Massive layoffs in Vietnam textile factories

1-Shoe giant cuts jobs, half of women over 40 years old

 On May 17, the Vietnamese media reported:

Half of the workers to be laid off in June and July at the Pou Yuen Vietnam shoe factory (Pou Yuen Vietnam) will be women over the age of 40.

The layoffs will separate the city's largest employer from 5,744 employees, 80 percent of whom are women and 60 percent of whom have worked for the company for 10 years or more.

On April 1, Ho Chi Minh City's largest employer laid off another 2,300 workers.

Since 2020, the company has laid off 10,900 workers due to a shortage of orders resulting from higher raw material prices caused by the conflict in Ukraine.

Ho Chi Minh City's Ministry of Labor, Invalids and Social Affairs has warned that more companies could see similar mass layoffs in the near future due to high inflation.

Pou Yuen Vietnam, a subsidiary of Pou Chen Taiwan, employs 110,000 workers, 46,000 of whom are in Ho Chi Minh City.

On the morning of May 20, the Pou Yuen Vietnam factory in the new Binh Tan district conducted the first phase of an agreement with 4,430 employees, who will officially leave on June 24.

2-Compensation up to VND475 million

    Employees at the Bao Yuan Vietnam plant receive 0.8 months of salary per work year, up to a maximum of VND475 million and a minimum of VND15 million.

The highest level of support is received by employees with more than 20 years of service in a management position.

New employees, who have worked for less than 5 years, receive a stipend of 15-30 million dong. The average level of support for each person is close to VND130 million.

Thus, Bao Yuan spent about VND 570 billion to support the first layoffs.

Among the layoff group, employees with more than 20 years of service account for 14.9%. Employees with 10-20 years of service account for 68.3%, those with 5-10 years of service account for 12.7%, and new employees with less than 5 years of service account for only 4.1%.

Pou Yuen Vietnam is a subsidiary of Pou Chen Taiwan, which employs 110,000 workers, 46,000 of whom are in Ho Chi Minh City.

Pou Yuen launched its operations in Ho Chi Minh City in 1996 and was a labor-intensive company in the city, employing nearly 90,000 people at its peak. This number far exceeds the current 46,000.

At the same time, the results of Pochentong Group's listed subsidiary, Yu Yuan Group, have also seen a sharp decline. in the first quarter of 2023, Yu Yuan Group's operating income fell 12 percent year-on-year to $2.1 billion, while net profit plunged 42.6 percent year-on-year to $50.84 million.