Service Trade: A New Growth Driver for Vietnam

Service Trade in the Global Context

Service trade currently accounts for over 20% of global trade, playing a crucial role in international value chains. Fields such as information technology, education, healthcare, and financial services not only generate high profits but also foster integration across economic sectors.



However, in Vietnam, service trade constitutes only about 12% of total export revenue, revealing that the sector has yet to realize its full potential. Compared to regional peers like Singapore and Malaysia, Vietnam remains in the early stages of building a competitive export-oriented service industry.

Enhancing Competitiveness in Key Service Sectors

To boost service trade, Vietnam must focus on improving the quality and competitiveness of strategic service sectors.

One promising area is information technology and digital services. With the rapid growth of the domestic tech industry, Vietnam has become an attractive destination for international software outsourcing companies. However, to achieve sustainable development, tech firms need to shift from basic outsourcing to providing high-value services like technology consulting and proprietary product development.

Financial services also hold significant promise. Vietnam should encourage foreign investment in its financial markets while developing innovative financial products to meet the increasingly diverse needs of businesses and consumers.

Expanding Markets and Promoting International Integration

To leverage these advantages, Vietnam needs to craft specific market-access strategies. This includes raising business awareness of FTA commitments, offering detailed information on international service standards, and supporting small and medium-sized enterprises (SMEs) in exporting services.

Moreover, establishing service trade promotion centers in partner countries is an effective way to enhance the visibility of Vietnam’s service industry. These centers can act as bridges between Vietnamese businesses and international partners while assisting companies in complying with foreign market regulations.

Furthermore, the government must continue reforming the legal environment to eliminate barriers in the service sector, from cross-border data transfer to intellectual property rights protection. These reforms will not only boost service exports but also attract more international service providers to Vietnam.

Service trade is not only a global trend but also a key to elevating Vietnam's economic position in the coming years. Investing in service quality, expanding markets, and deepening international integration will enable Vietnam to fully tap into this sector's potential.

While challenges lie ahead, close cooperation between the government and businesses can make service trade a pillar of sustainable economic development. This is not just a way for Vietnam to seize opportunities from globalization but also a means to assert its identity and value in international value chains.