An American defence firm has won the contract to build Vietnam's first satellite, an official with the state-owned telecommunications company said Friday.

"US Lockheed Martin Commercial Space Systems will build what will be Vietnam's first orbiting satellite," said an official with Vietnam Post & Telecom Corp.

"The satellite is scheduled for launch 24 months after the contract is signed," he said.

The official declined to give the final bid price but several state-controlled news sources have said the satellite project, which has been named Vinasat, will cost close to $200 million.

Acquiring a satellite has been a priority for Vietnam, which has aspirations to be a big player in the world of information technology and media. Vietnam currently has to pay $10 million a year to rent satellite channels from other countries.

Vinasat will be able to carry hundreds of telephone and dozens of television channels. The satellite is expected to have a lifespan of 12 to 15 years.