Vietnamese textile and apparel giant cuts 1,900 jobs due to insufficient orders

According to local media VnExpress, Vietnamese sewing company Garmex Saigon near Ho Chi Minh City laid off 1,947 employees last year, marking the most challenging year for the apparel industry. Based on the company's financial report, the total number of dismissed employees over the past two years has reached 3,775.

Garmex Saigon, in operation for 20 years, saw its revenue plummet by 35 times last year to 8.6 billion Vietnamese dong (353,183 USD) due to reduced orders. With no orders in the past six months, the company incurred a loss of 52 billion Vietnamese dong last year.

Due to labor shortages, the company had to lay off employees and halt production to cut costs. Last year, employee wage expenditures totaled 11 billion Vietnamese dong, a sixfold decrease from 2022. The company's chairman, Nguyen Viet Cuong, did not receive a salary last year.

Garmex Saigon, a major player in the apparel industry, serves numerous overseas clients. However, the situation is unfavorable for the company as buyers from Europe and the United States significantly reduced their orders, and it is unclear when orders will resume. The company has no plans for recruitment until the industry is likely to recover. Garmex Saigon operates five factories in Ho Chi Minh City, Binh Duong province in southern Vietnam, and Quang Nam province in central Vietnam.

In 2019, the company employed 4,000 workers and generated revenue of 100 billion Vietnamese dong. Due to a global decrease in demand, sales plummeted by 93%, leading the company to its first loss in 2022.