PouYuen Vietnam forced to cut 3,000 employees

February 24, 2023 | 20:00

(0) user say

The Taiwanese shoemaker PouYuen Vietnam has been forced to lay off approximately 3,000 workers due to a shortage of orders.

PouYuen Vietnam forced to cut 3,000 employees

PouYuen Vietnam plans to inform the affected employees on February 25. The company’s labour union has proposed the shoemaker support the laid-off workers with one month of basic salary for each year worked. It is awaiting approval from its Taiwan-based parent company, Pou Chen Group.

In addition, the large employer based in Ho Chi Minh City will not renew employment contracts with a further 3,000 workers who have worked for between one and three years, also due to the drop in orders.

It is not the first time that PouYuen has had to reduce its labour force. At the end of last year, the company gave nearly 20,000 workers a day off every alternate week due to order shortages.

It also made approximately 3,000 staff members redundant in June 2020 due to the pandemic.

According to the latest report from the Ministry of Finance, PouYuen paid $4.3 million into the state budget in 2020, but the figure plunged 70 per cent to $1.26 million in 2021.

The company saw an average annual revenue of $1.19 billion during the 2016-2019 period, but revenue dropped to $1.08 billion and $865.2 million in 2020 to 2021 respectively.

The company currently employs over 50,000 workers to manufacture footwear on a contractual basis for major global brands such as Nike, Adidas, and Reebok. At its peak of operations, the total number of employees reached approximately 100,000.

Local groups stuttering amid drop in new orders

The sharp drop in the number of orders has pushed Vietnamese exporters in textiles, garments, leather, footwear, wood furniture, and even food to close production lines and narrow their scale.

Enterprises exporting to Europe face pressure to go green

The European Union's (EU) policy of imposing environmental protection taxes is putting Vietnamese exporters under pressure to convert to green production.

Garment and footwear exports hit new peak at $71 billion

Despite orders in the last quarter dropping sharply, garment and footwear production still reported its highest figures of $71 billion in export turnover in 2022.

UK settles £2.3bn trade row with EU

Britain said Thursday it had paid a whopping £2.3 billion ($2.8 billion) to settle a long-running row with the EU, despite having quit the bloc.

Textiles and footwear industries face challenges

Vietnamese textile and footwear businesses that participate in the supply chain are facing a slew of new possibilities and difficulties, according to industry insiders.

By Ha Vy

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional