Pou Phong Vietnam Company Ltd. (Vietnam)

The subject is considered as member company of Pou Chen Group. Precious Full Investments Limited is direct parent company of the subject. The Group has reputation for footwear production of famous brands such as Nike, Adidas, Asics, New Balance, Timberland and Salomon.During 4th outbreak of Covid-19 pandemic in 2021, the subject and other member companies in the Group suffered from difficulties (a drop in orders, delay in import & export activities, a rise in transportation costs…). Most noticeably, the competent authorities forced manufacturing companies to follow “three on the spot” requirement to control the pandemic. This led to a burden in accommodations preparation and operating costs, especially for companies which own huge labor forces. Some related companies in the Group like Pouyuen Vietnam Company Limited even suspended production under adverse impact of the pandemic. Although the pandemic is controllable at present, there are some uncertainties caused by geopolitical risks, energy shortage and high inflationary rates in many economies. The global economy recovery (post the pandemic) is not actually optimistic.In the first months of 2023, the company faced many difficulties due to a shortage of orders. The company was forced to cut 227 workers during this period. Besides the subject, many companies in the same field also face the same situation. In the first 4 months of 2023, Pouyuen Vietnam Company Limited cut 5,700 employees, Pou Sung Vietnam Co., Ltd. reduced 1,000 employees, Tkg Taekwang Mtc Vina Company Limited terminated contracts with nearly 800 employees...