Taiwanese footwear maker readies $62 mln for Vietnam Lunar New Year bonuses

PouYuen Vietnam, a Taiwanese footwear maker with the largest workforce in Ho Chi Minh City, will give Tet (Lunar New Year) bonuses worth VND1,505 billion ($61.8 million) to its employees.

About 37,000 people will get Tet bonuses of up to two-month wages, depending on how long they have worked for the company. With payments ranging from VND5 million ($205.3) to VND67 million ($2,751.5), the company will give out an average Tet bonus of VND17 million ($698) per person.

PouYuen, a subsidiary of Taiwan’s footwear giant Pou Chen, entered Vietnam in 1996. At its peak, the firm employed nearly 80,000 people.

Garment maker pays bonuses to 62,000 workers

Vietnam's largest textile and garment maker Vinatex and its subsidiaries will give out an average Tet bonus of VND16 million ($657), equivalent to 1.7 months’ wages, to its 62,000 workers.

On average, the monthly wage of an apparel-textile worker in Vietnam is $330, said Vinatex CEO Cao Huu Hieu. He said the figure was the second-highest in the world, only behind China with $420. It was double and triple the wages in India and Bangladesh, respectively; and 1.8 times that of Cambodia.

The comparatively high cost is a disadvantage for Vietnam-based firms despite their productivity being 10-15% higher than peers in other countries, Hieu said.

In 2023, Vinatex recorded a pre-tax profit of VND377 billion ($15.5 million) on consolidated revenues of VND17,225 billion ($707.4 million), exceeding set targets by 1.9% and 4.4%, respectively. The average monthly income of a worker in Vinatex and its subsidiaries was VND9.45 million ($388.1), or 11% higher than the country’s average, Hieu added.

According to a preliminary report by the Ministry of Labor, Invalids and Social Affairs, 61.37% out of 47,374 surveyed firms have said they would pay Tet 2024 bonuses at an average of VND6.85 million ($281.3) per person, the same as Tet 2023.