Foreign courier services to be allowed to compete in Vietnam
Foreign companies will be eligible to provide forwarding services in the domestic market by 2012 if the Government approves a draft decree by the Ministry of Post and Telematics (MPT).
Under the draft, businesses allowed to join the domestic market will be wholly-owned foreign companies, branches of foreign companies and joint venture companies where foreign partners hold more than 51 percent of the total registered capital.
According to the MPT, the decree was drafted to meet the country’s pledges following Vietnam’s accession to the World Trade Organisation (WTO).
The draft decree also outlines conditions surrounding an express service, which specialises in forwarding letters and documents that weight under two kilograms. According to the draft decree, the State will subsidise this service to ensure the post industry is able to develop sustainably.
MPT’s official said the Vietnam Post and Telecommunications Group (VNPT) will be selected to provide the special express service, however, forwarding fees will be regulated by the Government. Other businesses will be allowed to take part in the service, however, their charges must be ten times higher than VNPT’s.
The Government will provide exact details of the State’s subsidy of the special express service.
The first forwarding joint venture to be set up since Vietnam joined the WTO as DHL – VNPT, which has a total registered capital of 5.8 million USD.
Besides joining with VNPT, and participating in Vietnam’s forwarding market, DHL said it will also invest in five another projects in the field with a total capital of 6.5 million USD. – VNA
