Super Typhoon Yagi, which made landfall in Hai Phong in September 2024, was one of the strongest storms to hit the north in over 70 years. Preliminary damage to the entire city at that time was estimated at VND11,000 billion, with hundreds of factories and warehouses collapsing or being flooded for days.
Business revival
Viet Truong Company Limited was one of the businesses that suffered the heaviest losses. The storm caused the entire Factory No. 3 in Do Son to be deeply submerged in water, 3 out of 5 workshops of the factory had their roofs blown off, the production system was paralyzed, the entire cold storage and goods were severely damaged by the flood. The entire factory lost power and water for 7 days along with all the hundreds of workers, the management could not cook, had to eat instant noodles.
“The entire factory and goods were severely damaged. The total damage to assets and goods was estimated at nearly 150 billion VND. As a business specializing in processing aquatic and seafood products for export with 300 employees, an average revenue of 35 million USD/year, and a wide consumer market from Europe, Asia and the US; we also have a lot of experience in dealing with risks, but the damage caused by the super typhoon still made us feel like we could not recover,” Mr. Ngo Minh Phuong, CEO of Viet Truong Company Limited, sadly recalled.
Not only did Viet Truong Company lose its fixed assets, but some customers also canceled their orders because of concerns about delivery progress and product quality.
“It took us four months to restore 50% of our capacity. There was a time when I thought the company might go bankrupt,” said Ngo Minh Phuong.
In the context of mounting difficulties, the support of financial partners such as Agribank and most notably the Agricultural Bank Insurance Joint Stock Company (Agribank-ABIC Insurance) has become a "safety cushion" to help Viet Truong recover. Accordingly, immediately after the storm subsided, ABIC's team of appraisers promptly arrived at the scene to encourage the business and conduct surveys, prepare documents and implement emergency compensation procedures. After just over 20 days, ABIC provided an advance payment of 10 billion VND, divided into 2 installments. The first installment was 2 billion VND on the day the storm subsided.
“This first week’s advance payment is really a meal when hungry, but it helps us have the funds to re-roof the temporary metal roof and repair the electricity so that the workers have a safe place to work,” said Mr. Phuong. This was followed by a second advance payment worth VND8 billion. This is truly a very timely source of financial support to “replenish” the company, helping the company have resources to gradually overcome difficulties.
Notably, Viet Truong Company not only participates in insurance with ABIC but also signs with a number of other insurance units. However, while those units are still in the process of evaluating and processing compensation, ABIC has implemented the fastest support plan for customers. “The money from ABIC came at the right time. Without this source, we could not restart the factory, could not keep hundreds of workers. It is not just money, it is trust in the insurance system, it is real support in times of emergency”, Mr. Phuong shared more.
Meanwhile, according to Mr. Vu Hong Son, Director of ABIC's Compensation Appraisal Board, the loss at Viet Truong Company was assessed as particularly complicated, including damage to the factory and frozen goods. Determining the extent of damage to seafood cannot be determined by the naked eye but must be done through complex testing measures, while handling recovered assets also requires a strict process. However, ABIC has also demonstrated its professionalism by applying many "open mechanisms", minimizing administrative procedures, and being flexible in collecting documents to shorten processing time.
"ABIC determines how to make sure customers receive compensation as quickly as possible. There are cases where we advance up to 90% of the estimated damage value. With ABIC, responsibility to customers always comes first," Mr. Vu Hong Son emphasized.
Solid financial "shield"
Up to this point, ABIC has completed the payment of more than 22.4 billion VND for the loss of goods of Viet Truong Company. ABIC has also advanced 50% of the property damage of the enterprise and is waiting for the completion of documents to resolve it. "We expect the total compensation for 536 customers affected by Typhoon Yagi to be up to 177 billion VND, of which Viet Truong is one of the largest and most typical cases," Mr. Son added.
Along with ABIC, Agribank also quickly stepped in, introducing active support policies such as reducing interest rates, restructuring loans, and creating important resources for businesses.
Ms. Trinh Thi Tho, Deputy Director of Agribank Hai Phong branch, shared: Immediately after the storm, Agribank reviewed the damage to businesses, implemented support packages such as reducing interest rates, restructuring medium and long-term loans. The goal is to ensure that cash flow is not interrupted, businesses still pay salaries, maintain production and have capital for recovery. Viet Truong currently has a total outstanding debt of more than 200 billion VND at Agribank, including working and medium-term loans.
Thanks to the support from Agribank and ABIC, Viet Truong Company has gradually recovered and up to now, the factory's operations have returned to almost 100%. Revenue has reached 70-80% compared to the same period last year with more than 180 employees returning to work regularly. In particular, in addition to retaining key partners, Viet Truong Company has also quickly restructured its finances as well as developed new products such as tilapia for export to the US market and is promoting the Middle East market.
As such, it can be seen that Viet Truong is a remarkable case of a business's ability to recover after a natural disaster. This is thanks to the business having a good risk management plan, but we cannot fail to mention the role of insurance. In the context of increasingly extreme climate change and unpredictable natural disasters, the role of insurance is becoming increasingly important. It is not only about material payment, but also about companionship, sharing and commitment to responsibility, helping businesses confidently overcome storms and continue to develop sustainably.
According to Trinh Thi Tho, Deputy Director of Agribank Hai Phong Branch, insurance is not simply a tool for “risk transfer”, but also an indispensable part of the financial risk management system of enterprises. When properly integrated, insurance will help enterprises minimize losses, maintain stable operations and thereby increase competitiveness in the market.
“Incorporating insurance into financial risk management helps Viet Truong Company in particular and other businesses in general avoid paying large unexpected losses. This ensures uninterrupted cash flow, maintains production and business activities and pays other financial obligations of customers, such as salaries, loans and operating costs,” said Ms. Trinh Thi Tho.
In fact, developing bancassurance (distributing insurance through banking channels) is identified as one of the three strategic pillars in Agribank's journey to build a comprehensive financial ecosystem. Party Secretary and Chairman of the Board of Members of Agribank To Huy Vu shared: Developing bancassurance is not only the task of Agribank or ABIC, but also the responsibility to farmers, customers and the economy in general.
There are currently more than 2 million Agribank customers participating in ABIC's Credit Security. The total amount of compensation paid by ABIC in 2024 is up to 762 billion VND. The cumulative amount from 2007 to present is 6,844 billion VND.
Source: https://nhandan.vn/tro-luc-giup-doanh-nghiep-phuc-hoi-sau-thien-tai-post893623.html
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