Vietnam’s postal service will be reorganised under a plan approved by the prime minister earlier last month the Vietnam News Service reported. 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 VND8 trillion (US$500 million), according to Deputy Minister of Post and Telematics Nguyen Thanh Hung. The change would be effected July 1.

The move effects a larger strategy of separating two sectors, postal services and telecommunications, which are now both assumed by VNPT, said Hung.

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 fi nancial and banking services, and co-operate with telecommunications fi rms to provide ICT services. The corporation’s affi liates would include provincial and municipal post offi ces and enterprises in which it would hold over 50 percent equity, such as the Postal Express and Postage Stamp joint stock companies.

In a related development, Korean Post said it has agreed to help develop and modernise IT systems for Vietnam’s postal service under a memorandum of understanding signed by VNPT and the South Korean postal service.