PouYuen lays off thousands due to Covid-19 difficulties

Ten percent of the workforce of the footwear company will be laid off until at least July 31. During this period, the workers will be entitled to a minimum wage of VND4.4m (USD190) a month.

According to the company's announcement, the Covid-19 pandemic has badly affected their businesses and the number of orders dropped sharply. The company will notify the workers if the laid-off period is extended due to prevention work and lack of orders.

Cu Phat Nghiep, chairman of the trade union at PouYuen Company, said after the company terminated contracts with 2,800 workers on June 20, they would not end contracts with any more workers. However, due to difficulties, different measures must be applied to maintain business and to ensure that when more orders come, the company will not have to hire more workers.

By the end of June, over 90,000 people in HCM City have registered as unemployed. Le Minh Tan, director of the Department of Labour, Invalids and Social Affairs, said since the situation was still complicated worldwide, local manufacturing and the import-export sector were also badly affected and more people would lose their jobs.

It is predicted that 4,400 firms will be affected by disrupted transportation and import-export activities. 100,000-120,000 people will be laid off.

If the situation continues to worsen, 4,800-5,000 firms in tourism, catering, textile and processing sectors will be affected and 160,000-180,000 people will be laid off. If the situation improves in late 2020, firms may be able to recover as they increase production and hire more people for year-end festivals and Tet Holiday. Dtinews

Vietnam's footwear firms forced to lay off workers due to Covid-19

The coronavirus pandemic has left tremendous impact on Vietnam's footwear industry, with the lack of production orders and the consequent drop in exports forcing them to lay off employees.