GSO and SBV - Vietnam APEC SEMINAR-WORKSHOP on THE MEASUREMENT of INTERNATIONAL TRADE in SERVICES Philippines October, 2008 The measurement of International Trade in Service in Vietnam By Mrs.Nguyen Thi Thanh Xuan - SBV and Mrs.Vu Thi Thanh Huyen - GSO

GSO and SBV - Vietnam Contents I. I. Overview II. II. Current situation of the measurement III. III. Challenges and Future plan

GSO and SBV - Vietnam I. I. Overview

GSO and SBV - Vietnam I. I. Overview 1. The GSO   A concentrated statistical system   Functions, responsibilities and authorities are determinate by Statistics Law and the Government Managing the statistical operations nationwide; Organizing statistical activities; Compiling, providing Socio-Economic statistics.

GSO and SBV - Vietnam I. I. Overview (cont.) 2. SBV   Statistics BOP are collected under the authority of Decree no. 164/1999 ND-CP of November 16,1999 and Circular No 05/2007/TT-NHNN-BTM-BKH&DT-BTC The data are compiled quarterly in US dollar Collecting via Banking system under the Decision 477/2004-NHNN

GSO and SBV - Vietnam I. I. Overview (cont.) 3. Statistics on ITS   Before 2003: Under BOP’s service exports/imports Followed BPM5 Compiling by the State Bank (SBV) Data sources: banking system only Business surveys: No

GSO and SBV - Vietnam I. I. Overview (cont.)   From 2003: Studying on international standards (based on the Manual) by GSO Co-operated by SBV and relevant agencies Developing data sources based on surveys and others

GSO and SBV - Vietnam Overview (cont.) 1.3. Service activities Playing an important role more and more in Vietnam’s economy. Services contributed in: 38% GDP 25% employee 14% international trade

GSO and SBV - Vietnam Total number of enterprises 91,756112,950131,332 Of which: service enterprises 53,88067,55880,352 Share (%) Total employee (1000 pers.) 5,7706,2376,722 Of which: service enterprises 1,413,5861,587,8481,751,486 Share (%)

GSO and SBV - Vietnam II. II. Current situation of the measurement

GSO and SBV - Vietnam II. II. Current situation 1. International standards International Trade in service statistics Service exports/imports Statistics - BOP FATS statistics Transactions between residents and non-residents Transactions between residents

GSO and SBV - Vietnam II. II. Current situation (cont.) 2. Exports/imports in BOP and SNA Exports Resident N on-resident Imports

GSO and SBV - Vietnam II. II. Current situation (cont.)   Method: based on BPM5 by IMF principally   Data collection: co-operated by SBV and GSO   Data sources:   Monthly reports from the commercial banks by SBV   Quarterly reports from corporations (Airlines, Post and Telecommunication, sea transportation), annual enterprises survey by GSO   Data from GSO, GDC for estimating I,F of imported goods (CIF value).

GSO and SBV - Vietnam II. II. Current situation (cont.) 2.1. Transportation Air transportation Sources: Reports from Vietnam Airlines Corporation Receipts/payment: receipt/payment of passenger and cargo transportation services, airport services, flight management services from/to non-residents.

GSO and SBV - Vietnam II. II. Current situation (cont.) 2.1. Transportation Sea transportation Sources: Reports from national shipping lines Receipts/payment: Receipts/payment of passenger and cargo transportation services, seaport services from/to non- residents.

GSO and SBV - Vietnam II. II. Current situation (cont.) 2.2. Travel Sources: Monthly reports from Vietnam Immigration Department and Annualy Expenditure Surveys by GSO since 2003 Estimation method Value of travel export = Number of foreign visitors X Average expenditure per day X Average length of stay in Vietnam

GSO - Vietnam Survey on foreign visitor’s expenditure   Conducted in 2003 and 2005   Sampling survey: with stratified sample Step1: to select representative provinces/cities Step2: to select representative accommodations Step3: to select representative foreign visitors To fill in the questionnaires by foreign visitors at selected accommodations

GSO and SBV - Vietnam II. II. Current situation (cont.) 2.3. Communication Sources: Vietnam Posts and telecommunications Group (VNPT) Receipts/payment: receipts/payments of post and courier services; telecommunication services (telephone, telex, telegraph, facsimile services, telecommunication channel rent services, data transmission services and others from/to non- residents.

GSO and SBV - Vietnam II. II. Current situation (cont.) 2.4. Financial service Sources: Reports from commercial banks and other credit institutions Contents of report : 13 original indicators are reported by transaction value (exclude fee transaction) under the Decision of SBV Credit institutions report to SBV their own receipts (interest, receipt service without interest).

GSO and SBV - Vietnam II. II. Current situation (cont.) Coverage : transactions between authorized banks and non-residents (Institutions, Individuals and banks); non- residents (banks, individuals, institutions) and residents (in Viet Nam); non-resident bank financial corporations and residents are small. Receipts/payment: receipts of service charge, transaction in securities- brokerage, arrangement of swap, options and other hedging instruments; commission of commodity future traders, and services related to asset management, security custody services from/to non-residents.

GSO and SBV - Vietnam II. II. Current situation (cont.) 2.5. Insurance services For imported goods Source: sample survey five yearly by GSO and report on value of imported goods from GDC (I) of imported goods = Rate of Insurance of imported goods x Value of imported goods (CIF) x Rate of Insurance supplied by non- residents

GSO - Vietnam Survey on I and F of imported goods (cont.)   Conducting on Jun, 2006 as the first time   A sampling survey   Unit of survey: enterprises having imported goods   Survey method: sending the questionnaires to the enterprises for filling data.   Data items: general information of enterprises, value of imported goods (CIF), commodities, country of export, mode of transport, insurance, freight

GSO and SBV - Vietnam II. II. Current situation (cont.) 2.5. Insurance services For other insurance services Source: monthly reports by commercial banks to SBV and the annual enterprise survey by GSO Receipt/payment: between residents and non- residents

GSO and SBV - Vietnam II. II. Current situation (cont.) 2.6. Government services Source: reports by Ministry of Finance Receipt/payment: receipt from foreign embassies or international organization in Vietnam and expenditures of Vietnamese embassies abroad.

GSO and SBV - Vietnam II. II. Current situation (cont.) 2.7. Other services Source: reports by SBV co-operating with GSO from AES for estimation quarterly Receipt/payment: receipt from non-residents and payment to non-residents.

GSO and SBV - Vietnam Co-operated data sources Annual Enterprise Survey by GSO Survey on foreign visitor’s expenditures by GSO Survey on (I) and (F) of imported goods by GSO Monthly report by Commercial banks to SBV

GSO - Vietnam Annual Enterprise Survey   Conducting from 2002, to collect up-to-date statistics performance indicators and monitor the performance   Statistical unit: enterprises (excluding agriculture sector)   Time: 1 st April annually   Data items: performance indicators of previous year : employee, income, asset and capital source, inventory, capital investment, turnover, products, profit, tax and other items payable : to add one more item: service export/import (item No. 26)

GSO - Vietnam Annual Enterprise Survey   Main outputs: Number of enterprises having services ex/im activity by industry (VSIC) and economic sectors Number of employee of enterprises having services ex./im. activity by industry and economic sector Value of service exports/imports by economic sector, by service categories and by provinces. Value of service exports/imports of FDI enterprises by service categories, by provinces and by no-resident investor owns (less than 50%, 50%, over 50%)

GSO and SBV - Vietnam II. II. Current situation (cont.) 3. FATS statistics Services provided by majority-owned foreign affiliates in Vietnam (inward flows) Services supplying of majority-owned Vietnamese affiliates abroad (outward flows)

GSO and SBV - Vietnam II. II. Current situation (cont.) FATS statistics are not available at present. Relevant statistics areas ? FDI statistics (both inward and outward flows) Data sources: - Statistical regime (circular No.01) - - Annual enterprises survey. - - FDI business registration Allocation for mode of supply : are not available

GSO and SBV - Vietnam II. II. Current situation (cont.) 4. General conclusion: Statistical reporting regime and surveys, classifications are inadequate Services exports/imports data in BOP are not sufficient/detailed Statistical indicators system for international trade negotiations on services are not established (market open, market access)

GSO and SBV - Vietnam III. III. Challenges and future plan

GSO and SBV - Vietnam 1. Challenges   Services comprise a heterogeneous range of sectors.   More difficult than International Merchandise Trade Statistics.   Lack of knowledge about SITS in enterprises   Data of earnings and payments for services are sensitive to enterprises   Low respond rate in surveys

GSO and SBV - Vietnam 2. Future plan 2.1. Developing of data collection based on the AES: Focus on large enterprises. More detailed and careful guidelines More detailed classification according to EBOPS Classify by large partner countries 2.2. Compile and disseminate FATS statistics from data on FDI in AES database

2. Future plan 2.3. Revise and supplement periodical report regimes/ surveys applied for enterprises Enforce combination among Agencies and Ministries 2.5. Conduct a standard census on international trade in services 2.6. Establish international trade in services database and disseminate information

2. Future plan 2.7. Classify statistics by four modes of supplies 2.8. Research and apply estimate measures 2.9. Apply classification lists of international trade in services and other related ones

GSO and SBV - Vietnam THANK YOU !