The revision will lead to changes in other indicators relative to GDP such as GDP per capita, gross national income, government revenues to GDP, spending deficit to GDP and public debt to GDP.
A revised GDP also changes the GDP structure, in which the proportion of industry, construction and service sectors increases while the farming sector’s contribution decreases.
According to the GSO, the re-assessment of Vietnam’s GDP will not affect the country’s GDP growth targets and socio-economic development strategy since the economic growth rates over the years recorded minor changes.
GSO Director Nguyen Bich Lam said the GDP re-assessment based on the methodology recommended by the UN’s statistics division comes from the fact that there is now information that fully reflects economic activities in Vietnam.
The GSO affirms that the review was in line with international practice and not a change in the calculation method.
In the world, most countries conduct regular GDP re-assessments depending on available information, the scope and purpose of the review.
In Vietnam, the GDP re-evaluation only takes into account defined economic activities, without including the underground and illegal economy, and will be carried out periodically every 5-10 years.