The latest case of a South Korean boss leaving Vietnam without notice has left 40 local workers unpaid.
Kim Dae Gun, the director of Cho Won Textile Company in Dong Nai province reportedly went on a business trip on October 22 and has not returned to Vietnam, VN Express reported. According to reports, the company has not paid its workers for the past two months.
Despite numerous efforts, workers at the company have failed to get hold of Kim and have since filed an official complaint.
Statistics from Dong Nai’s Department of Labor showed that the Cho Won Textile Company is in debt. They still owe VND120 million (US$5,150) in social insurance contributions as well as VND23 billion (US$986,973) to banks in the region.
Cho Won is not the first Korean-owned company to experience something like this. In February, more than 1,900 people were left unemployed when textile and garment firm KL Texwell Vina’s Korean director and managers fled the country while their workers were on their Tet vacation. The workers were reportedly owed VND31 billion (US$1.37 million) in salaries and insurance payments.
Despite the recent rise of 6.5% in the statutory minimum wage, Vietnamese workers are still in despair. According to the Vietnam General Confederation of labor, a study showed 26.5% of respondents were “just getting by”, while another 12.5% indicated the need to work overtime and/or more jobs to support themselves and their families.