Nike’s Korean supplier to spend $26 mln on Lunar New Year bonuses for Vietnam workers

Changshin Vietnam, a South Korean-invested shoemaker and a supplier of Nike, plans to spend VND650 billion ($25.6 million) on Lunar New Year (Tet) bonuses for its workers.

This bonus package is the same as in the previous years, said Dang Tuan Tu, chairman of Changshin Vietnam’s trade union.

Employees who record a full year of working will receive a bonus equivalent to one month’s basic salary, or VND5.56 million ($219).

This amount will increase by 5% for each additional working year, up to a maximum of 200% (equal to two months' salary). For long-serving workers, the highest bonus can reach VND20 million ($789).

The company will also offer incentives to workers who do not record a full working year, based on the number of months they have worked for the firm.

Changshin Vietnam’s workforce is 40,000 workers, rising by 3,000 from last year. It is among the largest employers in Dong Nai province, a manufacturing hub in southern Vietnam.

Entering Vietnam in 1995, Changshin Vietnam currently runs a $100 million factory in the Tan Phu industrial park. The plant covers 14.3 hectares and has an annual capacity of 27 million pairs of shoes.

The Changshin Vietnam factory was the first Nike supply facility to achieve a gold-level ranking for meeting production criteria set by the U.S. footwear giant.

People in Vietnam will enjoy a nine-day holiday for the upcoming Tet (Lunar New Year) from January 25 to February 2, 2025, per a recent decision by Prime Minister Pham Minh Chinh.