FDI footwear firm in southern Vietnam announces Lunar New Year bonuses of $26.8 mln

By Lien Thuong, Minh Hue
Wed, November 29, 2023 | 12:05 pm GMT+7

Despite falling orders and difficulties surrounding the leather and footwear industry, South Korea’s Chang Shin Vietnam Co., Ltd. based in the southern province of Dong Nai has announced it will spend about VND650 billion ($26.82 million) on Lunar New Year (Tet) bonuses, a slight increase from last year.

This move shows the company’s efforts to get through “the storm" as many other footwear companies in Vietnam shut down or cut staff, said Dang Tuan Tu, head of the company’s trade union, on Monday.

The factory of Chang Shin Vietnam Co., Ltd. in Dong Nai province, southern Vietnam. Photo courtesy of the company.

The factory of Chang Shin Vietnam Co., Ltd. in Dong Nai province, southern Vietnam. Photo courtesy of the company.

According to Tu, the company boasts the largest number of workers in Dong Nai, an industrial hub bordering Ho Chi Minh City, with 37,000. It plans to pay bonuses based on the seniority of employees.

Employees with a seniority of less than 20 years will be rewarded with a bonus of 0.25-1.95 months' basic salary, while those with 20 years or more will enjoy two months' salary. As expected, the company will deliver Tet bonuses on January 26, 2024.

In addition, employees will receive an additional allowance of 5-8% of basic salary, depending on position and job title. For new employees joining the company from January 1, 2024, the company commits VND500,000 ($20.67).

Compared to last year, this year's Tet bonuses have increased VND150,000-300,000 ($12.4) per worker, depending on seniority.

Tu said the company's union held seven rounds of negotiations with the board of directors to secure Tet bonuses for workers. Amid unstable orders, the board has tried to retain workers and ensure their incomes. Early next year, the firm plans to increase it basic salary for workers by VND150,000 ($6.2) per month, he said.

Established in Vietnam in 1995, Chang Shin, with a charter capital of VND803 billion (2020), has a 14.3-hectare factory in Tan Phu Industrial Park with a total investment of $100 million in 2019 and an annual capacity of more than 27 million pairs of shoes.

Currently, Chang Shin Vietnam is a main supplier of the U.S. sports shoe brand Nike. Its Dong Nai factory was the first factory in Vietnam rated "gold" by Nike's Manufacturing Index.

The company ranked 4th among the top FDI giants in the leather and footwear industry at its peak in 2019-2020, after Pouchen and Fengtay of Taiwan, and Tae Kwang from South Korea.

However, Pou Chen, Fengtay, and Tae Kwang are facing certain difficulties and have announced layoffs and even factory closures. In August this year, Pou Chen Vietnam Co., Ltd., a subsidiary of Taiwan’s Pou Chen Group, announced an additional 1,200 layoffs, bringing the total from the beginning of 2023 to 9,000, due to a decline in orders.

Similarly, in April, TKG Taekwang MTC Vietnam Co., Ltd., headquartered in Loteco Industrial Park, Bien Hoa town, cut its remaining 800 workers and closed its factory.

Meanwhile, Fengtey is gradually restoring production and business after a difficult period. Previously, it had to lay off thousands of workers and close its factory in 2021.

According to Dong Nai authorities, in addition to Changshin, Hyosung Vietnam Company Limited, located in Nhon Trach 5 Industrial Park, announced a 2024 Lunar New Year bonus of 150% of their basic monthly salaries, along with many incentives. Workers will receive 100% of their basic monthly salaries on February 2, 2024 and the remaining 50% on April 10.

Comments (0)
  • Read More
Vietnam sees renewed output expansion, improved business confidence in May: S&P Global

Vietnam sees renewed output expansion, improved business confidence in May: S&P Global

May saw a more stable picture in terms of U.S. tariff policies than April, helping lead to a renewed expansion in output and improved business confidence, says Andrew Harker, economics director at S&P Global Market Intelligence.

Economy - Mon, June 2, 2025 | 9:18 am GMT+7

Vietnam considers developing 2 inter-regional renewable energy service and industry hubs

Vietnam considers developing 2 inter-regional renewable energy service and industry hubs

The Ministry of Industry and Trade (MoIT) has proposed building two inter-regional renewable energy service and industry hubs in the country.

Economy - Mon, June 2, 2025 | 8:00 am GMT+7

Investors advised to take profits from stocks having risen sharply

Investors advised to take profits from stocks having risen sharply

Investors should maintain a balanced stock allocation in their portfolios and consider buying opportunities if the VN-Index retreats to the 1,300-1,320 point range, say market experts.

Finance - Sun, June 1, 2025 | 8:10 pm GMT+7

Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Phu Nhuan Jewelry JSC (PNJ), a leading jewelry producer in Vietnam, rallied sharply ahead of the central bank’s Friday release of its gold market inspection findings.

Companies - Sun, June 1, 2025 | 1:14 pm GMT+7

Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand

Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand

Emall Vietnam, which owns a network of 100 high-end business shoe stores under the Pierre Cardin and Oscar brands in Vietnam, has taken over the entire Pierre Cardin shoe system in Thailand.

Companies - Sun, June 1, 2025 | 10:29 am GMT+7

Southern Vietnam province Ba Ria-Vung Tau okays 53 projects

Southern Vietnam province Ba Ria-Vung Tau okays 53 projects

Ba Ria-Vung Tau authorities on Friday granted in-principle approvals or investment registration certificates for 53 projects, including a green light for a $400 million investment capital hike of the $5.4 billion Long Son Petrochemicals Complex.

Industries - Sun, June 1, 2025 | 8:00 am GMT+7

Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland 

Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland 

Novaland, a major real estate developer in Vietnam, will simultaneously implement plans to issue bonus shares and offer ESOP (employee stock ownership plan) shares, with a total issuance rate of 5%, equivalent to more than 97 million units.

Companies - Sat, May 31, 2025 | 11:09 pm GMT+7

Vietnam billionaire Pham Nhat Vuong to contribute 48 mln Vingroup shares to VinSpeed

Vietnam billionaire Pham Nhat Vuong to contribute 48 mln Vingroup shares to VinSpeed

Billionaire Pham Nhat Vuong has registered to transfer more than 48 million Vingroup (VIC) shares to the newly-established VinSpeed that registered to build the North-South high-speed railway project.

Companies - Sat, May 31, 2025 | 7:14 pm GMT+7

Two investors propose $65 mln wind power project in central Vietnam

Two investors propose $65 mln wind power project in central Vietnam

A consortium of Quang Tri Renewable Energy Investment JSC and Win Power Holding Pte Ltd, and Nam Binh Wind Power JSC have submitted an application to implement a 48-megawatt wind power plant in the central province of Quang Tri.

Energy - Sat, May 31, 2025 | 3:10 pm GMT+7

Central Vietnam city seeks investors for $209 mln LNG, LPG terminal project

Central Vietnam city seeks investors for $209 mln LNG, LPG terminal project

The central city of Danang is calling for investment in an LNG and LPG terminal project worth over VND5.43 trillion ($208.7 million).

Infrastructure - Sat, May 31, 2025 | 10:52 am GMT+7

Thai-backed food giant C.P. Vietnam rejects pork safety accusations 

Thai-backed food giant C.P. Vietnam rejects pork safety accusations 

C.P. Vietnam, a subsidiary of Thailand’s food giant Charoen Pokphand Foods Public Company Limited (CPF), has dismissed social media allegations of selling diseased pork, calling them fabricated and false.

Companies - Sat, May 31, 2025 | 8:54 am GMT+7

Oman Investment Authority to expand investment fund in Vietnam

Oman Investment Authority to expand investment fund in Vietnam

Prime Minister Pham Minh Chinh has proposed Oman to enlarge the Vietnam-Oman Investment Fund (VOI) to $1 billion to better cater for the Southeast Asian country's investment needs.

Economy - Fri, May 30, 2025 | 11:26 pm GMT+7

Japanese retailer Aeon to build 2-hectare mall in Vietnam’s Mekong Delta

Japanese retailer Aeon to build 2-hectare mall in Vietnam’s Mekong Delta

Retail giant Aeon will develop a 2-hectare mall in the Mekong Delta province of Tien Giang, with an estimated investment of VND1.16 trillion ($44.6 million).

Industries - Fri, May 30, 2025 | 4:44 pm GMT+7

76% of Vietnamese survey respondents say trade uncertainty encourages them to explore new opportunities: HSBC

76% of Vietnamese survey respondents say trade uncertainty encourages them to explore new opportunities: HSBC

Vietnamese businesses have experienced exponentially higher cost increases than the global average and are expecting additional short-term costs due to trade uncertainty. But many survey respondents (76%) think trade uncertainty has encouraged their business to evolve and explore new opportunities, write HSBC analysts.

Consulting - Fri, May 30, 2025 | 2:41 pm GMT+7

Vietnamese firm lands first $1 mln order on Alibaba after 8-year struggle to export

Vietnamese firm lands first $1 mln order on Alibaba after 8-year struggle to export

After five months of operating a virtual storefront on Alibaba’s B2B e-commerce platform, Sukavina Co., Ltd., a Binh Duong province-based manufacturer of metal tables, chairs, and beds, secured its first international order, marking a significant milestone in the company’s eight-year journey to global markets.

Companies - Fri, May 30, 2025 | 2:37 pm GMT+7

AgriS partners with IFC: Optimizing environmental and social management system, accelerating net zero 2035 goal

AgriS partners with IFC: Optimizing environmental and social management system, accelerating net zero 2035 goal

TTC AgriS (Thanh Thanh Cong-Bien Hoa JSC or AgriS) and International Finance Corporation (IFC) - a member of the World Bank Group - has signed an MoU to strengthen sustainable development governance in alignment with global standards.

Companies - Fri, May 30, 2025 | 2:30 pm GMT+7