The state-owned Vietnam Posts and Telecommunications Corp (VNPT) will finish choosing a tender for the project later in the month, said the Hanoi Moi daily.

"VNPT is now preparing documents to invite world famous telecom satellite producers to attend the bid for the manufacturing and launching of 'Vinasat' satellite", the newspaper said.

Government officials were unavailable for comment on Thursday but earlier reports said at least nine international contractors had expressed interest in the project.

In 2004, four candidates were reported to have shown interest - Russia's NPOPM, the European consortium Astrium (EADS)-Alcatel Espace, the American Lockheed-Martin and the US-Japanese consortium NEC-Toshiba-Orbital Science.

Plans to launch it by late 2005 were abandoned.

The project is a priority for the government, which is keen to acquire a powerful symbol of its sovereignty and technological prowess.

But Vietnam has delayed the project several times as it faced difficulties in coordinating frequencies with neighbouring satellites already in orbit.

The Vietnamese satellite, estimated to be worth 200 million dollars, is expected to be operational for 15 years and help transmit television, radio and civil aviation signals covering remote regions of the country.

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