Industry leader Vinatex weighs furloughs for 50,000 as coronavirus saps demand
HANOI/YANGON — Vietnam’s textile sector is reeling from a sudden loss of orders that could be catastrophic to many garment makers, with industry leader Vinatex contemplating a furlough of up to 50,000 workers.
If the outbreak’s impact persists, many businesses could go under, threatening not only Vietnam’s economy but also the global supply chain that has supported such purveyors of fast fashion as Zara and H&M.
“As things stand, 30% to 50% of jobs will disappear by May,” said Vinatex CEO Le Tien Truong. The company has 200 or so factories in Vietnam and more than 100,000 workers within the group.