Vietnam: How is the gross regional domestic product (GRDP) regulated? Are GRDP and GDP the same?
How is the gross regional domestic product (GRDP) regulated? Are GRDP and GDP the same?
Based on the target T0501 guided in the Appendix issued with Decision No. 05/2023/QD-TTg, the gross regional domestic product (GRDP) is the value of final physical products and services created in a province or centrally run city in a certain period of time.
This means that the GRDP does not include the value of physical products and services used at intermediate stages in the production process to create products. GRDP denotes the output produced by resident units in the economic territory of a province or centrally run city.
As for the statistical indicator 0501 Appendix 1 promulgated together with Decree No. 94/2022/ND-CP, the gross regional domestic product (GDP) is the value of final physical products and services created by the economy within a certain period of time.
Thus, GRDP and GDP are both the value of final physical products and services created in a certain period of time. However GDP is defined for a country's economy. The GRDP is determined in the economic territory of a province or centrally run city.
Vietnam: How is the gross regional domestic product (GRDP) regulated? Are GRDP and GDP the same?
What is the method of calculating gross regional domestic product (GRDP)?
Based on the indicator T0501 guided in the Appendices issued together with Decision No. 05/2023/QD-TTg, the method of calculating the gross regional domestic product (GRDP) is regulated as following the production method:
(1) At current prices
Gross regional domestic product is equal to the total value added at basic prices of all industries, regions and economic types plus product tax minus product subsidies.
Calculation formula:
Gross regional domestic product (GRDP) | = | Total value added at current price | + | Product tax at current price | - | Product subsidy at current price |
In which:
Value added at current price | = | Value of production at current prices | - | Intermediary costs at current prices |
(2) According to comparative price
Gross regional domestic product (GRDP) at constant prices is calculated indirectly (because GRDP or value added cannot be decomposed into price and quantity factors, there is no suitable price index to reduce live broadcast).
Gross regional domestic product (GRDP) | = | Total value added at comparison price | + | Product tax at comparative price | - | Product Subsidies at Comparative Price |
In which, import tax at the comparative price is equal to the import tax at the current price divided by the import price index of the current year compared with the base year of comparison.
Value added tax and other product taxes at comparative prices equal value added tax and other product taxes at current prices divided by the total value added deflation index of economic sectors.
The comparative price product subsidy is equal to the current price product subsidy divided by the total value added deflation index of the economic sectors.
When is the GRDP data in Vietnam released?
Pursuant to Article 12 of Decree No. 94/2022/ND-CP stipulating as follows:
Release and dissemination of GDP and GRDP data in Vietnam
1. The GDP data is released as follows:
a) Estimated data of Quarter I: March 29 every year;
b) Estimated data of Quarter II and 6 months; preliminary data of Quarter I: June 29 every year;
c) Estimated data of Quarter III and 9 months; preliminary data of Quarter II and 6 months: September 29 every year;
d) Estimated data of Quarter IV and entire year; preliminary data of Quarter III and 9 months: December 29 every year;
dd) Preliminary data of Quarter IV and entire year: March 29 of the following year;
e) Official data of entire year and quarters of the reporting year: September 29 of the second year following the reporting year.
2. The GRDP data is released as follows:
a) Estimated value of Quarter I: March 25 every year;
b) Estimated data of Quarter II and 6 months; preliminary data of Quarter I: May 29 every year;
c) Estimated data of Quarter III and 9 months; preliminary data of Quarter II and 6 months: September 25 every year;
d) Estimated data of Quarter IV and entire year; preliminary data of Quarter III and 9 months: November 25 every year;
dd) Preliminary data of Quarter IV and entire year: March 25 of the following year;
e) Official data of entire year and quarters of the reporting year: September 29 of the second year following the reporting year.
3. The released GDP and GRDP data must be disseminated in a timely, adequate, wide, open and transparent manner.
Thus, the GRDP data is released as follows:
- Estimated value of Quarter I: March 25 every year;
- Estimated data of Quarter II and 6 months; preliminary data of Quarter I: May 29 every year;
- Estimated data of Quarter III and 9 months; preliminary data of Quarter II and 6 months: September 25 every year;
- Estimated data of Quarter IV and entire year; preliminary data of Quarter III and 9 months: November 25 every year;
- Preliminary data of Quarter IV and entire year: March 25 of the following year;
- Official data of entire year and quarters of the reporting year: September 29 of the second year following the reporting year.
Decision No. 05/2023/QD-TTg takes effect from April 15, 2023.
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