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文章

2024年9月16日

作者:
Mayu Saini, Sourcing Journal

Vietnam: Brands urged to pay manufacturers for goods upfront or quicker & to not cancel orders after typhoon hits major industrial hub

"Typhoon Yagi-Battered Vietnam Begins Recovery", 16 September 2024

After Typhoon Yagi swept through Vietnam last week, triggering landslides and flash floods that have resulted in more than 290 deaths and 800 injuries as of Friday, factories are beginning the hard road to recovery.

The brunt of the devastation took place in the northern part of the country, which includes the capital of Hanoi, a major industrial hub, and the city of Haiphong, where many apparel and electronics manufacturers established themselves in recent years...

Although power has largely been restored, many of the surrounding areas are still struggling for water and phone connections. Officials say they are monitoring the situation so that hydropower plants can regulate water to stop cities from further flooding. But...[f]actories also have to contend with damage from fallen trees, blown-off roofs, collapsed walls and flooding.

According to Vietnam News Agency, the floods and landslides have caused millions of dollars in damage across the country...

Manufacturers say that while many factories acted early to minimize damage, roughly 10 percent of buildings in Haiphong are deeply damaged. Many goods that were stored in warehouses in preparation for export have also been ruined.

With Bangladesh struggling to meet its export targets in the wake of former prime minister Sheikh Hasina’s ouster and the worker unrest that has followed, Vietnamese manufacturers say they are under pressure to fix the factories as quickly as possible, as competition intensifies in the region.

Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), told local media that Vietnam continues to be a priority country for the United States...

“Our thoughts are with the victims of the fierce typhoon that took the lives of many people in Vietnam,” Cem Altan, president of the International Apparel Federation, told Sourcing Journal. “Although natural disasters have always occurred, it has become very painfully clear that the frequency and severity of extreme weather events is occurring. The apparel and textile industries are a significant contributant to the global warming that is fueling the increase of extreme weather. Decarbonization is one of the current and the next year’s three priority areas,” he said.

He added: “We urge brands and retailers not to cancel or stop orders in case of delays and also pay upfront or quicker for the goods they got delivered.”...

Nilanka Fernando, executive director and country head PDS Ltd, Vietnam said that while the typhoon was expected on Saturday, work carried on till Friday afternoon in many of the factories in the area, after which machines, and entire units were packed properly in polythene and water safe materials. Fabric and other materials stopped a few days prior and shipments from factories were dispatched to reduce damage to finished goods...

“In total only a few business days were lost,” Fernando observed, adding that while the main rush of work for the winter season had already been completed, manufacture was mostly on for the spring season.

Overall, according to government sources, the damage to the country was well over caused $1.6 billion, leaving many homeless and faced with severe repair issues for homes...

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