State-run Vietnam Rubber Group (VRG) has approved a plan to sell 25 percent of the company in an initial public offering, worth an estimated 12.8 billion dong ($563 million), it said on Tuesday.

The sale is part of Vietnam's plans to trim stakes in state-owned enterprises, which picked up pace after a new government took office last year. The government aims to sell holdings in 135 state-owned companies in 2017, it said in late August.

VRG plans to sell 11.88 percent of the company to the public and another 11.88 percent to a strategic investor, according to its share sale plan published on the company's website. The group has not chosen a strategic investor yet.

The company also plans to sell 1.21 and 0.03 percent to its employees and trade union, respectively. Vietnam's government would own the remaining 75 percent of the shares.

VRG has not finalised a listing plan. In Vietnam, listing and an IPO are separate processes.

The group aims to complete the IPO process in 3 months once the share sale plan is approved by the government.

VRG is a state-own producer and manufacturer of rubber and rubber products. It expects a net profit of 3,060 billion dong ($134.62 million) in 2017, up 9.4 percent from 2,797 billion dong in 2016.