Companies to continue layoffs on lack of orders: surveys

Most are in construction and manufacturing, the survey done in April together with the government’s Private Sector Development Committee found.

Half of them are in Ho Chi Minh City and Binh Duong Province, and the main reason for the layoffs is a lack of orders.

There are a number of challenges the economy faces currently, and businesses are severely impacted by them.

Nearly 30% of companies expect their revenues to halve this year.

Some 82% plan to downsize or shut down, and a similar number has a negative outlook on the economy this year.

Businesses want the government to cut taxes and fees to help them overcome the challenges.

They also want banks to credit loan interest rates and simplify lending procedures.

A survey by the Ministry of Labor, Invalids and Social Affair this month confirmed what the earlier said about worker layoffs and in fact warned about more cuts if the economy does not improve.

Companies have been sacking workers since the second half of last year when the U.S., Europe and Japan cut imports from Vietnam as inflation caused consumers to tighten their purse strings.

The industries that saw the most layoffs were garment, footwear, wood processing, seafood, and electronics.

HCMC’s biggest employer, footwear producer Pouyuen, will lay off a total of 8,000 workers in the first seven months of this year due to declining orders.

Over 149,000 people in the city lost their jobs in the first quarter, up nearly 13% from the previous quarter, according to official data.