Wed Sep 18 04:16:02 UTC 2024: ## Typhoon Yagi Devastates Northern Vietnam, Disrupting Global Supply Chains
**Haiphong, Vietnam** – Typhoon Yagi, the strongest to hit Vietnam in decades, has wreaked havoc on the country’s industrial heartland, causing millions of dollars in damage and disrupting global supply chains. The storm, which slammed into the port city of Haiphong before unleashing torrential rain across the north, has left dozens of factories and warehouses damaged, with some businesses reporting losses of tens of millions of dollars.
“At least 85 percent of our customers have sustained damage,” said Bruno Jaspaert, CEO of DEEP C Industrial Zones, home to 178 companies in Haiphong and Quang Ninh province. He reported widespread roof damage and even a complete wall collapse at one facility.
The storm’s impact has been felt across the global tech industry, with companies like Samsung, Foxconn, and LG Electronics reporting disruptions. While Samsung claims its operations remain normal, LG Electronics confirmed flooding at a warehouse, damaging appliances. The Korean Chamber of Business in Vietnam described the typhoon as a “disaster” for its members, with some struggling with staff shortages due to flooding.
Japanese businesses have also been affected, with approximately half reporting damage and another 70 percent experiencing business interruptions or suspensions.
The disaster has raised concerns about Vietnam’s vulnerability to climate change and its ambitious goal of becoming an alternative to China in the global supply chain. While Vietnam has seen significant investment in recent years, the World Bank estimates that climate change could cost the country 12-14.5 percent of its GDP annually by 2050.
Experts argue that the typhoon highlights the urgent need for Vietnam to invest in renewable energy sources like solar and wind power, which could provide a more resilient energy supply during extreme weather events.
“These are the opportunities that the Vietnamese government should tap into,” said Dinita Setyawati, a senior electricity policy analyst for Southeast Asia at Ember.
The Vietnamese government has estimated the economic losses from Yagi at $1.6 billion, which is expected to slow GDP growth in the second half of the year. While investors are concerned about Vietnam’s susceptibility to climate change, many remain optimistic about the country’s future, citing a lack of viable alternatives.
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