〔Central News Agency〕Vietnam’s economy is facing headwinds, and it is reported that Vietnam Bao Nguyen shoe factory will lay off about 5,700 people in succession starting from late June. According to Vietnamese media reports, Baoyuan will negotiate with employees and exclude disadvantaged families from the list of layoffs. The actual number of layoffs is yet to be confirmed. Baocheng, the parent company of Baoyuan, responded that the personnel procedures of local employees are handled in accordance with the relevant laws and regulations of the local government.
Vietnam News Agency (VNA) reported that the Bureau of Labor, Invalids and Social Affairs of Ho Chi Minh City had a meeting with Chen Sitong, director of the Vietnam Administrative Center of Pou Chen Group, on the production and operation situation on the 9th. Pouyuen Vietnam is expected to reduce the labor force in June. .
Baocheng, the parent company of Baoyuan, responded today that in view of the short-term operating environment still has variables, and considering the overall business development, it will continue to adopt a multi-configuration strategy, flexibly schedule production, and devote itself to the stability and balance of the overall capacity utilization rate; The process is handled in accordance with the relevant laws and regulations of the local government.
Baocheng also pointed out that it maintains confidence in the long-term development of the shoe-making business, and will continue to expand and diversify its production capacity allocation. At the same time, it will actively promote smart manufacturing and digital transformation, improve manufacturing efficiency and production flexibility, and support the sustainable growth of the shoe-making business.
The Vietnam News Agency reported that due to the adjustment of the production capacity of the processing brand, Baoyuan had to change its production plan accordingly and arranged to lay off 5,744 employees in two stages. The first phase was implemented on June 24, and the labor contracts with 4,519 employees will be terminated; the second phase will be implemented on July 8, and the number of layoffs will be 1,225.
Le Van Thinh, director of the Labor, Invalids, and Social Affairs Bureau of Ho Chi Minh City, said that Bao Nguyen will hold meetings with employees on May 20 and June 3 to inform and explain the content, as well as the payment of severance pay, personal income tax refunds, etc. administrative formalities.
Baoyuan also laid off more than 2,000 employees in February due to the decline in orders. At that time, each employee could receive a 0.8-month salary subsidy for each working year. The Vietnam News Agency pointed out that Baoyuan will still negotiate with the employees to terminate the labor contract this time. The subsidies received by the employees will be the same as those in February, and they will receive severance pay within 7 working days after layoffs.
According to reports, Baoyuan will fully respect the wishes of employees when negotiating the termination of the labor contract, and exclude disadvantaged families such as poor, pregnant employees, and families with children under 12 months from the list of layoffs. The local government will also assist unemployed Baoyuan workers with job training or job transfer.
Global inflation and consumer tightening in Europe and the United States continue to impact Vietnam’s economy. Vietnam’s exports fell by 11.8% in the first four months of this year, and the economic growth rate in the first quarter was only 3.32%. Vietnam’s Ministry of Planning and Investment admitted frankly that it would be difficult for Vietnam to achieve its annual economic growth target of 6.5%, and the economic performance in the second quarter is still not optimistic.
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2023-05-13 09:32:24
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