Looking back at the over past 10 years' data, from 2000-2009, GDP in current prices in 2009 increased 3.8 times compared with 2000 and posted an average annual increase of 16 percent.

If excluding the price factor, 2009's GDP at current prices soared 1.89 times over 2000 and an average annual rise of 7.3 percent.

But in terms of GNP, in 2009, GNP rose only 3.6 times compared to 2000, and if taking GDP deflator to exclude the price factor of GNP, this income increased 1.81 times over 2000 and gained an annual average rise of only 6.8 percent.

Since 2000, the difference between GNP and GDP (Vietnam's statistical yearbook called this difference net income from abroad) has been always a negative figure.

In 2000, Vietnam made foreign payments of 6.3 trillion dong, but in 2009, the country conducted the foreign payments of almost 91 trillion dong, mainly interests of business loans and FDI enterprises' profit transfer to foreign countries.

In terms of current prices, the speed of payment of the foreign ownership in 2009 was roughly 14.4 times higher than in 2000 (while GDP increased only 3.9 times).

Besides, the rate of foreign ownership payment reached an average annual increase of about 34 percent (GDP posted the average increase of 7.3 percent). If the price factor is excluded, the two above rates in turn were 7.2 times and about 25 percent. This shows as the GDP growth target does not accurately reflect the actual state of the economy.

Another point to keep in mind that in 2005-2009, the price increase of GDP was more than 50 percent but the dollar price soared only about 14 percent.

Thus, the calculation of per capita GDP in dollars at present (using GDP in current prices divided by the inter-bank rate) actually does not reflect income because if the dong devaluation is faster than the US dollar, which is also pushing the average income per capita higher than US dollar.

While GNP is increasingly small compared to GDP (in 2000, this rate was 98.6 percent of GDP and in 2009 it decreased to 94 percent of GDP), the savings percentage from the economy is decreasing rapidly, especially from 2006 to present (from 36 percent to 29 percent of GDP).

Internal savings of the economy is the primary source for investment, but the savings rate on the total annual investment fell rapidly, from 87 percent in 2006 to just 67 percent in 2009.

So that, within four years, this rate decreased by nearly 20 percentage points, but more worrying is the ratio of investment to GDP did not decline and often at more than 40 percent of GDP.

Thoi Bao Kinh Te Vietnam - November 19, 2010


Hanoi estimates average GDP growth at 10.72pct in 2006-10

The GDP growth of the capital city of Hanoi is estimated to have reached an average of 10.72 percent per annum in the 2006-2010 period.

This news was released by standing vice chair of Hanoi People's Committee Phi Thai Binh at a meeting with the departments and branches of the city to review plans for socio-economic development in 2011-2015.

However, this growth has not reached the planned goals that Hanoi People's Committee set for this period at 12-13 percent previously.

Average growth of the fields are as follows: Services up 10.35 percent, industry - building up 12.77 percent and agriculture up 2.43 percent.

In the 2011-2015 period, Hanoi set a specific target to reach an average GDP growth of 12-13 percent, in which the growth of services is 12.2 - 13.5 percent, industry construction 13 to 13.7 percent, and agriculture 1.5-2 percent

Speaking at the meeting, Binh said that setting the target of Hanoi's GDP growth in 2011-2015 at 12-13 percent in the context of world and domestic markets which still is in passing through upheavals is an extremely difficult challenge, and if no determination is made then the capital city will find it difficult to accomplish the target.

Hanoi People's Committee - November 19, 2010