Imitate India? Vietnams revised GDP algorithm saw a 25.4percent surge in GDP.

category:Finance
 Imitate India? Vietnams revised GDP algorithm saw a 25.4percent surge in GDP.


In order to catch up with China, India has revised its GDP statistics many times in history. What impressed me is that India counts shacks as real estate and cow and sheep manure as organic fertilizer. We have also talked about specific details in previous programs. If you are interested, you can go and see them.

The revised GDP figures for India are beautiful, but the illusion is the illusion, which has now been shattered. Since this year, Indias economy has fallen sharply, growing at only 5% in the second quarter. It shows that there are still many problems in Indias economy. It is useless to rely solely on the new clothes of the emperor.

Why did Vietnam revise its GDP algorithm?

For example, the Vietnamese Bureau of Statistics recently said that it would revise the way GDP is calculated. After revising the GDP statistics, Vietnams GDP increased by an average of 25.4% annually between 2011 and 2017. That is to say, according to the existing statistical methods, Vietnams GDP in 2017 is 223.78 billion US dollars. After adjustment, Vietnams GDP will reach 280.62 billion US dollars in 2017 and 307.1 billion US dollars in 2018.

At present, the population of Vietnam is about 95 million. According to the GDP statistics of 307.1 billion US dollars, the per capita GDP of Vietnam in 2018 is 3232 US dollars, which is much higher than the original statistics.

In fact, Vietnams own economic growth rate is not low. GDP growth in 2017 and 2018 was 6.81% and 7.08%, respectively, higher than Chinas GDP growth at that time.

So why did Vietnam suddenly change the way GDP was calculated?

Mainly Vietnam is currently formulating the economic and social development plan for 2021-2025 and the 10-year economic and social development strategy for 2012-2030. Against this background, GDP data play a key role. The more accurate the data, the more conducive to indicating the future direction of development. Of course, the premise must be real data.

Secondly, after Vietnam revised its GDP algorithm, the total GDP increased, and the per capita GDP also increased, which also helped to attract foreign investment.

Is Vietnams poor economy the fault of GDP?

Since Chinas reform and opening up in 1978, its economy has been growing at a high speed. So far, it is the second largest economy after the United States. In 1986, Vietnam followed Chinas reform and opening-up policy, but after more than 30 years, the total GDP of Vietnam is less than a fraction of that of China. Why?

On the one hand, Vietnams territory is only 329,600 square kilometres, with a population of 95 million, high inflation and unemployment. Even if we learn from Chinas advantage of cheap labor force and do trade processing, Vietnam lacks processing resources and relies heavily on imports, which makes the economic deficit serious. On the other hand, after Chinas reform and opening up, technological innovation has been continuously carried out to develop high-end industries. At present, Vietnam still stays on the transfer of low-end products and has been relying on labor processing. That is to say, Vietnam has only learnt the fur, but has not learnt the essence of Chinas reform and opening up, which also shows that the road to success is not always replicable and pasted. Now Vietnams revision of its GDP algorithm may attract funds in the short run, but in the long run, the solution to its own economic problems is fundamental. After all, this kind of decoration has been repaired for a while, but not for a lifetime. In the final analysis, the revision of this statistical method is nothing more than a game of self-deception. Author: Water Skin Talk Studio Source: Responsible Editor of China Times: Yang Bin_NF4368

On the other hand, after Chinas reform and opening up, technological innovation has been continuously carried out to develop high-end industries. At present, Vietnam still stays on the transfer of low-end products and has been relying on labor processing. That is to say, Vietnam has only learnt the fur, but has not learnt the essence of Chinas reform and opening up, which also shows that the road to success is not always replicable and pasted.

Now Vietnams revision of its GDP algorithm may attract funds in the short run, but in the long run, the solution to its own economic problems is fundamental. After all, this kind of decoration has been repaired for a while, but not for a lifetime. In the final analysis, the revision of this statistical method is nothing more than a game of self-deception.

Author: Water Skin Talk Studio