Kaiyang Vietnam owners fled, leaving $6.5-million debts and workers unpaid

By Trang Nguyen - Aug 30, 2019 | 09:59 AM GMT+7

TheLEADERThe disappearance of Kaiyang Vietnam leaders in early August has pushed the company into great troubles, requiring the authority of Hai Phong to step in to calm its furious workers down.

Kaiyang Vietnam owners fled, leaving $6.5-million debts and workers unpaid
Kaiyang Vietnam Co., Ltd. has been found to owe banks some $6.5 million and employees 1.5-month salary and wage

Following the vanishing of Kaiyang Vietnam Co., Ltd. general director Huang Shang Che and 17 other staffs, all Taiwanese, on August 11, the Hai Phong People’s Committee has requested the footwear manufacturer to follow procedures to either cease its operation or go bankrupt as it is now deemed not fit to continue business operation.

The 100 per-cent Taiwanese-invested company has been found to owe banks some VND150 billion ($6.5 million) and employees 1.5-month salary and wage. It also announced that it did not have the sufficient fund to maintain normal business operation.

Kaiyang Vietnam Co., Ltd. was established in 2005 with a license issued later on in 2008 to manufacture leather shoes for export purposes. The company registers its headquarter at 196 Hoang Quoc Viet Street, Ngoc Son Ward, Kien An District in Hai Phong City. It employs around 2,300 workers at the factory there.

Numerous dialogues have been held in August between the authority of Haiphong and Kaiyang employees in a bid to soothe these workers down and stop them from gathering up at the headquarter of Kien An District Party Committee to claim their rights.

According to chairman of the Hai Phong People’s Committee Nguyen Van Tung, to avoid any further losses to the company and its employees, Kaiyang is now required to stop its operation and carry out only certain tasks, including delivering of goods and collecting bill payments.

To further help resolve the situation at Kaiyang, Tung has summoned Che’s father Huang Tang Yung, who is the legal owner of the company, and Jenny Koo, the chairwoman of HS Co., Ltd. – the entity that was supposed to take over Kaiyang, to come for a working session.

HS Co., Ltd. previously had the intention to take over the shoes manufacturer. It was known to recompense Kaiyang staffs half month’s salary for the month of July. Yet later on, it decided to withdraw as observing the prolonged issues at Kaiyang.

The authority of Hai Phong has requested relevant agencies in the area to ensure the benefits for Kaiyang employees, including their social insurance, health insurance and the unpaid salaries and wages.