The Viet Nam Post and Telecommunications Group (VNPT) would keep one of its two giant mobile networks, Vinaphone and Mobifone, but let the other spin-off.

The news was announced by Minister and Chairman of the Government Office Vu Duc Dam at the monthly Government meeting on Saturday, adding that the Government Office had submitted the plan for approval to the Prime Minister.

A client tests Vinaphone mobile phones at a recent exhibition in Ha Noi. VNPT will keep one of its two giant mobile networks, Vinaphone or Mobifone, but let the other spin-off.

It was followed by the Government's restructuring plan for State-owned enterprises and also the regulation on telecom ownership stipulating that an investor with more than a 20 per cent stake in one telecom firm cannot have cross ownership of more than 20 per cent in another.

Currently, VNPT owns 100 per cent of both VinaPhone and MobiFone.

The group wanted to merge the two networks to combine their net profit. In 2011, the two networks contributed VND10 trillion (US$470 million), or 80 per cent of the group's profits.

However, the merger plan was opposed as the merger would make the new companies to hold more than 50 per cent of the local mobile network, which violates the country's Competitiveness Law.