Trade and tax officials said exporters would have to continue paying the tax until the finance ministry issued implementing regulations for the government December 30 decision.

"We are working on the document and it will be released soon," a tax official said. "Exporters will be refunded any tax paid from January 1."

On December 30, deputy prime minister Nguyen Tan Dung, in a document obtained by Reuters, had told the finance ministry to scrap the rice export tax from January 1.

A one percent tax on exports of 5-20 per cent broken rice grades has been in force since October 6.

Vietnam high grade five per cent broken rice was quoted this week at $245-250 a tonne, FOB Saigon Port.

Quotations for 10 and 25 per cent broken grades were put at $237-238 and $220-$225 a tonne, respectively.

One dealersaid Vietnam's new value-added tax -- which came into effect from January 1 -- would increase rice packaging costs by $2-3 per tonne.

Traders said on Thursday that domestic rice prices would soften ahead of the major winter-spring harvest later this month in the Mekong Delta, the country's rice bowl.

"Exporters are trying to clear their warehouses before new grains become available in late January," said one Ho Chi Minh-based trader.

The government document to repeal the rice export tax also ordered state-owned food companies to buy up to one million tonnes of unhusked rice from the new harvest in February and March to ensure income for farmers.

Five vessels were reported loading at Saigon Port this week with around 51,400 tonnes of rice destined for the Philippines, Africa and Cuba.

A total of 31,474 tonnes of rice were shipped last week to Indonesia and the Philippines.

Vietnam, one of the world's top rice exporters, produced more than 29 million tonnes of unhusked rice and exported around 3.8million tonnes of rice in 1998, according to government statistics.

The government has issued rice export targets of one million tonnes for the first quarter and a total of 3.9 million tonnes for 1999.