Illustration: workers on strike at Chi Hung company, Binh province Duong at the end of May 2020.

RFA February 20, 2023

Ho Chi Minh City issued an urgent directive after PouYuen Co., Ltd announced it would cut about 3,000 workers from February 25.

Urgent director Mr. Duong Anh Duc – Vice Chairman of the People’s Committee

Ho Chi Minh City signed and requested the People’s Committee of Binh Tan District – where the PouYuen factory is located – to actively and closely monitor the related situation, ensuring the rights of workers in layoff. State media provide the urgent instructions.

The directive was given shortly after PouYuens announcement of about 3,000 job cuts from February 25, 2023. In addition, PouYuen Vietnam also said that in 2023, about 3,000 workers will not be able to renew their contracts.

The reason for the worker reduction measure explained by PouYuen Vietnam is due to few production orders.

According to the Vietnam General Confederation of Labor statistic, in the fourth quarter of last year, orders from the United States decreased by 30-40% and from Europe by 60% compared to the same period in 2021.

According to the Ministry of Labor, War Invalids & Vietnamese Society, in 2022, more than 630,000 domestic workers will lose their jobs or have their working hours reduced.