Vietnam is reportedly looking to offload its stake in Vinamilk, the country's largest dairy group, as part of a number of disposals of state investments in businesses.
Local reports said Vietnam's sovereign fund State Capital Investment Corporation, through which the state holds the shares, will set out plans for sale of stakes in ten companies.
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The SCIC has a 45.1% stake in publicly-listed Vinamilk, one of the five largest privately-owned businesses in the country. Singapore group Fraser & Neave is the second-largest shareholder in Vinamilk, with a 9.5% stake.
Vinamilk accounts for 44% of retail liquid milk sales in Vietnam, Euromonitor estimates. The company enjoys the lion's share of yoghurt sales in the country, with 85% of the category.
The group has 13 factories in Vietnam, with subsidiaries in the US and in Poland. This year, the company has also been building a plant in Cambodia. It exports to 29 countries.
In 2014, Vinamilk ran up revenue of VND35.7trn (US$1.59bn), 13% higher than a year earlier. The rise in revenues helped drive increased earnings. Net operating profit rose 5.5% to VND7.71trn. Net profit after tax grew 7.7% to VND6.53trn.
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By GlobalDataIn the first six months of 2015, Vinamilk generated revenue of VND19.29trn, up from VND17.01trn in the corresponding period a year earlier.
Operating profit stood at VND4.49trn, compared to VND3.68trn. Net profit after tax was VND3.75trn, versus VND2.96trn.
Officials at Vinamilk had not returned a request at the time of publication.
