Danish footwear manufacturer ECCO has stopped production at its factory in southern Vietnam, affecting more than 1,600 workers as part of a wider restructuring of its global manufacturing operations.
The factory, located in Bau Bang Industrial Park, ceased production on November 2, 2026, following a decision by ECCO’s Danish parent company to dissolve its Vietnamese subsidiary.
The closure affects 1,611 workers, including employees hired through outsourced service providers. Most employment contracts are expected to end by November 30.
ECCO has attributed the decision to several years of declining market demand and excess production capacity. The company has pledged to settle outstanding wages and provide additional financial support to affected employees.
Established in 2020, the factory represented an investment of approximately US$34 million and had an annual production capacity of 8.1 million footwear products and components.
The closure is part of a broader restructuring that also includes the shutdown of a factory in Portugal. ECCO will concentrate production at fewer existing facilities as it adjusts its global manufacturing network.
Source: Footwearnews
