1.

Introduction
Gross domestic product (GDP)
Gross domestic product (GDP) means the total market value of all final goods and
services produced within the borders of a nation during a specified period.
Characteristics of GDP: GDP of a country can change due to fluctuations in price
and demand. The result may influence a country's progress. If GDP changes due to
an increase in the level of production and not prices, then productivity is said to
increase. However, if GDP increases due to an increase in price while production
remains constant, then any increase is a result of inflation, not productivity. Such a
change would not be reflected in real GDP. Alternatively, nominal GDP may
change due to a combination of price and production change. GDP does not cover
all aspects of production in an economy, and may also cover up some factors that
may lead to long-term degradation. Production not included in GDP includes
household production, which is the cooking, cleaning and maintenance of homes.
Although people tend not to get paid for such tasks, many economists argue that it
is still an occupation that is not only a necessity but also requires substantial effort.
GDP also does not cover aspects such as the environment, personal satisfaction,
happiness and health quality. Many wealthy countries rank quite low in terms of
personal happiness

Calculation: GDP= C + I + G + (X M)
In which: Personal consumption expenditures = C
Investment = I
Government purchases of final goods and services = G
Net exports = X M

Gross domestic product (GDP)

3500000
3000000
2500000
2000000
1500000
1000000
500000
0
2010

2011
Gross domestic product (GDP)

2012

Gross national product (GNP)

Gross national product (GNP) means total market value of final goods and services
produced by a countrys nationals using their own resources, regardless of whether
the production operation are carried out within or outside the country.
Characteristics of GNP:
Calculation: GNP = GDP + income earned by domestic residents through foreign
investments income earned by foreign investors in the domestic market

2. Identification of GDP & GNP with analysis of Vietnams economy performance.

Real GDP growth will pick up to 6.2% in 2015, supported by rapid growth in
exports and a faster increase in investment, before accelerating to 6.4% a year in
2016-19. Reforms to state-owned enterprises and the banking sector will make
slow progress, with the high level of bad debts still an issue. Tensions with China
over maritime disputes in the South China Sea region will linger. Ties with the US
will strengthen, despite the Vietnamese government's continuing poor record on
human rights.