Vietnam Faces Pension Crisis as It Tries to Appease Strikers

Vietnam may be forced to water down a new law designed to shore up its pension system after tens of thousands of workers protested against the changes in a strike that lasted nearly a week.

Four factories employing more than 90,000, owned by Taiwanese footwear manufacturer Pou Chen Corp., halted production last week as workers protested new pension rules that go into effect next year aimed at boosting the retirement program. The affected factories have resumed production Monday. The new law prevents laborers from being eligible for lump-sum social insurance payments when they leave companies. To bring back those on strike, Prime Minister Nguyen Tan Dung’s government will propose amendments to the law to meet worker’s demands of payouts when they quit a job.