Thu Sep 12 15:56:00 UTC 2024: ## Typhoon Yagi Pummels Northern Vietnam, Disrupting Global Supply Chains
HANOI – Typhoon Yagi, the strongest to hit Asia this year, has wreaked havoc on Vietnam’s export-oriented industrial hubs, causing widespread damage to factories and flooding warehouses. The typhoon, which made landfall over the weekend, continues to cause deadly floods and landslides, claiming dozens of lives and disrupting vital infrastructure.
The disruption to operations in northern Vietnam, home to large manufacturing facilities of multinational corporations, is expected to impact global supply chains. The affected companies predominantly export their products to the US, Europe, and other developed nations.
“Many of them are gone with the wind,” lamented Calvin Nguyen, head of logistics firm WeDo Forwarding, referring to products destined for the US and EU. WeDo Forwarding’s three warehouses in Haiphong, one of the hardest-hit areas, suffered roof damage and flooding.
The Haiphong industrial zone management reported that 95% of businesses were expected to resume some activity by Tuesday. However, damage assessments reveal a more dire situation. 20 out of 150 factories in Haiphong and the neighboring province of Quang Ninh will be out of commission for at least a few weeks, according to Bruno Jaspaert, head of the industrial zones. He predicts power consumption will remain a third lower than normal for weeks or months as companies prioritize rebuilding.
Jupiter Logistics, a company co-owned by Japan Airlines, was among the affected businesses. While damage to their warehouse was minor, cargo had to be moved to a different location.
LG Electronics, operating in Haiphong, has partially resumed work after its factory suffered wall damage and its warehouse was flooded.
The widespread power outages caused by damaged electricity lines are further complicating the situation. In Quang Ninh, factories remain without electricity or water, and Jinko Solar, a Chinese solar panel manufacturer, sustained significant damage with windows shattered and the roof blown off.
While the industrial hubs of Thai Nguyen and Bac Giang, home to Samsung Electronics and Foxconn, have so far avoided major flooding, the risk remains as more rain is expected.
As rescue efforts continue and power restoration remains a priority, the full extent of the damage and its impact on global supply chains is still being assessed. The recovery process is expected to take weeks, potentially causing delays in shipments and impacting businesses worldwide.
First Piper 