On May 15, the Department of Labor, Invalids and Social Affairs of Ho Chi Minh City announced that on May 12, the People's Committee of Ho Chi Minh City issued an official dispatch assigning tasks to relevant functional units regarding the upcoming labor reduction at PouYuen Vietnam Co., Ltd. (Tan Tao Ward, Binh Tan District, Ho Chi Minh City).
This is a company belonging to the Taiwanese Pouchen International Group, operating in the field of shoe manufacturing and is considered the company with the largest number of employees in Ho Chi Minh City with more than 50,000 people. At one point, the company had nearly 100,000 workers.
Regarding the current labor situation at this company, according to information provided during the meeting between the leaders of Pouchen International Group Taiwan and PouYuen Vietnam Co., Ltd. with the Department of Labor, Invalids and Social Affairs of Ho Chi Minh City on May 9, the company plans to agree to terminate labor contracts with 5,744 people in the near future.
The reason mentioned initially was because the world economic situation was still difficult, people in many countries tightened their spending, leading to a decrease in manufacturing orders at the company.
This is the second round of layoffs this year for PouYuen Vietnam Co., Ltd. Previously, in March 2023, the company had to lay off 2,358 workers. At that time, the highest amount of support for workers after losing their jobs was up to VND 379 million and the lowest was VND 12 million.
PouYuen Vietnam Co., Ltd. plans to continue cutting jobs in the coming time.
Expected severance pay regime
Regarding the severance allowance payment regime, it is expected that the company will pay for the entire time the employee works at the company (including the years the employee has participated in unemployment insurance from January 1, 2009 to present), 0.8 months of salary per year (an average of 6 months of salary according to the labor contract before the termination of the labor contract).
The official number of job cuts as well as other contents related to the labor situation are expected to be announced by the company and Ho Chi Minh City authorities at a press conference tomorrow afternoon (May 18) at the Ho Chi Minh City Press Center.
The Ho Chi Minh City People's Committee also directed the Ho Chi Minh City Department of Labor, Invalids and Social Affairs to coordinate with relevant units to guide the implementation of policies and regimes for employees of PouYuen Vietnam Co., Ltd. The Ho Chi Minh City Employment Service Center needs to survey the wishes of employees, connect jobs, and guide unemployment insurance policies.
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