In order for the service industry to develop quickly and sustainably, Khanh Hoa Province People's Committee has a plan to restructure this industry.
In order for the service industry to develop quickly and sustainably, Khanh Hoa Province People's Committee has a plan to restructure this industry. In particular, the objectives, tasks and organization have been clearly outlined in order to associate services with development and economic restructuring in the province.
Restructuring service sector towards modernization
The plan to restructure service sectors issued by the provincial People's Committee is considered as a task frame of departments, agencies, and localities in implementing the service development and economic development goals of the province till 2025. In particular, it is required to develop a fast, efficient and sustainable service industry, ensuring basic services for socio-economic development towards a modern economic structure and the exploitation of resources for economic growth. The provincial People's Committee has determined that the restructuring of this industry must have focus, feasibility and strong impact, right time in practice. The business sector, especially the private businesses, is an important force in the process of restructuring the service sector. In addition, the structure must approach modern qualifications, ensure international and regional integration, integrate the implementation of international commitments on services with the province's socio-economic development plan for the 2021-2030 period, with a vision to 2045.
The plan aims to focus resources on developing a number of potential services with high levels of knowledge and technology such as finance, banking, logistics - transportation, information technology - communication, science - technology, education - training, health care, tourism, etc. The plan also aims to implement sector development policies, build the infrastructure of the service sector by developing strong services. In the future, the service sector must be restructured in the direction of increasing the proportion of high-tech and information technology applications to spillover effects to other fields.
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Specific objectives
According to the provincial People's Committee, the service sector restructuring plan has to ensure the growth rate of service sector in the period of 2016 - 2020 to reach 6.6 to 7.1%; the proportion of service sector in GRDP to account for 42% by 2020. In the period of 2021 - 2025, the growth rate of service sector will reach about 7.5%, and the proportion of service sector in GRDP will be around 44% by 2025.
The provincial People’s Committee also sets targets for each field. In particular, the field of finance - banking, capital mobilization aims to increase 10%/year on average; outstanding loans to increase by 14%/year on average; bad debt ratio to be kept below 3%. In particular, non-cash payments will be promoted, ATM and POS network will be optimized. For information and communication technology, by 2025, the average growth rate must reach from 5 to 7%/year; mobile communication will be covered on 100% of residential areas in the province.
In the plan, the provincial People's Committee pays special attention to the field of labor training. By 2020, vocational education will meet the needs of the labor market in terms of quantity, quality, job structure and training level. On average, about 26,500 people are trained vocation annually; intermediate and college degrees account for about 25-30%; about 10-15% are trained according to key professions; and more than 70% of people have jobs after training. The provincial People's Committee sets target of training vocation for about 28,500 people annually by 2025; at least 85% of them have jobs or have higher productivity and income. By the end of 2020, the proportion of trained labor in service sector will reach about 25%; this proportion will be raised to about 35% by 2025.
Tourism, logistics and trade are also assessed as strong fields, requiring goals for outstanding development. Specifically, logistics and transport aim to achieve an average annual growth rate of more than 7%/year with logistics services initially formed in the province. Regarding distribution and trade, the target of total retail sales of goods and services in the period of 2021 - 2025 is estimated at about VND513,046 billion; e-commerce is expected more; export and import growth is planned 10%/year on average. In the field of tourism services, the province strives to attracts from 9-11 million visitors/year striving by 2025, including 4-5 million international ones and 5-6 million domestic ones. By 2025, the province strives to have more than 61,000 accommodation rooms, 60-70% of which are qualified for 3-5 stars; creating 254,000 jobs, including 85,000 direct employees.
According to Director of the provincial Department of Planning and Investment Tran Hoa Nam, the plan to restructure service sector is the basis for departments, committees, branches and localities to continue performing the main tasks and solutions to improve business environment, enhance the competitiveness as well as support and develop businesses in the province. The provincial Department of Planning and Investment is assigned to coordinate with units to review, simplify procedures with the aim to reduce costs and time for businesses. In addition, the department cooperates with units and localities to implement solutions to attract and use effectively capital sources for economic development, investment in essential socio-economic infrastructures; concentrate resources to carry out science and technology tasks for potential services of the province; encourage and support enterprises in technology research, application and innovation; promote start-up, innovation, commercialization of results in research, application and technology development; pay special attention to high-tech application services, artificial intelligence and information technology.
Dinh Lam
Translated by T.T
