Ho Chi Minh City Company Shuts Down, Owes Workers Billions in Unpaid Wages; Case Sent to Prosecutors

Ho Chi Minh City's Hoàng Sinh Company has shut its doors, leaving a significant financial burden on its employees. The company owes nearly 63 billion Vietnamese dong (approximately $2.5 million USD) in wages and insurance payments, impacting hundreds of workers.

The Social Insurance Agency of Ho Chi Minh City has escalated the matter, transferring the case to the People's Procuracy for the 15th district. This move aims to initiate legal proceedings to safeguard the legitimate rights of the affected workforce.

While the agency has managed to update and close insurance books for 837 employees up to March 2023, a substantial number of 454 cases remain unresolved. This includes 152 employees who joined after March 2023 and 302 others for whom the company has yet to provide the necessary documentation for closure.

Despite repeated attempts to collect overdue payments, including administrative measures and inter-agency coordination, the company has failed to meet its obligations. This includes a failure to appear for a crucial meeting on July 29, 2026, with the Social Insurance Agency, the People's Procuracy, local police, and tax authorities. The company had previously committed to a payment plan but did not adhere to it, leading to the current legal referral.