State-owned Incombank and Vietcombank agreed in Ha Noi on Monday to lend VND2,312 billion (US$146 million) for building and launching Viet Nam’s first satellite.

The Vietnam Industry and Commercial Bank (Incombank) will provide a bit over US$86 million and the Bank for Foreign Trade of Vietnam (Vietcombank) US$60 million.

The owner of the project, Vietnam Post and Telecommunications Group (VNPT), has announced a budget of VND3, 854 billion (about US$240 million) for the project, so the two loans will account for 60 per cent of the total.

Once the satellite is in position, hopefully by June 2008, communications in Viet Nam will no longer be reliant on favorable weather and geographical conditions so most of the countries villages and communes will be able to send and receive electronic signals.