Hanoi, major Vietnamese footwear manufacturer, supplying renowned brands including Nike, Adidas, and Reebok, is set to undergo its third round of job cuts this year. 

As reported by state media on Wednesday, the reduction in workforce is attributed to a lack of orders. The Southeast Asian nation ranks among the globe's leading exporters of apparel, footwear, and furniture. 

However, its economic growth has led to sluggishness in the first half of the year due to a decline in demand, further impacting its exports.

PouYuen Vietnam, a subsidiary of Pou Chen Group based in Taiwan, is reportedly planning to terminate approximately 1,200 employees with permanent contracts by the end of August, reported VnExpress, citing a local official in Ho Chi Minh City. 

"PouYuen Vietnam said the job cuts are due to no recovery in terms of orders. Only a few clients made orders," VnExpress reported.

The company stands as one of the major employers in Ho Chi Minh City, the commercial hub of Vietnam, boasting an estimated workforce of around 40,000 employees.

This marks the third instance within this year, where the company has initiated job cuts. The first layoff came in May, where nearly 6,000 employees on permanent contracts were fired. Prior to this, the company had already released approximately 3,000 permanent staff members in February.

This course of action followed PouYuen's decision to implement a rotational paid leave arrangement for 20,000 of its employees last year. In the second quarter of 2023, Vietnam witnessed over 217,000 individuals losing their jobs, as reported by the country's General Statistics Office. 

The majority of these job losses were concentrated in sectors related to textile manufacturing, footwear production, and electronics.