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PouYuen Vietnam will lay off 3,000 factory workers and not renew the 3,000 contracts due to “very few production orders in 2023” caused by a sigificant drop in worldwide purchasing power, according to Vietnam’s labor department.
With almost 50,000 workers, PouYuen, , a manufacturer of Nike and Adidas, is the largest employer in Ho Chi Minh City.
The cost-of-living issue in important markets in Europe and the US has had a significant negative impact on Vietnam, one of the world's leading exporters of apparel, footwear, and furniture.
According to the labor department, factory workers will continue to be compensated until they receive unemployment compensation.
Towards the conclusion of last year, PouYuen placed 20,000 of its employees on rotating paid leave.
