The company has begun dissolution procedures and says contracts for employees not offered continued employment will end on 30 November, or earlier if they expire before then.
ECCO Vietnam stopped production at its footwear factory in Ho Chi Minh City on the afternoon of 2 November and began procedures to dissolve the company. The factory had 1,611 workers, including 259 employed by outside contractors, VnExpress reported.
Truong Van Phong, deputy head of the Ho Chi Minh City Export Processing and Industrial Zones Authority, said Denmark’s ECCO Sko A/S, ECCO Vietnam’s sole owner, decided to dissolve the company. Tuoi Tre reported that the company’s announcement cited an owner decision dated 30 October 2026. Bao Tin Tuc separately estimated the workforce at about 1,400, a different count from VnExpress’s 1,611.
The Bau Bang factory had operated since April 2020. ECCO Vietnam said years of falling demand and excess production capacity drove the closure, part of a global restructuring that will concentrate manufacturing at fewer existing factories.
At a November 3 meeting with officials, unions and local authorities, ECCO Vietnam promised full November wages even though production had stopped and workers were no longer required to work. It also reaffirmed a 13th-month salary, proportional to time worked during the calendar year through termination, and additional compensation of half a month’s basic salary per year of service.
Under the company’s announcement, employees awaiting termination need not attend the office or factory from 3 November and will retain their wages and legal and contractual entitlements while they wait. Phong said ECCO Vietnam had not defaulted on social-insurance contributions. Labor Federation leaders said on 3 November that their preliminary assessment found no outstanding worker-entitlement debts at that point; this did not confirm that termination payments had been completed. On 2 November, the industrial zones authority, the federation and local authorities met company officials and told them to fulfill worker-benefit commitments and facilitate recruitment by other employers.
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The company also promised half a month’s basic salary for each year of service, in addition to legally required severance. Service shorter than 12 months will be rounded up to one year. It promised to pay outstanding wages, unused annual leave and other amounts required by law.
Contracts for employees not offered continued work will end on 30 November 2026, or earlier if they expire before then. Some employees will stay for a few months to help dissolve the company. For each day worked, they have been promised an extra bonus equal to 50% of a day’s basic pay, to be paid with the relevant month’s wages.
Truong Van Phong, deputy head of the Ho Chi Minh City Export Processing and Industrial Zones Authority, said at least 12 companies had registered to recruit ECCO workers and were seeking to fill more than 5,600 vacancies. Thanh Nien reported that at least 12 employers had visited ECCO Vietnam directly to recruit, including Paihong Vietnam, Diamond Vietnam and Waytex. The authority has asked ECCO Vietnam to facilitate recruitment at the factory and simplify procedures.
The Labor Federation separately compiled 3,330 vacancies at eight employers: AMPACS International, T.O.P Outdoor, Chervon Vietnam, Hailex Vietnam, Fine Chemical Vietnam, Kammi Vina, Arneplant Vietnam and Leeda Vietnam. AMPACS International was seeking 2,000 workers. The Ho Chi Minh City Employment Service Center reported 1,306 garment, textile and footwear vacancies and 2,473 applicants in October. Bau Bang commune authorities are reviewing workers' circumstances, connecting them with social assistance and asking landlords to help ease their difficulties. Industrial Zone Union No. 5 has been assigned to track payments, connect workers with jobs and report issues beyond its authority.
The Ho Chi Minh City Labor Federation said it would continue directing Industrial Zone Union No. 5 to coordinate a review of each group of workers, including the 259 employed by outside suppliers. It said transfers to other employers must be voluntary and workers' entitlements at their previous employer must be fully resolved. The workplace union will help receive and answer workers' complaints and monitor the company’s commitments. Unions will offer legal advice, help with unemployment-insurance paperwork and review cases needing additional assistance.
ECCO Vietnam has also promised to confirm workers' social- and unemployment-insurance records and return related documents. Labor Federation deputy chairman Phung Thai Quang said he had instructed industrial-zone and company unions to review employee lists and support those losing their jobs. The city’s Trade Union Labor Consultation and Support Center will compare the company’s announced policies with legal requirements and monitor their implementation.
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