Korean-owned factory in HCMC to close days before Tet, leaving over 2,600 workers jobless

Truong Van Phong, deputy head of HCMC Management Board of Export Processing and Industrial Zones, said on Dec. 25 that Panko Vina Company, a Korean-invested manufacturer based in My Phuoc Industrial Park, Ben Cat, will stop operating its factory due to prolonged financial difficulties and shrinking orders.

The company plans to scale down and consolidate production at its remaining facility in Da Nang.

Under the company's timeline, workers will remain employed until Jan. 15, 2026, while the factory continues operations until Jan. 31 to finish existing orders. From Feb. 1, just days before Tet, operations will be halted.

Panko Vina said it will pay workers in full through January, cash out unused annual leave and provide each employee an additional VND2 million (US$76) support payment, along with severance benefits as required by law. The company emphasized it has no outstanding wages or social insurance debts.

Panko Vina, part of Korea’s Panko Textile Group founded in 1984, has operated in Vietnam since 2003. At peak capacity, it ran three factories and employed over 8,000 workers.

Phong says an investor is considering taking over the factory, which could allow some workers to stay on. Several other businesses have also expressed interest in hiring affected employees.

Authorities set to work with the company next week to safeguard workers' rights and benefits.