The General Statistic Office (GSO) announced on August 16 that it has started a process to revise the country’s GDP calculation.

Workers assemble a car at a factory in northern Vietnam (Photo: VNA) 

It is possible that the revision will increase Vietnam’s GDP and per capita GDP, with the latter having an impact on household spending as Vietnam approaches the upper-middle income level.

The bureau, however, played down the effect a revision may have on GDP targets and the country’s socio-economic development.

“The revision of GDP calculation is a regular task for any statistics office,” said GSO’s chief Nguyen Bich Lam. “This revision looks at all economic activities considered legal under the country’s current laws and regulations. The underground economy and illegal activities will not be included.”

Lam said the GSO’s revision would bring Vietnam’s GDP calculation more in line with international standards. The bureau has been working closely with experts from the International Monetary Fund and the United Nations.

In addition, the rapid growth of the country’s private sector in recent years has not been adequately documented and reported by relevant agencies. With the results of a number of national surveys and censuses becoming available, the GSO believes this is the right time to review the country’s GDP, which is also a norm among the international community.

According to the GSO, GDP remains one of the key figures in the Government’s evaluation of the scale and capacity of the economy. It is important that GDP calculation must be accurate, inclusive and can be compared to other countries. This is especially relevant as Vietnam is building its 10-year-strategy for socio-economic development for 2021-31.

This is the second time the GSO has conducted a review of GDP calculation. In 2013, the bureau revised Vietnam’s GDP for 2008-12 in which it re-evaluated economic activities of banking and finance, insurance and real estate sectors.