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SUPPLY CHAIN IMPACTS OF 
TYPHOON YAGI IN NORTH VIETNAM

Thirty days after Typhoon Yagi devastated Northern Vietnam, we reflect on the storm's lasting impact. Our analysis is based on a comprehensive survey involving 216 companies from key sectors such as Manufacturing (38.7%), Retail & Distribution (15.1%), and Logistics (26.9%). These businesses have faced significant disruptions and economic losses due to the typhoon and subsequent flash floods. This session aims to delve into the resilience and ongoing challenges these sectors face, exploring recovery efforts crucial for understanding the broader implications on Vietnam’s essential supply chains. We also discuss strategies to bolster supply chain resilience in the face of escalating climate change and severe natural disasters.

Key Findings:

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Impact of Typhoon Yagi on Vietnam: Typhoon Yagi and its aftermaths, hitting 26 northern provinces with $3.31 billion in damages, is Vietnam's most severe natural disaster since the 2000s, prompting immediate relief efforts and calls for enhanced long-term resilience planning. 

Business and Economic Impact of Typhoon Yagi: Typhoon Yagi significantly disrupted Vietnamese businesses; over 53% reported delays and 15.4% faced severe disruptions. The manufacturing sector was hit particularly hard, with the PMI in September dropping to 47.3 post-typhoon, indicating a contraction due to substantial disruptions in production and supply chains.

Response to Typhoon Yagi's Infrastructure Impact: Typhoon Yagi caused $1.12 billion in damages to northern Vietnam’s transportation infrastructure. The Ministry of Transport has responded with rapid restoration and strategic investments to enhance future disaster preparedness, focusing on improved forecasting, early warning systems, and robust storm shelters.

Widespread Disruptions: Supply chain and logistics suffered the highest disruptions.

73.3% of companies with severe disruptions come from the supply chain and logistics sector, with port operators, third-party logistics (3PL) providers, transporters, and cold chain services being the hardest hit.

Logistical Setbacks: Power outages and road damage severely impacted supply chains.

Supply chains in Northern Vietnam were severely disrupted by power outages, damaged inventory, road erosion, and flooded areas, slowing down operations across multiple sectors.​ The logistics sector was the hardest hit, affecting 82% of businesses with severe or moderate impacts from the typhoon, followed closely by the manufacturing sector, which also saw significant disruptions.

Optimistic Recovery Timeline: Nearly half of businesses expect to recover within two weeks.

44.6% of businesses expect to recover within 1-2 weeks, aided by rapid resource mobilization. However, this timeline may extend as companies move from initial optimism to confronting unforeseen challenges during recovery.

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Post-Typhoon Business Adaptations: Following Typhoon Yagi, 75% of businesses experienced disruptions, leading to a strategic shift towards more robust insurance, reevaluated financial strategies, emergency fund prioritization, and enhanced operational technology for improved resilience and preparedness.

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Supply Chain Resilience is Not Optional anymore

CEL’s Managing Partner, Julien Brun, noted, “Once more, Nature has made its point—loud and clear. The era of predictable weather is over, and events like Typhoon Yagi are no longer  exceptions. We must adapt to this new normal. The concept of ‘Just-in-Case’ must now be at the core of how we lead, decide, design, and operate our supply chains. This disaster is a wake-up call: we need to design differently, prepare better, and recover faster. The message is clear—resilience is not optional anymore.” Strategic planning along with robust recovery frameworks can significantly mitigate risks while ensuring operational continuity.

Structural Resilience

1. Infrastructure Enhancement and Diversification: Upgrade building quality and decentralize operations to minimize total operational failure risks.

2. Strategic Resource Management: Engage in comprehensive risk assessments and establish resource redundancies with multiple suppliers and secondary logistics options.

3. Alliance and Alternative Capacity Development: Form strategic alliances with companies in different locations to ensure operational support during primary operations disruptions.

Operational Readiness

1. Dynamic Business Continuity Planning (BCP): Develop and regularly update a formalized Business Recovery Plan and implement effective emergency response and recovery procedures.

2. Effective Business Recovery Plan: Build just-in-time capabilities such as more stock, more capacity, and more decentralized networks as part of a comprehensive recovery strategy.

3. Communication and Stakeholder Engagement: Maintain robust and transparent communication strategies to keep all stakeholders informed and coordinated before, during, and after a crisis.

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Explore Our Latest Reports

Dive into our comprehensive findings now available for download:

• For insights in English, access the full report here 

• For insights in Vietnamese, access the full report here.

Looking Ahead

CEL will continue monitoring recovery efforts and plans to release subsequent reports that dive deeper into long-term resilience planning for businesses.

For any suggestions or inquiries, please contact:
Quyen Nguyen, Industry Research Director
Email: quyen.nguyen@cel-consulting.com