In its Taking Stock report's March 2023 edition entitled “Harnessing the potential of the services sector for future growth,” the WB provided recommendations for reforms to tap into the potential of the service sector.

At the ceremony to release the report.

It said the service sector will grow moderately, mostly driven by domestic demand which may be affected by higher estimated inflation of 4.5% this year. The economy is expected to benefit from part of the 2022-2023 economic support programme. A flexible monetary policy, in combination with fiscal policy objectives, should help keep domestic inflation in check.

WB Country Director in Vietnam Carolyn Turk said Vietnam has the fiscal space to implemet measures to boost growth, unlike many other countries. “Effective implementation of priority public investments is key to support growth, both in the short-term and in the longer-term. Also, fiscal and monetary policies must be synchronised to ensure that support to the economy and macroeconomic stability are achieved effectively,” she said.

Service has become the largest sector of Vietnam's economy, increasing from 40.7% of GDP in 2010 to 44.6% in 2019. The employment share of the sector also rose from 29.6% in 2010 to 35.3% in 2019. As the largest source of employment, it has absorbed a significant portion of the workforce from the agriculture sector.

However, labour productivity and efficiency in Vietnam’s service sector remain low compared to other countries, reaching 5,000 USD per worker in 2019 in comparison to 20,900 USD in Malaysia, 9,300 USD in the Philippines and 7,300 USD in Indonesia.

According to WB senior economist Dorsati Madani, if utilised effectively, the service sector could play an important role in supporting Vietnam's sustainable productivity growth and achieving the goal of becoming a high-income economy by 2045. Priority should be given to removing trade and foreign investment barriers in this sector and launching reforms to improve competition and access to finances for domestic firms. Services that can further drive growth in other industries, specifically in manufacturing and processing, should be heeded.

Science, technology, innovation promoted to support national development

Various measures will be rolled out from now to 2025 to fine tune science and technology organisations and perfect the legal foundation for state management of science, technology and innovation.

PM applauds USAID’s increased development budget for Vietnam

Prime Minister Pham Minh Chinh applauded the US Agency for International Development (USAID) for continuing to increase development budget for Vietnam while receiving USAID Administrator Samantha Power in Hanoi on March 10.

Deputy PM requests tackling obstacles in social housing development

Deputy Prime Minister Tran Hong Ha has requested promptly tackling obstacles in social housing development policies and mechanisms, with incentives in infrastructure, land and finance for developers engaged in the effort.

Over 17.6 million USD loan for economic recovery and development

(BGO) – Since early this year, Bac  Giang province has disbursed some 5.2 billion VND (220,000 USD) to implement Government’s Resolution No.11 on January 30, 2022 about socio-economic recovery and development (Resolution No.11) and National Asssembly’s Resolution No.43 about fiscal and monetary policies supporting the Resolution No.11, reported the Bac Giang branch of Social Policy Bank.

Son Dong needs to change ways of thinking, doing to fully tap advantages for development

(BGO) - Le Anh Duong, Deputy Secretary of the provincial Party Committee and Chairman of the provincial People's Committee on February 28 had a working session with the Standing Board of Son Dong district’s Party Committee on the socio-economic development situation in 2022 as well as tasks and solutions for 2023.

Source: VNA