HCMC – Given the shortfall of new orders for this year, PouYuen Vietnam will not renew its employment contracts with around 3,000 workers this month.
These contracts are valid for one to three years, the local media quoted a report by the HCMC Department of Labor, Invalids and Social Affairs.
In addition, the Taiwan-invested footwear material manufacturer plans to reduce 3,000 other employees at zones C and D this month. The layoff decision might be announced on February 25 and these workers would not have to go to work but would still get wages until they receive unemployment benefits.
The global consumption slump induced by runaway inflation has resulted in new orders for manufacturers in Vietnam plummeting.
In November last year PouYuen Vietnam asked 20,000 of its more than 50,500 employees to take paid leave in rotation for three months, from December 1, 2022 to February 28, 2023.
The firm based in HCMC explained its major export markets had sharply cut orders and the company had competed fiercely to secure new orders for sports shoes.
Then the firm pledged no layoffs as the Lunar New Year holiday, or Tet, was drawing near.
The government of HCMC recently requested the relevant authorities to take measures to help PouYuen Vietnam workers in need.