Regina Miracle slashes workforce by 8,400 amidst falling export orders

In the span of a single year, Regina Miracle, a renowned global lingerie manufacturer, has shed 8,400 staff at its Vietnamese factories in response to a downturn in export orders. Founded in Hong Kong, the company has long been a noted contractor for Victoria's Secret and numerous other high-profile lingerie brands worldwide.

In 2016, the conglomerate initiated its foray into Vietnam and set up factories. Within approximately four years, Regina Miracle expanded its presence to six factories under the representation of two subsidiaries, Regina Miracle International Vietnam and Regina Miracle International Hung Yen.

According to the company's 2023 financial report, as of March 31, Vietnam accounted for 85 per cent of the group's total revenue, increasingly asserting its crucial role as Regina Miracle's primary manufacturing hub.

This substantial reliance on Vietnamese operations underscores the significance of the drop in export orders during the second half of the 2023 fiscal year. As a consequence, the group has had to put local recruitment in Vietnam on hold since September last year and optimise the local workforce structure accordingly.

It is noteworthy that at the end of fiscal 2022, the company employed as many as 39,000 staff. Today, this figure has reduced to approximately 31,600, representing a decrease of 8,400 within a year.

In addition, Regina Miracle adjusted its production units and working hours to boost labour utilisation rates. Concurrently, it intensified the localisation of its workforce, with the areas residents making up 98 per cent of its total labour force.

The scenario at Regina Miracle reflects the broader situation within Vietnam's textile and leather industries amidst a fluctuating global economy, inflation pressures in some export markets, and an increase in partners' inventory levels.

Since the end of last year, several businesses in this sector have had to announce workforce cuts and reduce working hours to maintain tepid production.

PouYuen Vietnam Company Ltd., the country's largest employer located in Binh Tan district of Ho Chi Minh City, has also had to terminate contracts with thousands of workers due to difficulties in order acquisition.

Regina Miracle's consolidated revenue for fiscal 2023 stood at approximately $1.01 billion, marking a 5.6 per cent decrease compared to the same period the previous year. Of this, revenue from Vietnam made up around $850 million.

Regina Miracle International, a global leader in the intimate wear manufacturing industry with a unique Innovative Design Manufacturing business model, was founded in Hong Kong in 1998 and publicly listed on the main board of The Stock Exchange of Hong Kong Ltd. in 2015.

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