Korean-owned factory in HCMC to close days before Tet, leaving over 2,600 workers jobless

A garment factory in Ho Chi Minh City employing 2,640 workers will shut down early next year due to financial difficulties and a drop in orders after Covid. The closure raises concerns over jobs just before the Lunar New Year holiday.

Panko Vina Company, a Korean-invested manufacturer, will scale down and consolidate production at its remaining facility in Da Nang. Workers will remain employed until January 15, 2026, and the factory will finish existing orders until January 31. Operations will stop on February 1, just before Tet.

The company said it will pay workers in full through January, cash out unused annual leave, provide a VND2 million (US$76) support payment to each employee, and give legal severance benefits. Panko Vina confirmed it has no outstanding wages or social insurance debts.

Founded in 1984, Korea’s Panko Textile Group has operated in Vietnam since 2003. At its peak, it ran three factories and employed over 8,000 workers. The current closure marks a major reduction in operations for the company.

Authorities and the company plan to work together to protect workers’ rights and benefits. An investor may take over the factory, and other businesses have expressed interest in hiring some affected employees.

Source : https://e.vnexpress.net/news/news/korean-owned-factory-in-hcmc-to-close-days-before-tet-leaving-over-2-600-workers-jobless-4998386.html

Comprehension

How many workers are affected by the Panko Vina factory closure?
When will the factory officially stop operating?
What payments and benefits will the company provide to employees?
Where will Panko Vina consolidate its remaining production?
What efforts are being made to help affected workers?

Discussion

How might closing a factory just before a major holiday affect workers and their families?
Why is it important for companies to pay severance and other benefits when closing?
What challenges do companies face in maintaining business after events like Covid?
How could a takeover by another investor help workers?
Should governments play a bigger role in protecting workers during company closures?

Vocabulary

Closure – the act of shutting down a business or factory.
Severance – money paid to employees when they lose their jobs.
Consolidate – to combine or reduce operations to become stronger or more efficient.
Investor – a person or company that provides money to a business in exchange for future profits.
Benefit – a payment or advantage provided to employees in addition to salary.