Vietnam's postal service

Vietnam's postal service

HANOI (AFP): Ho Chi Minh City is planning to set up a private post and telephone service in a further step towards shaking up Vietnam's lumbering state communications monopoly, a report said yesterday.

The proposed joint stock company will operate limited postal and telephone services initially within the southern economic center and neighboring provinces, the Tuoi Tre newspaper said.

Saigon Postal and Telecommunications Services Co. "will promote stiff competition and end the current monopoly in this area," said Nguyen Van Huan, deputy chairman of the city's People's Committee.

With an initial capital of US$1.4 million, the company is to begin operating 100 telephone circuits within the city and 10 in each province from September.

Vietnam announced in May that it would scrap its telephone monopoly and allow a military-owned firm to set up a rival network in the lucrative sector.