HANOI, Dec. 31 (Xinhua) -- Vietnam will open Internet Protocol (IP) phone-to-phone services in the areas bordering China in 2008,local newspaper Vietnam Investment Review reported Monday.

    The new service will encourage residents in remote areas to access phone services at lower costs. Vietnam launched international computer-to-computer and computer-to-phone services five years ago to combat illegal international IP phone card sales, but did not open phone-to-phone services given that they would reduce local operators' revenues.

    Vietnam has already allowed operators to provide cordless fixed phone services which are cheaper than mobile phone services, said Le Nam Thang, Vietnamese deputy minister of Information and Communications.

    According to the ministry, there are over one million phone subscribers in seven Vietnamese border provinces. The services offered in the provinces are for both Vietnamese and Chinese residents.

    "Chinese people coming to Vietnam can use handsets with Vietnamese SIM cards. This benefits operators in both countries," said Nguyen Van Bang, director of local firm EVN Telecom.