Under the plan approved on September 10, the State will retain a 75% stake in the company, which is to be managed by the Ministry of Transport, while a 20% stake will be sold to strategic partners.
The remaining 5% will be offered to Vietnam Airlines employees and other investors.
Vietnam Airlines currently has charter capital of over VND14 trillion (US$658 million) and is employing more than 10,000 people.
The transport minister is tasked with choosing strategic investors, and determining an offering price and time for initial public offering, according to the prime minister’s decision.
Under the plan, the State-owned stake in Vietnam Airlines will be gradually reduced to 65%.
The Vietnamese Government has set a target to complete the equitisation of 432 State-owned enterprises (SOEs) by the end of 2015.
In the first seven months of 2014, Prime Minister Nguyen Tan Dung approved the equitisation plans of 20 SOEs under his direct authority.