Taiwanese shoe maker Pou Chen, a supplier to brands like Nike, adidas and Asics, has cut 3000 jobs in Vietnam due to low demand. In addition, the company will not renew employment contracts until the end of the year for another 3000 people, writeт worldfootwear.com.
Pou Chen is one of the largest employers in Ho Chi Minh City with around 50 employees. The company is currently forced to reduce production volumes due to weak demand caused by the current macroeconomic uncertainty. Since November, Pou Chen has placed about 000 employees on shifts since November, according to Nikkei Asia, but has now moved on to layoffs.
Vietnam is a global clothing and footwear manufacturing hub. The country's economy grew at the fastest pace in 2022 in decades. But the desire of international distributors to reduce excess stocks is beginning to affect both employment and exports.
Reuters reports that Vietnam's exports in January 2023 fell 26% compared to January 2022, while imports fell 24%, suggesting a likely decline in output as manufacturers reduce purchases of materials and equipment.
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