The added value of Shenzhen’s service industry will exceed 2.5 trillion yuan (US$393.25 billion) by 2025, with the modern service industry’s added value accounting for 77 percent of the service industry’s added value, according to the municipal development and reform commission.

The commission has recently released the development plan for Shenzhen’s service industry during the 14th Five-Year Plan period (2021-2025), Shenzhen Special Zone Daily reported.

The plan states that by 2025, Shenzhen’s innovation capabilities in the service sector will be significantly enhanced, and the R&D expenditure of service enterprises above designated size will reach 20 billion yuan.

During the 14th Five-Year Plan period, about 30 technologically advanced service enterprises will be recognized annually, and the city’s import and export volume of service trade will reach US$150 billion.

The plan urges efforts to accelerate the service industry’s digitization, promote the innovation of service technology, concept, format and mode, and enhance the development of service economy.

The plan also proposes to further promote the service industry’s reforms and promote its wide-range opening up.

Shenzhen’s service industry has shown trending in vigorous development since the 13th Five-Year Plan period (2016-2020), according to the plan. The service industry has grown faster than the city’s economy and is becoming the main engine of Shenzhen’s economic development.

In 2020, Shenzhen’s service industry’s added value reached 1.719 trillion yuan, with an average annual growth rate of 7.5 percent during the 13th Five-Year Plan period, about 0.4 percentage points higher than the average annual GDP growth, as per official data.

The added value of Shenzhen’s service industry also accounted for 62.1 percent of the city’s GDP, up 3.8 percentage points over 2015.

The internal structure of Shenzhen’s service industry has been continuously optimized, and the modern service industry’s development has picked up its pace.

In 2020, the added value of the city’s modern industry hit 1.308 trillion yuan, making up 76.1 percent of the service industry’s added value, up by 6.9 percentage points over 2015. The added value of the finance, logistics and cultural industries accounted for about 30 percent of the city’s GDP.

During the 13th Five-Year Plan period, the average annual growth rate of information transmission, software and information technology services reached 17.9 percent.