Workers at a furniture manufacturing plant in southern Vietnam have reportedly been left high and dry after the American investor in the project closed the factory and disappeared, Tuoi Tre is reporting. The workers are reportedly owed US$130,030 in unpaid wages and about US$40,420 in insurance coverage.
Of note, it’s not unusual for businesses in Vietnam to not pay their staff sometimes for months at a time. This is often the result of short-term cash flow problems and these delayed payments are sometimes caught up. That said, in many cases, they are not, which looks to be the case here. Of course, there are channels of recourse for workers in Vietnam, however, these can be difficult to access in the event a foreign business owner has left the country.
That said, foreign firms should keep in mind that internet penetration is very high in Vietnam and reputational damage is therefore not restricted to the Vietnam market.
See also: Insolvency in Vietnam