Building a more resilient economy in an age of relentless storms


Building a more resilient economy in an age of relentless storms

A month of overlapping storms has tested Việt Nam's resilience and forced a hard look at how the country prepares, responds and protects growth in an era of extreme climate shocks.

Việt Nam has endured another year of devastating and historic natural disasters. From 2006 to 2025, the country has lost an average of 314 lives annually to storms, floods and landslides, with economic damage equivalent to 1-1.5 per cent of GDP.

Yet 2025 has stood out. Nineteen storms and tropical depressions formed in the East Sea, nearly matching the record in 2017. Many moved unusually fast, shifted course without warning, and three powerful systems made direct landfall in the central region.

The country was hit by four consecutive storms - No. 10, 11, 12 and 13 - in just over a month. Heavy rains returned before the floodwaters receded, creating overlapping disaster cycles rarely seen before.

By late November, 409 people had been confirmed dead or missing, more than 333,000 houses were damaged or destroyed, over 553,000 hectares of crops were lost and total economic losses exceeded VNĐ85 trillion (US$3.3 billion), matching the scale of the losses recorded during Typhoon Yagi in 2024. The November floods in the south-central region alone caused more than VNĐ13 trillion in damage.

The recovery effort has drawn in the whole nation - the political system, the armed forces, businesses and communities alike.

In its recent directives, the Government has underscored that economic recovery must move in tandem with relief efforts. Resolution 380/NQ-CP dated November 25 provides targeted support for storm-hit provinces, while more than VNĐ3.5 trillion has been allocated for urgent repairs and livelihood restoration.

Lower financing costs - including a two-percentage-point interest-rate reduction for policy credit - are designed to help households and small businesses restart production without being overwhelmed by debt. Together with easier credit conditions and market-stabilising measures, these tools aim to prevent short-term disruptions from turning into longer-lasting economic scars.

By pushing financial support to the frontline, the Government wants local economies to regain momentum quickly, safeguard jobs and avoid supply-chain fractures. As the Prime Minister noted, this is a moment that demands exceptional effort - 'everyone working with the intensity of two, for the people' - to restore confidence and keep growth on track despite an extreme climate year.

Yet as Prime Minister Phạm Minh Chính acknowledged, natural disasters are increasingly severe, with GDP losses estimated at 2 per cent in 2025. According to an input report for the World Bank's Vietnam 2045 report, climate change could reduce GDP by up to 12.5 per cent by 2050, and extreme weather alone can shave 1 per cent off annual growth.

The World Bank estimates that Việt Nam will need about $233 billion for climate adaptation through 2050, or roughly 0.75 per cent of GDP each year. The risks are stark: the Mekong Delta could lose half its land with a one-metre sea-level rise, while over 75 per cent of garment and electronics factories lie in high-heat zones, placing 1.3 million workers at risk.

The scale of the November disasters shows not only the force of nature, but also the urgency of improving disaster governance. Despite last year's lessons after Typhoon Yagi - on timely mobilisation, risk mapping and the use of data and technology - this year revealed persistent weaknesses.

Systemic gaps

Some provinces lacked specialised rescue equipment; mobilising forces remained slow. Several areas were left isolated with no electricity or communication.

Coordination between local authorities, the military and emergency teams was at times fragmented, while limited forecasting capacity left many communities unprepared. These gaps contributed to greater losses and delayed recovery.

This year also saw renewed controversy over the operation of hydropower reservoirs. Several localities suffered severe flooding. Some residents said warnings came too late, while operators argued they had complied with regulations.

This paradox - everyone being 'right' while damage still occurs - suggests that current reservoir rules no longer match the reality of extreme and overlapping storms. In response, the Party's Secretariat issued Conclusion 213-KL/TW, requiring adjustments to reservoir operations, prioritising flood-control capacity for downstream communities and strengthening the legal and technical framework. The Government has also ordered comprehensive reviews of multi-reservoir coordination and mandatory early-warning protocols.

Digital infrastructure has emerged as another critical weakness. During the recent floods, many communities were completely cut off, with no power or mobile signal.

Damage assessments in these areas were only possible after water levels receded. Strengthening telecommunications, building backup systems and investing in satellite-based connectivity are now essential. Without reliable communication, early-warning systems cannot function, and emergency response becomes far less effective.

Looking forward, Việt Nam must rethink its approach to growth and public investment. If growth is driven by public spending, investment priorities must reflect the reality of extreme weather. This means shifting from a 'post-disaster recovery' mindset to a 'risk-management' approach - investing in forecasting, early-warning systems, flood mapping and landslide protection. These investments cost far less than the tens of trillions of đồng lost each year.

Infrastructure standards also need to change. Cities must be designed to drain quickly during extreme rainfall. Roads, schools and clinics must be built to remain safe and functional during floods.

According to the World Bank, every dollar invested in climate adaptation can reduce economic losses by nearly half by 2050. Some large-scale projects such as new airports, theatres or commercial ports should be reconsidered, especially in regions recently merged or undergoing new planning. Public money should prioritise infrastructure that protects lives, safeguards supply chains and enhances economic resilience.

Beyond Government action, a stronger multi-stakeholder model is needed. Climate-related disasters today exceed the capacity of households and local communities to cope alone. The State must remain the backbone of disaster response, but businesses, civil society and local communities also need clearer roles, better coordination and mechanisms for risk-sharing.

The story of this year's storms is not only about destruction. It is a reminder that development and resilience must go hand in hand. In a world of rising uncertainty - from geopolitics to climate extremes - Việt Nam must strengthen its economic security, update planning and investment frameworks and reinforce critical infrastructure. Only by doing so can the country protect its people and ensure that growth remains sustainable in the decades to come.

Ultimately, the real test for Việt Nam is its ability to turn today's losses into tomorrow's resilience. Extreme weather is no longer an external shock - it has become a structural challenge that must be embedded in planning, investment and governance. Resilience, therefore, should be viewed not as a cost, but as a strategic investment that protects growth and improves long-term competitiveness.

Previous articleNext article

POPULAR CATEGORY

misc

16615

entertainment

18254

corporate

15335

research

9192

wellness

15036

athletics

19108