Typhoon Yagi is the strongest storm in the past 30 years in the South China Sea. From September 7 to 9, 2024, Typhoon Yagi and its aftermath swept through various areas in the North and North Central regions of Vietnam. Heavy rains, flash floods, landslides, and bridge collapses have all left devastating consequences.
1. The Damage of The Typhoon
Many veneer wood factories and plywood factories in provinces such as Thai Nguyen, Phu Tho, Bac Giang, and Yen Bai, which provide jobs for hundreds of local workers, have collapsed due to the storm, with no clear timeline for recovery.
Luc Nam is a mountainous district of Bac Giang province. This district currently has more than 120 forest product processing facilities, most of which are veneer wood factories, concentrated in the communes of Binh Son, Vo Tranh, Truong Son, Thanh Lam, and Bao Son.
After the storm, many veneer wood factories were completely destroyed. The factory owners said they had reinforced the factories with support cables to stabilize them and had allowed workers to stay home to avoid the storm. However, the wind was so strong that it snapped the cables, causing the entire factory roofs to fly off like kites and then collapse. Not only were the factories destroyed, but thousands of finished wood panels were also mostly damaged.
At Mr. Nguyen Dinh Son’s factory in Binh Son commune, the entire facility collapsed, ruining nearly 3,000 bundles of finished veneer. The estimated damages range between 350 and 400 million VND.
“I built the factory in 2019 with an initial investment of about 2.3 billion VND, financed through a bank loan. From 2020 to 2022, the COVID pandemic severely affected our operations. In 2023, the plywood market took a hit, and although the first few months of 2024 were more stable, this recent storm has dealt a devastating blow. Recovering and maintaining operations now will be extremely challenging,” Mr. Son explained.
Similarly, Mr. Chau Van Thuan, owner of another veneer wood factory in Binh Son, shared his experience. “When I arrived at the factory on the morning of September 8, the entire area was flooded. Several forklifts were submerged and damaged, and all the finished wood panels were destroyed,” he said.
“Honestly, it’s heartbreaking. All the hard work over the past few years is completely lost,” Mr. Thuan added.
The widespread destruction of these factories not only results in significant financial losses but also threatens the livelihoods of many local workers who depend on these businesses for their income.
Efforts are underway to assess the full extent of the damage and explore possible recovery options. However, the path to rebuilding will be long and arduous for both Mr. Son and Mr. Thuan.
2. Government Support
To assist residents and businesses affected by the storm, authorities are considering options for reducing loan interest rates and restructuring debt. These measures aim to alleviate financial burdens and support recovery efforts
In an interview with Lao Dong Newspaper, Mr. Ly Van Chinh, Chairman of the People’s Committee of Binh Son commune, described the extensive damage caused by Typhoon Yagi. The storm isolated one village in the commune, ripped roofs off nearly 60 houses, destroyed 200 hectares of plantation forest, and swept away 3,200 poultry.
“Out of the 20 veneer wood factories in the commune, 14 suffered severe damage. Most factories lost their roofs, and the storm nearly destroyed their storage warehouses. The damage ranges from 100 to 500 million VND per factory,” Mr. Chinh said.
He added that these factories are vital for local employment, providing good incomes to residents.
To support recovery efforts, the People’s Committee will ask the Policy Bank for financial assistance. This aid will help restore and maintain factory operations. It aims to boost the local economy.
On the afternoon of September 9, the State Bank of Vietnam directed credit institutions to review loan interest rates. They should consider waiving or reducing interest, restructuring debt, and offering new loans. This will support customers affected by Typhoon Yagi
Banks must review and assess the damage and report their findings by September 20.
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