Developing the Service Industry in the Process of Transforming the Growth Model

Ranked second after the growth rate of the Industry - Construction sector, with the goal of transforming the growth model to effectively combine breadth and depth, the Service sector has been promoting the advantages of shifting in the economic structure of the province. Thereby contributing to improving the quality of socio-economic growth of the province in a fast and sustainable direction, proactively integrating into the international economy.

Along with the whole country restructuring the economy, the structure of the province's economic sectors continues to shift in a positive direction, the scale of GRDP per capita tends to increase rapidly.

Vinh Phuc ICD Logistics Center promotes the application of information technology in its operations. Photo: Nguyen Luong

Notably, the service sector plays the second key role in the province's economic growth with a growth rate of 6.63%/year in the period 2011-2020. In particular, the fields of health,education , and tourism increasingly contribute positively to the structure of the service sector and tend to become the province's spearhead economic sector.

Services and trade develop in a professional, modern and diverse direction with a system of supermarkets, markets, shopping centers, convenience stores... covering from cities to rural and mountainous areas, meeting people's shopping needs.

Besides, the trend of shopping on e-commerce platforms such as Shopee, Lazada, Tiki... with payment methods via accounts and e-wallets is widely used by people.

Import and export activities in the province have grown strongly over the years, focusing on countries and territories such as the United States, Europe, Japan, China, Korea, etc.

Warehousing and transportation business activities have been recovering, the number of business units has increased, well meeting the travel and freight transportation needs of people and businesses.

The tourism infrastructure system has been invested and gradually improved, the province's tourism activities have increased steadily over the years. It is expected that by the end of 2024, the proportion of the service sector will account for 31% of the economic structure, continuing to affirm its important role in the socio-economic development orientation of the province.

For a long time, public passenger transport by bus has been a means of transport chosen by many people instead of personal vehicles when participating in intra-provincial traffic. The whole province currently has 2 units participating in this type of transport with 111 vehicles.

To promptly implement State management work in this field, the Department of Transport regularly directs specialized departments to inspect, review and grasp the situation, especially compliance with public passenger transport service contracts by bus signed with units to promptly remind and correct existing problems and limitations.

Survey and adjust bus routes to best serve people's travel needs as well as comply with traffic diversion to implement investment and construction projects in the province.

At the same time, continue to effectively implement the "Project to improve the quality of public passenger transport by bus in the province in the period of 2021-2025". In which, research to open new bus routes, pick-up and drop-off points; promptly forecast situations that may arise during exploitation and operation, creating favorable conditions for people to use the service.

Deputy Director of the Department of Transport Pham Tuan Giang said: It is forecasted that by 2025, the province's passenger transport will reach about 29.4 million trips, with an average growth of 2.3% per year in the 2020-2025 period, and by 2030 it will reach about 33.9 million trips, with an average growth of 2.9% per year in the 2025-2030 period.

On that basis, the Department of Transport continues to advise the Provincial People's Committee to expand and develop the network of routes, pick-up and drop-off points associated with improving the quality of public transport services by bus. Accordingly, maintaining the exploitation of existing bus routes, forming a radial fan-shaped network. Proposing to open 5 new inter-provincial bus routes and 6 intra-provincial routes to meet the travel needs of people in the future.

With the goal of making services one of the province's key economic sectors in the process of transforming the growth model, the province aims to develop a number of potential fields with high knowledge and technology content such as transportation, warehousing, logistics, tourism services, e-commerce, etc. within the industry structure.

Commercial services in the province have developed in a professional, modern, and diverse direction, well meeting the shopping needs of the people. Photo: Nguyen Luong

At the same time, focus on implementing 3 groups of solutions including investment capital mobilization, ancillary services and human resources. In particular, research and promulgate policies to encourage organizations and individuals from all economic sectors to participate in contributing capital to upgrade commercial infrastructure suitable for each urban and rural area, meeting the shopping needs of people in each region.

Applying new technology in logistics activities; encouraging the development and application of new means of transport to support the transportation and delivery of goods. Effectively exploiting signed free trade agreements to create momentum for the sustainable development of import and export services.

Promote investment in technical infrastructure serving tourism; focus on linking the tourism industry with other industries and fields in the value chain, creating more and more new tourism products, attracting domestic and international tourists. Develop and improve the quality of human resources, meeting the requirements of integration and the 4th industrial revolution...

By 2030, the proportion of the service sector in the province's GRDP will account for about 33-34%; the average annual growth rate of total retail sales of goods and consumer service revenue will reach 9-9.5%/year; the growth rate of the logistics service industry will reach 18%/year; attracting 150,000 international visitors and 16 million domestic visitors...

Ngoc Lan

Source: https://baovinhphuc.com.vn/Multimedia/Images/Id/119648/Development of the Service Industry during the process of changing the growth model