One state trader said deals for around 200,000 tonnes of rice were concluded in the past week for shipment between January and March to Philippines, the Middle East and Africa.

However, he said traders should resist speculating that prices will drop once the main winter-spring harvest becomes available later this month.

"Exporters should be more cautious and learn from last year's lesson when prices went up instead of dropping," he said. "Any volatility could lead to contract default."

Vietnam high grade five per cent broken rice was quoted at $242-245 a tonne, FOB Saigon Port, compared with $245-250 a week ago.

Quotations for 25 per cent broken grades were put at $220-225 a tonne, unchanged from last week.

A government decision to abolish a one per cent tax on exports of high grade rice from January 1 in a bid to rice sales has now been fully implemented, tax officials said earlier in the week.

Seven vessels were reported loading at Saigon Port this week with around 85,400 tonnes of rice destined for the Philippines, Malaysia and Cuba.

Vietnam, one of the world's top rice exporters, has targeted exports of one million tonnes of rice in the first quarter and a total of 3.8 million tonnes for 1999.