Hanoi (VNS/VNA) – The Prime Minister has launched an initiative torestructure the services sector using advanced technology andartificial intelligence to improve competitiveness.

The project was approved by the Prime Minister on February 19.

The project will focus on developing key services such as finance andbanking, logistics and transportation, information technology andcommunications, science and technology, education and training, healthcare,tourism and retail. The legal framework will be improved to encourage thedevelopment of high-quality services.

The project has set a growth target for the services sector of 7-7.5percent per year from 2021-25, from 6.6-7.1 percent from 2016-20. Theservices sector will account for 43-44 percent of the country’s grossdomestic product (GDP) by 2025, from 42 percent in 2020, under the plan.

The percentage of trained workers in the services sector willincrease from 25 percent in 2020 to 30-35 percent by 2025.

For the finance and banking sector, Vietnam has a target of promoting one ortwo banks into Asia’s 100 largest by assets. In addition, cashless paymentwill also be encouraged.

The Ministry of Finance will develop a finance strategy and submitit to the Government for approval before 2021. The State Bank of Vietnam will bein charge of developing a decree about cashless payments this year.

The project also aims to turn the information and technology industry into aspearhead sector with rapid but sustainable growth, with high revenue andexport value. Vietnam will be capable of producing important IT,electronic and telecommunications equipment to serve the country’ssocio-economic development, and create a foundation for the development of aknowledge-based, digital economy.

In the retail sector, the project targets lifting revenue from modernretail channels (shopping centres, supermarkets and convenience stores) from 30percent in 2020 to 38 percent in 2025.

E-commerce is expected to increase 20 percent per year andcontribute around five percent to total retail sales of goods and services.

The project targets that the retail sector will contribute 13.5 percent ofGDP by 2025.

Education and training will also be enhanced with at least 4.6 millionpeople receiving training each year and 85 percent achieving higherproductivity and incomes after training.

Regarding the logistics and transportation sector, the projectsets a goal of achieving a growth rate of 15-20 percent per year, andfor the sector to contribute 8-10 percent of GDP. In addition, logisticscosts will be reduced to 10-15 percent of GDP from 25 percent,driving the sector into the world’s top 50./.