How Does Vietnam’s Typhoon Season Affect Business ? – Exposed Industries
Which industries are most exposed to typhoons?
The agriculture industry is heavily impacted by flooding.
Aggressive rainfalls can prompt landslides in mountainous regions, destroying its path and flushing out low-lying areas. Landslides strip the land of natural resources while destroying crops and killing livestock. Damage to dams and reservoirs cause similar problems, which burden farmers with additional costs. This also requires extra labor to harvest new crops.
The knock-on effect for the economy can be substantial: the industry employs more than 54 million people and accounted 15.3 percent of the country’s GDP in 2017.
Heavy rainfall and powerful floods also affect the construction industry. Flooding can destroy expensive equipment and incomplete projects. This damage extends project timelines and increases investment costs.
The logistics and IT-BPO industries are also exposed to the impact of typhoons.
When typhoons cause heavy infrastructural damage, the logistics industry is affected by delays in deliveries and services, causing bottlenecks at warehouses. This then disrupts supply chains from running smoothly.
The labor-intensive IT-BPO industry is impacted when employees cannot access safe transport to work. Meanwhile, prolonged power outages can have a serious impact on service provision for the power hungry industry.
This text is part of a more complete analysis available for free.
Read the full article on Vietnam Briefing.