Publication: Taking Stock, March 2023: Harnessing the Potential of the Services Sector or Growth
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Date
2023-03-14
ISSN
Published
2023-03-14
Author(s)
World Bank
Abstract
The services sector has been a
critical contributor to economic growth in Vietnam but its
performance lags comparators The services sector has been
the economy’s largest sector for the past decade. Looking
ahead, services could play a crucial role in supporting
Vietnam to sustain productivity growth and achieve its
ambition to become a high-income economy by 2045. However,
the performance of Vietnam’s services sector lags peer
countries. Small scale of firms, restrictions to services
trade, low technological adoption and few inter-sectoral
linkages affect productivity. Based on the preliminary
analysis presented in this report, the four broad policy
directions can be identified. First, Vietnam could further
reduce restrictions to services trade and foreign
investment. Second, Vietnam should encourage further
adoption of digital technologies within firms to spur
innovation. Third, focus should be on strengthening workers
skills especially basic digital skills and the capabilities
of firms and managers. Lastly, Vietnam should leverage
services to promote further growth of other sectors,
especially manufacturing.
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Citation
“World Bank. 2023. Taking Stock, March 2023: Harnessing the Potential of the Services Sector or Growth. © Washington DC. http://hdl.handle.net/10986/39524”