Reducing the negative impact of natural disasters through business action

VCN - Typhoon No. 3 (Typhoon Yagi), with its powerful force in both intensity and scope, caused immense damage to both the population and the business community. Reflecting on this typhoon highlights the urgent need for businesses to adopt sustainable development strategies to cope with climate change.
National reserve goods must be used efficiently National reserve goods must be used efficiently
Proposal to exempt import and export tax for five groups of commodities to overcome consequences of natural disasters Proposal to exempt import and export tax for five groups of commodities to overcome consequences of natural disasters
Reducing the negative impact of natural disasters through business action
A 300-ton crane was toppled by Typhoon Yagi, destroying the workshop of Ha Long Shipbuilding Company. Photo: thanhnien.vn

Natural disasters "sweeping away" billions from businesses

In Quang Ninh, after the storm passed, countless properties, factories, and equipment were left in ruins. Ngo Thi Thuy, an aquaculture farmer in Tan An Commune, Quang Yen Town, Quang Ninh Province, shared that her family invested in 60 fish farming cages, each holding about 500 fish in Cam Pha, and 45 cages in Ben Giang. The typhoon swept away assets worth VND12 billion, leaving behind only a few young fish. Similarly, Vu Van Cuong's business suffered nearly VND14 billion in losses from his three fish rafts, with neighboring families losing up to VND20-30 billion.

For businesses, Typhoon No. 3 and subsequent flooding damaged many factories and materials. For example, 60 fuel stations of the Vietnam National Petroleum Group (Petrolimex) in Quang Ninh and Hai Phong suffered from blown-off canopies, broken price boards, and shattered glass windows. Equipment, warehouses, and some cranes at Hai Phong port were derailed and structurally deformed by the strong winds. Many warehouses and offices sustained heavy damage.

On the business side, Typhoon No. 3 and the post-storm circulation caused floods that damaged many factories and materials. For example, 60 gas stations of the Vietnam National Petroleum Group (Petrolimex) in Quang Ninh and Hai Phong provinces suffered damage, such as blown-off canopy edges, fallen price boards, and broken windows. Equipment, warehouses, and several cranes at Hai Phong Port were derailed and had structural deformations due to the strong winds. Many warehouses and offices also suffered severe damage.

At a government conference on September 15th to urgently address the aftermath of Typhoon No. 3, it was reported that infrastructure, including power, telecommunications, urban areas, and industrial zones, had suffered severe damage. The agricultural sector also faced heavy losses, with more than 190,000 hectares of rice, 48,000 hectares of crops, and 31,000 hectares of fruit trees flooded. Over 3,000 aquaculture cages were damaged or swept away, and more than 21,000 livestock and 2.6 million poultry died. The total estimated damage in Quang Ninh alone was VND23.77 trillion, accounting for more than half of the VND40 trillion total damage in the northern provinces affected by the typhoon and its aftermath.

These figures underscore how natural disasters can significantly disrupt business operations.

At the Vietnam Corporate Sustainability Forum (VCSF) 2024, with the theme “Net Zero 2050: Building trust - Creating transformation,” Pham Tan Cong, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), emphasized that Typhoon No. 3 was yet another example of the Earth's warming. Climate change is increasingly causing extreme weather phenomena that seriously impact human activity. In this context, sustainable development is not just a goal but a strategic necessity for all businesses today.

Proactive efforts from businesses

Many nations, including Vietnam, have set targets to reduce greenhouse gas emissions and achieve Net Zero by 2050. This requires a comprehensive transformation in awareness, action, and mindset, from government agencies to the business community.

Regarding State mechanisms and policies, Le Viet Anh, Director of the Department of Science, Education, Natural Resources, and Environment (Ministry of Planning and Investment), stated that the government would continue reviewing and refining the legal framework to facilitate green and circular economic development. This includes promoting pilot mechanisms and policies, shifting the approach to policy planning, management, and oversight to create a favorable legal environment for businesses to pursue responsible business practices. Additionally, the development of “green credit,” “green banks,” and increasing the proportion of credit invested in renewable energy, clean energy, and low-carbon industries will be prioritized.

However, to be truly effective, businesses need to enhance their awareness of sustainable development. Binu Jacob, General Director of Nestlé Vietnam, emphasized that businesses should view sustainable development as a value-creating driver, not a burden. When done correctly, sustainable development will increase long-term profitability for businesses.

Binu Jacob also noted that more consumers were opting for green lifestyles and products based on sustainable development. Globally, 97% of consumers want a sustainable green lifestyle, and 80% choose products based on sustainability criteria. However, only 17% of consumers are currently able to make these choices, and in Vietnam, this figure is just 2%, though 29% of consumers are ready to embrace sustainability. This figure is expected to rise to 50% in the near future.

Agreeing with this perspective, Nguyen Tra My, CEO of PAN Group, shared that her company had increased the value of exported agricultural products like rice and cashews instead of exporting raw materials. However, the journey towards sustainability has been challenging, especially with different production scales and revenue gaps among member companies. Therefore, My emphasized the importance of leadership commitment and internal communication to instill sustainable development principles throughout the workforce.

Furthermore, for many businesses, environmental responsibility is central to their business strategies, leading them to reduce carbon emissions and minimize waste through various initiatives. As such, businesses are encouraged to improve governance, build a sustainable corporate culture and supply chain, and promote sustainable growth.

By Huong Diu/ Ha Thanh

Related News

National reserve goods must be used efficiently

National reserve goods must be used efficiently

VCN – Amid the epidemics and natural disasters, the supply of national reserve goods to those who suffer losses is very important and necessary. Recently the Reserve sector has carried out this task quickly and effectively.
Reserving tens of billions of goods to supply people in flooded areas

Reserving tens of billions of goods to supply people in flooded areas

VCN - Talking to Customs News, Tran Duy Dong, Director of the Domestic Market Department (Ministry of Industry and Trade) said reserving goods in some central provinces being affected by the flood and rain was built carefully in terms of plans, items, locations and objects,with the total value of goods converted into money up to tens of billion dong.

Latest News

Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.

More News

Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Lao Cai Customs sees a triple-digit surge in export-import turnover

Lao Cai Customs sees a triple-digit surge in export-import turnover

VCN - Updated from the beginning of the year to October 24, total import and export turnover through Lao Cai Customs Department increased by 102%.
Coconut is expected to become a billion-dollar export item

Coconut is expected to become a billion-dollar export item

VCN - Talking to the press at the ceremony to launch the first train carrying fresh coconuts to China, Mr. Luu Van Phi, Director of the Department of Industry and Trade of Tien Giang province, said that Vietnam's agricultural export potential, especially fresh coconuts, is expanding with the appearance of international railway transportation from Song Than station.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.
Logistics sector must embrace innovative trends to stay competitive

Logistics sector must embrace innovative trends to stay competitive

The Vietnamese logistics industry must adapt to new trends and enhance infrastructure to remain globally competitive, speakers said at an event in Ho Chi Minh City on October 31.
Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports are likely to achieve a record high of 62 billion USD in 2024, said Deputy Minister of Agriculture and Rural Development Phung Duc Tien.
UKVFTA greatly benefits Vietnam-UK trade: Experts

UKVFTA greatly benefits Vietnam-UK trade: Experts

The UK-Vietnam Free Trade Agreement (UKVFTA), signed into law three years ago, has clearly benefited trade cooperation between the two countries, particularly in the context of Vietnam’s exports to most other major markets declining due to geopolitical tensions and headwinds in the global economy, said experts at a conference in Hanoi on October 30.
Agricultural exports likely to exceed 60 billion USD amid challenges

Agricultural exports likely to exceed 60 billion USD amid challenges

With swift production recovery and continued growth, Vietnam's agricultural sector could potentially surpass the 60 billion USD export target, according to the Ministry of Agriculture and Rural Development (MARD).
Vietnam-Philippines trade likely to exceed 8 billion USD for first time

Vietnam-Philippines trade likely to exceed 8 billion USD for first time

With the current rising trend, trade between Vietnam and the Philippines is likely to exceed 8 billion USD for the first time to hit about 8.5 billion USD in 2024, with Vietnam’s surplus of more than 3 billion USD, according to the Vietnamese Trade Office in the Philippines.
Read More

Your care

Latest Most read
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - In recent years, Israel has always been Vietnam's leading tuna export market after the US and the EU. Therefore, the recent escalation of Israel-Iran tensions is affecting Vietnam's tuna exports to this market.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countr
Mobile Version