ECCO, a Danish shoe maker, will close its factory in Ho Chi Minh City. The shutdown will affect more than 1,600 workers, so the story matters for many families.

ECCO Sko A/S said it will dissolve ECCO Vietnam because of years of declining market demand and excess production capacity. The company said contracts for workers not kept will end on Nov. 30, 2026, or earlier if they finish sooner. More than 1,600 employees will lose their jobs.

The company promised to pay all outstanding wages and compensation for unused annual leave. It will also give statutory severance, half a month’s base salary for each year worked, a proportional 13th‑month salary, and a bonus of half a day’s salary for each day a worker helps with the closure.

Truong Van Phong, deputy head of the Ho Chi Minh City Export Processing and Industrial Zones Authority (Hepza), said local authorities, Hepza and trade unions will work together to support the workers. He added that at least eight nearby companies have shown interest in hiring about 1,611 former employees.