Vietnam Post to increase charges

Postal charges for a letter in Vietnam will increase from VND800 to VND2,000 from 1 May as part of a plan to have the postal system pay its way by 2013.

Postal charges for a letter in Vietnam will increase from VND800 to VND2,000 from 1 May as part of a plan to have the postal system pay its way by 2013.

The new charge, excluding value added tax, will be applied for a common envelope with a weight of 20g or less.

The Ministry of Information and Communication said the price hike was due to an increase in petrol prices and transport fees and the fact there had not been an increase in post prices since 2000, when it was raised from VND400 to VND800.

At a rate of VND800, the state had been compensating the postal system to the tune of VND1 trillion in 2007, the ministry said.

The increase was part of a plan to remove the budget subsidy on the postal sector by 2013, the ministry said.