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

English - Ngày đăng : 08:00, 09/01/2025

The service sector has emerged as a strong "shield" and a key driver of Ho Chi Minh City’s economic growth. With its dominant contribution to the Gross Regional Domestic Product (GRDP), this sector not only enables the City to recover swiftly from the pandemic but also opens sustainable prospects for the future.

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.

By Van Tam