Discrepancy between GDP and GNI of Asian countries

[farhan_9909]

Beef $0.3/kg?? how about sheep?
u will be a rich guy if u can find a way to ship beef and sheep to China. Most of Chinese extremely love to eat sheep grill

ooops,typo

beef is $3/kg
Sheep/mutton is $6/kg

 

[Viet]

What the hell are you rambling on about??? this thread has nothing to do with what country has higher GDP.

have you realised that VN has no slums at all compared to countries having slums despite of higher GDP such as Philippines and Indonesia? do you notice that GDP is just a number of paper and is a subject of manipulation?

 

[Cossack25A1]

Yea that's the only thing I could think of, remittance from oversea workers.

And relying heavily on it could have a quite obvious consequences unless some changes in PH policies are made, particularly in its economic policy. I just don't see that relying in overseas workers as a solution... well short-term solution maybe but as a long-term solution, it is a recipe for a disaster.

 

[nufix]

have you realised that VN has no slums at all compared to countries having slums despite of higher GDP such as Philippines and Indonesia? do you notice that GDP is just a number of paper and is a subject of manipulation?

care to explain this?

unstats | Millennium Indicators

 

[beijingwalker]

have you realised that VN has no slums at all compared to countries having slums despite of higher GDP such as Philippines and Indonesia? do you notice that GDP is just a number of paper and is a subject of manipulation?

Slums on the river, Ho Chi Minh City (Saigon), Vietnam.
Image of Slums on the river, Ho Chi Minh City (Saigon), Vietnam. from Impact Photos

Urban slum in Hanoi, Vietnam (Photo via Flickr, UN media)
Lessons from the Slums: Finding Solutions That Work » Moving Toward Sustainable Prosperity

 

[terranMarine]

BBC NEWS | Asia-Pacific | Vietnam's slum dwellers

Google: slums in Hanoi, Thi Nghe canal

 

[Viet]

Slums on the river, Ho Chi Minh City (Saigon), Vietnam.
Image of Slums on the river, Ho Chi Minh City (Saigon), Vietnam. from Impact Photos

Urban slum in Hanoi, Vietnam (Photo via Flickr, UN media)
Lessons from the Slums: Finding Solutions That Work » Moving Toward Sustainable Prosperity

old pictures. try harder.

BBC NEWS | Asia-Pacific | Vietnam's slum dwellers

Google: slums in Hanoi, Thi Nghe canal

10 years old article. troll harder.

new images

 

[LeveragedBuyout]

Looking at the differences between GDP and GNI (aka GNP) is interesting and surprising.

Here are some 2013 figures from World Bank (GDP nominal per cap vs GNI per cap in $) :

China:
GDP: 6807
GNI: 6560

South Korea:
GDP: 25977
GNI: 25920

Japan:
GDP: 38492
GNI: 46140

Indonesia:
GDP: 3475
GNI: 3580

VietNam:
GDP: 1911
GNI: 1730

Thailand:
GDP: 5779
GNI: 5370

Philippines:
GDP: 2765
GNI: 3270

Here's the difference between GDP and GNI (note GNI is same as GNP) :



So in countries like Japan and US, their GNI is higher than their GDP as expected because their companies have lots of offshore ventures or investmemt abroad. The revenue and profits from them goes back into the pockets of Japanese and US residents. Singapore will probably have similar discrepancy.

It is surprising to see that Indonesia and Philippines have higher GNI figures than GDP. Maybe from foreign remittance maybe?

China has a lower GNI figure than their GDP as expected because plenty of companies are foreign owned. But the discrepancy is not bad, GDP is only about 3% more than GNI figure. SK has a healthy figure too, GDP only slightly higher.

Vietnam is hilarious. Their GDP is almost 10% higher than their GNI. This mean that their GDP figure, which is already low, is not representative of their residents income because 10% of those revenue and profits, actually go into the pocket of foreigners residing outside their country, e. g. Samsung, LG owners or shareholders in SK etc.

Thailand is a bit high too (about 7% discrepancy), but not with the ridiculous discrepancy like VietNam.

Am I interpreting this right?
@LeveragedBuyout, etc.

As far as I am aware, that's correct. GDP is essentially for location (what is produced in the country) and GNI is for ownership (what is produced by the citizens of that country).

As far as the comparison between countries, I would not be hasty about mocking the others. It would be interesting to compare the GDP/GNI divergence of each country at comparable stages of development, where I suspect that all countries at lower levels of development show a large divergence, and then a reversal as the countries get richer and send capital abroad to economies that provide a higher return.

 

[Phukimak]

old pictures. try harder.


10 years old article. troll harder.

new images

View attachment 101898

View attachment 101899

View attachment 101900

hey, you know what, actually it's quite surprising me when i visited vietnam back in 2012... i walk around the city (hanoi) and haven't found the slum area...
compared to manila and jakarta, where you can easily found the slum area..
but the the local people drive motor bike pretty much the same with PH and indonesia..
they drive like mania..
you guys should improve public transportation... or you will end up like jakarta, the city of motor bike..

 

[alaungphaya]

Looking at the differences between GDP and GNI (aka GNP) is interesting and surprising.

Here are some 2013 figures from World Bank (GDP nominal per cap vs GNI per cap in $) :

China:
GDP: 6807
GNI: 6560

South Korea:
GDP: 25977
GNI: 25920

Japan:
GDP: 38492
GNI: 46140

Indonesia:
GDP: 3475
GNI: 3580

VietNam:
GDP: 1911
GNI: 1730

Thailand:
GDP: 5779
GNI: 5370

Philippines:
GDP: 2765
GNI: 3270

Here's the difference between GDP and GNI (note GNI is same as GNP) :



So in countries like Japan and US, their GNI is higher than their GDP as expected because their companies have lots of offshore ventures or investmemt abroad. The revenue and profits from them goes back into the pockets of Japanese and US residents. Singapore will probably have similar discrepancy.

It is surprising to see that Indonesia and Philippines have higher GNI figures than GDP. Maybe from foreign remittance maybe?

China has a lower GNI figure than their GDP as expected because plenty of companies are foreign owned. But the discrepancy is not bad, GDP is only about 3% more than GNI figure. SK has a healthy figure too, GDP only slightly higher.

Vietnam is hilarious. Their GDP is almost 10% higher than their GNI. This mean that their GDP figure, which is already low, is not representative of their residents income because 10% of those revenue and profits, actually go into the pocket of foreigners residing outside their country, e. g. Samsung, LG owners or shareholders in SK etc.

Thailand is a bit high too (about 7% discrepancy), but not with the ridiculous discrepancy like VietNam.

Am I interpreting this right?
@LeveragedBuyout, etc.

Yeah, that's about right. Per capita in dollars I assume.

GNP has taken a back seat in the last 2 decades or so probably because of globalisation and hot money. It's harder and harder to work out who owns what and where it goes to. Might have to ask LeveragedBuyout about that to be sure. But it is interesting to see for countries like Japan and the Middle East countries, who have so many assets and investments overseas, the difference between the two.

I would also presume African countries and maybe some Latin American ones with lax legal systems and low trade and investment barriers to have a negative GDP - GNP account.

 

[LeveragedBuyout]

Yeah, that's about right. Per capita in dollars I assume.

GNP has taken a back seat in the last 2 decades or so probably because of globalisation and hot money. It's harder and harder to work out who owns what and where it goes to. Might have to ask LeveragedBuyout about that to be sure. But it is interesting to see for countries like Japan and the Middle East countries, who have so many assets and investments overseas, the difference between the two.

I would also presume African countries and maybe some Latin American ones with lax legal systems and low trade and investment barriers to have a negative GDP - GNP account.

That is one reason why GNP isn't as popular. The other reasons are that GNP obscures the condition of the domestic economy, since investments/profits overseas can boost or suppress GNP, while most people are concerned with their economic conditions at home. Similarly, foreign exchange fluctuations have a significant effect on GNP, since a home currency devaluation makes profits from overseas more valuable, and vice versa.

 

[fuse2014]

besides migrant workers (which are not really big considering its population, there are only 5 million overseas Indonesians (workers, students etc) from 250 million people compared to the Philippines which has more than 13 million overseas workers) there are some big Indonesian companies that have big investments abroad, like Lippo group which has big investment in Hong Kong, Indofood in Africa, First Pacific in the Philippines, and many other companies that sometimes doesn't sound like Indonesian company at all, like Indofood Nigeria sometimes claimed to be Nigerian owned company not Indonesian owned, or First Pacific that described as Hong Kong based company which actually owned by Salim Group of Indonesia, etc...

 

[William Hung]

have you realised that VN has no slums at all compared to countries having slums despite of higher GDP such as Philippines and Indonesia? do you notice that GDP is just a number of paper and is a subject of manipulation?

How many time do I have to say this: this thread has nothing to do with whose country has higher GDP or better living standard, etc.

It simply talks about the inflows and outflows of income from VN's economy. Last year, it didn't look good. The overall outflows (revenues and profits) was about 10% of your GDP.

Remember your country sends oversea workers so the remittance from them (plus income from foreign investments) will increase the GNI:GDP ratio. This could mean that the real outflow of incomes/profits from foreign owned companies could be a lot more than 10% of your GDP.

Usually, you can still get plenty of money back from these foreign owned companies through taxes. BUT, your government often give these foreign companies HUGE tax holidays for an extensive time. We've already talked about this before in another thread. Here's the latest example:

English - VietNamNet News

Dr. Dang Dinh Dao, former head of the Economics Research & Development Institute, while agreeing that it is necessary to offer attractive investment incentives to lure more investors, has voiced his concern that unprecedented high incentives given to Samsung would prompt other investors to claim special treatment and significant preferences.

“Once Bac Ninh authorities sacrifice local benefits in exchange for investment projects , this will create an unhealthy competition for investors in Vietnam,” Dao said.

“Other investors may act like Samsung and dictate their conditions when developing their projects in Vietnam,” he said.

An analyst, who declined to be named, noted that more and more foreign investors were making unreasonable claims.

“The ‘overindulgence” by local authorities towards investors is the reason why investors have become too demanding,” he noted.

So not only are your local govt giving in to their lucrative tax holiday demands like before, they now have to give unprecedented "financial support packages".

The presence of foreign companies usually bring other benefits, such as helping to develop the local infrastructure, transfer skills to locals, etc.

But like what that article say, your local govt is the one who is shouldering the expenses for these "benefits". And you are not getting much tax from them either.

This is why I said your govt is useless.

 

[William Hung]

And relying heavily on it could have a quite obvious consequences unless some changes in PH policies are made, particularly in its economic policy. I just don't see that relying in overseas workers as a solution... well short-term solution maybe but as a long-term solution, it is a recipe for a disaster.

Well, at least your GNI is still a lot higher than your GDP. If you receive a significant amount of remittance and your GNI is still lower than your GDP, then, you will need to start worrying. Right now, your GNI is still about 15% higher than your GDP.

Someone said your country has 15million oversea workers, which is about 10% of your population? So surely, the remittance from these oversea workers alone cannot account for the 15% divergence. I think your GNI will still be higher than your GDP if you ignore the incomes from the oversea workers. I think this is surprising.

besides migrant workers (which are not really big considering its population, there are only 5 million overseas Indonesians (workers, students etc) from 250 million people compared to the Philippines which has more than 13 million overseas workers) there are some big Indonesian companies that have big investments abroad, like Lippo group which has big investment in Hong Kong, Indofood in Africa, First Pacific in the Philippines, and many other companies that sometimes doesn't sound like Indonesian company at all, like Indofood Nigeria sometimes claimed to be Nigerian owned company not Indonesian owned, or First Pacific that described as Hong Kong based company which actually owned by Salim Group of Indonesia, etc...

So your oversea workers only make up less than 3% of your population so I think they alone cannot be the reason why your GNI is higher. If your SOEs and nationals have lots of oversea investments, then that is really impressive. I wasn't aware of this.

To be honest, I was expecting Thailand to be the country with higher GNI:GDP ratio. It is the Thai tycoons owning foreign ventures and investments that I always hear about.

 

[Viet]

hey, you know what, actually it's quite surprising me when i visited vietnam back in 2012... i walk around the city (hanoi) and haven't found the slum area...
compared to manila and jakarta, where you can easily found the slum area..
but the the local people drive motor bike pretty much the same with PH and indonesia..
they drive like mania..
you guys should improve public transportation... or you will end up like jakarta, the city of motor bike..

our city metro are under construction in Hanoi (5 lines) and Saigon (8 lines). the first metro is scheduled to open in 2015. all lines should be completed in 2020.

care to explain this?

unstats | Millennium Indicators

why should I explain this? we don´t care if others think we are poor.