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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% o

the population are doing farming. The growth of agricultural is stable with 4-5% per yea

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 

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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 veryfast, 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.

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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 NamReducing 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

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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 hightechnology 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

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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.