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Vietnam Today

Applying Big Data in economic analyses and forecasts

Released at: 15:58, 29/11/2018

Applying Big Data in economic analyses and forecasts

Photo: VEPR

Workshop held within project of Vietnam Institute for Economic and Policy Research and UK's Swansea University.

by Ngoc Lan

The application of Big Data will help ensure that data is used effectively in policy decisions by the government, as data has special importance in economic development and can help identify behavior in the economy, Ms. Anna Pearson, First Secretary at the British Embassy in Vietnam, told a workshop held in Hanoi on November 28 within the framework of the “Online Price Collection and Inflation Nowcasting” project, implemented by the Vietnam Institute for Economic and Policy Research (VEPR) and Swansea University in the UK.

She also noted that an understanding of Big Data helps policy makers and businesses make informed decisions on how to manage economies, invest, and trade.

The project utilizes resources of public data from online selling platforms in Vietnam, using a method called “web-scraping” to provide real-time measures of macroeconomic statistics, providing implications for technical innovations in policy making, and exchanging knowledge between researchers from VEPR and Swansea University.

The project helps generate a data source that households and firms can use to form their inflation expectations in making investment and consumption decisions, helping the State Bank of Vietnam build credibility and anchor inflation and link researchers’ expertise with that of policy makers in monetary policy making.

Professor Ho Vu Bao said that, currently, large enterprises in Vietnam and around the world are deeply concerned about the processing of Big Data analysis, especially leading trade corporations. “Business analytics can be used for Vietnamese businesses to process six basic business issues, including finance, manufacturing operations, human resources, markets, sales, and customers,” he said. “Business analytics also provide recommendations, forecasts, and descriptions, so businesses can make quick and appropriate decisions.”

Ms. Nguyen Thi Thu Huyen from the Department of Price Statistics at the General Statistics Office (GSO) also introduced the application of the Vietnam real estate price index. “This is a very important index that affects the economy, employment, house transactions, and tax and consumer incomes,” she explained.

Swansea University and the VEPR plan to continue to extend their cooperation beyond the scope of this project, such as joint research projects relating to macroeconomics and international economics, with future cooperation supported by both institutions as well as from external funding from different sources such as the Newton Fund or the Economic and Social Research Council (ESRC).

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