Nearly US$93,000 million in Commercial Spending in Vietnam for 2007: Visa

On  September 5, 2008, annual commercial spending in Vietnam grew to an estimated US$92,979 million in 2007, an increase of 15.4 percent from $80,599 million in 2006, according to data from the Commercial Consumption Expenditure (CCE) index released by Visa.

 

Annual commercial spending in Asia Pacific grew to an estimated US$18.9 trillion in 2007, an increase of 13 percent from $16.8 trillion in 2006, according to data from the Commercial Consumption Expenditure (CCE) index released today by Visa. Global annual commercial spending grew to an estimated $77.3 trillion in 2007, representing an increase of 12.2 percent from $68.9 trillion in 2006.

 

The CCE index is a financial metric that provides standardized tracking of business and government spending globally and is recognized as an industry benchmark for measuring commercial spending.

 

Twenty-one economies from countries and territories in the Asia Pacific were measured as part of the CCE index with 16 of those outpacing the average annual growth increase.

 

The top five Asia Pacific economies in size of total business and government spend were Japan (US$5.2 trillion), China (US$4.9 trillion), India (US$2.3 trillion), South Korea (US$2 trillion) and Australia (US$1.2 trillion).

 

Myanmar (41 percent to US$12,440 million), Hong Kong (36.5 percent to US$272,216 million), Singapore (35 percent to US$371,579 million), India (23 percent to US$2.3 trillion) and the Philippines (20.7 percent toUS$189,885) were the fastest growing Asia Pacific economies in size of total business and government spend.

 

“The markets across Asia Pacific are varied in terms of their stages of development and usage of commercial card products. Using the findings from the CCE index developed by Visa, we can better measure the penetration of commercial payment products and assist our client financial institutions in developing solutions tailored to meet the evolving payments needs of business and government,” said John Hazlewood, Director, Visa Commercial Solutions, Asia Pacific.

 

The CCE index captures business to business purchases to acquire goods and services used in production, wholesale and retail purchases of final goods, business capital expenditures and government spending on goods and services. Adjustments are made to exclude capitalized expenditures such as construction and durable defense spending. Calculations measure transactions at basic prices which include taxes on production. Retroactive adjustments are made as necessary to include revisions in officially published statistics and economic data for current and prior years.

 

Data sources used to calculate the U.S. CCE index include the Bureau of Economic Analysis (BEA) and U.S. Census Bureau which conducts the Retail and Wholesale Trade Surveys. A variety of data sources were used in the calculation of the Global CCE index including the Organization for Economic Co-operation and Development (OECD), the STructural ANalysis (STAN) Database, the General Government Accounts from the National Accounts of OECD Countries, the United Nations Statistics Division National Accounts Main Aggregates Database, Economist Intelligence Unit proprietary databases and government data from several countries. A model developed by the Economist Intelligence Unit was used to estimate results for countries where government data was unavailable.

 

This year, the U.S. CCE index was modified to include retail and wholesale intermediate inputs which brings it into alignment with the Global CCE index. Also, the U.S. segmentation methodology was revised to improve consistency across all business segments. Results for current and prior years include these adjustments.