Services lift HCM City growth

The service industry accounts for nearly 60 percent of HCM City's economy now, exceeding the target of 57 percent - and four percentage points higher than in 2010.

Investment in the sector has risen by 73.2 per cent since 2010.

According to the municipal People's Committee, from 2011- 15 the sector's average revenue grew by 11.2 percent a year and the aim is to increase the proportion of high value-added services.

Finance, banking, insurance and trade, transportation and logistics account for more than 34 percent of the city's economic output.

Science and technology consultancy is the fastest growing service, achieving annual growth of nearly 17 percent in recent years compared with 5.4 percent in 2006 –10.

The sector accounts for 9.5 percent of total services turnover thanks to intensive efforts by the city to establish research – production – market links and create programmes to bolster domestic research, design, manufacture and transfer capability to replace import of technology and products.

The service that is growing at the second fastest clip is information and communications technology (16.5 percent). It accounts for 5.8 percent of services sales.

The city has firmly established its leading position and brand in software programming and outsourcing in the country.

In third place is healthcare, which is growing at a yearly rate of 14.8 percent, and makes up 5.7 percent of the services sector.

Transport – ports – logistics ranks fourth in growth (around 13 percent) but is the third biggest service segment - accounting for 15.9 per cent of revenues - benefiting greatly from large investment in infrastructure and many new key highways.-VNA