Business · Vietnam Bureau
Danish shoe manufacturer ECCO closes Vietnam plant, displaces 1,600 workers
ECCO, a major Danish footwear producer, has ceased operations at its manufacturing facility in Ho Chi Minh City, initiating formal closure procedures. The shutdown affects approximately 1,600 employees at the plant located in Bau Bang Commune.
LSN Vietnam ·
ECCO Vietnam halted production at its Bau Bang facility on Monday afternoon, marking the beginning of the company's formal dissolution process at the site. The closure represents a significant reduction in the company's regional manufacturing footprint and leaves over 1,600 workers without employment.
The decision to wind down operations comes as international footwear manufacturers continue to reassess their production strategies across Asia. ECCO, known for its Danish-designed comfort shoes and boots, has maintained operations in Vietnam for several years as part of its broader Asian manufacturing network.
Employees at the Ho Chi Minh City facility now face an uncertain employment outlook as the company works through closure procedures. The closure is expected to trigger discussions regarding severance arrangements and worker transition support, though specific details have not yet been disclosed.
The plant's shutdown reflects broader shifts in global manufacturing, where companies regularly evaluate production costs, supply chain efficiency, and market demands. Vietnam's footwear sector, while historically significant, continues to experience fluctuations as multinational manufacturers adjust their operational strategies in response to changing economic conditions.