Changxin Vietnam Co., LTD., one of the giants of the footwear industry, will spend about 650 billion VND (about 186 million yuan) to give more than 40,000 workers a 2025 Spring Festival bonus.
On November 29, Mr. Dang Tuan Tu, president of the Permanent Residence Union of Changxin Company in Vietnam, said that the Spring Festival bonus information for employees of the company had been announced. This is the same bonus as in previous years and is included in the collective labor agreement.
According to this, workers who have worked for a full year will receive one month's official salary (VND 5.56 million), then an annual increase of 5%, up to a maximum of 200% (equivalent to two months 'salary). The maximum bonus for senior workers is about VND20 million.
In addition, the company also gives incentives to employees with fewer years of service according to the number of payment months.
The company's New Year bonus for 2025 is 200,000 VND/employee.
The company's trade union representative responded to reporters that the company's orders this year are stable, the employment situation of workers is good, and the number of workers has increased by about 3,000 from more than 37,000 last year.
At present, Vietnam Changxin is the main product supplier of the American sports shoe brand Nike. The Changxin factory is the first factory to produce gold grade products for Nike, which meets the standards of Nike's production indicators.
High cost
More than 60 shoe factories here have cut production by 50%
On November 30, according to media reports:
High logistics costs and reduced demand due to rising prices have forced many shoe manufacturers in Indore, India, which has more than 60 factories, to cut production by 30-50 per cent.
Shoe manufacturers in Indore focus on producing shoes from recycled materials and sell their products to more than seven states.
Girish Punjabi, president of the Indore Shoe Manufacturers Association, said:
"With an average production cut of 30 to 50 per cent, production is falling at almost every plant. Our prices are much higher than other states due to rising logistics costs, so demand from other states has dropped significantly, "he said.
Indol shoe makers' main competitors are suppliers in Delhi and Mumbai.
"For distant markets like Assam and north-eastern markets, we have to wait at least a week to ensure a full shipment to send goods, whereas Delhi and Mumbai ship almost every day. The cost of logistics in Madhya Pradesh is also quite high compared to other competing states as shipments are made daily in Madhya Pradesh and there are multiple logistics options available. As a result, the rise in logistics costs is weakening our market, "said Panjabi.
Industry insiders say high input costs have cut margins, leaving little money for research and development and expansion.
The Shoe Manufacturers Association has been asking for a local manufacturer cluster in Indore to bring the players together under one roof.
Amit Sancheti, secretary of the shoe manufacturer, said:
"We have been asking for a shoe cluster for more than two years, but the state government has not responded to our request. The cluster will provide us with a common R&D platform and expand our reach into new markets."
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