The Prime Minister has launched an initiative to restructure the services sector using advanced technology and artificial intelligence to improve competitiveness.
The project was approved by the Prime Minister on February 19.
The project will focus on developing key services such as finance and banking, logistics and transportation, information technology and communications, science and technology, education and training, healthcare, tourism and retail. The legal framework will be improved to encourage the development of high-quality services.
The project has set a growth target for the services sector of 7-7.5 percent per year from 2021-25, from 6.6-7.1 percent from 2016-20. The services sector will account for 43-44 percent of the country’s gross domestic product (GDP) by 2025, from 42 percent in 2020, under the plan.
| Logistics is among the key services sectors of Vietnam (Photo: congluan.vn)
The percentage of trained workers in the services sector will increase from 25 percent in 2020 to 30-35 percent by 2025.VNA
For the finance and banking sector, Vietnam has a target of promoting one or two banks into Asia’s 100 largest by assets. In addition, cashless payment will also be encouraged.
The Ministry of Finance will develop a finance strategy and submit it to the Government for approval before 2021. The State Bank of Vietnam will be in charge of developing a decree about cashless payments this year.
The project also aims to turn the information and technology industry into a spearhead sector with rapid but sustainable growth, with high revenue and export value. Vietnam will be capable of producing important IT, electronic and telecommunications equipment to serve the country’s socio-economic development, and create a foundation for the development of a knowledge-based, digital economy.
In the retail sector, the project targets lifting revenue from modern retail channels (shopping centres, supermarkets and convenience stores) from 30 percent in 2020 to 38 percent in 2025.
E-commerce is expected to increase 20 percent per year and contribute around five percent to total retail sales of goods and services.
The project targets that the retail sector will contribute 13.5 percent of GDP by 2025.
Education and training will also be enhanced with at least 4.6 million people receiving training each year and 85 percent achieving higher productivity and incomes after training.
Regarding the logistics and transportation sector, the project sets a goal of achieving a growth rate of 15-20 percent per year, and for the sector to contribute 8-10 percent of GDP. In addition, logistics costs will be reduced to 10-15 percent of GDP from 25 percent, driving the sector into the world’s top 50.