Over 3,700 jobs open as FDI labor-intensive firm to shut down in Ho Chi Minh City

An inter-agency working group in Ho Chi Minh City met on Monday with relevant parties to address the shutdown of Panko Vina Co. Ltd., a foreign direct investment (FDI) firm based in Ben Cat Ward that currently employs 2,640 workers.

The meeting brought together representatives from the Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA), the Ho Chi Minh City Labor Federation, local ward leaders, and Panko Vina management.

According to HEPZA, the discussions focused on safeguarding workers’ rights, maintaining labor stability, and preventing disruptions to public order.

Authorities urged the company to promptly stabilize the workforce and properly resolve workers’ demands in line with labor regulations, particularly regarding the payment of a 13th-month bonus.

For January wages, Panko Vina is required to pay workers based on the new regional minimum wage effective January 1, 2026.

Officials emphasized that the company must honor all financial commitments so employees can continue producing remaining orders with peace of mind before operations officially end.

HEPZA said it is coordinating with the municipal Labor Federation and relevant agencies to connect affected workers with neighboring companies that have compatible job openings.

The company was also asked to create favorable conditions for recruiters to directly access workers, ensuring no one is left unemployed.

The municipal Labor Federation confirmed that seven businesses have expressed interest in hiring former Panko Vina employees, with a combined demand exceeding 3,700 workers, well above the number affected by the shutdown.

Through the company’s grassroots trade union, workers requested clear information on the payment schedule for January wages and the 13th-month bonus, the return of social insurance documents, and full payment of maternity benefits.

In response, Panko Vina representatives said the proposal for the 13th-month bonus has been submitted to the parent company in South Korea and is awaiting approval.

A final decision is expected on Tuesday. If approved, the bonus will be paid in January 2026.

The company said production will continue until January 31, 2026 to meet customer delivery commitments, although most workers will stop working by January 15.

January wages will still be calculated through January 31 and paid no later than February 5, 2026.

Unused annual leave will be paid out, while advance leave from future years will be waived.

Severance allowances will be handled in accordance with Vietnamese law.

After production ends, a reduced office staff will remain to complete administrative procedures, including social insurance finalization and termination decisions.

Panko Vina cited prolonged post-COVID-19 difficulties, a lack of orders, and production consolidation at another factory in former Quang Nam Province, now part of Da Nang City in central Vietnam, as reasons for the imminent closure.

Authorities said there is currently no indication the company owes back wages or social insurance contributions.