Yagi damage requires new support policies

Hạ Long was devastated by Typhoon Yagi. VNA/VNS Photo

Nguyen Hoai Nam, deputy general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), said that many businesses in Quang Ninh and Haiphong had suffered heavy losses following the biggest typhoon in the area for decades.

“Their factory roofs were blown off, and floods entered the facilities. In some cases, the electrical systems were damaged, and frozen seafood was ruined,” Nam said. Losses for individual factories range from $20,000 to several million dollars.

Tran Thi Hong, a fish farmer in Quang Ninh’s Cam Pha district, had over 100 fish farm cells, each containing about 500 fish, funded by her savings and a $163,000 loan from Agribank. However, after one night of the typhoon, most of her assets were destroyed, leaving only a few baby fish in cages.

“We hope the bank will extend the debt deadlines and offer a new loan for recovery. If they trust us with the capital to restock, we could recover within two years and repay the debt,” Hong said.

In addition to households, large enterprises have also been heavily impacted by the storm. Nguyen Thi Hai Binh, general director of STP Group, noted that their computer equipment on fish cages in Quang Ninh was submerged and rendered inoperable. “Although the locations of these devices are known, we can’t retrieve them to check if they still function. Many anchor nets, plankton, and large fish weighing around 40kg were swept away,” Binh said, adding that some enterprises may not meet export orders on time due to these losses.

The aquaculture industry in Haiphong and Quang Ninh is facing severe losses, disrupting the supply of raw materials for seafood processing enterprises. “In the coming months, seafood supply demand is expected to increase. Synchronous support from businesses and local governments will be crucial,” Nam from VASEP added. “Banks should consider converting short-term loans into medium-term ones to alleviate financial pressure on enterprises.”

The Ministry of Agriculture and Rural Development (MARD) has meanwhile directed businesses and industry associations to assist affected individuals with seeds, food, and other essentials to restore production and meet food demands, especially for the Lunar New Year. The MARD has also proposed extending and deferring debt payments for businesses, cooperatives, and households.

Given the extensive losses in the fisheries sector, VASEP has recommended that the MARD include these businesses as beneficiaries in the draft decree on restoring agricultural production. “These firms are not only vital to the supply and production chain but also play a key role in the recovery of the sector,” Nam said.

Additionally, the SBV has requested that credit institutions consider reducing loan interest rates, restructuring debt, and supporting new borrowers affected by the typhoon.

Nguyen Quoc Viet, deputy director of the Vietnam Institute for Economic and Policy Research, highlighted that households and enterprises need capital to rebuild their facilities. However, the destruction of assets has made securing loans more difficult. “Rebuilding may face delays due to procedural hurdles, construction processes, and equipment imports. Sympathy and leniency in assessing support measures will be essential,” Viet said.

Nam from VASEP also noted that reducing land rental and logistics costs, in addition to other mentioned solutions, would help businesses resume production. “It’s also important to review and amend outdated support mechanisms. For instance, the draft decree on restoring agricultural production discusses support decisions but lacks clarity on actual payments. The entire process can take up to 70 days or more,” he said.

Tran Quoc Phuong, Deputy Minister of Planning and Investment It is vital to protect people’s lives, support businesses, cooperatives, and households to restore production quickly, and prepare for future natural disasters One of the main concerns for enterprises is simplifying procedures to make support accessible. The resolution provides solutions to ensure that businesses can easily access policies. We forecast GDP growth to exceed our target at around 6.8-7 per cent, but the typhoon may reduce it by about 0.15 per cent. To achieve the target, we need to make efforts to compensate for the losses. We hope businesses will ramp up production. For socioeconomic development, investment, export, and consumption are crucial, like a carriage pulled by three horses. All must move forward together. However, exports hold the most promise. I believe that southern provinces and cities, especially Ho Chi Minh City, will play a key role in boosting GDP, with opportunities for foreign investment, public investment, consumption, and exports. Dao Minh Tu, Deputy Governor State Bank of Vietnam We have convened bank leaders to focus on assessing the damage and affected parties and to provide timely solutions. Specifically, debts will be extended or postponed for customers, and interest rates on both old debts and new loans will be reduced. We continue to support businesses and households with new loans. For those suffering severe damage, particularly farmers in Haiphong and Quang Ninh, some have lost nearly everything. We are considering issuing a circular on debt extension and deferral, giving businesses enough time to recover. This will provide a legal foundation for commercial banks to act. Debt cancellation policies are also in place, borrowing from the Vietnam Bank for Social Policies. These are implemented at local levels. Associations and businesses should report damage accurately, so those unable to repay debts can receive appropriate support. In addition, we are working on ensuring commercial banks have the necessary credit limits and capital sources to meet businesses’ recovery needs.

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