Financially troubled Garmex Saigon to sell land following 2,000 job cuts

By Tat Dat   February 28, 2024 | 05:27 am PT
Financially troubled Garmex Saigon to sell land following 2,000 job cuts
Inside a factory of Garmex Saigon in Ba Ria – Vung Tau Province. Photo courtesy of the company
Cash-strapped garment firm Garmex Saigon is seeking shareholders’ approval to sell two land lots after slashing nearly 2,000 jobs due to lack of orders.

The total area of the two lots is 76,000 square meters. One is in the southern province of Ba Ria – Vung Tau and the other in the central province of Quang Nam, according to a company letter to shareholders.

Their prices have yet to be announced.

Garmex Saigon laid off 1,947 employees at the end of last year and had 35 by December-end as the company had almost no customers.

It posted a loss of VND52 billion ($2.11 million) last year on top of the VND85 billion loss recorded in 2022.

The company is now trying to sell off unnecessary equipment among other assets to gain around VND30 billion.

Garmex Saigon has been operating for over 20 years and is among the largest garment firms with many international customers.

In 2019, before the Covid-19 pandemic, it had more than 4,000 employees.

Vietnam’s garment exports dropped 9% to $40 billion last year amid global economic challenges. Difficulties are set to linger in the first half of this year, according to analysts.

The Ho Chi Minh City Association of Garments, Textiles, Embroidery, & Knitwear said that in the first two months orders have improved but remained small.

Many companies are accepting low-value orders with almost no profit to keep business going.

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