HCMC – A South Korean-invested garment company in HCMC will stop operations early next year, leaving more than 2,600 workers out of work due to a prolonged lack of orders, reported local media.
The HCMC Export Processing and Industrial Zones Authority (HEPZA) said Panko Vina Company has notified regulators of its decision to cease production at its factory in My Phuoc Industrial Park, Ben Cat Ward.
Panko Vina operates in textile dyeing and garment manufacturing and employs 2,640 workers.
The company cited persistent difficulties since the Covid-19 pandemic and an extended shortage of orders as the main reasons for the shutdown. It will end production from February 1, 2026, the authority said.
The firm also operates a factory in Quang Nam Province and plans to concentrate production at one location amid financial pressure.
Under the plan, employees will be paid wages through January 31, 2026, although their last working day will be January 15. The company has committed to paying severance allowances and unused annual leave in line with regulations, along with an additional support payment of VND2 million per worker.
Panko Vina has operated for about 23 years and is one of the larger employers in the area. The closure comes as the Lunar New Year holiday approaches.
HEPZA said it is working with relevant agencies to monitor the situation, ensure workers’ rights, and maintain security and order. It added that no wage or social insurance arrears have been reported so far.
