Vietnam Economic Structure and Greenhouse Gas Emission Based on Input-Output Analysis

Abstract

Over the years, Vietnam has a relatively high growth rate of gross domestic product (GDP) compared to other countries in the region, an average increase of 6.1% in the period of 2005-2016. However, the macro instability such as the budget deficit, public debt, the economy's debt is always high, the environment is more risky. In Vietnam, in the reports, even research articles are automatically admitted that the structure of Region II (industry and construction) and Region III (service) in GDP needs to grow and see it as an economic development in the right direction. From that, the idea of economic restructuring is to promote both Region II and Region III; The investment rate of this area is increasingly higher, if it is always very high in 2005 to 2015, it was around 43% in 2005 and nearly 50% in 2016, but the irony is that the value-added ratio compared to the value of production of this sector (region II) fell surprisingly fast; this ratio follows the structure of 2000, the structure of the input-output tables in 2007 of General Statistics Office of Vietnam) is 34.1%, in recent years (the structure of the new input-output tables) is only 21%. This means that this region is increasingly inefficient, resulting in an increasing amount of investment to compensate for that inefficiency. This research is based on Vietnam economic structure from the input-output table, 2012, that was published by Vietnam General Statistics Office, this research focused to analysis deeper on sectoral structure, inter-sectoral and effects induced impacts by final demand to output, value-added and greenhouse gas (GHG) emissions based on the approach of input-output analysis. This study hopes to help policymakers make rational decisions for sustainable development in Vietnam.