Page 359 - Niên giám

The calculation of IIP begins with the calculation of production
index of commodity. From production index of commodity, production
indexes of VSIC 4-digit industries, VSIC 2-digit industries, VSIC 1-digit

industries and the whole industry can be calculated and so is IIP for a
province or the whole country.

Calculation:

- Step 1: Calculating production index of commodity

Formula:

q
i qn  1 n  100
q n 0

Where:

i : Production index of commodity n (For example: electricity,
qn
coal, fabric, cement…);

q : Quantity of commodity n at reference time;
n1
q : Quantity of commodity n at base time.
n0

- Step 2: Calculating production index of VSIC 4-digit industries
The production index of VSIC 4-digit industries is the weighted

average index of representing commodities for VSIC 4-digit industries.

Formula:

i
 W
I qN 4   qn W qn qn


Where:

I qN4 : Production index of VSIC 4-digit industry N;

i : Production index of commodity n in VSIC 4-digit industry;
qn
W : Weight of commodity n. Weight of commodity is the value at
qn
base price in 2010.

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