The Vietnam Posts and Telecommunications Group (VNPT) has signed a contract with the Lao export-import company BTC to establish a copper cable joint venture in Laos.

Under the contract, signed in Vientiane on May 21, a US$5.5 million joint venture will be set up in the southern province of Xavannakhet to manufacture telecom and electric cables.

VNPT contributes 50 percent of the investment, while 30 percent comes from the Hanoi Postal Equipment Company and the rest from the BTC.

It is expected that the joint venture will become operational in 2007. Besides meeting Lao domestic demand, its products will be exported to markets in Vietnam, Thailand, Myanmar and other countries.