World

Wave of layoffs continues in Vietnam

Jul 14, 2023 Vietnam

An estimated 217 800 people have lost their jobs in Vietnam in the second quarter of 2023 due to the significant decline in orders since the end of 2022, says the General Statistics Office (GSO)

According to the Vietnamese General Statistics Office (GSO), 217 800 jobs were axed in Vietnam from March to June 2023. The lack of new orders experienced since the end of last year, against a backdrop of uncertain economic conditions, seems to be at the root of these layoffs.

In particular, the textile and garment industry accounted for the largest share at 16.8%, %, followed by electronic product and spare part manufacturing at 14.8%, footwear and leather at 14.1%, and wood processing at 6.1%. The majority of these cuts took place in cities and provinces with significant industrial parks, such as HCMC, Binh Duong, and Bac Ninh.

In addition, 241 500 employees across the country had to reduce their working hours in this second quarter, a decrease of 52 500 people, as compared to the previous quarter. The data indicates that many of these work in foreign-invested companies in the footwear and leather and textile and garment sectors.

Image Credits: Sam Williams on Unsplash

Vietnam Economy Employment Footwear Leather Manufacturing