Petrolimex, a state-controlled company that sells more than half of Vietnam's oil products, plans to sell more shares to increase its registered capital by over 26 percent to VND13.5 trillion (US$596.84 million).
The share issue has been approved by the Ministry of Industry and Trade and Deputy Prime Minister Vu Van Ninh, the government website reported Thursday.
It will reduce state ownership of the company to less than 75 percent from around 95 percent now.
In a statement it released this week, the company said it would sell shares to a Japanese investor in the second quarter without divulging further details.
At the end of last month Petrolimex reportedly struck a deal to sell 10 percent to Japan's JX Nippon Oil and Energy for 20 billion yen ($117 million).
Petrolimex, which has 70 subsidiaries, mainly in the energy sector, posted a post-tax profit of over VND3.1 trillion ($7.05 million) last year after making a loss of around VND9 billion ($397,800) in 2014.