ECCO shuts Vietnam shoe factory as group restructures manufacturing
Most employees will have their contracts terminated by November 30. The factory reported a workforce of 1,620 at its 2025 workers’ conference.
Danish footwear maker ECCO has halted production at its Vietnam factory in Bau Bang Industrial Park, citing weaker demand over several years and a global restructuring of its manufacturing operations. The Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA) said general director Petr Milan announced the decision to employees.
The company said the group had substantial surplus capacity and intended to consolidate production across fewer existing factories. HEPZA deputy head Truong Van Phong told Tuoi Tre that ECCO Vietnam planned to cease operations in the country while focusing on expansion of its main Danish factory.
An ECCO Vietnam representative said contracts for employees not retained for liquidation work would end on November 30, or sooner if their contracts expired before that date. A small workforce will stay temporarily to help with the dissolution.
ECCO pledged to settle unpaid wages, compensate unused leave and make other statutory payments, alongside additional goodwill support to be specified individually. Employees will retain benefits under their contracts and labour regulations during the transition, and their social insurance records and employment documents will be returned.
Phong said no unpaid social insurance contributions had been reported. HEPZA has discussed employee entitlements with the company, labour federation representatives and local authorities, and will help affected workers find opportunities at nearby businesses.
The factory started operating in April 2020 following a registered investment of US$38.18 million. Information published by the former Bau Bang Labor Federation put ECCO Vietnam’s workforce at 1,620 when its 2025 workers’ conference took place.
