What is GDP? What is the content and method of calculating Gross Domestic Product in Vietnam?
What is Gross Domestic Product in Vietnam?
According to statistical indicator 0501 Appendix 1 promulgated together with Decree 94/2022/ND-CP, gross domestic product is the value of final physical products and services created by the economy in a given period of time. certain period of time.
This means that GDP does not include the value of physical products and services used at intermediate stages in the production process to create products. GDP represents the output produced by resident units within the economic territory of a country.
What is GDP? What is the content and method of calculating Gross Domestic Product in Vietnam? (Image from the Internet)
What is the general content of Gross Domestic Product in Vietnam?
Based on statistical indicator 0501 Appendix 1 issued together with Decree 94/2022/ND-CP, the general content of gross domestic product (GDP) is:
- From the perspective of use (expenditure): GDP is the total demand of the economy including final consumption of households, final consumption of the State, accumulation of assets and the difference between import and export of goods. and service.
- From the perspective of income: GDP includes income of employees from production, production tax, depreciation of fixed assets used for production and production surplus value in the period.
- From a production perspective: GDP is equal to production value minus intermediate costs.
What is the calculation method for Gross Domestic Product in Vietnam?
Based on statistical indicator 0501 Appendix 1 issued together with Decree 94/2022/ND-CP, the GDP calculation method is:
(1) At current prices: There are three methods of calculating gross domestic product at current prices.
- Method of production: Gross domestic product is equal to the total value added at basic prices of all industries, regions, economic types and territories plus product taxes minus product subsidies. Calculation formula:
Gross Domestic Product (GDP) = Total value added (at current price) + Tax - Product Subsidies
- Income method: Gross domestic product is equal to the total income generated from factors involved in the production process such as labor, capital, land, and machinery. According to this method, gross domestic product includes: income of workers from production and business (in cash and in kind converted into cash), production tax (reduced subsidies for production), depreciation depreciation of fixed assets used in production and surplus/mixed income.
Calculation formula:
Total
domestic products = Income of workers from production + Production tax (deducted production allowance) + Depreciation and amortization (used in production) + Producer surplus or mixed income
- Method of use (spending): Gross domestic product is equal to the sum of 3 factors: Final consumption of households and the state; accumulation of assets (fixed assets, liquid assets and rare assets) and export and import differences of goods and services.
Calculation formula:
Gross Domestic Product = Final consumption + Accumulation
Asset + Difference between import and export of goods and services
(2) By comparative prices: There are two methods of calculating gross domestic product at comparative prices.
- Method of production: Gross domestic product is equal to the total value added at constant prices of all industries, regions, economic types and territories plus product taxes minus product subsidies according to comparative price.
Calculation formula:
Gross domestic product at comparative prices = Total value added at comparison price + Product tax at comparative price - Product Subsidies at Comparative Price
- Method of use: Gross domestic product at comparative prices equals the sum of final consumption at comparative prices, accumulation of assets at comparative prices, and the difference between imports and exports of goods and services at comparative prices.
Calculation formula:
Gross domestic product at comparative prices = Final consumption at comparative prices + Accumulate assets at comparable prices - Difference between import and export of goods and services at comparative prices
When is the release time for GDP in Vietnam?
Pursuant to Clause 1, Article 12 of Decree 94/2022/ND-CP stipulates as follows:
Publish and disseminate data on gross domestic product and gross domestic product in provinces and centrally run cities
1. The published GDP figures are as follows:
a) Estimated data of the first quarter: March 29 every year;
b) Estimated data of the second quarter and six months: preliminary first quarter: June 29 of each year;
c) Estimated data for the third quarter and nine months: preliminary for the second quarter and six months: September 29 every year;
d) Estimated data of the fourth quarter and the whole year; preliminary third quarter and 9 months: December 29 every year,
d) Preliminary data for the fourth quarter and the whole year: March 29 of the following year;
e) Official figures for the whole year and for the quarter of the reporting year: September 29 of the second year following the reporting year.
Accordingly, the indicator of gross domestic product GDP is announced when:
- Estimated data for the first quarter: March 29 every year;
- Estimated data of the second quarter and six months: preliminary first quarter: June 29 every year;
- Estimated data for the third quarter and nine months: preliminary for the second quarter and six months: September 29 every year;
- Estimated data for the fourth quarter and the whole year; preliminary third quarter and 9 months: December 29 every year,
- Preliminary data for the fourth quarter and the whole year: March 29 of the following year;
- Official data for the whole year and quarterly of the reporting year: September 29 of the second year following the year of the report.
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