Over half a million workers face reduced hours, contract terminations amid economic downturn

March 01, 2023 - 08:41
The Vietnam General Confederation of Labour report stated that 546,835 workers from 1,300 firms in 50 provinces and cities across the country had their working hours reduced.
Workers at Pouyuen Company in HCM City leave at the end of the day. Photo baodansinh.vn

HÀ NỘI — Almost 550,000 workers have had their working hours reduced over the past five months due to orders being cut or reduced, according to a report from the Vietnam General Confederation of Labour.

The report stated that 546,835 workers from 1,300 firms in 50 provinces and cities across the country had their working hours reduced.

Of these workers, more than 491,000 have had their working hours reduced, been temporarily laid off, or had their labour contracts put on hold.

Approximately 50,000 workers have had their labour contracts terminated.

According to the report, around 75 per cent of the affected workers were from foreign direct investment (FDI) firms specialising in the garment and textile, footwear, and wood processing industries in some southern provinces, including HCM City, Long An, Tây Ninh, Đồng Nai, Bình Dương and An Giang.

In addition, 36 enterprises in 16 provinces and cities owe VNĐ74 billion in salaries to 5,979 workers. So far, nearly VNĐ18 billion has been paid to 486 workers, but more than 5,400 workers have not been paid.

Pouyuen Company in HCM City has announced that they will not renew labour contracts with 3,000 workers after their contracts expire. The company also intends to lay off approximately 3,000 workers in February. VNS

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