VietNamNet Bridge – For the majority of Vietnamese, 2013 is a difficult year when they have
to cut down expenses to exist. Meanwhile, the General Statistics Office (GSO)
at the end of the year reported an impressive increase in the income per
capita.
At the
donors’ meeting on December 5, 2013, the Vietnamese Prime Minister Nguyen Tan
Dung announced that the Vietnamese income per capita had reached $1,960 per
annum.
The
figure released at the 2012 meeting was $1,600. As such, the Vietnamese income
per capital has increased sharply by $360, or by 22.5 percent just over the
last year.
The
high income per capita is really a big surprise to Vietnamese, if noting that
the GDP grows by 5.3-5.4 percent only in 2013, while the inflation rate is 7
percent.
The
sharp income increase has also been reported by HCM City authorities which
became a hot topic for discussion at the city’s people’s council meeting in
mid-December.
The city’s
report showed that its GDP growth rate in 2013 is 9.3 percent, lower than the
targeted level. However, the GDP per capita reaches $4.513, higher than the
targeted level at $4,000.
Chair
of the HCM City People’s Council Nguyen Thi Quyet Tam said at the meeting that
it is questionable that the city’s GDP growth rate is modest, while the GDP per
capita increase is so high. She asked to clarify this.
According
to the HCM City Planning and Investment Department, in 2012, the GDP per capita
was calculated in accordance with the 1994’s fixed prices, which showed the
result of $3,600 per person.
The
2012 income per capita was re-calculated in mid-2013 with the new calculation
method, in accordance with the 2010’s fixed prices, which showed the result of
$,4000.
This
means that the change in the calculation method has helped every Vietnamese
earn $400 more by the end of 2012.
The
explanation remains enigmatic to analysts. They cannot understand why the GDP
growth rate is calculated in accordance with comparable prices (the inflation
excluded, on the same denominator), while the GDP per capita is calculated in
accordance with the current prices.
GSO
said that while collecting information for the statistical work in recent
years, it has found that the released figures still cannot reflect all the real
achievements. Therefore, it spontaneously increased the scale of the added
value in the banking sector and the depreciation of population’s houses.
The
GSO’s move has made economists confused. The statistics released in 2012 and
earlier have become meaningless, because they cannot be used for comparison,
once the statistics do not have the same denominator.
GSO has
been asked to explain the changes in the calculation method before the public
on mass media.
The big
changes in the calculation method and the differences in figures would create a
lot of problems. What figures will the Ministries of Finance and Planning and
Investment refer to when programming the state budget spending or government
bond issuance.
The
different calculation methods have produced the two different figures with the
wide gap of VND300 trillion. This will lead to a big gap of tens of trillions
of dong in the allowed budget overspending (5.3 percent of GDP).
DNSG
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated
in Singapore since 1994.
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