Decision No. 236/2005/QD-TTg On approving the development plan for Vietnam's postal sector until 2010

 Pursuant to …;

Regarding the approval of the planning for the development of Postal Services in Vietnam until 2010 

PRIME MINISTER

Based on the Law on Government Organization dated December 25, 2001;

Based on Decree No. 90/2002/NĐ-CP dated November 11, 2002 stipulating the functions, tasks, powers, and organizational structure of the Ministry of Posts and Telecommunications;

Based on the Ordinance on Postal and Telecommunication Services dated May 25, 2002;

Based on Decree No. 157/2004/NĐ-CP dated August 18, 2004 of the Government detailing the implementation of certain provisions of the Ordinance on Postal and Telecommunication Services regarding postal services;

Based on Decision No. 158/2001/QĐ-TTg dated October 18, 2001 of the Prime Minister approving the Strategy for the Development of Postal and Telecommunication Services in Vietnam until 2010 and orientations until 2020;

Considering the proposal of the Minister of Posts and Telecommunications at Report No. 2075/BBCVT-VCL dated October 27, 2004 and the review opinion of the Minister of Planning and Investment at Circular No. 4543/BKH-TĐ&GSĐT dated July 8, 2005,

DECISION:

Article 1. Approve the "Planning for the Development of Postal Services in Vietnam until 2010" with the main contents as follows:

1. Objectives of the Planning

a) Developing the postal network

Develop Vietnam's postal services towards mechanization, automation, and informatization to achieve modern standards comparable to advanced countries in the region. Organize the separation of postal and telecommunications services, operate independently and effectively to provide diverse services according to international standards.

By 2010, achieve an average service level of less than 7,000 people per service point, an average service radius of less than 3 km, and the number of service points nationwide exceeding 13,000 points including various forms such as post offices, agents, village cultural-postal service points, and kiosks operating stably throughout the country. Achieve 100% of communes having operational postal service points (Annex No. 1).

b) Developing services

Develop postal services towards improving service quality, combining public utility services with commercial services; diversify service types; develop new services to meet the needs of economic and social development and transform postal services into an independent and effective economic sector.

c) Developing the market

Fully utilize all national resources, create conditions for various economic sectors to participate in developing mail delivery services in a fair and transparent competitive environment. Rapidly develop, dominate, and firmly establish in the domestic market while actively expanding business activities in the international market.

Actively exploit the domestic market, while expanding operations in the international market. Proactively integrate into the international economy according to the multilateral and bilateral commitments.

d) Developing the postal industry

Encourage both domestic and foreign economic sectors to participate in developing the postal industry; forms of foreign investment involving high technology transfer, including 100% foreign capital.

Strengthen the absorption of modern technology transfer; gradually take control of technology in both hardware and software, produce products meeting international quality standards. Enhance the production capacity of domestic equipment, reaching 60% of the demand for postal, telecommunication, and information technology equipment in Vietnam in 2005 and 80% in 2010. Accelerate the process of increasing the value-added labor content in products: reaching 30-40% in 2005 and 60-70% in 2010. Strengthen cooperation and exchange, participate in international labor division markets, implement specialized production of some products in Vietnam; promote exports to foreign markets.

đ) Developing human resources

Train and develop skilled and morally sound human resources with expertise in mastering modern technology and techniques; be proficient in economic management.

By 2010, achieve labor productivity and quality standards for postal services in Vietnam equivalent to the average level of advanced countries in the region.

2. Contents and scale of key factors in the planning

a) Postal network

- Network of service points

Build a wide-ranging postal service point network with decreasing service radius. Prioritize the development of multi-service agency and village cultural-postal service points, limit the development of post offices, create conditions to reduce formal labor, utilize social labor, and improve postal labor productivity.

- Domestic and international transportation network

Enhance the capacity of the domestic and international transportation network, invest in specialized transportation means to meet the needs of postal and mail delivery transportation.

The State prioritizes, supports, and creates favorable conditions for Vietnam Post Corporation to transport domestic and international postal items by air and eventually have dedicated flights for postal services through cooperation and contribution of shares with domestic and foreign airlines.

- Sorting and distribution centers

Automate sorting and distribution processes, striving to have two automatic sorting centers in Hanoi and Ho Chi Minh City by 2005, and three to five automatic sorting centers distributed geographically and suitable for traffic volume by 2010. All postal items nationwide will be automatically sorted to the district level.

b) Postal services

- Basic postal services

Maintain an average annual growth rate of 10-12% for domestic regular mail services, 8-10% for international regular mail services, 10-15% for domestic parcel services, 10-12% for international parcel services, and 4-6 letters per person per year.

- Additional postal services

Additional postal services increasingly account for a high proportion and are provided alongside basic postal services, with an annual growth rate of 10 to 20%.

- Public postal services and the performance of other public duties

From now until 2010, ensure the provision of universal postal services to all service points, meeting the demand for service usage of all citizens, and effectively fulfilling the information service tasks for the Party, State, Government, and local authorities at all levels. Based on the requirements of the State, the economic and social development situation, and postal services during each period, the State will specify the provision of universal postal services.

Public Service Tasks: By 2010, achieve the target of 100% communes in plains and most mountainous communes receiving the Party newspaper on the same day. Rural post and culture stations play a crucial role in providing universal postal services and other public service tasks, contributing to improving the cultural and spiritual life of the people. Based on the economic and social development situation and postal services during each period, the Ministry of Posts and Telecommunications will submit to the Prime Minister specific decisions regarding types of universal postal services.

- Other Services

From now until 2010, strengthen the development of new profitable postal services such as express mail, Datapost, agency postal services, and undeliverable mail to enhance service quality, competitiveness, increase revenue, and profit specifically:

+ Express Mail Service: Domestic express mail service volume growth rate averages 15 to 20% per year, international express mail service volume growth rate averages 15 to 20% per year.

+ Datapost Service: Invest in Datapost equipment in Central and Southern regions to expand Datapost service business. From now until 2010, the target for average revenue growth rate is 40 to 50% per year.

+ Agency Postal Service: Continue expanding the scope of domestic service operations to all level II post offices, some level III post offices, and international markets. Improve service quality through the development of e-commerce services. The target for average revenue growth from now until 2010 is 15% to 18% annually.

+ Undeliverable Mail Service: Develop undeliverable mail service to meet the needs of the corporate market. Average production growth rate reaches 40 to 50% per year.

+ Financial Services: Invest in equipment, network, especially information technology, to develop and improve the quality of financial services such as postal savings and money transfer services. Traditional domestic and international money transfer services maintain an average annual production growth rate of 10-12%, fast money transfer services grow annually by 15-20%, postal savings services become an important channel for attracting deposits with an annual growth rate of 20-25%.

From now until 2010, implement the priority goal of increasing revenue and profits to support the provision of universal postal services and the fulfillment of other public service tasks, aiming towards balancing revenues and expenditures of services and achieving profitability. Introduce new services such as payment services, insurance, banking agency services, online shopping via postal networks; telecommunications service agency; hybrid postal services (E-post)...

Article 2. Main orientations and solutions to implement the approved planning

1. Orientation

a) Reforming organization and developing postal network and services

Separate posts and telecommunications by 2007; postal services operate independently and effectively.

Develop postal service points, post offices, rural post and culture stations, focusing on developing agency forms to reduce investment costs, labor costs, and mobilize idle resources in society to participate in postal development.

Optimize and develop a non-administrative boundary postal network and transportation system. Continue investing and developing postal services towards mechanization, automation, and informatization, ensuring that labor productivity doubles by 2010 compared to 2003.

Improve the quality of existing postal services and develop new postal services including integrated goods services (selection, packaging, arrangement), warehouse services, supply chain management services, and online shopping via postal services to create suitable distribution and payment channels for national trade development and contribute to promoting e-commerce.

Develop financial services such as pension payment services, payment services; collection and issuance services for businesses providing services (life insurance payments, electricity, telephone, water bills)...

Participate in providing telecommunications services through resale and agency forms such as issuing invoices, collecting fees, receiving service requests, providing value-added telecommunications services, and internet services.

Utilize the public postal network to operate financial, savings, money transfer, press publication, and other services according to the Postal and Telecommunications Ordinance.

Continue providing high-quality, safe postal services to users at lower or equivalent rates compared to the regional average.

Improve the quality of postal stamps serving the payment of postal service fees on the public postal network; develop the postal stamp market to meet the philatelic collection needs, creating a healthy stamp market and encouraging healthy stamp collecting activities both domestically and internationally.

b) Supporting enterprises providing universal postal services

The State applies supportive policies for Vietnam Post Corporation to provide universal postal services and fulfill certain public service tasks through dedicated postal service mechanisms and other support mechanisms.

In the initial stage of postal reform, domestic and international letter delivery services up to 2 kg at rates set by the Ministry of Posts and Telecommunications were determined to be exclusive postal services for Vietnam Post Corporation. The scope of exclusive postal services will gradually be reduced to open up the letter delivery market step by step. Businesses are permitted to provide letter delivery services outside the scope of exclusive postal services based on licenses issued by the Ministry of Posts and Telecommunications.

Since its establishment, Vietnam Post Corporation will receive financial support from Vietnam Posts and Telecommunications Group (based on Vietnam Posts and Telecommunications Corporation). This level of support will gradually decrease in subsequent years. The amount and duration of support will be implemented according to guidelines issued by the Ministry of Posts and Telecommunications.

c) Application of science and technology

The application of new technology must first aim to innovate management systems and operations to increase labor productivity and reduce costs, such as applying postal address codes, barcodes in sorting processes, tracking and positioning systems, and postal information management systems.

The application of science and technology in postal services must combine the extensive service network of postal services with the flexibility and speed of electronic means to provide new hybrid postal services such as electronic invoicing and payment, information lookup services, secure email...

Standardize various types of postal packaging such as envelopes and mail bags to ensure automatic sorting capabilities, promote and fully implement postal address codes, and use barcodes in the operation of postal items and parcels.

Apply information technology to develop postal information networks to all post offices and service points. Utilize software for operational, business, search, and tracking purposes. Develop and apply software programs for management, operation, and business of all services, establish monitoring, positioning systems, and deploy provision of postal and other services over the Internet.

Develop the postal industry towards ensuring good supply of industrial products serving domestic postal needs while developing products that meet market demands.

d) Develop human resources:

Train and develop skilled human resources with good qualities; master modern technology; be solid in economic management.

Emphasize training cadres with professional expertise and high sense of responsibility to meet the development needs of the industry, particularly focusing on training excellent engineers and specialists to meet the needs of domestic postal development and regional and international economic integration in the postal sector.

Reform postal production and business activities towards not increasing labor, having reasonable recruitment policies based on productivity and efficiency, establishing examination and promotion systems to improve labor quality. Adjust the human resource structure to suit the development of new postal services to satisfy and maximize social demand for postal services.

d) Market orientation for express delivery and letter delivery

Develop the express delivery market towards openness, encouraging participation from multiple economic sectors, unified and enhanced state management role.

Open the letter delivery market towards competition, encouraging investment in developing modern equipment and technology express delivery networks and providing high-quality services, emphasizing the application of information technology and automation to increase market share in future express delivery service exploitation.

The State permits and creates conditions for multiple economic sectors to participate in providing domestic express delivery services in accordance with the spirit of the Postal and Telecommunications Ordinance and Decree No. 157/2004/NĐ-CP of the Government detailing implementation of certain provisions of the Postal and Telecommunications Ordinance regarding postal services, ensuring user benefits. Open the express delivery market according to Vietnam's commitments to international economic integration, allowing foreign enterprises to participate in providing international express delivery services through forms of investment such as joint ventures, business cooperation contracts (BCC), agency.

2. Solutions

a) Perfecting regulatory mechanisms and policies

- Completing the legal document system on postal services.

Issue guidance documents to implement the Postal and Telecommunications Ordinance and Decree No. 157/2004/NĐ-CP of the Government detailing implementation of certain provisions of the Postal and Telecommunications Ordinance regarding postal services according to the following basic contents:

+ Support policy for providing public postal services and performing other public tasks:

In 2005, issue documents on the scope of public postal services, the scope of exclusive postal services, determine other support mechanisms: cost compensation, tax incentives, investment capital... facilitating Vietnam Post Corporation in fulfilling its obligations to provide postal services and performing certain public tasks.

+ Accounting regulations for postal services for Vietnam Post Corporation.

In the two years 2006 and 2007, the Ministry of Finance and the Ministry of Posts and Telecommunications guide Vietnam Post Corporation to develop and issue accounting regulations for postal services in the direction of ensuring separate accounting capabilities for each service, especially public postal services, exclusive postal services, determining costs and prices of public postal services, postal services moving towards determining the cost of each service.

- Developing the letter delivery market

Encourage multiple economic sectors to participate in providing letter delivery services, ensuring fair competition and user rights. Foreign-invested enterprises are allowed to enter the letter delivery market in line with Vietnam's market opening schedule for letter delivery and its commitments in bilateral and multilateral agreements.

- Postal tariff policy

For postal services of public interest whose rates are regulated by the State, the rates for such services shall be determined based on cost. By 2007, the rates for current postal services that are still lower than the costs ensuring business efficiency in the postal sector shall be adjusted. The State shall have mechanisms to support and cover losses for Vietnam Post Corporation in providing postal services of public interest and other public tasks.

||| Reform the management and production operations of Vietnam Post Corporation.

Reform the management and production operations of postal services based on expanding the authority and responsibility of member units, enhancing business efficiency, improving service quality, creating a fair competitive environment among enterprises. Expand the scope of business, strengthen service linkages with domestic and foreign partners in line with market mechanisms.

Implement diversified ownership in some enterprises within the Vietnam Posts and Telecommunications Group through shareholding, joint ventures, and cooperation, with state capital playing a dominant role at appropriate levels and steps.

||| Reform management and business of stamps

Plan themes and topics for stamp issuance to plan stamp issuance activities, scientifically exploit themes and topics serving the political propaganda purposes of the Party and the State.

Diversify postal stamp designs to meet increasingly high consumer demands.

Enhance the value and reputation of Vietnamese postal stamps in the international market through investment in stamp production technology and specialized training.

||| Strengthen state management and enhance coordination responsibilities among ministries, sectors, and localities.

Enhance coordination with relevant sectors and localities to implement comprehensive planning for postal development in conjunction with the development plans of other sectors (especially transportation and construction) and socio-economic development plans of localities.

b) Mobilize and effectively utilize investment capital for postal services

The State shall have mechanisms to support investment capital for Vietnam Post Corporation and encourage investment in developing postal services and mail delivery.

Encourage investment under business cooperation contracts, joint ventures (in the mail delivery sector), purchasing shares of mail delivery enterprises, especially for new service development projects.

Vigorously attract domestic investment through strong development of agency systems, corporate bond issuance, stock issuance (for mail delivery enterprises) or other suitable forms.

c) Implement key programs and projects

Implement key investment programs and projects to create momentum and a foundation for postal sector development (Annex 2).

d) International cooperation

Strengthen cooperation with international organizations in postal affairs, mail delivery, participate in World Postal Union (UPU) and regional postal union action programs. Seek assistance from international postal organizations in technology and human resource training for Vietnam's postal technology development.

Proactively cooperate with international postal companies to launch new services, particularly those serving e-commerce. Strengthen bilateral postal service linkage cooperation, especially with ASEAN countries. Increase interaction and promotion of Vietnam's postal image to international postal counterparts and partners.

Article 3. Management and organization of implementation of planning

1. Ministry of Posts and Telecommunications

Develop and submit to the Government or promulgate according to its authority mechanisms and policies to successfully implement the planning for Vietnam's postal development until 2010.

Coordinate with the Ministry of Home Affairs and the Ministry of Finance to guide and direct the establishment of Vietnam Post Corporation as an independent accounting entity within the Vietnam Posts and Telecommunications Group according to Decision No. 58/2005/QD-TTg dated March 23, 2005 of the Prime Minister, complete the separation of postal and telecommunications by 2007 and ensure revenue covering expenses by 2010.

Coordinate with the Ministry of Finance to develop and promulgate regulations on accounting procedures for postal services of public interest and financial policies, support mechanisms for Vietnam Post Corporation in providing postal services of public interest and performing other public tasks.

Establish a reasonable system of indicators to evaluate the effectiveness of postal services of public interest provision based on economic and social benefits to serve as a basis for evaluating investment efficiency in the postal services of public interest sector.

Direct the implementation of the pilot project to form the Vietnam Posts and Telecommunications Group and establish Vietnam Post Corporation according to Decision No. 58/2005/QD-TTg dated March 23, 2005 of the Prime Minister.

Organize well the enforcement of laws to ensure a healthy competitive environment in the mail delivery sector.

2. Ministry of Planning and Investment, Ministry of Finance, Ministry of Labor, Invalids and Social Affairs

The Ministry of Planning and Investment shall coordinate with the Ministry of Posts and Telecommunications to direct the Vietnam Posts and Telecommunications Group and Vietnam Post Corporation to implement key programs and projects listed in Annex 2. Study and consider mechanisms to support capital for Vietnam Post Corporation to implement development projects for the network of postal services of public interest and perform other public tasks.

The Ministry of Finance shall coordinate with the Ministry of Posts and Telecommunications to guide the Vietnam Posts and Telecommunications Group to build an accounting system by sector and service, ensuring the separation of business operations for public service, dedicated postal services, and commercial postal services, moving towards determining the cost of each postal service.

The Ministry of Finance shall coordinate with the Ministry of Posts and Telecommunications to guide Vietnam Post Corporation in establishing a system of accounting by sector, by service, ensuring the separation of business operations for public utility services, exclusive postal services, and commercial postal services, with a view to determining the cost of each postal service.

The Ministry of Finance shall coordinate with the Posts and Telecommunications Ministry to direct Vietnam Post and Telecommunications Group to study and build, appraise postal service rates for public postal services, dedicated postal services, and compensation mechanisms to support Vietnam Post Corporation in providing public postal services.

The Ministry of Finance shall coordinate with the Posts and Telecommunications Ministry and the Ministry of Planning and Investment to study and build limits on foreign capital investment in courier enterprises.

The Ministry of Labor, Invalids and Social Affairs shall coordinate with the Posts and Telecommunications Ministry to guide Vietnam Post and Telecommunications Group to establish appropriate salary and bonus mechanisms.

3. Ministries, sectors, localities

Sectors and localities shall be responsible according to their assigned functions and tasks, and in accordance with the specific characteristics of their sectors and localities, to coordinate with the Posts and Telecommunications Ministry, Vietnam Post and Telecommunications Group, and Vietnam Post Corporation to implement planning for industry development.

People's Committees of provinces and cities shall direct through Provincial Posts and Telecommunications Departments to build and implement postal planning within their respective jurisdictions, manage state administration in the postal sector and courier services to meet the following requirements:

Create conditions for Vietnam Post Corporation (based on VNPT) to develop its network, provide public postal services, and fulfill public service missions, especially in rural areas, remote regions, and far-flung areas.

Prioritize and facilitate postal vehicles entering, exiting, and parking at locations with postal transaction points to ensure universal postal service provision to all citizens. Vietnam Post Corporation shall be prioritized in establishing service points, installing mailboxes and letter boxes in public places and residential areas, and in multi-story buildings where mailbox installation positions are provided for each household on the ground floor.

Vietnam Airlines shall prioritize the transportation of letters, parcels, and express items to ensure the fulfillment of postal service delivery needs of Vietnam Post Corporation and courier enterprises.

4. Vietnam Post and Telecommunications Group

Develop a postal development plan consistent with the national postal development plan until 2010. Implement key projects listed in Appendix 2.

Apply and establish service quality standards for postal services in accordance with standards issued by the Posts and Telecommunications Ministry. Fulfill international cooperation tasks as assigned by the Posts and Telecommunications Ministry.

Vietnam Post and Telecommunications Group shall implement the separation of postal and telecommunications services and establish a proposal for the formation of Vietnam Post Corporation pursuant to Decision No. 58/2005/QĐ-TTg dated March 23, 2005 of the Prime Minister, develop cost structures for postal services and report to the Government in 2007 as the basis for determining postal service rates for public postal services and applying financial support mechanisms for Vietnam Post Corporation.

5. Courier Enterprises

Develop a plan for the development of courier service provision consistent with the national postal development plan until 2010.

Courier enterprises have the right and obligation to participate in providing public postal services according to state requirements and policies.

Article 4. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

Article 5. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial and municipal People's Committees under the central government, Chairman of Vietnam Post and Telecommunications Group, General Director of Vietnam Post Corporation, Directors of enterprises operating courier services, and heads of related agencies are responsible for implementing this Decision.