ECCO to close Vietnam factory, affecting over 1,600 workers
The closure affects more than 1,600 workers, while nearby firms have shown interest in hiring them.
Tuesday 3 November · 18:01 · 1 min read
In 30 seconds
- Danish shoe company ECCO decided to close its factory in Ho Chi Minh City and dissolve its Vietnam company. [1][2]
- The decision affects more than 1,600 workers, with employment ending by November 30 or earlier if contracts expire sooner. [1][2]
- ECCO cited years of falling demand and said the closure is part of a global plan to concentrate production in fewer factories. [1][2]
What happened
Danish shoe manufacturer ECCO decided to close its factory in Ho Chi Minh City and begin dissolving its Vietnam company. The company said demand had fallen for several years, leaving production capacity higher than demand, and that the move was part of a global restructuring. More than 1,600 workers are affected; ECCO said it would pay remaining wages and other benefits required by law, while at least eight nearby companies had expressed interest in hiring about 1,611 affected workers.
Why it matters
The closure puts more than 1,600 workers’ jobs at risk in Vietnam. The reports say nearby employers may offer some new jobs, but do not say how many workers will be hired.
Background
The factory began operating in 2020 and could produce 8.1 million pairs of shoes and shoe parts a year. ECCO also planned to close a factory in Portugal and cut 400 jobs globally, according to Kampuchea Thmey.
Key terms
- Dissolve a company
- To formally end a company’s legal existence and settle its remaining affairs.
- Global restructuring
- Changing how a company organizes its operations across countries.
Timeline
- November 30, 2026 The affected workers’ contracts are due to end by this date, unless they expire sooner.
Sources (2)
[1] Kampuchea Thmey ក្រុមហ៊ុនផលិតស្បែកជើងដាណឺម៉ាក ECCO បិទទ្វាររោងចក្រនៅវៀតណាម ប៉ះពាល់កម្មករជាង ១៦០០ នាក់ 3 Nov Read original [2] DAP News ក្រុមហ៊ុនផលិតស្បែកជើង របស់ដាណឺម៉ាក សម្រេចបិទរោងចក្រនៅទីក្រុងហូជីមិញ ប្រទេសវៀតណាម ដោយសារតែតម្រូវការទីផ្សារធ្លាក់ចុះ 3 Nov Read originalWas this explainer clear?
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