$404,350 social insurance paid out for 2,000 Kai Yang employees

Haiphong has decided to pay out the social insurance arrears of Kai Yang employees

The Haiphong People’s Committee issued Announcement No.389/TB-UBND about the decision of chairman Nguyen Van Tung to resolve the issues at Kai Yang Vietnam Co.,Ltd.

Accordingly, the People’s Committee authorised the Haiphong State Treasury to transfer VND9.3 billion ($404,350) VAT refund from the Haiphong Tax Department to Kai Yang Vietnam's account at Agribank's north Haiphong branch to pay social insurance for more than 2,000 employees.

The city leaders also requested Agribank to co-ordinate with the representatives of the company to immediately pay out the social insurance debts of May, June, and July 2019, facilitating Kien An district social insurance to close the insurance books of the company's employees until the end of July 2019. Along with that, the committee assigned the Haiphong Department of Finance and the local department of the State Treasury to urgently draw up plans to pay out the salaries of employees of KaiYang Vietnam Co., Ltd. until the end of August 2019.

No fix for Kai Yang after deadbeat owners escaped with assets

Tackling abrupt investor exodus

Previously, at the end of August, nearly 2,000 employees returned to work to the headquarters of Taiwanese-invested footwear manufacturer Kai Yang Vietnam Co., Ltd., after its doors were shut for 10 days since Taiwanese director general Huang Sheng Che, along with 17 experts and technicians, fled the country without an explanation, leaving a bank debt of VND150 billion (nearly $6.5 million) and an insurance debt of VND9 billion ($391,304).

H&S Co., Ltd. previously had the intention to take over the shoe manufacturer after the disappearance of Kai Yang Vietnam's leaders. Jenny Koo, chairwoman of H&S Ltd., a partner of Kai Yang Vietnam, promised that she and her colleagues would try their best to pay half of the unpaid July wages last week, but after a closer look at the prolonged issues at Kai Yang, the company decided to withdraw.