On the afternoon of 25/12, Truong Van Phong, Deputy Head of the Ho Chi Minh City Export Processing and Industrial Zones Authority, stated that the struggling entity is Panko Vina Company Limited, a South Korean-invested firm with a factory in My Phuoc Industrial Park, Ben Cat ward.

Workers at the Panko Vina factory in My Phuoc Industrial Park. *Photo: Minh Bang*

In a notice sent to management agencies and employees, the company stated it had faced prolonged difficulties after Covid-19 and was unable to secure new orders. The enterprise could not sustain production and had to cease operations at the factory to downsize, consolidating production at its remaining facility in Quang Nam (now Da Nang).

According to the plan, employees will work until 15/1/2026, and the factory will maintain production until 31/1/2026 to complete outstanding orders. From 1/2/2026, which is the 15th day of the twelfth lunar month, the enterprise will cease operations.

Regarding employee benefits, the company will calculate and pay full salaries until the end of January. All unused annual leave days will be compensated in cash. Additionally, each worker will receive an extra 2 million dong in support, along with severance allowances as regulated. The enterprise has no outstanding debts for salaries or social insurance.

Panko Vina Company Limited is part of South Korea's Panko Textile and Garment Group, established in 1984. In Vietnam, Panko Vina has operated since 2003, specializing in garment manufacturing for orders from its parent company. During its peak, the entity operated three factories, employing over 8,000 workers.

Truong Van Phong stated that an investor is considering acquiring the factory. The best-case scenario is that workers would continue to be employed there, minimizing disruption. Additionally, many other entities are looking to recruit these workers. Next week, relevant authorities will work with the enterprise to ensure employee rights are protected.

Le Tuyet