5,535.3 trillion (US$237.64 billion), expanding 7.08% from 2017, marking a 10-year high growth rate. The GDP per capita was US$2,587, up US$198 compared to 2017, according to the GSO.
Other News
- Hanoi releases plan for sustainable production and consumption
- OCOP products from across Vietnam on display at Hanoi fair
- UK’s accession to CPTPP to benefit Vietnam’s exports in 2025
- Hanoi to attract US$768 million in industrial parks in 2024
- Stronger decentralization key to Hanoi's urban railway ambitions
- Regulatory efforts underway to strengthen e-commerce in Vietnam
- OCOP and agricultural products promotion week underway in Hanoi suburb
- Vietnamese Gen Z's green mission
- Hanoi's flower villages are in full Tet preparation mode
- Regional, international financial centers mean boosters to Vietnamese economy: Deputy PM
Trending
-
Red River Tourism: Jewel hasn't sparkled yet
-
Vietnam news in brief - December 26
-
From Nguyen Xuan Son’s spectacular debut for national football team: Vietnam – a land full of promises for talents
-
Hoa Lac Hi-tech Park to soon launch AI sandbox model
-
Hanoi's beauty through watercolors
-
Vietnam Defense Expo 2024 secures $286.3 million in deals
-
Memories and Faith" features war memorabilia
-
Smart solutions - Key for Hanoi tourism in 2025
-
HABECO – The spirit of Vietnam rising