Decision 146/QD-TTg 2019 Scheme on compilation of statistics on non-observed economy

DECISION

Approving the Scheme on compilation of statistics on the non-observed economy^[1]

PRIME MINISTER

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the November 23, 2015 Statistics Law;

Pursuant to the Government’s Decree No. 94/2016/ND-CP of July 1, 2016, detailing and guiding the implementation of a number of articles of the Statistics Law;

At the proposal of the Minister of Planning and Investment in Report No. 9047/TTr-BKHDT of December 20, 2018,

DECIDES:

Article 1.To approve the Scheme on compilation of statistics on the non-observed economy (the Scheme) with the following principal contents:

1. Objectives:

a/ To assess production and business results of the non-observed economy so as to reflect the scale and size of the economy in a more complete and comprehensive manner;

b/ To further renew and improve statistical operations in general and national accounts compilation in particular, step by step reaching international statistical standards and practice.

c/ To contribute to improving the legal system, mechanisms and policies and raising the effectiveness of state management of the economy.

2. Viewpoints:

a/ To formulate and implement the Scheme to serve the compilation of the gross domestic product (GDP), gross regional domestic product (GRDP) of provinces and centrally run cities, and relevant socio-economic indicators according to international standards and practice and the practical conditions of the country.

b/ To comply with the November 23, 2015 Statistics Law; the Vietnam Statistics Development Strategy for the 2011-2020 period, with a vision toward 2030; the Scheme on renewing the process of compiling data on GRDP of provinces and centrally run cities promulgated together with Decision No. 715/QD-TTg of May 22, 2015, and other legal documents on statistics.

c/ To base on the methodology of the System of National Accounts 2008 (SNA2008) and other professional texts of the United Nations Statistics Commission (UNSD) on measuring the non-observed economy; to learn advanced statistical operations and successful experiences of countries and territories; and to suit the status of the whole economy in general and the non-observed economy in particular.

d/ To conform with existing conditions and resources so as to ensure feasibility; to implement the Scheme under a rational roadmap in order to achieve practical results, determine production and business results of the non-observed economy, and update the compilation of GDP, GRDP of provinces and centrally run cities, and relevant socio-economic indicators.

3. Contents

a/ Studying theoretical foundations and international experiences in measuring the non-observed economy

- Studying and thoroughly grasping the methodology of the SNA2008 and other guiding texts; fully updating results of scientific researches on measuring the non-observed economy; and withdrawing lessons from countries whose economies are similar to Vietnam’s.

- Promptly, fully and widely disseminating results of studying theoretical foundations and international experiences among various subjects in order to create a unified awareness about, and raise the effectiveness of application of, these foundations and experiences to policy making and economic management.

b/ Conducting overall survey and assessment of the status of the non-observed economy within the whole economy; and formulating a list of economic activities reflecting the scope and size of the non- observed economy which must satisfy the following requirements:

- To be systematic, covering all non-observed economic activities while avoiding any duplications and omissions.

- To be regularly reviewed so as to promptly add new activities and remove activities which no longer exist.

- To accurately classify economic activities based on their economic essence in line with the methodology of the SNA2008 being applied by many countries to form 5 groups, including: underground economic activities, illegal economic activities, non-observed unofficial economic activities, activities undertaken by households for their own use, and activities missed in statistical data collection programs.

c/ Measurement methods

- To apply the direct statistical method to measure production and business results of non-observed unofficial economic activities, economic activities undertaken by households for their own use, and activities missed in statistical data collection programs of the economy so as to raise accuracy.

- To apply the indirect statistical method or the method of estimation by building macroeconomic models to measure underground economic activities and illegal economic activities.

- To apply the production method to update production and business results of the non-observed economy when compiling GDP, GRDP of provinces and centrally run cities, and other national accounts indicators. In case of necessity, to apply the expenditure method and factor-income method to obtain data for comparison and reference.

d/ Based on results of experimental measurement, to annually conduct official measurement and update results of compilation of GDP, GRDP of provinces and centrally run cities, and other national accounts indicators by the production method. Estimated, preliminary and official data of these indicators as well as first-quarter, second-quarter, biannual, third-quarter, nine-month and annual data compilation, publicization and dissemination periods must comply with the November 23, 2015 Statistics Law and other relevant documents.

4. Major solutions

a/ To conduct survey and specific, detailed and overall assessment of the status of 5 groups of non-observed economic activities by economic sector (agro-forestry-fisheries, industry-construction, and services); form of ownership (state, non-state, and foreign direct investment economic sector); sector or field; province or centrally run city, and other criteria, and on that basis, draw up a list of non-observed economic activities.

b/ To develop and promulgate a system of statistical indicators being input information sources for measuring the non-observed economy, ensuring completeness, feasibility and conformity with information collection capacity of the statistics sector and related agencies and organizations, clearly and fully setting criteria for grouping information, setting information collection periods, and defining agencies in charge of information collection. To regularly review and update the system of statistical indicators being input information sources to meet practical requirements.

c/ To further renew and improve statistical operations, contributing to raising the effectiveness of measurement of the non-observed economy. To concurrently apply 3 forms of information collection, including statistical survey, statistical report and use of administrative data. To include contents on the non-observed economy  in  existing systems of statistical indicators (the national statistical indicator system; statistical indicator systems of ministries and sectors; and provincial-, district- and commune-level statistical indicator systems); to add a number of indicators reflecting production and business results of the non-observed economy.

d/ To promote coordination and provision and sharing of statistical information on the non-observed economy among ministries, sectors and localities.

dd/ To improve the legal system and economic management mechanisms and policies on production and business registration, obligations to contribute to the state budget and social obligations of entities involved in economic activities; regulations on employment, vocational training, credit provision, social insurance premiums and benefits; regulations on handling of administrative violations, penal liability examination and other regulations, thus contributing to accurately assessing, and narrowing the scale and size of, the non-observed economy.

e/ To enhance international cooperation in statistics and update theories, advanced professional methods and other countries’ experiences in measuring the non-observed economy, striving to raise the statistics sector’s level of complication of the national accounts system according to the UNSD’s Diagnostic Framework from 2/6 in 2008 to 4/6 by 2020 and 6/6 by 2030 as set out in the Vietnam Statistics Development Strategy for the 2011-2020 period, with a vision toward 2030.

(The action program to implement major solutions is provided in the Appendix to this Decision)

Article 2. Organization of implementation

1. Implementation schedule

a/ By 2019 to complete the study of theoretical foundations and international experiences; to identify the scale and size of the non-observed economy within the country’s economy; to select measurement methods and make experimental measurement; to evaluate results and draw lessons.

b/ By 2020 to start official measurement; to annually update measurement results when compiling GDP, GRDP of provinces and centrally run cities, and relevant socio-economic indicators. Apart from timely and fully compiling, publicizing and disseminating data of these indicators, for a number of 2020 socio-economic indicators, it is required to acquire, or guide the methods of calculating and determining, data with the non-observed economy not yet taken into account so as to serve the evaluation of the implementation of the 2019 socio-economic development plan; the 2016-2020 5-year socio-economic development plan; the 2011-2020 10-year socio-economic development strategy, and other analyses and assessments of socio-economic situation of the country as well as ministries, sectors and localities, thus ensuring consistency in calculation and comparison.

2. Responsibilities of the Ministry of Planning and Investment (General Statistics Office of Vietnam)

a/ To assume the prime responsibility for, and coordinate with ministries, sectors and localities in, studying theoretical foundations and other countries’ experiences of measuring the non-observed economy; to survey and assess the situation and draw up a list of non-observed economic activities in the country’s economy; to select measurement methods and build and develop the system of statistical indicators being input information sources for measuring the non-observed economy.

b/ To assume the prime responsibility for, and coordinate with ministries, sectors and localities in, carrying out experimental measurement in 2019 and official measurement in 2020 and the following years. To update annual official measurement results when compiling, publicizing and disseminating data on GDP, GRDP of provinces and centrally run cities, and relevant socio-economic indicators. To concurrently formulate and guide the method for calculating the 2020 data with the non-observed economy not yet taken into account as prescribed at Point b, Clause 1 of this Article.

c/ To assume the prime responsibility for, and coordinate with the Ministry of Finance in, estimating funds for the implementation of the Scheme by the centralized statistics system.

d/ To disseminate, and provide training and guidance on, contents of the Scheme and its implementation plan; to urge, inspect, supervise and assess implementation results; and to conduct regular reviews for reporting to the Prime Minister.

3. Responsibilities of other ministries and sectors

a/ To assign units to take charge of, arrange staffs and funds and prepare other conditions for, implementing activities under the Scheme within the scope of their responsibilities.

b/ To determine the scope and size of non-observed economic activities in the fields under their management and update them to the list of non-observed economic activities for submission to the Ministry of Planning and Investment (General Statistics Office of Vietnam) for summarization.

c/ To collect and sum up indicators of the system of statistical indicators being input information sources for measuring the non-observed economy as assigned; to provide and share other information relating to the non-observed economy with the Ministry of Planning and Investment (General Statistics Office of Vietnam).

d/ The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment (General Statistics Office of Vietnam) in, allocating state budget funds for implementation of the Scheme by the centralized statistics system; and guiding the management and use of allocated funds in accordance with the Law on the State Budget.

4. Responsibilities of provincial-level People’s Committees

a/ Based on their functions and tasks of performing the state management in localities, to implement the Scheme under the Ministry of Planning and Investment’s assignment and professional guidance; to guide departments, sectors and entities involved in economic activities in their localities to timely, adequately and accurately provide information on non-observed economic activities to the Statistics Departments for summarization and reporting to the General Statistics Office of Vietnam under regulations.

b/ To review mechanisms, policies and legal documents relating to production and business activities in general and the non-observed economy in particular, which are applied in their localities and propose to competent authorities to amend or supplement them.

c/ To use GRDP data updated with figures of the non-observed economy, which are compiled, supplied and publicized by the Ministry of Planning and Investment (General Statistics Office of Vietnam).

5. Funds for implementation of the Scheme

Funds for implementation of Scheme shall be allocated from the state budget in accordance with the Law on the State Budget and other lawful sources.

Article 3.This Decision takes effect on the date of signing.

Article 4.Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and heads of related agencies shall implement this Decision.-

Prime Minister
NGUYEN XUAN PHUC

*The Appendix to this Decision is not translated.