Footwear maker Pouyuen Vietnam Co. Ltd., which is based in Ho Chi Minh City's Binh Tan District ended its contract with nearly 2,800 workers on June 20, according to the Nguoi Lao Dong (Labourers) Newspaper.
Workers at the Pouyuen Vietnam Company. Photo by VOV
According to the company's report sent to authorities in Binh Tan District on June 18, they have received fewer orders due to the Covid-19 pandemic. They have taken various measures to deal with the situation but things have not improved.
"We got fewer orders in the third and fourth quarters," the company reported. "We had to lay off 2,786 workers. But disabled workers or those from low-income families will be kept."
The company said that they will pay all necessary benefits for workers as defined in the law.
Pouyuen Vietnam is employing around 62,000 workers in the country. Dtinews/Nguoilaodong
The unemployment rate among those aged 15 and above in Vietnam stood at 2.05 percent last year and the figure in urban areas is almost double that of rural areas, the 2019 population and housing census reveals.
The number of recipients of unemployment benefits nationwide rose by 9.11 percent to 378,000 people during the first quarter of 2020 as a large amount of businesses have been forced to suspend operation or go bankrupt by COVID-19.