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I- Three economic sectors: Transitions and reasons

Economic activity is split up into three broad sectors: Agriculture, Industry and services

1-AGRICULTURE a. Definition
Agriculture is the production of food and goods through farming growing and harvesting plants and animals. It is the science of working land and using it to raise plants and animals. Agriculture was the key development that led to the rise of human civilization

b. Transitions of Agriculture
50 years ago, agriculture was very popular ( 55% of the population) and now only 2% of the population are doing farming. The growth of agricultural is stable with 4-5% per year, with food increasing by 5%.. Proportion of agriculture in the economy decreased from 48 % in 1989 to 25% in 1999. Nowadays, less and less people participated in farming.

c. Reasons of transitions
After more than 20 years of innovation, although agriculture has many achievements, the efficiency of the production was slow, income of farmers is still low. Because of the industrialization and Modernization ,there were many modern machines that doing human's farming work much faster and more efficiently. It makes many farmers become unemployed.

2-INDUSTRY

a. Definition
Industry refers to the production of an economic good (either material or a service) within an economy. There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction, and manufacturing; the third sector, which deals with services (such as law and medicine) and distribution of manufactured goods; and the forth sector, a relatively new type of knowledge industry focusing on technological research, design and development such as computer programming, and biochemistry.

b. Transitions of Industry
In the past, industry activities only produced tools used for farming, working, and making vehicles. Then at the time that many wars appeared, industry provided not only tools, but also weapons, supplies for human. Nowadays, industry are developing very fast, after the appearance of information technology, people can do a lot of work that they could only imagine in the past. More and more people are joining this sector. The proportion of industry in the economy has remained stable.

c. Reasons of transitions
The development of industry based on human's needs. Industrial activities help human to satisfy their needs, but that's not all, industry has contributed greatly to the development of agriculture and services, without industry, two other sectors: Agriculture and Services can't develop well. For examples : without modern tools made from factories, farming will be very slow, without information technology, services will not succeed. That's why the proportion of industry in the economy always remains stable

3-SERVICES a. Definition
Services are intangible products that are not goods (tangible products), such as accounting, banking, cleaning, consultancy, education, insurance, medical treatment, transportation. No transfer of possession or ownership takes place when services are sold, and they cannot be stored or transported, are instantly perishable, and come into existence at the time they are bought and consumed.

b. Transitions of services
Service has been increasing very fast and playing an important role in the national economy and the factors important contribution to economic growth worldwide. In 2001 the service sector created 72% of the GDP of developed countries and approximately 52% in developing countries. The percentage of population participated in services is rising very fast, more than 10% each year

c. Reasons of transitions
At present , in the highly developed economy, people have higher demand for services because of higher living standards. Moreover, governments are encouraging the development of services to improve living standards. In the market economy as service industry now have many areas suitable for the working class, so it meets the employment needs of more people

II- Current trends of three economic sectors.


1. AGRICULTURE a. In the world
Continues to increase agricultural yields while reducing the percentage of labor participation in agriculture by applying modern science and technology to increase productivity, save time and effort, putting health and safety factors people demanded., towards completely eliminate world hunger.

b. In Viet Nam
Reducing the proportion of the population involved in agriculture, apply modern technology to reduce labor time and increase labor productivity, save time, effort and money. Focus on developing agriculture in the regions that have great potential. Study the agriculture of the highly developed countries. Party and government continue to lead the country's agriculture, is maintaining the position of 2nd world countries on rice export

2. INDUSTRY a. In the world


Continue to maintain the proportion of industry in the world economy. Invest more for industry, focusing on developing high-tech industries like information technology, manufacturing production and modern machinery for agriculture and services. Apply high technology to improve human life. Put the problem of environmental pollution on top.

b. In Viet Nam
Government focuses on developing industry, promotes the process of industrialization and modernization, brings Vietnam to overcome a backward agricultural country. Vietnam continues to build more high-quality industrial, study the industry of highly developed countries. Vietnam does not forget the anti-pollution, strictly inspects factories to ensure that waste processing systems are good

3-SERVICES a. In the world


The general trend of service industry in the world is shifting to higher quality services to meet the increasing material and spiritual needs of diverse people. Applying information technology achievements in the service sector. Increase the proportion of services in economic activity compared to industry and agriculture.

b. In Viet Nam
Enhance the role of the service sector in the economy. Improving service quality and competitiveness of businesses providing services on domestic, regional and international market to exploit the potential and advantages of each service sector, to enhance the cooperation among the services sector to compete and develop together. Increase the proportion of services in GDP, to achieve about 45% in 2010.

III-Conclusion

In brief, we could realize that current trend of three economic sectors in Vietnam and in the world are similar. While the proportion of agriculture is decreasing, the proportion of industry is remaining stable, just changing slightly and the proportion of services is increasing rapidly. The living standard is the main reason of these transitions and trends.

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