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Lay-offs turning into stark reality in T&G sector
Jan '09
The economic crisis and the resultant slowdown in the global markets has now slowly but surely started showing its true colours. Worldwide companies are feeling the pinch with a majority of them announcing cutbacks in production or totally shutting down their plants.

Vietnam which has a vibrant textile, garment and footwear industry is feeling the effects of the recessionary trends the most, since most of these companies are dependent on exports for their sustenance. But with the unfolding of the crisis another big domestic catastrophe is in the making.

There are reports of most companies laying off workers or totally closing down their plants as they are not able to face the crisis. This is leading to large scale un-employment and is becoming a matter of great importance for the central and provincial governments.

According to statistics of the Municipal Labour Federation, in HCM city alone, more than 10,000 workers have lost their jobs in the last few months. Most of these jobless workers are from the textile, garment, footwear and food processing sectors.

The federation's vocational training employment centre and district-level labour federations have been finding jobs for the laid-off employees in companies operating in related sectors and so far has been able to place around 8,300 of these workers in different companies.

News is emanating of a similar crisis in other provinces and the federation has predicted that with each passing month, the number of unemployed will keep on increasing and it will be increasingly difficult to find them alternative sources of employment.

Fibre2fashion News Desk - Vietnam

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