Vietnam's logistics sector hardest hit by Typhoon Yagi

On September 15, CEL, a consulting firm specialising in supply chain solutions, published its first comprehensive report detailing the profound impacts of Typhoon Yagi on northern Vietnam’s supply chains. The report, conducted between September 10 and 15, involved 216 companies from the manufacturing (38.7 per cent), retail and distribution (15.1 per cent), and supply chain and logistics (26.9 per cent) sectors, highlighting significant disruptions, economic losses, and recovery efforts.

The report pointed out 15.4 per cent of companies faced severe disruptions, while 53.6 per cent experienced manageable delays. Only 6.2 per cent reported no impact from Typhoon Yagi. 73.3 per cent of companies experiencing severe disruptions were from the supply chain and logistics sector, with port operators, third-party logistics providers, transporters, and cold chain services hardest hit.

In addition, power outages, damaged inventory, and road erosion and flooded areas severely disrupted supply chains in northern Vietnam.

The findings revealed that 44.6 per cent of businesses expect to recover within 1-2 weeks, aided by rapid resource mobilisation. However, actual recovery timelines may extend if unforeseen challenges arise.

Regarding the food supply chain, major retailers have responded swiftly, increasing shipments 2-4 times the usual volume to prevent food shortages. MM Mega Market, Central Retail, and Saigon Co.op significantly ramped up fruit and vegetable shipments from Lam Dong and southern Vietnam.

The agriculture sector also suffered from the typhoon, with 262,000 hectares of crops destroyed, 2,250 aquaculture farms lost, and nearly 2.3 million livestock killed. Agriculture is expected to take six months to several years to recover fully. While crops may recover within a year, livestock and aquaculture farms may take up to two years to return to full production.

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 any more.”

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