About 8,000 workers went on strike at a Taiwanese-owned shoe factory in southern Vietnam in the country's latest industrial action demanding higher pay, an official said yesterday.
Communist leaders and foreign businesses have voiced concern over the wave of wildcat strikes, seen as the worst in post-war Vietnam, that started almost three months ago in mainly Asian-owned plants around Ho Chi Minh City.
The latest dispute flared up in a Taiwanese-owned factory, said Tran Van Ngoc, chairman of the Hoa An commune's people's committee in Dong Nai province, 50km from the city.
"The number of strikers in the Pou Chen Vietnam company reached up to 8,000 on Monday," Ngoc said.
"The company gave the workers the rest of the day and Tuesday off to search for an early solution," he said.
Company officials could not immediately be reached for comment.
According to the state-run Tuoi Tre daily, the workers went on strike because they were unhappy with their salaries.
The industrial disputes over pay and conditions started in late December. Unskilled workers in Vietnam typically earn about US$2 a day for work in factories that make footwear, textiles and other products for export.
Senior Labor Ministry official Pham Minh Huan has voiced concern about the strikes, some of which have turned violent, state media reported yesterday.
"We need to limit the spread of strikes held across the country in the recent past as they have served to create an unstable environment for foreign investment," he was quoted as saying.
All unions in Vietnam are under the umbrella of the Communist Party and in principle workers need to seek authorization 20 days before a strike.
Japanese officials have met President Tran Duc Luong to voice their concern about the strikes, a Vietnam government spokesman has said. And the European Chamber of Commerce in Vietnam wrote a letter to Prime Minister Phan Van Khai in January, saying they worried the strikes could spread to European-owned plants.
One of Vietnam's attractions as an investment destination, the letter said, was "the fact that the workforce is not prone to industrial action."
The strikes come as the European Commission is accusing Vietnam and China of dumping footwear on the European market and is threatening to slap import duties on the products.
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more
Protectionism: US trade chief Katherine Tai said the hikes would help to counter unfair trade practices from China, while boosting domestic clean energy investments US Trade Representative Katherine Tai (戴琪) defended stiff tariff hikes against countries such as China, saying that paired with investment, they were a “legitimate and constructive” tool for reinvigorating domestic industries. Tai’s comments come a week after sharp tariff increases on Chinese electric vehicles (EVs), EV batteries and solar cells took effect — with levies down the line on other products also recently finalized. The latest moves targeting US$18 billion in Chinese goods come weeks before next month’s US presidential election, with Democrats and Republicans pushing a hard line on China as competition between Washington and Beijing intensifies. In an interview on Thursday