On September 18, 2024, Typhoon Yagi struck northern Vietnam, wreaking havoc across the region, particularly in Haiphong and Quang Ninh province. The storm caused extensive damage to factories and warehouses, with business leaders estimating damages to exceed tens of millions of dollars. Reports indicate that 85% of customers in the DEEP C Industrial Zones experienced damage due to the storm. Energy consumption in Haiphong has dropped to two-thirds of normal levels, and recovery is expected to take 2-3 months. The flooding has also led to significant staff shortages in affected areas [ab8f2427].
Among the companies impacted, LG Electronics reported that its warehouse was flooded, while operations at Samsung remained unaffected. The storm has had a devastating toll on human life, with over 500 deaths reported across Southeast Asia, including 292 in Vietnam alone [ab8f2427].
The Vietnamese government has estimated economic losses from Typhoon Yagi to be around $1.6 billion. This disaster raises concerns about Vietnam's role in global supply chains, particularly as climate change poses increasing risks to the country's economy. The World Bank has warned that climate change could cost Vietnam between 12% and 14.5% of its GDP by 2050, which could hinder the country's ambitions to become a high-income nation by 2045 [ab8f2427].
In light of the disaster, there is a growing emphasis on renewable energy investments as a potential avenue for recovery and resilience against future climate-related events. Business leaders and policymakers are now considering how to bolster the economy while addressing the challenges posed by climate change and its impact on the region's infrastructure and workforce [ab8f2427].
In a surprising turn of events, China's proactive assistance to Vietnam in the aftermath of Typhoon Yagi has been viewed as a sign of improving bilateral relations. Following the storm, cooperation between the two nations included flood control measures along the Red River, as confirmed by Chinese foreign ministry spokeswoman Mao Ning. Vietnam's Defence Minister Dong Jun highlighted the importance of military cooperation with his counterpart Phan Van Giang, signaling a potential thaw in relations despite ongoing tensions over the South China Sea and China's hydropower projects [04dcc30e].
Furthermore, Vietnam's leader To Lam met with China's President Xi Jinping shortly before the storm, which may have set the stage for this cooperative response. Both nations are now encouraged to strengthen ties in the wake of the disaster, suggesting that the storm may serve as a catalyst for improved relations in the region [04dcc30e].