1. What is GDP?
GDP (Gross Domestic Product) is an important indicator in economics, often understood as gross domestic product or gross domestic product. It represents the total market value of all final goods and services produced within the country, representing the nation’s economic strength over a specific period of time, usually a year. or a quarter.
GDP not only measures the value of products and services, but also reflects important aspects of economic activity, including production, consumption, investment and exports. It indicates the strength and growth potential of the national economy, and is also an important indicator to assess the health and development potential of a country.
To better understand GDP, you need to note the following characteristics:
GDP measures the total value of goods and services in the economy using market prices. It aggregates a wide variety of products into a single index to reflect the comprehensive value of economic activity. Market price is the amount consumers are willing to pay for goods and services, so GDP is based on the accuracy of this value.
GDP represents all products created and officially sold on the market. However, it does not include underground products, such as illegal drugs. For example, fruits and vegetables sold in stores contribute to GDP, but if you consume fruits and vegetables in your garden, they are not counted in GDP.
GDP measures products and services, including physical goods such as food, cars, and clothing, as well as non-physical services such as haircuts, health care, and house cleaning.
GDP only calculates the value of final goods and services, not including the value of intermediate goods.
GDP includes all goods and services produced in the current period, excluding those produced in the past.
GDP is calculated based on the economic territory of a country, including units of production and business activities, regardless of the form of organization: organizations, individuals or permanent households.
GDP reflects the value of production that takes place during a specific period of time, usually a year or a quarter.
GDP per capita is an economic measure that represents the average level of business production for each individual in a country over a period of one year. To calculate a country’s GDP per capita at a specific time, the country’s total GDP at that time is divided by the country’s total population at that time. This allows determining the average level of wealth that each person in that country achieves through production and services in the economy. There is a positive relationship between the GDP per capita index and the level of wealth. income as well as the quality of life of residents in a country. However, having a high GDP index does not mean that a country has the highest standard of living, because there are cases where the standard of living is not commensurate with the GDP index.
2. When are GDP and GRDP data announced?
According to the provisions of Article 12 of Decree 94/2022/ND-CP on the announcement and dissemination of data on gross domestic product indicators and gross product indicators in provinces and centrally run cities:
– GDP data is announced as follows:
+ Estimated data for the first quarter: March 29 every year;
+ Estimated data for the second quarter and 6 months; Preliminary first quarter: June 29 every year;
+ Estimated data for the third quarter and 9 months; Preliminary second quarter and 6 months: September 29 every year;
+ Estimated data for the fourth quarter and the whole year; Preliminary third quarter and 9 months: December 29 every year;
+ Preliminary data for the fourth quarter and the whole year: March 29 of the following year;
+ Official data for the whole year and by quarter of the reporting year: September 29 of the second year following the reporting year.
– GRDP data is announced as follows:
+ Estimated data for the first quarter: March 25 every year;
+ Estimated data for the second quarter and 6 months; Preliminary first quarter: May 29 every year;
+ Estimated data for the third quarter and 9 months; Preliminary second quarter and 6 months: September 25 every year;
+ Estimated data for the fourth quarter and the whole year; Preliminary third quarter and 9 months: November 25 every year;
+ Preliminary data for the fourth quarter and the whole year: March 25 of the following year;
+ Official data for the whole year and by quarter of the reporting year: September 29 of the second year following the reporting year.
– Published GDP and GRDP data must be disseminated promptly, fully, widely, publicly and transparently.
Thus, GDP and GRDP data are announced annually at specific times. GDP data released on March 29, June 29, September 29 and December 29. GRDP data released on March 25, May 29, September 25 and November 25. After publication, GDP and GRDP data are widely disseminated, fully and transparently.
3. Method for calculating gross domestic product per capita
(1) Concepts and calculation methods
Gross domestic product per capita is calculated by dividing the gross domestic product for the year by the average population for the corresponding year. Gross domestic product per capita can be calculated at current prices, in domestic or foreign currency, and can also be calculated at comparative prices to calculate the growth rate.
Calculation formula:
Gross domestic product per capita (VND/person) = Gross domestic product (GDP) in the year (in VND)/Average population in the same year
Gross domestic product per capita in foreign currency is calculated in USD at the (current) exchange rate or purchasing power parity rate.
Gross domestic product per capita at exchange rate or purchasing power parity (USD) = GDP per capita in VND/ VND/USD exchange rate or average annual purchasing power parity rate
(2) Main grouping
– Provinces / cities under central;
– Socio-economic region.
(3) Announcement period: Year.
(4) Data source
– Gross domestic product: As data source of indicator 0501 in the Appendix issued with Decree 94/2022/ND-CP;
– Average population: As data source of indicator 0102 in the Appendix issued with Decree 94/2022/ND-CP;
– Exchange rate of Vietnamese Dong (VND) to US Dollar (USD) announced by the Ministry of Planning and Investment (General Statistics Office) based on the report of the State Bank of Vietnam; Purchasing power parity exchange rate is calculated by the Ministry of Planning and Investment (General Statistics Office) based on data published by the World Bank Organization.
(5) Agency responsible for collecting and synthesizing: Ministry of Planning and Investment (General Statistics Office).
(According to the Appendix issued with Decree 94/2022/ND-CP)