In a notice dated December 25 sent to authorities and employees, Panko Vina Co Ltd said it has faced sustained difficulties since the Covid-19 pandemic and has been unable to secure new orders. The company said it can no longer maintain production at its Ho Chi Minh City plant and will shut the facility to scale down operations and focus on its remaining factory in Danang.
Workers at Panko Vina's factory in HCM City. Photo by Panko Vina
Under the plan, employees will work until January 15, 2026, while the factory will continue operating until January 31, 2026, to complete unfinished orders.
The company said it will pay all outstanding wages through the end of January. Unused annual leave will be paid in cash, and each worker will receive an additional VND 2 million (about USD 80), along with severance allowances in line with regulations. Panko Vina said it has no outstanding wage or social insurance debts.
Panko Vina is part of South Korea’s Panko Textile Group, founded in 1984. The company has operated in Vietnam since 2003, specialising in garment processing for orders from its parent firm. At its peak, it ran three factories and employed more than 8,000 workers.
A representative of the Ho Chi Minh City Export Processing and Industrial Zones Authority said an investor is considering acquiring the factory. In the best-case scenario, workers could continue working at the site to minimise disruption. Several other companies have also expressed interest in recruiting the affected workers.
Authorities are expected to meet with the company next week to ensure workers’ rights are fully protected.