The company, Chin Phong Vietnam, had delayed December salary payments, agreeing to pay up only after 'concerned authorities and agencies' visited the firm after the strike started on Tuesday, Thanh Nien daily reported.

It paid the salaries on Tuesday and said it would pay half of the Tet bonuses by Jan. 20, with the rest due on April 10. But by late Tuesday the strike had not ended because some workers wanted half of their bonus to be paid immediately, the paper said.

A call to the company was unanswered.

Thousands of workers went on strike in Vietnam last year when inflation spiked, and most were at foreign companies.

More labour unrest may be in store this year as the economy slows and exports dry up.

By John Ruwitch - Reuters - January 13, 2009