Vietnam National Shipping Lines (Vinalines) said on Thursday it plans an initial public offering (IPO) in December, the latest in a government drive to trim holdings in state-owned enterprises.

The government, which will retain 65 percent of the company, plans to sell 17.25 percent to strategic partners and another 17.25 percent to the public, Vinalines said in a statement on its website.

It did not say how much it hoped to raise from the IPO, but said the offering would have registered capital of $550 million.

The stake sale is part of the government's drive to cut stakes in state-owned enterprises (SOEs), many of which have low profitability.

But progress has been slow due to the small stakes being offered to investors.

After years of delays, many SOEs began selling shares or listed on the stock market after the current government took over in April last year.

Vinalines, one of Vietnam's top SOEs firms with significant registered capital, said it saw Singaporean companies as potential partners.

It held a conference in Singapore on Wednesday to discuss the IPO plan with investors.

The shipping company once symbolized the postwar promise of Vietnam when it began jockeying for global trade after the United States lifted sanctions on its former enemy in 1994.

But in 2012, the firm battled through a major $2.1 billion debt crisis and the arrest of many senior executives for fraud.

Vinalines targeted revenue of 12.4 trillion dong ($545.44 million) this year, down 22 percent from a year earlier.

The global shipping industry remains stuck in its worst slump on record, as international trade slows and freight rates fall in a market flooded with too many vessels.

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