STAT/SNA.28

OECD UNITED NATIONS

ORGANISATION FOR ECONOMIC ECONOMIC AND SOCIAL COMMISSION CO-OPERATION AND DEVELOPMENT FOR ASIA AND THE PACIFIC

JOINT OECD/ESCAP MEETING ON

1993 System of National Accounts: Five Years On

Bangkok, 4-8 May 1998

Title: Implementation of National Accounts Statistics in Viet Nam

Agenda item: 11

Author: Nguyen Van Minh National Accounts Department General Statistics Office (GSO) Viet Nam STAT/SNA.28

IMPLEMENTATION OF NATIONAL ACCOUNTS STATISTICS IN VIETNAM

1. In 1990, the General Statistical Office (GSO) of Vietnam undertook a technical assistance project entitled "Application of SNA I Vietnam" which was financed by the United Nations Development Program(UNDP). Its Statistics Division was mainly responsible for providing GS the needed technical assistance. This project was implemented based on the decision of the Government of Vietnam to apply the SNA framework to replace the (MPS).

2. The implementation of the project resulted in the maiden compilation of the production, income and outlay accounts for the whole economy valued in both current and constant prices with calendar year 1989 as the reference year. A benchmark input-output (I-O) table was also constructed in the size of 54 x 54 sectors. Since then, compilation of the Vietnam SNA (VSNA) has been an annual activity. In addition to the production, income and outlay accounts, GSO is also compiling parts of the capital and financial accounts and the external transactions account for the total economy.

3. So far, no attempt has been made to deconsolidate the VSNA by institutional sector, as recommended in the 1993 SNA, primarily due to data constraints. Besides the above-mentioned accounts, the GSO also calculates some other integrated indicators such as GNP, GNI, etc. to meet the requirements of Government in and policy formulation.

4. Shown below are numerical presentations of the types of accounts that GSO have been producing.

Accounts for the VSNA, CY 1996 (In Billion dongs, at current prices)

Account 1. Production Account for total Economy

Use Value Resource Value 1. Compensation of employees 64002 1. Final consumption 217345 2. Taxes on production 31288 1.1. Private final consumption 195749 3. Capital consumption Allowance 23317 1.2. Government final consumption 21596 4. Operating surplus 37998 2. Gross capital formation 72117 5. Mixed Income 102004 2.1. Gross fixed Capital formation 67504 6. Import 140944 2.2. Change in inventories 4613 6.1. Goods 115542 3. Export 105542 6.2. Service 25402 3.1. Goods 80813 3.2. Services 24729 4. Statistical discrepancy 4549 Total 399553 Total 399553

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Account 2. Income and outlay Account for total Economy

Use Value Resource Value 1.Final consumption 217345 1. Primary receipt 235292 2. Property Income 6664 2. Property income 2626 2.1. Interest payment 4037 2.1. Interest receipts 1557 2.2. Entrepreneurial income payment 2046 2.2. Entrepreneurial income 33 2.3. Remittances of salaries to abroad 323 3. Remittances of salaries from abroad 2. 397 2.4 Rent ( air space, territorial water ) 258 2.4 Rent ( air space, territorial water ) 639 3. Current transfer 1628 3. Current transfer 15865 3.1. To domestic 0 3.1. From domestic 0 3.2. To abroad 1628 3.2. From abroad 15865 4. saving 28146 Total 253783 Total 253783

Account 3. Capital Account for Total Economy

Use Value Resource Value 1. Gross Capital formation 72117 1. Saving (Net ) 28146 1.1. Gross fixed capital formation 67504 2. Consumption of fixed capital 23317 1.1.1. Expenditure for purchases of tangible 67504 3. Net capital transfers ( receivable less 2168 assets payable 0) 1.1.2. Expenditure for purchases of 0 4. Net lending / Net borrowing 6105 intangible assets 1.2. Change in inventories 4613 5. Foreign direct investment 10806 6. Statistical discrepancy 1575 Total 72117 Total 72117

Account 4. External Transactions Account for Total Economy

Use Value Resource Value 1. Import of goods and services 140944 1. Export of goods and services 105542 2. Property income payment to abroad 6664 2. Property income from abroad 2626 3. Current transfers to abroad 1628 3. Current transfers from abroad 15865 4. Capital transfers to abroad 0 4. Capital transfers from abroad 2168 5. lending 0 5. Borrowings 30058 6. Direct investment abroad 23953 6. Foreign direct investment from abroad 20049 7. Statistical discrepancy 3119 Total 176308 Total 176308

5. In the middle of calendar year 1996, the Asian Development Bank (ADB) granted financial and technical assistance to the GSO through a project entitled "Improving National Accounts of Vietnam". As the title suggests, the project is generally aimed to improve the compilation of the VSNA through the development, maintenance and institutionalisation of an accounting framework that is in conformity with the SNA, in particular the 1993 SNA. This would include (1) improving the database through technical assistance provided by short-term consultants hired by ADB, the application of improved method and techniques of data collection in SNA and I-O surveys that have been undertaken, and (2) national accounts staff capability building through training courses, seminars and foreign study visits.

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6. In accordance with the workplan of the project, an integrated survey for the SNA was conducted nationwide in 1997 with 1996 as the reference year. It included three (3) modules, namely: (1) census of establishments except household-run businesses, (2) SNA survey covering all types of ownership, and (3) a special I-O survey. Processing of the survey results are now in its final stage and we expect the final tabulations of needed indicators to be completed in time for its use in improving the compilation of the traditional accounts as well as in compiling additional accounts that will start in the second half of 1998. As programmed, compilation of additional accounts such as the Supply and Use Table and Institutional Accounts shall be initiated during the duration of this project.

7. Based on the concrete situation of accounting system and data source in Vietnam, GSO has set up short-term programs for the development of SNA statistics in Vietnam. The short-term plans are as follows:

1) The SNA department should examine the valuation of national accounts in current and constant prices and make use of available volume and price data to verify that the valuation is in accordance with international guidelines.

2) GSO should look into the possibility of getting data, legal or illegal, activities and develop appropriate survey designs to collect such data effectively.

3) The coverage and contents of the National Register of Establishment / Enterprises be examined and updated at regular interval to find out whether

a) New enterprises got registered on time, b) Enterprises no longer are deleted regularly, c) Shifts in primary activity as well as splits and mergers are noted and recorded on time, and d) Multiregional units are registered without duplication.

4) Government Finance Statistics compile in accordance with the GFS international standards, should be make available to GSO as the primary source of data used in compiling a pilot exercise on the sequence of accounts for general government within in the framework of 1993 SNA .

5) In the compilation of External Transaction Account, GSO should strengthen efforts to improve quality of merchandise trade statistics through better co-ordination and collaboration with concerned agencies. Efforts should also be made to improve estimates of income flow, other international services particularly travel, transportation and certain current transfers. The availability of data on property and labour incomes and current transfers in BOP could assist GSO in the compilation of generation of income and distribution accounts.

6) The GSO should review the available short term indicator, e.g. on production, retail turnover, employment and earnings, consumption, construction etc. in the framework of the compilation of quarterly GDP through the production and expenditure approaches.

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