TAILIEUCHUNG - Current development state of Vietnamese service sector
This article will describe the current state of development of the Vietnamese service sector and identify the service gaps that need to be bridged in the coming years as Vietnam will implement the new socio-economic development strategy from now to the year 2020. | VNU Journal of Science, Economics and Business 25, No. 5E (2009) 1-14 Current development state of Vietnamese service sector Assoc. Prof. Dr. Nguyen Hong Son* Faculty of Development Economics,University of Economics and Business, Vietnam National University, Hanoi, 144 Xuan Thuy, Cau Giay, Hanoi, Vietnam Received 7 March 2009 Abstract. Service sector has proved to be an important source of economic growth and social development of Vietnam over the past two decades. However, it is also subjected to numerous criticisms for a lack of facilities, monopoly, insufficient qualified service workers, poor quality, corruption, non-transparency, favoritism, and discrimination. At present, liberalization is expected to bring about significant changes to the Vietnamese services in terms of number of service providers, service structure, supply mode, governance, and regulations as well as service price and quality. This article will describe the current state of development of the Vietnamese service sector and identify the service gaps that need to be bridged in the coming years as Vietnam will implement the new socio-economic development strategy from now to the year 2020. 1. The Role of Service Sector in the Economy * and modernization which created a higher demand for services. Although since 1996 the service ”With the launching of the sector has been Doi Moi, service industries however have been quickly expanding considerably, its transformed to become share in the GDP important facilitators of has declined economic growth”. because manufacturing and mining sectors grew rapidly, and because skewed resources were given to industrialization and modernization priority at the expense of service development. Indeed, the annual growth target of 12 - 13% for service sector set in the 1996 - 2000 Five Year Plan was not achieved. Neither was the target to increase the share of service sector in GDP to 45 - 46% by 2000. Service share in the GDP declined during 1996 - 2004 and it .
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