PouYuen Vietnam, the largest garment manufacturer in Ho Chi Minh City, is set to lay off 1,220 workers this month. The company will provide financial aid totaling VND165 billion to the laid-off workers, equivalent to 0.8 months of salary for each year of service. The average allowance per employee is VND133 million.
The decision to reduce the workforce is attributed to a decline in orders since December 2022. Economic challenges and reduced consumer spending have directly impacted the company’s operations.
Even after their employment contracts are terminated, these workers will continue to receive benefits such as social insurance, health insurance, and unemployment allowance. The department has instructed job service centers to actively assist workers in finding new employment opportunities.
Pouyuen Vietnam is the most labor-intensive firm in HCMC. The company once employed nearly 100,000 workers during peak periods. This is the fourth time the company has laid off workers.
The layoffs are a blow to the Vietnamese economy, which is already struggling with rising inflation and a decline in exports. The government has said that it is working to create new jobs and support businesses that are affected by the economic slowdown.
