Garment and textile workers will get low Tết bonuses this year as their industry struggles to overcome its difficulties. Photo nhandan.vn

HÀ NỘI – Tết is approaching and employees across the country are eagerly waiting to get their bonuses, but with mass layoffs and an economic downturn, many seem set to get no or low bonuses.

Many businesses plan to pay much lower rates than in previous years due to the economic situation.

Many, especially small ones, have been laying off employees since late last year just to avoid paying bonuses. 

Hông Quang Sử of Cà Mau Province, who works for a wood processing factory in Bình Dương Province, says since late last year his job has been unstable and all workers' incomes have decreased significantly since the plant lacked orders and production was only moderate.

"The company has yet to announce its year-end salary and bonus. I am waiting anxiously … to get a Tết bonus to return home to celebrate the New Year with my family.”

Workers in a footware workshop. Photo nhandan.vn

Trần Trung K, 37, of the northern Nam Định Province moved to HCM City and set up a small dyeing workshop more than 10 years ago.

He says: "The economic situation has never been as difficult as now.

“In November last year, I had to lay off most of the workers, only retaining skilled and technical workers.

“New orders were almost non-existent but interest on bank loans still had to be paid. Not only me but also many other small and medium-sized units also made the decision to avoid paying Tết bonuses though we really did not want to do so."

Layoffs, especially before Tết, are hard for employees. 

Nguyễn Văn Chất, 32, of the north-central province of Nghệ An used to work for a textile factory in HCM City’s Bình Tân District, but was furloughed just one month before Tết.

Many others too have received notices of “temporary layoffs” since the end of 2023.

“Most dyeing and garment companies have laid off workers since the end of last year,” Chất says.

“This year, the industry in the south faces many difficulties."

To put food on the table, he has been driving a xe ôm (motorbike taxi) and looking for seasonal jobs in the hope of earning some money before going home for Tết.

Small bonuses

Trần Thanh H, owner of a small garment factory in Tân Bình District, says he decided to cut Tết payments because of the economic situation, and does not plan to pay workers the 13th month salary.

“We only expect to pay workers a Tết bonus of VNĐ2 million (US$80) and give them some company products as gifts.

“This year the number of orders decreased, and we also had to reduce prices to compete, and profit margins dropped."

He claims that in the past few months he has tried everything possible to avoid laying off workers, but the situation has become very difficult.

"Many businesses are in the same situation, especially in low-profit industries like garments."

In the north the situation for small and medium-sized enterprises is no better.

Nguyễn Thị Hường, 40, who has worked for five years in Hà Nội’s Thăng Long Industrial Zone, says: “Last year I received a Tết bonus of a month's salary, or about VNĐ6 million ($245). But this year everyone in the company says the bonus will be cut in half."

According to the Hà Nội Labour Confederation, the average Tết bonus is down from last year in all industries.

The biggest cuts would be in industries such as textiles, footwear and electronics, it says.

The New Year bonus and Tết bonus will decrease by 32.31 per cent and 2.44 per cent, respectively, compared to last year. 

The highest reported bonus so far this year is VNĐ2 billion ($80,000), and the lowest is VNĐ300,000 ($13).

Trade Union support

As usual, the Việt Nam General Confederation of Labour (VGCL) will give workers gifts in cash and kind and free bus, train and plane tickets to the poorest ones to visit home for the New Year.

Some 1.1 million workers will get VNĐ500,000 ($21) and 2,657 will get the tickets.

The Hà Nội Trade Union has also worked with businesses to restructure their production and obtain orders, and sought to help its members get cheap loans to start household businesses.

On the occasion of the Lunar New Year of Dragon, the Hà Nội Trade Union supported over 45,000 members and workers in difficult circumstances with an amount of more than VNĐ30 billion ($1.3 million). VNS