The board of directors of Giay Thuong Dinh Joint Stock Company (GTD) recently approved a total of 165 billion dong for factory relocation expenses. Of this amount, the company has earmarked 25 billion dong to cover severance pay and other support for employees affected by the workforce restructuring.

The severance payments will be disbursed in two phases, impacting a total of 443 individuals. This process is expected to begin in Q3 this year. The exact amount each person receives will be calculated based on their years of service and their salary used for social insurance contributions, with the average payout estimated at over 56 million dong per person.

This workforce reorganization is part of a broader plan to move the factory from 277 Nguyen Trai in Hanoi to a new facility in Dong Van Industrial Park, Ninh Binh. Giay Thuong Dinh had previously surveyed its employees regarding their willingness to relocate. The survey revealed that most employees were unable to move and requested severance benefits in accordance with regulations.

Under the plan, some employees will be reassigned to the new factory, while those who cannot continue working due to the relocation will receive their entitlements. The company stated its commitment to developing a comprehensive workforce utilization plan and providing benefits to departing employees in compliance with legal requirements.

This is not the first time Giay Thuong Dinh has implemented significant staff reductions. By late 2024, the company's workforce stood at 326 employees, a reduction of nearly 20% compared to early 2025 and notably lower than the 426 employees recorded in 2022. By 5/2025, the number of employees further decreased to 315, with over 82% being technical workers.

Relocating the production facility is a key initiative for Giay Thuong Dinh this year. This move aims to free up the 36,000 square meter plot of land at 277 Nguyen Trai for a large-scale real estate project. The proposed development includes commercial housing, offices, commercial services, and an inter-level school. The project's estimated investment capital exceeds 9,900 billion dong, featuring buildings approximately 25 to 40 stories high.

To fund this ambitious project, Giay Thuong Dinh announced plans for a private placement of 216.5 million shares at 10,000 dong per unit, aiming to raise 2,165 billion dong. Approximately 2,000 billion dong from this offering will be allocated to the 277 Nguyen Trai project, with the remainder supporting the factory relocation and supplementing capital for production and business activities.

This restructuring comes amid significant business challenges for Giay Thuong Dinh. In 2025, the company reported net revenue of over 66 billion dong, a 16% decrease from the previous year, and an after-tax loss of nearly 39 billion dong. Its accumulated loss reached approximately 106 billion dong by the end of 2025.

For this year, Giay Thuong Dinh has set a production target of 390,000 products and a revenue goal of over 40 billion dong, aiming to avoid further losses. The factory relocation is expected to streamline production operations, while the valuable land at 277 Nguyen Trai will be utilized for the large-scale real estate venture.

Established in 1957, Giay Thuong Dinh was once a well-known brand, primarily recognized for its canvas and fashion shoes. The company began exporting these products to European markets in the 1980s. By the early 1990s, the brand held a dominant position in the domestic market. The iconic image of its canvas shoes with blue stripes on flexible rubber soles became familiar to many consumers.

Tat Dat