End of nation’s postal subsidies in sight (Vietnam)

Viet Nam’s postal sector may see tough times ahead, as the Government is considers cutting loss compensations in the sector to heal the ailing industry by 2013.
The Government will cut subsidies to the postal sector in 2013. How are the relevant authorities preparing for this?
The Government recently passed a public postal development plan, in which will gradually reduce subsidies to the postal sector, and completely end them in 2013. This was a very important decision, and it will have a strong impact on the sector.
We can see that the 2013 deadline is appropriate, despite the fact that it is unprecedented in Viet Nam. However, the separation is a litter bit late and needs the efforts of both the postal sector and the Government.
Can you tell me more about what the Government will do for the postal sector, before leaving it alone?
First of all, we’re giving the sector a 5-year transitional period, which will help it to prepare for the future.
Secondly, there will be two types of postal entities. One will belong to the Government and will be geared towards public service, while the other will be privately owned and will operate with market principles.
However, service prices at State-owned postal companies will be at least 10 times less than those of privately-owned companies.
Is it true that the ministry is also considering an adjustment to the prices of some postal services?
This is a very hot topic. The Ministry of Information and Communication has directed the postal sector to create a price adjustment roadmap for the near future.
In fact, the current price of postage stamps is very low, well below operating costs. An increase to service prices would help local postal operators improve postal networks and invest in new technologies.
However, as the economy is facing difficulties now with skyrocketing inflation rates, timing for any hikes would not be decided until next year.

Viet Nam’s postal sector may see tough times ahead, as the Government is considers cutting loss compensations in the sector to heal the ailing industry by 2013.
On the occasion of the ongoing 31st Asian Pacific Postal Executive Council (APPU-EC) meeting in Ha Noi, Viet Nam News reporter Phi Hung sat down to speak with Information and Communication Deputy Minister Nguyen Thanh Hung about how the sector was preparing to stand alone, as well as the Government’s farewell roadmap.
The Government will cut subsidies to the postal sector in 2013. How are the relevant authorities preparing for this?
The Government recently passed a public postal development plan, in which will gradually reduce subsidies to the postal sector, and completely end them in 2013. This was a very important decision, and it will have a strong impact on the sector.
We can see that the 2013 deadline is appropriate, despite the fact that it is unprecedented in Viet Nam. However, the separation is a litter bit late and needs the efforts of both the postal sector and the Government.
Can you tell me more about what the Government will do for the postal sector, before leaving it alone?
First of all, we’re giving the sector a 5-year transitional period, which will help it to prepare for the future.
Secondly, there will be two types of postal entities. One will belong to the Government and will be geared towards public service, while the other will be privately owned and will operate with market principles.
However, service prices at State-owned postal companies will be at least 10 times less than those of privately-owned companies.
n Is it true that the ministry is also considering an adjustment to the prices of some postal services?
This is a very hot topic. The Ministry of Information and Communication has directed the postal sector to create a price adjustment roadmap for the near future.
In fact, the current price of postage stamps is very low, well below operating costs. An increase to service prices would help local postal operators improve postal networks and invest in new technologies.
However, as the economy is facing difficulties now with skyrocketing inflation rates, timing for any hikes would not be decided until next year.
Can you tell me the ranges of the price hikes?
It will all depend on actual inflation rates. For the price of a postage stamp–the most common postal service–it may increase from the current VND800 per stamp to between VND1,200-VND1,500. — VNS