Some 70,000 miners and other workers would be affected by the scheme, which plans to stop production for staggered periods at all mines in the country, said the official from the state-run monopoly Vietnam Coal Corporation (Vinacoal).

"We are preparing this month to start the plan from July but Vinacoal won't let any worker go hungry," he said. "Each time suspensions will only be applied to a maximum of two coal mines at any one time."

He did not say how long production would be halted at each mine but said that would depend on sales of growing coal stockpiles, which were estimated to have reached nearly four million tonnes.

A similar scheme would also be implemented in July and August 2000, he added. These months see the highest rainfall in the main coal producing areas in the northeastern province of Quang Ninh.

Vietnam is still a small coalproducer by world standards but sits on proven coal reserves of 3.5 billion tonnes down to 300 metres (975 feet) below sea level. Vinacoal estimates the northern Red River Basin alone could hold up to 200 billion tonnes.

It was not immediately clear how many mines Vinacoal operates, but the industry had expected to mine around 11 million tonnes of coal this year, similar to output in 1998.

Vietnam set a coal export target of three million tonnes in1999, up from some 2.91 million tonnes last year. Vietnam shipped around 1.2 million tonnes of coal in the first five months of this year, 0.1 per cent down on the same period in 1998. Industry sources say Vinacoal's pricing mechanisms are notcompetitive on the regional stage. The official said Vinacoal would not extend short-termlabour contracts -- which last for between three and six months -- with some 15,000 workers. It was unclear whether these workers were included in the overall figure of 70,000 that would be affected by the shutdowns.

He added thatsome idle workers would be re-trained, orcould take holidays. He did not elaborate.