Vietnam’s coast along the South China Sea makes it prone to typhoons. While this geography makes the country ideal for trade and supply chains, seasonal typhoons often cause infrastructural damage, which disrupts business as usual.
Last November, for example, Hoi An, a city on the central coast, experienced the devastating effects of Typhoon Damrey: over 49 full reservoirs were destroyed, triggering floods that demolished land, homes, and agriculture. It also claimed 151 lives.
The country experiences an average of four to six typhoons annually. The country’s typhoon season in the southwest spans from April to September, before transitioning to the central coastline from August to November and takes the northeast region between the months of October to March.
The provinces that are most vulnerable to flooding are all located along the central coastline: Quang Binh, Thanh Hoa, Quang Tri, Thua Thein Hue, Quang Ngai, and Binh Dinh. Because the country’s typhoon warning system and protocols remain in-development, businesses in the country need to understand the full implications of the season and prepare accordingly.
How are businesses affected by typhoons?
The primary effect of typhoons on business is infrastructural damage caused by flooding. Infrastructural damage caused by high wind speeds is another concern.
Businesses in areas that have experienced infrastructural damage caused by flooding or high wind speeds are most likely to be immediately affected by employee absences due to transportation issues. Bad weather delays or cancels public transportation; however, with motorbikes being a main method of transport, poor road conditions make it difficult for everyone.
Many employees may be responsible for providing care for their family. Accordingly, employee attendance can also be affected by power-outs, telecommunication problems, or patchy emergency service provision at their residence.
Beyond employee attendance, businesses have many other concerns. On-going construction work can be exposed to damage, while supply chains can be affected by damage to roads and railways.
Businesses that serve the consumer market, or clients overseas, often struggle to maintain normal services and need to be prepared to communicate transparently about any local challenges.
All these issues create business continuity challenges for management.
This text is part of a more complete analysis available for free.
Read the full article on Vietnam Briefing.