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March 2, 2024

Ho Chi Minh City issues urgent directive after footwear factory cuts jobs

Authorities in Ho Chi Minh City have issued an urgent directive after PouYuen Vietnam said it would cut around 3,000 workers from Feb. 25. A further 3,000 workers on one to three-year contracts will not have their contracts renewed if they expired this year.

People’s Committee Vice Chairman Duong Anh Duc signed the directive, ordering officials to monitor the situation in Binh Tan district where the footwear factory is based, work with unions and PouYuen management on a redundancy agreement and contact recruiters.

He also ordered related agencies to ensure the rights of remaining workers, according to the Toui Tre Online news site.

PouYuen Vietnam said falling orders have forced it to cut costs and sack staff. The company is a subsidiary of Taiwan footwear maker Pou Chen International Group. It employs around 50,000 workers in Vietnam’s commercial capital, making it Ho Chi Minh City’s biggest employer.

U.S. orders for Vietnamese garments and textiles fell as much as 40% in the final three months of 2022, while orders from Europe plunged 60% compared to the fourth quarter of 2021 according to to the Vietnam General Confederation of Labour

More than 630,000 Vietnamese workers lost their jobs or had their hours cut last year according to the Ministry of Labor.

Translated by RFA Vietnamese. Edited by Mike Firn.

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