The shortage of orders and materials has taken a heavy toll on laborers as many workers of enterprises in industrial parks in Da Nang City have seen their working hours cut or been furloughed.
Huu Nghi Da Nang JSC cut the daily working time of 1,800 laborers by an hour early this month.
The company has a plan to further reduce the working time and let their workers take longer New Year and Lunar New Year, or Tet, holidays as orders have fallen over the first months of the year.
Meanwhile, 500 employees of Whitex Garments Vietnam Co. Ltd. are taking turns working or have been furloughed with 70-percent pay until the end of January 2023 owing to the severe shortage of orders.
At XiangYow Technology Co. Ltd., 240 laborers have also seen their working hours reduced as the company’s orders halved.
With fewer jobs and no overtime work, many workers have quit. The company has also suggested its employees take annual leave.
Many other companies have cut the working time and furloughed their workers given the lack of orders and materials, particularly Son Tra Seafood Processing Co. Ltd., Dacotex Danang Co. Ltd., Vietnam Kanzaki Co. Ltd., Viet Lang Forest Products Co. Ltd., and Keyhinge Toys/Matrix Vietnam JSC with 71, 80, 320, 100, and 124 laborers, respectively, affected.
According to the Da Nang Hi-Tech Park and Industrial Zones Authority, 4,800 laborers in industrial parks in Da Nang will be laid off and have their working time and salaries cut until Tet holiday.
The agency reported that many local enterprises import materials from China or their key customers are from the northern neighbor, so their operations have been disrupted due to China’s anti-COVID policy.
As a result, enterprises have asked their workers to take annual leave or given them the sack.
Tran Van Ty, deputy head of the Da Nang Hi-Tech Park and Industrial Zones Authority, said most enterprises have secured enough orders and are operating as normal.
Meanwhile, some others have limited their operations and asked their employees to take turns working due to the fall of orders.