Viet Nam Post Office To Spin Off From State Telecom Giant

The nation’s postal service will be reorganised under a plan approved by the Prime Minister earlier this month. Under the plan, the Viet Nam Post and Telecommunications Group (VNPT) would spin off the new Viet Nam Postal Corporation with a total equity of over VND 8 trillion (USD 500 million), according to Deputy Minister of Post and Telematics Nguyen Thanh Hung. The change would be effected July 1.

The new corporation would continue performing postal services now under the purview of VNPT. It was also expected to develop and manage public postal networks, provide financial and banking services, and co-operate with telecommunications firms to provide ICT services.

The goal was for the postal service to cover its own costs within seven to eight years, he added. The corporation’s affiliates would include provincial and municipal post offices and enterprises in which it would hold over 50 per cent equity, such as the Postal Express and Postage Stamp joint stock companies.

The corporation would receive preferential loans from the Government to develop its network and enjoy income tax exemption for the first five years after its establishment, said Hung.

VNPT would continue to represent State capital in the new postal corporation.