Only open few days, the Vietnamese shoe factory apply for bankruptcy

Kathy resumed operations on the 20th, and employees have received half of the salary in the first 10 days of July and August last week. However, due to the inability of the new supervisory team to deal with legal issues, the bank did not agree to delay the company’s debt repayment time, and it took less than a week to announce its withdrawal. All employees of the company have once again fallen into the dilemma of "unemployment" and fear of loss of rights.

According to recent media reports:

After the boss of the Taiwan-funded Kailuan company in Vietnam’s Haiphong City lost contact, Taiwan’s H&S company stepped in to take over, but announced that it could withdraw from the legal issue. The Haiphong Municipal Government yesterday requested the relevant units to assist the factory to handle the business or bankruptcy procedures in accordance with the law, and set up a working group to deal with the company's aftermath.

Kay set up a factory in Hai Phong in 2004, specializing in the production of footwear products. Currently, it employs 2,357 employees, including 2,180 female employees. When the employees went to work on the morning of the 12th, they unexpectedly found that the factory and warehouse were closed. 18 people including Cao's Taiwanese boss and supervisors were missing.

After the incident, the Vietnam Labor Union and other units actively tried to communicate with the factory to discuss and seek solutions.

H&S Company expressed its intention to take over. Recently, it was connected with the father of Kathy’s boss. On the 19th, a new team of supervisors was sent to Haiphong to take over Kailu and meet with the staff. The new team of the company promised that half of the salary in the first 10 days of July and August will be paid to the employees before the 24th. The remaining half will be paid by the 31st, and other social benefits will be implemented in accordance with Vietnamese law.

Under the management of H&S, Kathy resumed operations on the 20th, and employees have received half of the salary in the first 10 days of July and August last week. However, due to the inability of the new supervisory team to deal with legal issues, the bank did not agree to delay the company’s debt repayment time, and it took less than a week to announce its withdrawal. All employees of the company have once again fallen into the dilemma of "unemployment" and fear of loss of rights.

Vietnam's "People's Intelligence" news website reported today that Nguyen Van Tung, chairman of Haiphong Municipal People's Committee, listened to the voice of employees and mastered the situation of Kailuo yesterday, asking employees to stop working immediately, but don't go to the factory to gather and take the initiative to find other jobs. Commitment will ensure employee rights and interests.

The report pointed out that Qi Wensong held a meeting to resolve the Kailuan company's dilemma yesterday afternoon, requesting the local planning and investment office to assist the factory to quickly stop the operation or bankruptcy procedures according to law, and the submitting committee agreed to approve.

The report said that Qi Wensong asked the relevant units to set up a working group to deal with the company's aftermath, including assisting the company to successfully sell the last batch of goods to obtain funds, block the factory to maintain assets, and solve the company's VAT refund procedures, so as to obtain priority for the company. Staff salaries and social insurance fees.

According to the report, the Haiphong Municipal Government requires the relevant units to pay the employees' salaries and social insurance fees in mid-September. If the expenses obtained from the company are insufficient, they will consider using the local government budget to pay. After the company stops operating or the bankruptcy procedures are completed, The factory assets will be recovered and the expenses will be recovered.

In addition, the Haiphong Municipal Government also requires the local police to ensure the security of the Kaiwai company inside and outside the area. If employees gather to influence the security order, they will not get the salary and other rights.

The Haiphong City Labor Union pointed out that when the Cao company boss lost the company, the company owed employees about 30,000 billion VND, bank debt of more than 149 billion VND and employee social insurance costs of 9.5 billion VND from May to now, and some employees owed sick Benefits such as production.