Article 2: Developing the Service Sector: A Sustainable “Shield” for Ho Chi Minh City’s Economy

Driving Economic Recovery

The service sector holds the largest share in Ho Chi Minh City’s economic structure, contributing 65.7% of GRDP in 2024. With a growth rate of 7.7%, the sector has reaffirmed its leading role as the City transitions.

Wholesale and retail trade, along with transportation and logistics, lead the service sector, contributing 40.3% of its added value. The robust recovery of domestic consumption and the resurgence of international tourism are key drivers of growth. Retail sales revenue increased by 10.9%, lodging and food services revenue rose by 9.4%, and travel service revenue achieved an impressive 45.6% growth compared to the previous year.

Nine key service industries, including finance, banking, insurance, information technology, and education, not only play a significant role in growth but also demonstrate resilience against external shocks. Notably, these industries have nearly fully recovered, reaching levels comparable to the pre-pandemic period.

Unlocking Potential Service Industries

Amid global economic transitions, Ho Chi Minh City is focusing on tapping into potential service industries to enhance value-added growth.

Education and training are pivotal for developing high-quality human resources. The City must invest in vocational education and international training collaborations to meet the demands of a high-tech and innovation-driven economy.

Strategies and Solutions for Service Sector Development

To position the service sector as a sustainable growth driver, Ho Chi Minh City must focus on specific strategies.

Digital Infrastructure Development: The City should prioritize building digital infrastructure, including data centers, e-commerce platforms, and startup ecosystems. This will enhance the competitiveness of small and medium-sized enterprises (SMEs) and expand their access to international markets.

Attracting High-Quality Talent: Policies must address living conditions, income levels, and advanced training programs to attract skilled professionals. Enhancing tourist experiences and creating a "smart tourism" brand will further boost the travel, lodging, and culinary sectors.

Conclusion

The service sector has proven to be a vital "shield," helping Ho Chi Minh City overcome challenges and establish sustainable growth momentum. With a clear strategy focusing on potential industries and resolving bottlenecks, the City is well-positioned to become a premier service hub in Vietnam and the region. This strategic move will reinforce the City’s standing on the global economic map, paving the way for long-term prosperity and development.