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SUPPLY CHAIN IMPACTS OF 

TYPHOON YAGI IN NORTH VIETNAM

Welcome to a pivotal discussion on the recent catastrophic events in Northern Vietnam. Just a week following Typhoon Yagi and subsequent flash floods, we gathered crucial insights from a comprehensive report involving 216 companies from the Manufacturing (38.7%), Retail & Distribution (15.1%), and Logistics (26.9%) sectors that faced the storm's immediate aftermath, highlighting significant disruptions, economic losses, and recovery effort. This study, conducted by CEL from September 10th to 15th 2024, delves deep into the resilience and challenges faced by Vietnam’s economic backbone—its supply chains.

 

Key Findings:

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Economic Impact: Climate damages are projected to reduce GDP by 0.15%.

An estimated $1.64 billion in damages has been incurred, with Vietnam’s GDP expected to drop by 0.15% in 2024 due to Typhoon Yagi’s effects on critical infrastructure and industries.

 

Business Impact: Over half of companies faced delays, 15% faced severe disruptions.

About 15.4% of companies faced severe disruptions, while 53.6% experienced manageable delays. Only 6.2% of businesses reported no impact from Typhoon Yagi.

 

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.

 

Sector-Specific Challenges: Agriculture saw extensive losses in crops, livestock, and aquaculture.

The agriculture sector suffered the most, with 262,000 hectares of crops destroyed, 2,250 aquaculture farms lost, and nearly 2.3 million livestock killed due to the typhoon.

 

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.

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Sector-Specific Effects: The logistics sector was the hardest hit, affecting 82% of businesses.

82.4% of businesses in the logistics sector faced 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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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.”

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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