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Tuesday, July 23, 2024

HCMC manufacturers face bankruptcy amid fall in new orders

The Saigon Times

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HCMC – Many manufacturers in HCMC are facing bankruptcy due to a sharp plunge in revenues caused by a lack of new orders, while steeling themselves to continue paying salaries.

Thu Duc City now has 97 enterprises scaling down production due to fewer orders, said Nguyen Dinh Cuong, vice chair of the Labor Union of Thu Duc. Most of these businesses are active in labor-intensive industries like footwear, textile and wood processing.

Weaker growth in orders would make it difficult for those businesses to resume operations at the end of the year, including those who have steadily expanded over the years. To date, some of these businesses have only reached half of the full-year plan, which is even lower than during the social distancing period in 2021.

“Meanwhile, they still had to pay salaries for their staff, as employees would leave if the companies failed to pay them,” Cuong said.

Earlier, Le Van Thinh, director of the HCMC Department of Labor, Invalids and Social Affairs, said 27 companies in the city had reduced their staffing by 2,860 workers due to technology restructuring and economic problems.

“The department would join hands with relevant agencies to help workers who have lost their jobs find new opportunities in industries in need of labor,” Thinh added.

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