Vietnam News

Vietnam shoemaker to cut about 6,000 jobs on low demand

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One of Vietnam’s largest shoe manufacturers for brands such as Nike Inc and Adidas AG would cut thousands of jobs at the end of next month, blaming a slump in orders, Vietnamese state media reported on Saturday.

Low Demand

The country is among the world’s largest exporters of clothing, footwear and furniture, but has been badly affected by the cost-of-living crisis in Europe and the US, with the buying power of consumers shrinking.

PouYuen Vietnam Co, a unit of Taiwan-based Pou Chen Corp (寶成工業), told local authorities that it would lay off almost 6,000 workers with permanent contracts from the end of next month, VNExpress reported.

“This will be the biggest layoff since PouYuen started its operation in Ho Chi Minh City in 1996,” it said.

The firm is among the commercial capital’s largest employers, with about 50,000 workers.

Prior layoffs

However, it made a similar move in February, letting go of almost 3,000 permanent staff, and a further 3,000 temporary employees did not have their contracts renewed.

A third of production facilities in the city experienced reduced workforce demand in the first quarter of this year, a survey by Ho Chi Minh City’s labor department showed.

The downturn mostly affected shoes, clothing, and construction industries, officials said.

PouYuen put 20,000 of its workers on paid leave in rotation last year.

RISING unemployment

More than 630,000 workers lost their jobs or had their hours cut in Vietnam last year, the Vietnamese Ministry of Labor, Invalids and Social Affairs said.

Taipei Times with Agence France Presse – May 15, 2023

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