Vietnam Airlines, slated to sell shares to foreign investors and conduct an initial public offering this year, expects its revenues to grow 12.7 percent this year after a 15.5 percent rise in 2007.

The unlisted Hanoi-based airline also aimed to carry 8.95 million passengers this year, 12 percent more than last year, while its cargo business should rise 8.5 percent to 125,000 tonnes, it said in a statement on Wednesday.

The airline did not give a reason for the slower growth projection.

Last year, the airline's gross profit rose 6.4 percent to 370 billion dong on revenues of 20.37 trillion dong.

Vietnam Airlines said on Tuesday it would hire an international consultant in the first quarter of this year to advise on its IPO and could sell between 10 percent and 20 percent of its shares to three foreign strategic investors.

Vietnam expects annual air passenger traffic to more than double to 32.4 million by 2020 from 14.5 million now, industry reports say.

Pressed to keep up with the demands of a fast-expanding economy the government expects to grow 9 percent this year, Vietnam Airlines said it spent 4.75 trillion dong (USD$295 million) last year on its fleet and would expand it to 110 planes by 2020 from 47 now.