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Foreign-owned firm in Da Nang halts operation, suspends 1,300 workers
A Hong Kong-owned toy-making firm in Da Nang, central Vietnam has announced it will halt operations for three months from early January and suspend employment of more than 1,300 workers.
Workers at Keyhinge Toys Vietnam Joint Stock Company in the Hoa Khanh Industrial Park leave the firm after work on December 22, 2023. Photo: Le Trung / Tuoi Tre
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Keyhinge Toys Vietnam Joint Stock Company (KVN JSC), a 100-percent Hong Kong-invested company located in the Hoa Khanh Industrial Park, last Friday issued a notice to the Management Board of Da Nang High-Tech Park and Industrial Parks, confirming it would cease operating for three months from January 3, 2024 due to business difficulties, the board said on Monday.
The company has a total of 1,312 workers, all of whom will have their jobs suspended for those three months, the notice said.
The toymaker noted that it would pay bonuses for the coming Tet (Lunar New Year), which is due in February, despite the halt.
The Tet bonus amount will be equal to one-month salary for every worker who has worked for 12 months of 2023 and has at least 13,5-14 working days per month.
Those who have worked less than 12 months will receive a prorated bonus.
In addition, the firm’s trade union will give each worker a 2024 New Year’s Day gift worth approximately VND150,000 (US$6).
The municipal Labor Federation has reported the operation suspension of KVN JSC to the city’s administration, setting out some support for the company’s workers.
Accordingly, the federation will give the suspended workers Tet gifts which will be jointly paid for by the agency, the grassroots trade union, and city authorities.
The agency will set up a forum for the workers to dialogue with their employer about issues related to the cessation of operations.
The federation will make a list of workers who wish to return to their hometowns for Tet celebrations and then pay the travel cost for them or arrange long-haul buses to bring them home.
The agency has also asked the trade union of the Da Nang High-Tech Park and Industrial Parks to assist workers who like to find alternative employment.
Tuoi Tre News
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