case study of collecting services statistics in vietnam...

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World Bank Institute training courseWorld Bank Institute training courseonon

TRADE IN SERVICES AND INTERANTIONAL AGREEMENTSTRADE IN SERVICES AND INTERANTIONAL AGREEMENTS

Hanoi, Vietnam, May 23Hanoi, Vietnam, May 23--27, 200527, 2005

STATISTICS OF TRADE IN SERVICES STATISTICS OF TRADE IN SERVICES IN VIETNAMIN VIETNAM

Prepared byPrepared byTran Thi HangTran Thi HangDeputy director Deputy director

Trade, Services and Prices DepartmentTrade, Services and Prices DepartmentVietnam General Statistics OfficeVietnam General Statistics Office

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presentation structurepresentation structure

Overview: The GSOOverview: The GSO

Services sectorServices sector

I.I. Current situation of statistics of trade in Current situation of statistics of trade in services in Vietnamservices in Vietnam

II.II. International comparisonInternational comparison

II.II. Work planWork plan

IV.IV. Results achievedResults achieved

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The GSO The GSO -- OverviewOverview

•• The statistical system of Vietnam is The statistical system of Vietnam is regarded as the concentrated systemregarded as the concentrated system

•• Established by the Vietnamese Established by the Vietnamese Government in 1956Government in 1956

•• Legislation determining the functions, Legislation determining the functions, responsibilities and authorities of the GSO responsibilities and authorities of the GSO is Statistics Law and the Governmentis Statistics Law and the Government’’s s DecreeDecree

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The GSO The GSO –– Overview Overview (Cont.)(Cont.)

Main functionsMain functions

-- to manage statistical operations nationwide;to manage statistical operations nationwide;

-- to organize statistical activities and provide to organize statistical activities and provide SocioSocio--Economic statisticsEconomic statistics according to legal according to legal provisions;provisions;

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Organization of the GSOOrganization of the GSOThe GSO: The GSO:

-- the GSO located in Hanoi;the GSO located in Hanoi;

-- the Provincial Statistics Office (PSO) the Provincial Statistics Office (PSO) located in 64 provinces/located in 64 provinces/cities;cities;

-- the District Statistics Offices (DSO) under the District Statistics Offices (DSO) under the PSO are organized in the rural and the PSO are organized in the rural and urban districts.urban districts.

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Organization: Organization: There are 13 specialistic There are 13 specialistic statistics Departments and 4 other units in statistics Departments and 4 other units in the Head quarterthe Head quarter

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Organizational Structure of GSOOrganizational Structure of GSOGSO structure.gifGSO structure.gif

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overview on servicesoverview on services

Over the past years, Vietnamese State Over the past years, Vietnamese State has adopted many undertakings and has adopted many undertakings and policies to create favorable conditions policies to create favorable conditions for development of services activities.for development of services activities.

As the results, the services sector has As the results, the services sector has witnessed positive changes: contribute witnessed positive changes: contribute to speeding up economic growth, to speeding up economic growth, create more jobs, boost export,create more jobs, boost export,……

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overview on servicesoverview on services

1.1. Service activities have been expanding as the Service activities have been expanding as the Vietnamese economy has accelerated its Vietnamese economy has accelerated its integration with the regional and world economy;integration with the regional and world economy;

2.2. Number of enterprises and labor are increasing Number of enterprises and labor are increasing Chart.xlsChart.xls

3.3. Share in GDP:Share in GDP:1990 1990 -- 1995: 40.33%1995: 40.33%1996 1996 -- 2000: 41%2000: 41%2001 2001 -- 2004: 38.5%2004: 38.5%Goal for 2001 Goal for 2001 -- 2010: 43%, average growth 2010: 43%, average growth rate about 7rate about 7--8% annually8% annually

GDP data 2000GDP data 2000--2004.xls2004.xls

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overview on services overview on services (Cont.)(Cont.)

Licensed foreign investment projects for Licensed foreign investment projects for operation in services sectors account for operation in services sectors account for about 17% of total FDI projects and about about 17% of total FDI projects and about 19% of the total registered capital in the 19% of the total registered capital in the period 1988period 1988--2004.2004.

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overview on servicesoverview on services (Cont.)(Cont.)

4.4. Services exports and imports: Services exports and imports:

World: 20% international trade (goods World: 20% international trade (goods and services), increasing trendand services), increasing trend

VietnamVietnam: :

1998 1998 -- 2000: 18.5%2000: 18.5%

2001 2001 -- 2004: 14.1%2004: 14.1%

Average growth rate 1998 Average growth rate 1998 -- 2004: 5.4%2004: 5.4%Exports by sectors 04.pptExports by sectors 04.ppt, , Imports by sectors 04.pptImports by sectors 04.ppt

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i. Current situation of trade in i. Current situation of trade in services statisticsservices statistics

During the time of centrally planned During the time of centrally planned economy, services were often combined to economy, services were often combined to production activities, and therefore they production activities, and therefore they were less commercialization. Users were were less commercialization. Users were not fully interested in data of trade in not fully interested in data of trade in services services

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I. Current situation I. Current situation (Cont.)(Cont.)

Currently, statistical system of exports and Currently, statistical system of exports and imports services particularly, of imports services particularly, of international trade in services generally international trade in services generally were not established completely while the were not established completely while the data requirements from government data requirements from government agencies, business and population have agencies, business and population have been increasing more and more. been increasing more and more.

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i. Current situation i. Current situation (Cont.)(Cont.)

Two areas:Two areas:

Services statisticsServices statistics ((domestic and domestic and international activities)international activities)

International trade in services International trade in services statisticsstatistics (international activities)(international activities)

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A. Services statisticsA. Services statisticsMethodology: concepts and definitions, Methodology: concepts and definitions, coverage, classificationcoverage, classification……

Basically following guidelines of UNSD, such Basically following guidelines of UNSD, such as SNA 1993 and other statistical Manuals;as SNA 1993 and other statistical Manuals;

In terms of structure of GDP by economic In terms of structure of GDP by economic sector sector –– Services sector consist of industries Services sector consist of industries from G to V according to ISIC rev.3 from G to V according to ISIC rev.3 classification.classification.

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Compiling, disseminating statistical Compiling, disseminating statistical indicators of services:indicators of services:

Statistics of specific services areas is Statistics of specific services areas is disseminated in monthly, quarterly and disseminated in monthly, quarterly and annually.annually.

GDP data is disseminated in quarterlyGDP data is disseminated in quarterly

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Data sources:Data sources:•• Statistical reporting regimeStatistical reporting regime•• Accounting reporting regimeAccounting reporting regime•• Statistical surveysStatistical surveys

Coverage: almost of services exports and imports Coverage: almost of services exports and imports data have been collected in the operating data have been collected in the operating results of enterprise, but there is no separation results of enterprise, but there is no separation data for domestic and international transactions data for domestic and international transactions in services.in services.

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B. International trade in service statistics:B. International trade in service statistics:In theory:In theory:

GATS/WTOGATS/WTO negotiated negotiated definitionsdefinitions

International trade in services is based International trade in services is based on nationalities of the supplier and the on nationalities of the supplier and the consumer consumer -- regardless of the location of regardless of the location of the transaction.the transaction.

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International Trade in service statistics

Service exports/imports Statistics - BOP

FATS statistics

Transactions between Resident and no-resident

Transactionsbetweenresidents

2020



FATS statistics

Exports/imports datafor BOP, SNA

Domestic sales in the

invest. country

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FATS statistics

Assessing completely the level of foreign market access/market open in Vietnam

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i. Current situationi. Current situation (Cont.)(Cont.)

1. About services Exports/Imports 1. About services Exports/Imports -- BOP BOP statistics statistics

ExportsExports

Resident Resident NonNon--residentresident

ImportsImports

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Method: based on BPM5 by IMF principallyMethod: based on BPM5 by IMF principally

Data sources: Data sources:

Monthly reports from the commercial Monthly reports from the commercial banks banks Table A11.xlsTable A11.xls

Reports from corporations: Reports from corporations:

Vietnam AirlinesVietnam Airlines

Vietnam Post and TelecommunicationVietnam Post and Telecommunication

Data from GSO, GDC for estimating I,F Data from GSO, GDC for estimating I,F of imported goods (CIF value).of imported goods (CIF value).

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AdvantagesAdvantages

Statistical methods: mainly based on Statistical methods: mainly based on international standards international standards -- BPM5BPM5

Coverage: included almost international Coverage: included almost international transactions through domestic banking transactions through domestic banking systemsystem

Meeting data requirements timely of the Meeting data requirements timely of the GSO on aggregated data for calculating GSO on aggregated data for calculating some SNA indicators quarterly. some SNA indicators quarterly.

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WeaknessWeaknessCoverage: is not precise completelyCoverage: is not precise completelyInadequate: transactions are not made Inadequate: transactions are not made via the banking system of Vietnamvia the banking system of VietnamOverlap: international transactions in Overlap: international transactions in goods (cases of money order settlement goods (cases of money order settlement of customs)of customs)Classifications:Classifications:Services transactions are only classified Services transactions are only classified to 5/11 big components (transportations, to 5/11 big components (transportations, insurances, communications, tourism and insurances, communications, tourism and banking). banking).

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All components are not brokenAll components are not broken--down down into the subinto the sub--components components Value are not classified by partner Value are not classified by partner countrycountry

Some transactions are not value based Some transactions are not value based on the gross but on the net basis as on the gross but on the net basis as communication communication Additional information are not available: Additional information are not available: data from surveys, administrative data from surveys, administrative records for exports/imports of tourism, records for exports/imports of tourism, education, transportations, insurance,education, transportations, insurance,……

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2.2. About transactions between foreign About transactions between foreign affiliates and domestic (i.e. affiliates and domestic (i.e. Commercial PresenceCommercial Presence) ?) ?

Services provided by majorityServices provided by majority--owned foreign affiliates in Vietnam owned foreign affiliates in Vietnam (inward flows) (inward flows) Services supplying of majorityServices supplying of majority--owned Vietnamese affiliates owned Vietnamese affiliates abroad abroad (outward flows)(outward flows)

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FATS statistics are not available at FATS statistics are not available at present.present.

Relevant statistics areas?Relevant statistics areas?FDI statistics FDI statistics (inward flows)(inward flows)

Data sources: Data sources:

-- Statistical regime Statistical regime (circular No.01)(circular No.01)-- Annual Annual enterprises enterprises survey.survey.-- FDI business registrationFDI business registration

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Coverage of Vietnam FDI statistics: cover a Coverage of Vietnam FDI statistics: cover a wide variety of indicators on both domestic wide variety of indicators on both domestic and foreign transactions:and foreign transactions:

-- Number of enterprisesNumber of enterprises

-- Exports/imports of goods, turnoverExports/imports of goods, turnover

-- Assets, net worth, operation surplusAssets, net worth, operation surplus

-- Capital (Capital (registered, disbursement)registered, disbursement), tax on , tax on income, R&D expendituresincome, R&D expenditures

-- Employment and compensation,Employment and compensation,……

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FDI statistics FDI statistics (outward flow)(outward flow): detailed : detailed statistical indicators are not available.statistical indicators are not available.

Trade in services activities are not Trade in services activities are not separated for majorityseparated for majority--owned foreign owned foreign affiliates and inadequate indicators (e.g. affiliates and inadequate indicators (e.g. exports/imports of services, domestics exports/imports of services, domestics sales in Vietnam, detailed sales in Vietnam, detailed expendituresexpenditures……))

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3.3. General conclusion:General conclusion:

Statistical reporting regime and surveys, Statistical reporting regime and surveys, classifications are inadequateclassifications are inadequate

Services exports/imports data in the BOP Services exports/imports data in the BOP statistics are not sufficient and not detailed statistics are not sufficient and not detailed

Statistical indicators system for Statistical indicators system for international trade negotiations on services international trade negotiations on services are not established (market open, market are not established (market open, market access) access)

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4.4. Many questions ?Many questions ?Total value of services exports/imports of Total value of services exports/imports of Vietnam ? By services sectors ?Vietnam ? By services sectors ?

Share of each services sectors in the total?Share of each services sectors in the total?

Mode of supply under framework of BTA, Mode of supply under framework of BTA, AFAS now and WTO in the near futures ?AFAS now and WTO in the near futures ?

Level of market open of Vietnam ? Level of market open of Vietnam ?

Foreign market access of VN enterprises ?Foreign market access of VN enterprises ?

……..?..?

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II. International standards and other II. International standards and other countriescountries

1.1. International standards:International standards:BPM5 issued by IMFBPM5 issued by IMFManual on Statistics of International Manual on Statistics of International Trade In Services (MSITS)Trade In Services (MSITS)

2.2. Experiences of other countries:Experiences of other countries:Developed countries: United States, Developed countries: United States, AustraliaAustraliaDeveloping countries: Hong Kong, Developing countries: Hong Kong, MalaysiaMalaysia

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II. International standards and other II. International standards and other countries countries (Cont.)(Cont.)

3.3. Comparing with Vietnamese current Comparing with Vietnamese current situation:situation:

Concepts and definitionsConcepts and definitions

Data sourcesData sources

ClassificationClassification

Data compiling and disseminatingData compiling and disseminating

Comparisons.docComparisons.doc

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iII. work plan for trade in services iII. work plan for trade in services statistics statistics

Establishing the Establishing the statistical system statistical system of international of international trade in services trade in services in Vietnam is an in Vietnam is an urgent urgent requirementrequirement

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iII. work plan iII. work plan ((ContCont.).)

Contents:Contents:

Concerning to improving the existing Concerning to improving the existing systems for collection, processing and systems for collection, processing and compilation of information on trade in compilation of information on trade in servicesservices

Difficulties and challengesDifficulties and challenges

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A.A. Organizing and improving statistical systemOrganizing and improving statistical system1.1. Issuing and updating statistical classificationsIssuing and updating statistical classifications2.2. Improving statistical methodology for Ex./Im. Improving statistical methodology for Ex./Im.

Statistics in BOPStatistics in BOP3.3. Setting up FATS statistics based on improving Setting up FATS statistics based on improving

and developing FDI statisticsand developing FDI statistics4.4. Studying and implementing allocation by Studying and implementing allocation by

modes of service supplymodes of service supply5.5. Closer cooperation between the GSO and Closer cooperation between the GSO and

other agencies: SBV, MPI, MOT, other agencies: SBV, MPI, MOT, ……

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III. work plan III. work plan ((ContCont.).)

1.1. Classifications Classifications

To meet the Government To meet the Government management and statistical worksmanagement and statistical works

Which components are included in Which components are included in BOP and BOP and GATSGATS ??

BOP: 11 componentsBOP: 11 components

GATS: 12 componentsGATS: 12 components

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To create a new Vietnamese service To create a new Vietnamese service exports/imports classification based on exports/imports classification based on EBOPSEBOPS

To revise and update VSIC (issued in To revise and update VSIC (issued in 1994 based on ISIC Rev 3.)1994 based on ISIC Rev 3.)

To revise and update VCPC (issued in To revise and update VCPC (issued in 1996 based on PCPC).1996 based on PCPC).

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Why ? Why ?

CPC is used for GATSCPC is used for GATS’’s s classification (GNS/W/120)classification (GNS/W/120)

ISIC is the basis of ICFA ISIC is the basis of ICFA –– for FATSfor FATS

EBOPS is used for BOP and having EBOPS is used for BOP and having a concordance with GNS/W/120 a concordance with GNS/W/120 based on CPCbased on CPC

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2. Establishing and improving statistical 2. Establishing and improving statistical methodology of BOPmethodology of BOP’’s service exports s service exports and importsand imports

Issuing concepts and definitions, Issuing concepts and definitions, coverage for different componentscoverage for different componentsRevising and updating the data Revising and updating the data collection through banking system: collection through banking system: detailed services subdetailed services sub--sectors, sectors, partner country should be requiredpartner country should be required

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Revising and improving the existing data Revising and improving the existing data collection system (regular report and collection system (regular report and survey):survey):Statistical regime for ministries, corporationsStatistical regime for ministries, corporationsAnnual enterprises survey (including FDI Annual enterprises survey (including FDI enterprises)enterprises)Annual survey for business householdAnnual survey for business householdHousehold expenditure surveyHousehold expenditure surveyStatistical regime for the Department of Statistical regime for the Department of ImmigrationImmigrationStatistics regime for Department of Labour Statistics regime for Department of Labour Management AbroadManagement Abroad

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Issuing new statistics collection Issuing new statistics collection regime for the areas are not regime for the areas are not captured yet for international trade captured yet for international trade in services activities:in services activities:

New regular reporting forms:New regular reporting forms:for administrationsfor administrations

for corporations, enterprisesfor corporations, enterprises

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New separated surveys:New separated surveys:

e.g.: e.g.: I,F components from imported goods I,F components from imported goods

Foreign student expenditure survey Foreign student expenditure survey

foreign construction enterprisesforeign construction enterprises

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Updating information of enterprises Updating information of enterprises register, including FDI enterprisesregister, including FDI enterprises

Using other sources of informationUsing other sources of informationPartner countriesPartner countries

International organizationsInternational organizations

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3. Building3. Building--up up FATSFATS

Why ?Why ?FATS is basis for assessing FATS is basis for assessing completely the level of market open completely the level of market open in Vietnam, market access abroad in in Vietnam, market access abroad in service components: number of service components: number of foreign service suppliers in Vietnam foreign service suppliers in Vietnam and Vietnamese suppliers abroad and Vietnamese suppliers abroad and their market shareand their market share……

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Based on the FDI improvement:Based on the FDI improvement:Revising statistical regime Revising statistical regime (circular (circular No 01/LB No 01/LB -- issued 1997)issued 1997)Supplementing new variables for Supplementing new variables for the enterprises annual survey form the enterprises annual survey form (example: % owns of foreign (example: % owns of foreign investors, sales, expendituresinvestors, sales, expenditures……))Information should be provided from Information should be provided from MPIMPI periodicallyperiodically

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MajorityMajority--owned inward FDI flow owned inward FDI flow statistics should be top priority to set upstatistics should be top priority to set up

focusedfocused::Statistical units: direct investment Statistical units: direct investment enterprises with a nonenterprises with a non--resident investor resident investor owns over 50% owns over 50% Break down variables by partner country; Break down variables by partner country; by activity or by productby activity or by productFormulating data collection methodsFormulating data collection methods

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Five major variables should be priority Five major variables should be priority to collect to collect

Sales/OutputSales/Output

EmploymentEmployment

Value addedValue added

Ex./Im. of goods and servicesEx./Im. of goods and services

Number of enterprisesNumber of enterprises

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iIIiII. work plan . work plan ((ContCont.).)

Two principal methods of FATS data Two principal methods of FATS data collection:collection:–– Identifying the foreignIdentifying the foreign--owned subset of owned subset of

domestic firms for which data are already domestic firms for which data are already collected (can be used only for inward collected (can be used only for inward investment)investment)

–– Separate surveysSeparate surveys

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Outward FDI statistics: should be Outward FDI statistics: should be deeply studied for collecting in the deeply studied for collecting in the next stages.next stages.

There are 114 Vietnamese direct There are 114 Vietnamese direct investment projects abroad with total investment projects abroad with total registered capital are over 250 million registered capital are over 250 million USDUSD

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4. Allocation International trade in 4. Allocation International trade in services by modes of supply:services by modes of supply:

Mode 1: cross borderMode 1: cross border

Mode 2: consumption abroadMode 2: consumption abroad

Mode 3: commercial presenceMode 3: commercial presence

Mode 4: presence of natural personsMode 4: presence of natural persons

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5. Establishing a new inter5. Establishing a new inter--ministries working ministries working group on statistics of trade in services group on statistics of trade in services

Responsible for interchanging, Responsible for interchanging, providing and disseminating data, joint providing and disseminating data, joint organizing statistical worksorganizing statistical works

Chaired by GSOChaired by GSO

Jointed by MPI, MOT, MOF and SBVJointed by MPI, MOT, MOF and SBV……

Similarly for provincial level in the Similarly for provincial level in the futurefuture

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B. Difficulties and challengesB. Difficulties and challenges::

A lot of data sources are needed while A lot of data sources are needed while they are limited currently, especially for they are limited currently, especially for imports side.imports side.

Accountancy conditions of almost Accountancy conditions of almost enterprises can not meet immediately the enterprises can not meet immediately the new statistical regulations.new statistical regulations.

Compiling and extrapolating method from Compiling and extrapolating method from sample surveys sample surveys

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The limitations in the ministriesThe limitations in the ministries’’, , branchesbranches’’, enterprises, enterprises’’ awareness of the awareness of the role of services in the economyrole of services in the economy

Organization of statistical works and Organization of statistical works and professional ability of statisticians in the professional ability of statisticians in the ministries and enterprisesministries and enterprises

Need the gathering of resources to Need the gathering of resources to implement implement

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IV. Some results achieved IV. Some results achieved

Ultimate objectivesUltimate objectives

A system of data on services and A system of data on services and trade in services of Vietnam to trade in services of Vietnam to meet many purposes for meet many purposes for management and policy planningmanagement and policy planning

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IV. Some results IV. Some results (Cont.)(Cont.)

1.1. In methodology issues: In methodology issues: Revised and supplemented Revised and supplemented statistical regime for collection data statistical regime for collection data on some large corporations:on some large corporations:-- Air transportationAir transportation-- CommunicationCommunication-- Sea transportation Sea transportation Issued statistical regime for the Issued statistical regime for the Department of AviationDepartment of Aviation..

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Conduct the annual sample survey of Conduct the annual sample survey of foreign visitor's expenditures in foreign visitor's expenditures in VietnamVietnam since 2004since 2004..

Supplementing indicators in Supplementing indicators in questionnaire of enterprise survey this questionnaire of enterprise survey this year to start collect ex/im of services year to start collect ex/im of services data.data.

IV. IV. Some results Some results (Cont.)(Cont.)

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IV. Some resultsIV. Some results (Cont.)(Cont.)

2.2. Collected and estimated service exports Collected and estimated service exports and imports data:and imports data:

Collect and compile from available sources Collect and compile from available sources Compare with SBVCompare with SBV’’s data in BOP and s data in BOP and using statistics of some other components using statistics of some other components Estimation data for meeting Government Estimation data for meeting Government requirements and for internal uses on requirements and for internal uses on service exports/imports of 2003 and 2004 service exports/imports of 2003 and 2004

Service exports and imports 2004.xlsService exports and imports 2004.xls

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International coInternational co--operationoperation

Although many of listed activities can be Although many of listed activities can be undertaken by local staff and within undertaken by local staff and within GSO resources, it is clear that the GSO GSO resources, it is clear that the GSO would be benefit from assistance and would be benefit from assistance and coco--operation of International operation of International Organizations as well as other National Organizations as well as other National Statistical Offices in the region and in Statistical Offices in the region and in the world.the world.

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Thank you Thank you

for your attention !for your attention !

Q Q andand A?A?

case study of collecting services statistics in vietnam...

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