Typhoon Yagi-Battered Vietnam Begins Recovery
After Typhoon Yagi swept through Vietnam last week, triggering landslides and flash floods that have resulted in more than 290 deaths and 800 injuries as of Friday, factories are beginning the hard road to recovery.
The brunt of the devastation took place in the northern part of the country, which includes the capital of Hanoi, a major industrial hub, and the city of Haiphong, where many apparel and electronics manufacturers established themselves in recent years. Tens of thousands of people were evacuated from low-lying areas as floodwaters rose to historic levels. More than 188,000 homes have been destroyed or damaged, according to authorities.
More from Sourcing Journal
Although power has largely been restored, many of the surrounding areas are still struggling for water and phone connections. Officials say they are monitoring the situation so that hydropower plants can regulate water to stop cities from further flooding. But the trail of devastation doesn’t stop there: Factories also have to contend with damage from fallen trees, blown-off roofs, collapsed walls and flooding.
According to Vietnam News Agency, the floods and landslides have caused millions of dollars in damage across the country.
But help is also coming around the world. On Wednesday, the United States announced $1 million in immediate humanitarian aid. Australia revealed on Thursday that it will be contributing $3 million. The Association of Southeast Asian Nations (ASEAN), too, has extended its support to relief efforts.
The typhoon, Asia’s most powerful this year, was not localized to Vietnam. It hit the island of Hainan in China and the island of Luzon in Philippines, generating winds of up to 160 kilometers per hour (99 miles per hour) near its center when it reached Vietnam.
Manufacturers say that while many factories acted early to minimize damage, roughly 10 percent of buildings in Haiphong are deeply damaged. Many goods that were stored in warehouses in preparation for export have also been ruined.
With Bangladesh struggling to meet its export targets in the wake of former prime minister Sheikh Hasina’s ouster and the worker unrest that has followed, Vietnamese manufacturers say they are under pressure to fix the factories as quickly as possible, as competition intensifies in the region.
Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), told local media that Vietnam continues to be a priority country for the United States.
He said that the U.S. was making moves to cut interest rates and stimulate consumer demand, just as manufacturers were looking to create more diversity in products.
The U.S. market accounted for half of Vietnam’s garment and textile exports in the first half of 2024. In 2023, Vietnam exported $40.3 billion of apparel and textile goods, a 9.2 percent decrease from the year prior.
Among the challenges faced by Vietnamese manufacturers is the focus on sustainability and more stringent norms related to regulations, labor and environment by the U.S and European markets.
“Our thoughts are with the victims of the fierce typhoon that took the lives of many people in Vietnam,” Cem Altan, president of the International Apparel Federation, told Sourcing Journal. “Although natural disasters have always occurred, it has become very painfully clear that the frequency and severity of extreme weather events is occurring. The apparel and textile industries are a significant contributant to the global warming that is fueling the increase of extreme weather. Decarbonization is one of the current and the next year’s three priority areas,” he said.
He added: “We urge brands and retailers not to cancel or stop orders in case of delays and also pay upfront or quicker for the goods they got delivered.”
The preparation for the typhoon itself was extensive, with government warnings and factories planning safety measures.
Nilanka Fernando, executive director and country head PDS Ltd, Vietnam said that while the typhoon was expected on Saturday, work carried on till Friday afternoon in many of the factories in the area, after which machines, and entire units were packed properly in polythene and water safe materials. Fabric and other materials stopped a few days prior and shipments from factories were dispatched to reduce damage to finished goods.
“After the typhoon made its first touch down on Saturday, with the crazy wind speeds of more than 140 miles per hour, blowing off roof tops, felling trees and causing destruction, the teams were back at work, fixing things by Sunday morning, finding ways to cut through fallen trees, and not waiting for government measures but finding ways to get themselves back on track. Many of the factories were back to work within days of the cyclone hitting,” he said.
“In total only a few business days were lost,” Fernando observed, adding that while the main rush of work for the winter season had already been completed, manufacture was mostly on for the spring season.
Overall, according to government sources, the damage to the country was well over caused $1.6 billion, leaving many homeless and faced with severe repair issues for homes.
Typhoon Yagi has hit Myanmar badly as well, causing more than 110 deaths, and displacing 320,000 people, and severe flooding.
Solve the daily Crossword
