More than 3,700 workers of Sanyo OPT Ltd. Company at Quang Chau Industrial park in Bac Giang Province have been put out of work due to losses caused by the firm's bad operations.
The company said it would officially stop operations as of January 31, but pledged to ensure certain rights to their workforce, including salary, social insurance by the end of January so that they would be able to claim unemployment benefits.
More than 3,700 workers of Sanyo OPT Ltd. Company have been put out of work due to losses caused by the firm's bad operations.
Tu Minh Tung, the chairman of the of Sanyo OPT's trade union, said most of the workers returned their hometowns after being informed of the company’s closure.
Sanyo OPT Vietnam is a wholly foreign-invested firm that started operations in 2009. It specialised in producing electronic component parts. In 2010, Panasonic acquired Sanyo OPT. The company now has 3,750 labourers but failed to secure enough contracts to keep the plant running.
Workers in many other localities also in the same situation
Three state-owned toll stations in Quang Ninh have been closed, leaving nearly 100 labourers to be unemployed. Also, as planed, 17 stated-owned toll stations will cease operations in the near future, leaving over 1,000 more without work.
According to the Deputy Minister of Transport, Nguyen Hong Truong, the station shutdown was aimed at avoid overlapping toll collections once the road maintenance fund is established this year.
Also, around 70% of the 40,000 labourers in Ca Mau Province are facing redundancy after 29 seafood processing companies there have scaled back their operations or closed down.
Meanwhile, Mai Linh Group, one of the largest taxi companies in Vietnam, had to sell off its assets to settle outstanding debts, leaving 6,000 staff members out of work. The company’s CEO, Ho Huy, said that to pay VND500 billion (USD23.8 million) in debts, Mai Linh had to sell 3,000 cars.
According to the Hanoi Federation of Labour, more than 41,000 labourers lost their jobs in 2012 as 12,000 companies ceased operations. A preliminary survey showed that only 50% of local industrial companies could provide job security to their staff, and 12.2% were likely to scale back their workforce. The average base salary last year was just VND2.86 million (USD136.2) per month.