According to information released by the National Bureau of Statistics of Vietnam, the economy in the first quarter of 2021 actually grew by 4.72% year-on-year, 6.73% in the second quarter, and a year-on-year reduction of 6.02% in the third quarter. The initial value of the economic growth rate in the fourth quarter was 5.22% - a year-on-year increase of 2.58% in 2021.
"Economic Growth" plus "New Algorithm", Vietnam GDP hit a new high
The latest statistical report released by In 2021, the nominal GDP completed by the whole society in Vietnam expanded to 8398.606 trillion Vietnamese Dong , which was converted to US$362.619 billion based on the average exchange rate. Based on the population of about 98 million, the per capita GDP 5 of increased to around US$3,700.
Netizens who often read Nansheng's articles may have noticed that in previous articles, they mentioned that the nominal GDP completed by Vietnam in 2020 was 6293.14 trillion Vietnamese dong, which was about US$271.2 billion based on the average exchange rate last year, with an average per capita of around US$2,800.
Only a year has passed, and in this year, the actual economic growth rate of Vietnam is only 2.58%. Even with the factors of rising prices, its GDP should not increase significantly from 6293.14 trillion Vietnamese dong to 8398.606 trillion? What is the reason for this?
The answer is: "Economic growth" plus "new GDP algorithm". In the second half of 2019, Vietnam officially released a report saying that it has made new improvements and supplements to the GDP algorithm, and has made new assessments and corrections to the economic development values from 2011 to 2017.
According to the new algorithm, Vietnam's total GDP will be greatly increased to a level of nearly 630 trillion Vietnamese dong in 2017. Compared with the "only slightly more than 500 trillion Vietnamese dong" obtained by using the old algorithm, 's upward adjustment range exceeded 25% , which is a huge leap.
for some reason, when publishing the economic development reports for 2019 and 2020, the Vietnam Statistics Bureau still adopted the old GDP algorithm. Starting from the first quarter of 2021, the released economic data used new statistics and accounting methods , which is close to the "2008 National Account System" released by United Nations .
Nansheng noticed that after adopting the new GDP algorithm, Vietnam's economic scale and per capita GDP will both move forward significantly in 2021. Its economic aggregate will be very close to Philippines , and its per capita GDP is expected to reverse from "before it was lower than the Philippines", and the economic structure of ASEAN has changed.
Changing the GDP algorithm is a very common phenomenon internationally
At present, the GDP accounting rules adopted by countries around the world mainly include the "1993 National Account System" and the "2008 National Account System", both jointly released by the United Nations, the World Bank and other institutions. Compared with the former, the "2008 National Account System" is more complete, and residents' owned housing is included in GDP accounting according to virtual rent.
At the same time, R&D investment is also included as capital investment and included in GDP accounting; there are also many "intangible assets" classified into entertainment, literature, and artistic originals, and included in GDP accounting..., so that new economic statistics and accounting rules can better reflect the impact of emerging industries.
Among them, the United States released new GDP data based on the UN's "2008 National Account System" rules in 2013, which suddenly expanded the total US economic output by 3% on the original basis. According to the new statistical method, looking back at the global economic crisis from 2008 to 2009, the decline in the US economy has also been partially corrected.
Interested netizens can search for it themselves. South Korea adjusted its algorithm in 2019, adjusting the base year of actual GDP from 2010 to 2015; and Japan also included the " Sharing Economy ", which has been very active in recent years, into the GDP accounting system; our neighbors, India changed its algorithm more frequently.
and the mainstream developed economies have basically adopted the "2008 National Account System" published by the United Nations to count and calculate the national economy, in developing countries generally lags behind, and the old algorithms have not been abandoned. In addition, they will adjust some rules in the new algorithm based on their own national conditions and gradually approach the mainstream. This article is compiled and written by [Nan Sheng]. Please do not reprint or plagiarize without authorization!
