Gov’t expects to raise GDP share of service sector to 44% by 2025

The Government has rolled out a plan to increase the GDP share of the service sector to 43-44% by 2025 from 41.64% in 2019.

Meanwhile, the sector is expected to grow 7 - 7.5% on average between 2021-2025 compared to 6.6 - 7.1% in the period of 2016-2020.

The Government plans to raise the sector's rate of trained labor force to about 30%-35% by 2025 from 25% in 2020.

To achieve the aforesaid goals, the Government will focus on improving the competitiveness of the sector and steer resources to development of some potential services like banking-finance, logistics and transport, information technology and communication, education and training, healthcare among others.

The Government will also focus on promoting export of services in order to reduce trade deficit in service that reached nearly US$400 million in 2018.

Regarding finance-banking, by 2025, at least 2-3 commercial banks are among the top 100 largest banks (in terms of total assets) in Asia.

In term of logistics and transport, by 2025, the contribution of logistics to GDP is expected to increase to 8-10% while logistics costs fall to 10-15% of GDP. 

By 2025, science and technology services are expected to contribute around 40% to economic growth while the transaction value of the science and technology market is to increase by 20% annually.  

For tourism, the Government expects to increase foreign arrivals to 32 million and domestic tourists to more than 13o million by 2025 with total revenue of around US$45 billion.

On healthcare, by 2025, the health insurance coverage is expected to increase to 95% of population while public spending will be increased to 4% of GDP. 

In 2019, service exports climbed up 12.6% to US$16.6 billion, of which export of tourism and transport services accounted for 71.1% and 17.7% respectively.  

By Thuy Dung