Order plunge sees factories strive to retain workers

Vietnamese factories are adopting new measures to retain their employees amidst the decline in orders. Companies are offering early bonuses, food, and possible salary increments to ensure that their employees remain with them. One example of this is D.G., a garment company in Thu Duc City, which has been operating with nearly 1,000 staff working for four days a week and taking a three-day break as foreign orders have dropped. The employees work for 12 hours per day, including four hours with a salary increase of 1.5 times the regular pay. The company has struggled to source materials and has resorted to buying from the black market at double the price to ensure that its employees have work. D.G. has promised to raise the employee salaries next month and provide a 13th-month bonus to retain its workforce.

Similarly, the garment company PPJ Group has diversified its products since the beginning of the year to provide work for its 17,000 employees in 10 provinces. Deputy CEO Nguyen Thi Lien has stated that the company focuses on other product lines when orders for one line of product decline to keep their employees working. PPJ Group also offers zero-interest loans and scholarships for employees' children. Despite the challenging period, the company is committed to carrying out all its remuneration policies.

Vinatex, which has 23 subsidiaries, has seen orders decline by 10-30% year-on-year, resulting in reduced staff incomes. To overcome the challenge, some subsidiaries are exploring new markets and increasing product quality to meet new customer needs. Others are accepting low-profit orders or even losses to ensure job security. Vinatex Deputy CEO Nguyen Thi Thuy stated that factories are not prioritizing profits for now, as long as operations are ensured.

In Binh Duong Province, many factories, known as Vietnam's wood processing capital, have seen orders drop by 30-50% since July. Many factories have shut down during the second half of the year due to a lack of orders. Among those who survived, leaders' houses and cars have served as collateral to secure loans and maintain operations, according to Nguyen Liem.