Garmex Saigon Corporation, one of the biggest apparel enterprises in Ho Chi Minh City, has laid off over 2,000 workers due to financial distress.

The firm’s mass dismissal was aimed at easing its financial burden, according to a Garmex Saigon representative.

The company reported a workforce of 41 employees on June 30, plummeting 2,060 laborers compared to the figure seen at the start of the year.

It has announced its quarter-2 financial report with negative business results.

Garmex Saigon made over VND8 billion (US$337,185) in revenue in the first half of 2023, plunging 97 percent year on year.

Besides, the firm sustained an accumulated loss of VND33 billion ($1.4 million) in January-June. Meanwhile, it earned VND4.1 billion ($172,884) in profits during the same period last year.

Nguyen Minh Hang, general director of Garmex Saigon Corporation, said that the negative impact from the COVID-19 pandemic and global political uncertainties had plagued the world's economic growth, thereby taking a heavy toll on the apparel sector.

Many local apparel enterprises are facing a shortfall of orders, she added.

Experts at SSI Research said that the apparel sector would face multiple challenges as consumption was expected to take a nosedive in 2023.

American management consulting firm McKinsey forecast that global sales of high-end fashion will rise 5-10 percent year on year, while the global market will see a three-percent fall in sales of other types of clothes.

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