Factory orders dried up, enterprises laid off employees!

Global Paint Network News: It is reported that Ty Hung, a shoe factory in Binh Tan District, Ho Chi Minh City, Vietnam, announced that it would lay off 1,185 workers
because of no orders.
The company said in an announcement that its main customers did not offer new orders
because of financial problems.

Despite all efforts, the company was unable to maintain production as planned and had to terminate its labor contracts
with 1,185 workers on December 1, the announcement said.

The company said it would pay severance pay to employees who have worked for the company since 2008, two months' pay to all employees whose social security premiums have been cut due to unemployment, and one month's salary to employees who have worked for a full year, with other less than one year prorated
.

Ty Hung is a Taiwanese-funded enterprise with a total of 1,800 employees, specializing in the production of footwear products, mainly exported to the European market
.

In addition, in early October, Samho Vietnam, a Korean-owned company in Cu Chi County, Ho Chi Minh City, lost 30% of its factory capacity after a well-known footwear brand cut off all orders, equivalent to 3,000 workers losing their jobs
.

After that, the company submitted a plan
to the Ministry of Labor, Disability and Social Affairs in Ho Chi Minh City to lay off 1,400 jobs.
The company's union president said the company does want to retain employees, but it is difficult to find new orders to compensate for the situation
.

According to Vietnamese media reports, some Vietnamese manufacturing companies are also laying off a large number of temporary employees
due to the decrease in orders.
One manufacturing company, for example, laid off more than 2,400 temporary employees
after orders plummeted.
Reports from some regions suggest companies have laid off hundreds or dozens of workers
.

According to the Ho Chi Minh City Labour Union, the current overall situation in textile, leather, footwear and electronics factories is a decrease
in orders due to difficulties in the procurement of raw materials and reduced demand.
In response, many factories in the city have shortened workers' hours or given them furloughs, and some have been forced to lay off workers
.

The vice president of the Vietnam Chamber of Commerce and Industry said global inflation had weakened consumption in major export markets, leading to a decline
in the number of orders.
According to the Vietnam Leather, Footwear and Handbag Association, the number of orders from its corporate members in the fourth quarter fell by about 30% year-on-year, and export turnover has also been declining
since September.

The vice president of the Ho Chi Minh City Union of Business Associations said that in addition to the steady number of orders for businesses that produce essential goods such as food or household appliances, businesses in many other industries are in trouble
.

A woman in charge of consulting and employment in the Tan Shun Export Processing Zone, which is part of the city's Business Development and Support Center, said that the recruitment demand of enterprises has fallen by 20-30%
compared to the same period in previous years.
At this time of year, the factory has a lot of orders, frequent overtime, massive hiring, and the use of more seasonal workers
.
However, many companies this year only allowed workers to work 8-hour shifts or had to lay off workers
due to a lack of orders and raw materials.