Ministry of Planning and Investment
Thursday, 20/06/2024
Administration & Support Service
Tuesday, 01/09/2020 06:51

In Vietnam, service sector development is always a key to the sustaninable growth to the country. One of the best services is administration and support services industry that provide a wide variety of routine support functions that are vital to the day-to-day running of businesses and organizations in both the public and private sectors.

Service industries exist in all economies because they are the facilitators of economic activities and important contributors to quality of life for all citizens. Infrastructure services (utilities, construction, transportation, telecommunications, and financial services) support all types of enterprises. Education, health, and recreational services influence the quality of labour available to enterprises. Business and professional services provide specialized expertise to increase enterprise competitiveness. The quality of government services determines the relative efficiency of the business environment in which enterprises operate.

Moreover, as an economy develops, certain service industries or sub-sectors become more critical and drive that development. Typically, utilities and construction are of initial importance in creating an economic base.Then transportation and communication services provide the economic infrastructure. Then financial and business services become more sophisticated and support ongoing growth and specialization. In parallel, there is usually a shift from low skill industries and consumer services (e.g., retail services) to high skill industries supported by intermediate services (e.g., business services). The availability of high quality service inputs contributes both to increasing the value-added of industrial goods and to generating higher skills jobs. As an economy develops, usually the majority of intermediate production is comprised of services sold to other service firms.

Also, service industries already contribute on average 70 percent of the global gross domestic product (GDP), with the percentage increasing as gross national income (GNI) per capita increases. Even in the least developed economies, services average over 45 percent of GDP in the majority of economies. In actuality, it is not the absolute percentage of services in GDP in a developing or transition economy that makes the difference to economic development but rather the relative growth rates of the three sectors (i.e., extractive, manufacturing, services). Service industries continue to lead growth in economies at all levels of development, driven in part by the rapid changes in information technology and telecommunications that support service delivery.

Additionally, quality of life services (such as education and health), supported by electricity, are critical for improving the life of the very poor. In addition, since many service enterprises can be started with very little capital (in contrast to manufacturing), service industries provide opportunities for persons with minimal resources, particularly women, to become self-employed and economically productive. The vast majority of service enterprises in any economy are very small or microenterprises. Environmentally speaking, many services are “clean” industries and so assist with avoiding pollution-related illnesses and environmental degradation.

One more thing, the strengthening of state management capability should be starting from 
policy making process. Building a powerful database system, using modern quantitative tools and consultation to research into international and domestic environment, forecasting, determination of policy options and selection of optimal policy are essential to have appropriate policies, to ensure feasibility through specific resources towards long run economic development tendency and rational agenda. Knowing experiences of countries that have similar socio-economic conditions is very necessary for Vietnam when determining its own way in a sharply internationalized environment. Besides, participants in policy making process, especially those are directly affected by policies, have to be diversified.

In summary, Vietnam has to be more active when opening to the international market, rapidly transform from import substitute and protection mechanism, preferential industry and state owned enterprises promotion into a highly competitive environment and knowledge and high- technology - based export while still taking advantages of low - labor - cost - based export activities. The Government plays a great role in this transformation cause. With further strengthening policies on development of enterprises, abolishment of monopoly of state owned enterprises, development of production factor markets, macroeconomic stabilization, acceleration of integration process, and modernization of public sector, Vietnam will gain higher benefit from opportunities in the globalization as well as minimize possible costs and reach the projected goals.