Enterprises in Gia Lai maintain export momentum after natural disasters

Hoài Phương |

Before recovering from storm No. 13, many businesses and production facilities in Gia Lai were historically submerged in floodwaters, causing severe damage to factories, machinery, and goods. The production chain continued to break, orders stagnated, creating a strong blow to the company's finances.

Factories and goods submerged in flood

Immediately after the floodwaters receded, hundreds of workers at Duc Toan Company Limited (Phu Tai Industrial Park, Quy Nhon Bac Ward) urgently cleaned the factory, checked the production line and repaired damage caused by flooding for many days.

Mr. Pham Van Du (45 years old, residing in Tuy Phuoc commune) - a worker of the company - shared that before the flood, all workers had raised their goods and equipment. However, the water rose too quickly, causing many machines and goods to be completely flooded and severely damaged.

"The warehouse was completely flooded, mud was everywhere. Since the water receded, people have only focused on cleaning and checking equipment because the flooding level is too high" - Mr. Du said.

The leader of Duc Toan Company Limited said that a few days earlier, storm No. 13 had caused significant damage. Now that the flood has reached, causing further damage, businesses have not been able to fully count. Most of the finished products prepared for export to Europe and the US were flooded. Many machines, even though they have been raised high, are still submerged in floodwaters and are severely damaged.

"The repair work is expected to last 3-4 weeks. We are trying to negotiate with customers to extend the delivery schedule and suggest not applying the fine, because this is an force majeure situation when businesses suffer great damage due to double natural disasters" - said the company leader.

Specializing in the production and export of wood compactors, Tin Nhan Biological Energy Company Limited (Phu Tai Industrial Park) was also severely affected when the entire batch of compactors prepared for delivery to customers was flooded, almost completely damaged.

The flood occurred right at the time of delivery according to the contract, while the factory and finished product warehouse were submerged in water, forcing the enterprise to request an extension of the delivery time.

A representative of Tin Nhan Biological Energy Company Limited said that after the water receded, all employees were mobilized to clean up and handle the damage to soon restore operations. Preliminary damage is estimated at about 50 billion VND.

Proposal for support to soon restore production

To reduce financial pressure and speed up recovery progress, businesses request insurance companies to promptly assess damage and implement compensation. At the same time, it is recommended that the province work with banks to have policies to extend debt, reduce taxes and fees, and help businesses overcome difficult times.

According to the Gia Lai Economic Zone Management Board, floods caused deep flooding, damaging machinery, equipment, supporting infrastructure systems, goods, etc. of many enterprises in Nhon Hoi Economic Zone and industrial parks in the province. Phu Tai Industrial Park was the place that suffered the most damage with 33 factories flooded.

Preliminary estimates show that the total damage caused by floods to businesses is about 500 billion VND. Currently, businesses are compiling statistics on all damages and urgently overcoming them to soon stabilize production activities.

To support businesses heavily affected by natural disasters, Gia Lai province has proposed that the Government consider issuing a special mechanism for tax - fee extension, postponement, and reduction; credit incentives; debt suspension, debt extension and interest rate support, to facilitate businesses to restore production and business.

Over VND1,500 billion swept away by flood

The recent historic flood in Gia Lai caused heavy damage to people, houses, property, trees, crops, canals, dams and many production facilities of people and businesses. Preliminary statistics show that the whole province has more than 20,000 houses flooded more than 1.5m deep, many areas have water levels rising from 2-3m, causing widespread isolation... The total initial damage is estimated at more than 1,500 billion VND.

Hoài Phương
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