Consumer demand from locals and tourists has increased significantly.

Foundation for development

While many localities are still struggling to find ways to recover and adjust their growth models, Hue has proactively leveraged its cultural advantages, people, and heritage urban space to make services a cornerstone of its development strategy.

The most powerful driving force behind this breakthrough is tourism. In the first half of this year alone, Hue welcomed over 3.3 million visitors, a 71% increase compared to the same period in 2024. Of these, over 1.1 million were international tourists, a significant number reflecting the strong appeal of the ancient capital. The Hue Festival 2025, along with a series of new and creative events including music , cuisine, and traditional Ao Dai fashion shows, has contributed to repositioning Hue as a tourist city rich in identity and experiences.

No longer a "city of festivals" in the traditional sense, Hue is undergoing a strong transformation towards professional tourism, linking culture with the market, and connecting local resources with international standards. Models such as community tourism, green tourism, craft village experiences, and traditional cuisine are being invested in more systematically, bringing direct and sustainable income to local people. Ms. Tran Thi Hoai Tram, Director of the Department of Tourism, commented: "Many new products launched recently have contributed to enhancing Hue's position and image on the Vietnamese tourism map."

Along with tourism, a number of other service sectors also showed significant improvement. In the first six months of the year, revenue from accommodation and food services increased by nearly 20%, travel and tourism by 35.8%, and healthcare and education services by 6%. Total retail sales of goods and revenue from consumer services reached nearly 32,000 billion VND, an increase of 15.3% compared to the same period last year. Notably, domestic purchasing power surged by 28%, reflecting a strong recovery in consumer confidence and providing further impetus for economic growth.

According to Mr. La Phuc Thanh, Director of the Department of Finance: “Services continue to be the main driving force of Hue City's economy, not only because of its high growth rate but also because of its strong ripple effect. Focusing on industries related to culture and heritage will be a strategic direction for the city to create breakthroughs in the second half of the year and the following years.”

Besides key industries, the transportation and logistics services sector is beginning to show positive developments. The Chan May Logistics Center has commenced construction, promising to become a strategic goods connection point for the Central and Central Highlands regions. In particular, the rapid development of e-commerce is creating an urgent need for modern supply chains, requiring Hue to accelerate investment in logistics infrastructure and information technology.

Another bright spot in the services sector is employment. The majority of new jobs are coming from service industries such as retail, hospitality, restaurants, transportation, information technology, logistics, and education.

The tourism industry experienced a strong surge in the first six months of the year.

Breakthroughs in institutions, infrastructure, and human resources.

The service sector has the potential for rapid growth, creating good livelihoods, attracting effective investment, and being environmentally friendly, aligning with Hue's sustainable development orientation. However, to achieve a real breakthrough, growth is only a necessary condition. The bigger issues lie in institutions, infrastructure, and human resources.

Currently, many service sectors in Hue are still developing in isolation, lacking linkages and failing to form a sufficiently strong ecosystem. Furthermore, the shortage of high-quality human resources, especially those with digital skills, management expertise, and foreign language proficiency, is becoming a major bottleneck. Without a well-structured training and recruitment strategy, Hue will struggle to retain large-scale service businesses.

Infrastructure issues also present a pressing need. From urban transportation systems, seaports, and logistics centers to digital infrastructure, the desired quality is still lacking. Strategic projects such as the coastal road, the Chan May Logistics Center, telecommunications infrastructure, and digital technology need to be accelerated to create room for the development of key service sectors.

According to the Standing Committee of the Hue City Party Committee and the Permanent Vice Chairman of the Hue City People's Committee, Mr. Nguyen Thanh Binh, in order to create a real breakthrough, Hue must move from institutions to actions. In particular, administrative reform, simplification of procedures, and comprehensive digital transformation are crucial breakthroughs to improve the investment and business environment and enhance provincial competitiveness.

Mr. Binh stated that Hue will effectively implement the "four pillars" including: breakthroughs in science, technology, innovation, and digital transformation; international integration with people and businesses at the center; comprehensive reform of lawmaking; and promoting the development of the private economy – a crucial pillar of growth. Based on this foundation, the city will develop a green economy, a digital economy, and shift its growth model from extensive to intensive, prioritizing high value-added industries and gradually reducing dependence on resources and cheap labor.

Hue's greatest strength lies not only in its heritage, landscapes, or geographical location, but also in its ability to create intangible values—products and services that embody the spirit and identity of Hue, while still harmonizing with the modern world. This is what creates the city's uniqueness and long-term competitiveness.

"In the development orientation, services will continue to play a central role with clear pillars: Tourism is the spearhead; specialized healthcare, high-quality education, finance, seaports and logistics are the core; high-tech industry is the breakthrough spearhead and the marine economy is the essential foundation," Mr. Nguyen Thanh Binh affirmed.

Text and photos: Le Tho

Source: https://huengaynay.vn/chinh-polit-xa-hoi/theo-dong-thoi-su/dich-vu-dan-loi-tang-truong-156156.html