Pou Yuen Vietnam Co. Ltd., in HCM City has announced plans to lay off some 3,000 workers due to falling number of orders, according to the municipal Department of Labour, Invalids, and Social Affairs.
"In their urgent document sent to us, Pou Yuen Vietnam said that they would lay off about 3,000 workers in February," the department said on February 19. "These laid-off employees have already had to stay at home for a long time due to a lack of orders. As future orders are unpredictable, the company has had to dissolve several production lines."
While the company’s labor union has proposed to support the laid-off workers 0.88 months of monthly basic salary for each working year.
In addition, Pou Yuen Vietnam has also announced that they would not renew contracts with about 3,000 other workers who have worked for between 1-3 years.
Taiwanese-invested Pou Yuen Vietnam Co. Ltd., is the largest employer in HCM City with around 50,500 workers. Based in Binh Tan District, Pou Yuen Vietnam is the contractor for famous brands including Adidas, Nike and Reebook.
Earlier in June 2020, the company also laid off over 2,800 workers due to order shortages.