Vietnam: Garment firm lays off over 1900 workers due to a decline in orders
Summary
Date Reported: 4 Feb 2024
Location: Vietnam
Companies
Le Coq Sportif - Buyer , Outfit International - Former buyer , Stio - Former buyer , TOPO Designs - Buyer , North Face (part of VF Corp) - Reported buyer , VF Corporation - Reported buyer , Dickies (part of VF Corporation) - Reported buyer , Garmex Saigon - Supplier , Columbia Sportswear - Former buyer , Craft (part of New Wave Group) - Former buyer , Cutter & Buck (part of New Wave Group) - Former buyer , New Wave Group - Former buyer , Decathlon - Buyer , Descente - Buyer , Gameguard Outdoors - BuyerAffected
Total individuals affected: 1947
Workers: ( 1947 - Location unknown , Clothing & textile , Gender not reported )Issues
Purchasing practices: Order volume , Impacts on LivelihoodsResponse
Response sought: Yes, by BHRRC
Action taken: Garmenx Saigon allegedly supplies Columbia Sportswear, New Wave Group (for its Craft and Cutter & Buck brands), Outfit International, Stio, VF Corporation (for its North Face and Dickies brands), Decathlon, Descente, Gameguard Outdoors, Le Coq Sportif, TOPO Designs and Under Armour. Columbia Sportswear, New Wave Group, Outfit International, Stio and VF Corporation provided a response to a request for comment from the Resource Centre. Columbia Sportswear stated its business relationship with Garmex Saigon ended in December 2021, New Wave Group (Craft and Cutter & Buck) stated it has not sourced from Garmex Saigon since 2020. Outfit International stated its final product order was on December 16th, 2022. Stio stated it had not sourced from the factory since 2019. VF Corporation (North Face and Dickies) said it does not source from the factory. Decathlon, Descente, Gameguard Outdoors, Le Coq Sportif, TOPO Designs, Under Armour did not respond.
Source type: News outlet
"HCMC garment firm slashes 1,900 jobs due to order shortage", 4 February 2024
...Garmex Saigon cut 1,947 jobs last year and closed the year with 35 employees during one of the hardest times for the garment sector.
This followed a 1,828-job layoff in 2022, bringing the total number of employees laid off in the last two years to 3,775, according to its financial reports.
Garmex Saigon...saw revenues plunge 35-fold to VND8.6 billion ($353,183) last year due to a drop in orders. It recorded no order in the last six months of the year.
The company ended the year with a VND52 billion loss.
As there was no work, the company had to fire its employees and shut down production to reduce costs.
It spent VND11 billion on compensation last year, down six times compared to 2022.
Its chairman Nguyen Viet Cuong received no salary last year...
buyers from...Europe and the U.S. have slashed their orders and it is still uncertain when they will resume buying.
The company does not plan on recruiting until it sees a strong potential for recovery in the sector...
In 2019 it employed 4,000 employees and recorded VND100 billion in profits.
It first reported a loss in 2022 as sales plunged 93% due to a decline in global demand.