The plan to launch by late 2005 a satellite carrying up to 28 communication modules to become operational a few months later has had to be abandoned.

But the communist authorities seem determined to avoid letting the project drag on for years, the way so many mega industrial projects languish in ministerial red tape while gobbling up huge funds.

Telecommunications Minister Do Trung Ta indicated on January 20 that the satellite will be in orbit by late 2007, according to Vietnamese state media.

Separately, a high-placed Vietnamese source told AFP: "The Vinasat committee proposed the 2007 target to Prime Minister Phan Van Khai, who approved it recently. It is one of the government's priorities."

"The government has given Vinasat until the end of the year to choose a manufacturer or risk halting the whole project," a foreign expert said, noting that it takes at least 20 months to build a satellite.

The project is as politically sensitive as it is technically complex.

Some years ago, Hanoi had reserved an orbital berth with the Geneva-based International Telecommunications Union but would have had to launch its satellite by February 2006 in order to keep that position.

However, problems over frequency coordination with neighbouring satellites already in orbit delayed the plans.

"Negotiations to coordinate the frequencies in order to avoid transmission disturbances have gone nowhere," said the Tuoi Tre newspaper in November, citing a Vietnam Posts and Telecoms source.

"The process of choosing a partner for the Vinasat project is in an impasse," it said.

However, much progress have been achieved since then.

"Vinasat's frequency choice was in conflict with the regional development plans of Japan," the foreign expert said. "But an agreement was reached late in 2004 with J-Sat."

The target date has now been put back to May 2008.

According to the expert, Vietnam is currently negotiating with the Pacific island kingdom of Tonga for some orbit slots it controls and will likely solve the issue provided it accepts to pay.

The project, therefore, appears to be moving again.

Last year, Hanoi suggested to the companies seeking to build the satellite that the winner of the contract should also guarantee frequency coordination.

However, none of the four candidates -- Russia's NPOPM, the European consortium Astrium (EADS)-Alcatel Espace, the American Lockheed-Martin and the US-Japanese consortium NEC-Toshiba-Orbital Science Corporation -- had come up with any concrete nor credible plans.

"Manufacturers cannot guarantee the frequency coordination," said an industry insider. "It is a government-to-government problem."

He said he strongly believed the project would go ahead. "They won't let the project stand still. They want to launch their satellite into orbit."

Vinasat is now expected to resume talks with potential builders. No Vinasat official was however available to comment on the issue.

The satellite is expected to be operational for 15 years and help transmit television and radio signals as well as civil aviation communications covering remote regions of Vietnam.

But the project is partly shrouded in secrecy because of its defence implications.

The project requires the construction "of a terrestrial command station to serve national defence communications and Vietnamese public television," the Tuoi Tre said.

Vietnamese press has put a 300-million-dollar price tag on the whole project.

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