Vietnam Post & Telecoms Corporation to be divided from Jan 2005

The Vietnam Post & Telecoms Corporation (VNPT) has said it is finalising necessary procedures to split into two separate corporations from January 1, 2005, with one specialising in telecoms and the other in postal services.

The new corporations will be called the Vietnam Telecoms Corporation and the Vietnam Postal Corporation, which will be comprised of the Inter-provincial & International Postal Co. , the Central Newspaper Publishing Co. , the Postal Savings Co. and post offices at city and provincial level. This is interpreted as the first step towards the establishment of a telecoms and postal group in Vietnam in the 2005-06 period. The group will comprise independent companies mainly focusing on telecoms, information technology and postal services.

VNPT began separating its telecommunications operations from postal operations at its post offices in 10 cities and provinces in September 2001. Since the initial separation, postal companies have seen annual growth of 15percent.

“There were very few postal services in Vietnam in the past, but now many new services have emerged, including newspaper and parcel delivery, express delivery and flower delivery,” said a VNPT official.

“There will be cooperation and competition between the two operations, leading to improvements in the service quality of each and a reduction in costs,” he said.

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