The country located in Southeast Asia, which is one of the largest exporters of clothing, footwear and furniture in the world, has been affected by the cost of living crisis affecting its Western customers, who now consume less than before.
About 6,000 permanent employees of Bowen Vietnam, owned by the Taiwanese group Bo Chen, will lose their jobs, from the end of next month, according to what the company announced to the authorities.
“The swap operation is the largest such operation conducted by Bowen since it began operations in Ho Chi Minh City in 1996,” said the government-affiliated VN Express newspaper, which reported the news.
In February, the company laid off about 3,000 permanent employees, while the contracts of 3,000 contract employees were not renewed.
Also, at the end of last year, the company forced 20,000 employees to take leave, in rotation, to share the little work that remained.
During the first quarter of 2023, a third of production sites in Ho Chi Minh City experienced a reduction in their workforce, a survey by the municipality revealed.
Officials pointed out that the slowdown significantly affected the production of footwear, clothing, construction and food industries.
More than 630,000 people lost their jobs or had their working hours reduced in 2022, according to Vietnam’s Labor Ministry.
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