Vietnam Airlines and Vietnam Post have signed a cooperative agreement to improve the efficiency of their operations, assist one another in development, and take advantage of each other’s strengths.

The signing ceremony was held on August 30 in Hanoi in the presence of Deputy Minister of Information and Communications Nguyen Minh Hong and representatives from the two corporations.

Vietnam Post will expand Vietnam Airlines’ ticketing agent model to post offices and provide postal services and postal finance to the carrier.

Vietnam Airlines, in turn, will provide ticket, mail and cargo transport services to Vietnam Post.

It will also create the conditions necessary for Vietnam Post to introduce insurance services to its employees.

The two sides will also coordinate in the communications and branding of their products in their respective media channels and publications.

Vietnam Airlines and Vietnam Post also signed a contract on the carriage of goods by air, marking the first step in realizing the new agreement.

Mr. Hong told the signing ceremony that he appreciates the degree of cooperation between Vietnam Airlines and Vietnam Post. “I believe the cooperation will bring advantages to both sides to develop and contribute to the performance of the two corporations, the postal and aviation sectors, and the national economy,” he said.

Mr. Pham Ngoc Minh, Chairman of Vietnam Airlines, said the carrier and Vietnam Post will work together to create mutual strengths and bolster performance. “The signing ceremony marks a turning point, enhancing the activities of the two corporations and bringing success in the future to both,” he added.

Vietnam Airlines has historically dominated both international and domestic markets but its hold on the domestic market has been gradually loosened. Foreign ownership is limited to 30 per cent, making it difficult for overseas carriers to enter the market.

It has now begun to focus more on the low-cost market. Together with Australia’s Qantas, it invested $139 million in Jetstar Pacific and has transferred certain domestic routes to the carrier under the arrangement.

Vietnam Post is striving to become a leading enterprise in the provision of postal and delivery services, finance, and retail services in Vietnam.

It is a member of the Universal Postal Union (UPU) and has close cooperative relations with almost all countries around the world. It is also a key partner of many large domestic and international companies, such as Vietnam Airlines, Jetstar Pacific, AirMekong, Prudential, Western Union, Daiichi-life, HSBC, ABBank, Bao Viet Bank, and Military Bank.