New report finds GDP growth revised up 25.4 per cent in 2010-2017

A new report on Vietnam's macroeconomics and GDP revision has been released by Prof Can Van Luc and researchers from the BIDV Training and Research Institute

 - an academic branch of the Bank for Investment and Development of Vietnam. 

New report finds GDP growth revised up 25.4 per cent in 2010-2017
A new report by BIDV Training and Research Institute put Vietnam's GDP at $334.6 billion. The report also made a number of policy recommendations for the country's socio-economic development in 2021-30. — VGP Photo

The report was based on the country's revised GDP in December 2019, which found GDP growth was revised upwards by an average of 25.4 per cent each year in 2010-2017.

This came out to 0.13-0.48 percentage points higher for each year's GDP growth figure against previously released figures, or roughly US$40 billion annually.

Revised GDP for 2020 was estimated at $334.6 billion, slightly lower than the figure by the International Monetary Fund, which put the country's GDP at $340.6 billion.

One of the causes behind the changes was attributed to increased shares of the industrial, construction and services sectors, the three economic pillars expected to drive growth in 2021-30. Notably, the industrial and service sectors are set to account for 80 per cent of the country's GDP by 2030, according to the General Statistic Office of Vietnam (GSO). 

 

The revised figure also put Vietnam, with income per capita of $3,404 in 2019, closer to the World Bank's definition of a middle-income country ($3,466-$12.055 income per capita). It also put the country on a trajectory to achieve income per capita of $6,500 in 2030. This will likely hurt Vietnam's ability to secure financial aid and preferential loans in the future.

At the same time, the country's contribution to international organisations will also increase, making it trickier for the Government to balance its budget. 

The report also made policy recommendations for the country's socio-economic development in 2021-30. It said the GSO should make public all data and methods employed in the revision of GDP to improve its credibility and accuracy of economic forecasting. The report also called for a uniform economic reporting process, in which the same criteria are used by central and local agencies. 

Notably, researchers urged the National Assembly and the Government to make adjustments to public investment, debt level and Government expenditures, which were all put under critical level after the GDP revision, based on revised figures to minimise risk to the economy. 

More importantly, the report recommended the Government set objectives for the country's socio-economic development in 2021-30 with an emphasis on sustainability, inclusiveness and innovation. Vietnam's top priorities for the foreseeable future should include investment in the development of science and technology, digitalisation, administrative reform and improving its human resource, according to the report.  VNS

IMF trims Vietnam GDP growth forecast to 1.6% in 2020

IMF trims Vietnam GDP growth forecast to 1.6% in 2020

The country would remain the only one with positive growth among five major economies in ASEAN, and its economic growth would rebound to 6.7% in 2021.

 
 

Other News

.
Red boards with this phrase appear densely on Hanoi streets
Red boards with this phrase appear densely on Hanoi streets
BUSINESSicon  05/10/2021 

“Shop for rent”, “space for rent”, “house for rent”, … are the phrases that appear most on the streets of Hanoi after two months of social distancing.

Ministry forecasts Vietnam’s GDP growth this year at 3%-3.5%
Ministry forecasts Vietnam’s GDP growth this year at 3%-3.5%
BUSINESSicon  05/10/2021 

The Ministry of Planning and Investment has projected the country’s gross domestic product (GDP) growth in 2021 at 3%-3.5%, down 0.5 percentage points from the rate forecast in September.

Businesses reopen in HCM City, but challenges remain
Businesses reopen in HCM City, but challenges remain
BUSINESSicon  05/10/2021 

After months of social distancing the reopening of the HCM City economy on October 1 has brought cheer to both businesses and the public.

VIETNAM BUSINESS NEWS OCTOBER 5
VIETNAM BUSINESS NEWS OCTOBER 5
BUSINESSicon  05/10/2021 

 Project aims to enhance trade remedy capacity as Vietnam joins new-generation FTAs

Hanoi removes 28 administrative procedures in investment
Hanoi removes 28 administrative procedures in investment
BUSINESSicon  05/10/2021 

Hanoi’s authorities have decided to remove 28 administrative procedures in the field of investment.

VIETNAM BUSINESS NEWS OCTOBER 4
VIETNAM BUSINESS NEWS OCTOBER 4
BUSINESSicon  04/10/2021 

Vietnam develops rural tourism through digital transformation

Construction ministry proposes legal amendment to prevent 'land fever'
Construction ministry proposes legal amendment to prevent 'land fever'
BUSINESSicon  05/10/2021 

Many real estate brokers lack professional knowledge and ethics and do ‘hit and run’ business, causing losses to customers by giving wrong advice or even cornering the market and causing artificial land fever.

Vietnam warned of serious air pollution in motorization period
Vietnam warned of serious air pollution in motorization period
FEATUREicon  05/10/2021 

Vietnam is about to enter the motorization period when the market will boom and the air will become polluted. Policies on restricting the use of old-technology vehicles and encouraging green, clean vehicles are needed.

Focus turns to stamping out hotbeds, greening the economy
Focus turns to stamping out hotbeds, greening the economy
FEATUREicon  05/10/2021 

The acceleration of vaccinations will help restore production and business activities, and expand green production zones and a green workforce for the economy.

Quality workforce – “bottleneck” of support industry firms
Quality workforce – “bottleneck” of support industry firms
BUSINESSicon  04/10/2021 

The shortage of high-quality workforce is a “bottleneck” faced by domestic support industry enterprises, said economists.

As migrant workers leave cities, who will save businesses?
As migrant workers leave cities, who will save businesses?
FEATUREicon  04/10/2021 

Thousands of migrant laborers have returned to their hometowns to avoid the pandemic, leaving behind city dreams. The consequence is that enterprises lack workers to restore production in the "new normal".

Basa fish industry in the Mekong Delta hit hard by social distancing
Basa fish industry in the Mekong Delta hit hard by social distancing
BUSINESSicon  04/10/2021 

As of mid-September, basa harvesting is estimated at 932,000 tonnes, only 81.1 per cent of the same period last year.

Vietnamese manufacturing hit by pandemic
Vietnamese manufacturing hit by pandemic
BUSINESSicon  04/10/2021 

The Vietnam Manufacturing Purchasing Managers' Index (PMI) remained at 40.2 in September.

HCM City businesses propose support policies
HCM City businesses propose support policies
BUSINESSicon  04/10/2021 

Businesses in HCM City have called for support policies to help them revive operations after disruption caused by the COVID-19 pandemic.

Vietnamese ICT businesses benefit from digital consumption
Vietnamese ICT businesses benefit from digital consumption
BUSINESSicon  04/10/2021 

Vietnamese ICT enterprises have benefited greatly from the fast digitalisation trend, with their revenues rising despite the COVID-19 pandemic.

Vietnam’s economy to slow as population ages: WB report
Vietnam’s economy to slow as population ages: WB report
BUSINESSicon  04/10/2021 

Population aging could slow down Vietnam's long-term growth in the 2020–2050 period by 0.9 percentage points compared with the last 15 years, a new World Bank (WB) report finds.

Millions of US dollars poured into green growth projects
Millions of US dollars poured into green growth projects
BUSINESSicon  03/10/2021 

Capital flows into green growth projects have still seen positive signals despite adverse impacts from the COVID-19 pandemic on foreign direct investment (FDI) in Vietnam.

Vietnam likely to attain trade surplus in 2021
Vietnam likely to attain trade surplus in 2021
BUSINESSicon  03/10/2021 

Vietnam is in a favorable condition to take advantage of free trade agreements (FTA) that the country is a part of, as well as growing global demand in the late-year shopping season.

Private sector plays key role in post-pandemic recovery
Private sector plays key role in post-pandemic recovery
FEATUREicon  03/10/2021 

Vietnam's emerging and dynamic private sector proved its resilience during the Covid-19 pandemic as it helped the country become one of the few countries to obtain positive growth in 2020. 

No price hike on power bill until the end of the year: MoIT
No price hike on power bill until the end of the year: MoIT
BUSINESSicon  02/10/2021 

There will be no increase in electricity prices from now until the end of the year, the Ministry of Industry and Trade (MoIT) - the country's power regulator - announced yesterday during the ministry's monthly press conference.

 
 
 
Leave your comment on an article

OR QUICK LOGIN