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Factories in Vietnam's export hubs face weeks of disruption after typhoon
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Factories in Vietnam's export hubs face weeks of disruption after typhoon
Sep 11, 2024 4:43 AM

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Yagi disrupts infrastructure, power supply

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LG Electronics, Jinko Solar among companies hit

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Many expect to resume some activity soon, some need longer

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Flooding hits goods ready for export to US, EU

(Updates Samsung situation; paragraph 21)

By Francesco Guarascio, Phuong Nguyen and Khanh Vu

HANOI, Sept 11 (Reuters) - Typhoon Yagi caused severe

damage to many factories and flooded warehouses in northern

Vietnam's export-oriented industrial hubs, with some shuttered

plants expected to need weeks to return to full operation,

executives said.

Asia's strongest typhoon this year was still causing deadly

floods and landslides on Wednesday, killing dozens and ravaging

infrastructure such as power networks and roads, after it hit

the coast on the weekend.

The disruptions could affect global supply chains as Vietnam

hosts large operations of multinationals that mostly export

their products to the United States, Europe and other developed

countries.

"Many of them are gone with the wind," said Calvin Nguyen,

head of Vietnamese logistics firm WeDo Forwarding Co., referring

to products that were to have been delivered to the United

States and the European Union, but without saying which.

The company's three warehouses in the coastal city of

Haiphong had their roofs blown off and were still flooded on

Wednesday, he said.

The industry ministry did not reply to a request for

comment.

In Haiphong, one of the areas worst hit by the typhoon, 95%

of businesses had been expected to resume some activity by

Tuesday, the body managing its industrial zones said.

"Many businesses had their roofs blown off, some walls

collapsed, gates, fences, signs, camera systems, garages and

sliding metal doors were overturned, water flooded into

factories," it said on its website.

In industrial zones hosting factories in Haiphong and the

neighbouring province of Quang Ninh, 20 of 150 investors' plants

will be out of service for at least a few weeks, said Bruno

Jaspaert, head of the zones.

He expected power consumption there to stay a third below

normal for weeks or months, as many companies were busy

rebuilding damaged factories, he said, citing a damage survey.

Among the hardest hit was Jupiter Logistics, part of a group

co-owned by Japan Airlines Co Ltd ( JPNRF ), said one official

familiar with the survey. Jupiter Logistics was not immediately

available to comment, however.

In another industrial park in Haiphong, South Korea's LG

Electronics said it had partly resumed work on

Tuesday after a factory's walls were crushed on Saturday and a

warehouse of refrigerators and washing machines was flooded.

POWER CUTS

As state-owned power distributor EVN works to restore dozens

of damaged electricity lines, power outages are still crippling

several areas in the north.

In Quang Ninh, north of Haiphong, many factories still

lacked electricity or water, Jaspaert said.

Chinese solar panel maker Jinko Solar's factory

there was severely damaged, one of its workers said, as windows

had been smashed and the roof blown away, keeping work from

being resumed on Tuesday.

Jinko officials were not immediately available to comment.

Far from the coast, the industrial hubs of Thai Nguyen and

Bac Giang, home to large factories of multinationals, such as

Samsung Electronics ( SSNLF ) and Apple ( AAPL ) supplier

Foxconn, also faced the risk of floods.

However, a Reuters witness said there were no signs of

flooding on Wednesday at Samsung's large facilities in Thai

Nguyen, about 60 km (37 miles) north of Hanoi, as water was

receding, though more rain was expected.

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