Ho Chi Minh City Company Closes, Owes Workers Tens of Billions in Back Pay

Hundreds of workers in Ho Chi Minh City face severe financial distress as Hoang Sinh Company has failed to pay wages since June 2024. The company's closure without settling its obligations has left employees struggling.

One affected worker has initiated legal action, resulting in a court order that has now been transferred to the enforcement agency. The Department of Home Affairs confirmed the wage arrears at a press conference on July 23, addressing media inquiries about the situation.

Provincial authorities previously fined Hoang Sinh Company 390 million Vietnamese dong for wage violations. Investigations also involved documenting unpaid wages, union fees, and social insurance contributions. The company was directed to pay all outstanding wages and ensure employee benefits were met.

Social insurance agencies are working with local authorities to finalize social insurance books for the affected workers. While awaiting resolution, employees are advised to arrange private health insurance. The Ho Chi Minh City Labor Federation is providing support to help workers stabilize their lives, and the Department of Home Affairs' Employment Service Center is facilitating job placements. Most workers have since found new employment, and authorities continue to monitor the situation to offer further assistance.