Pou Hung Vietnam Company Limited (Vietnam)

Pou Hung Vietnam Company Limited is one of the members of the Pou Chen Group in Vietnam. It was established in 2010, being one of two projects of this group in Tay Ninh Province. The subject is processing footwear products for famous brands such as New Balance, Puma, etc. Besides, it also manufactures footwear accessories for other footwear manufacturers. As shared by an employee, the subject's production is under the direction of Pouyuen Vietnam Company Limited (Pouyuen Vietnam). This is the company with the largest number of employees of the Pou Chen Group in Vietnam. In Aug 2023, this company announced the third phase of the plan to cut the labor of 1,200 people. Phase 1 (Feb 2023) this company cut 2,300 people and phase 2 (May 2023) cut 5,700 people. From the beginning of 2023 to Aug this year, Pouyuen Vietnam cut more than 9,000 staff. Perhaps this is the general situation of Pou Chen Group members, including the subject.In early 2023, according to the Vietnam Leather - Footwear - Handbag Association (LEFASO), the leather and footwear industry aimed to achieve an export turnover of USD 27 billion for the whole year, an increase of about 10% compared to the previous year. According to statistics from the General Department of Customs, Vietnam's footwear exports of all kinds in September 2023 earned more than USD 1.33 billion, down by 22.2% compared to the previous month. For the whole quarter 3 of 2023, this item earned USD 14.6 billion, down by 19.1% compared to the same period in 2022. In the third quarter of 2023, in the 3 largest markets of Vietnamese footwear (the USA, China, Belgium), only the Chinese market reached VND 1.35 billion, up by 10.3% over the same period last year. Meanwhile, footwear exports to the USA only earned USD 5.23 billion and Belgium only reached USD 881 million, a sharp decrease of 32% and 27% respectively compared to the third quarter of 2022.Orders have shrunk and exports have not yet predicted a recovery time, forcing businesses to cut labor continuously. The figure of USD 27 billion in export turnover for the whole year of 2023 is clearly impossible in this context.With the current difficult situation of the footwear field, the subject's future is not expected to be brighter.