Korean textile maker Panko Vina to shut Vietnam operations from Feb

Panko Vina Co Ltd, a South Korean textile manufacturer, will cease all production and business operations in Vietnam from February 1, 2026, ending more than 23 years of operations in the country.

In a notice to employees on Monday, the company, located at My Phuoc 1 Industrial Park in Ho Chi Minh City, said the decision was made following prolonged difficulties in production and business, particularly after the Covid-19 pandemic, when weaker global demand made it increasingly hard to secure new orders.

“Despite our best efforts to maintain operations, continuing production is no longer possible under current conditions,” Panko said. The shutdown is expected to affect 2,700 local employees.

The firm said it will continue operating until January 31, 2026, before formally shutting down a day later.

To ensure delivery schedules are met, the company has asked employees to work until January 15, 2026. January wages will be paid in full through January 31, even if some departments stop working earlier.

The company said it will fulfil all legal obligations to employees. Each worker will receive a severance payment of VND2 million ($76), in addition to statutory severance benefits.

On Wednesday, Nguyen Kim Loan, vice chairwoman of the HCMC Trade Union, said the agency will coordinate with local authorities to assess the needs of displaced workers and connect them with job opportunities at other textile and garment companies, initially in Cat Lai ward and potentially in surrounding areas, to help stabilize livelihoods.