Vietnam Textile & Garment Sector Witnesses Mass Layoffs

The Vietnamese textile and garment industry is witnessing mass layoffs in 2023. Between January and May 2023, around 70,000 employees lost their jobs and another 66,600 are working fewer hours.

According to the Ministry of Labour, Invalids and Social Affairs, a total of 510,000 employees have been affected by layoffs across various industries this year.

“The majority of workers facing reduced working hours are from the textile and garment sector, followed by the shoes and leather sector with 66,000 workers,” The Saigon Times reported, quoting the Ministry.

In the January-May period, around 17,000 laborers had to suspend work and take unpaid leave, with the textile and garment sector accounting for the highest number at 5,000 workers.

Unskilled laborers experienced the highest job loss rate, accounting for 68% of the total.

The Ministry attributed the mass layoffs to a lack of new orders, economic challenges faced by many countries, high inflation, and a strict monetary policy that resulted in a sharp decline in consumer demand.