VietNamNet Bridge – 70 percent of small and medium enterprises in the three surveyed localities of Nghe An, Khanh Hoa and Da Nang City have been found as not applying necessary measures to ease the consequences of natural calamities or having plans to cope with natural calamities, according to the Vietnam Chamber of Commerce and Industry VCCI.

Businesses keep passive

The survey conducted on the enterprises in the three localities showed that 67 percent of businesses do not have emergency phone numbers to call for help when natural calamities occur, 69 percent do not have backup information system, 88 percent do not have alternative transport plan, 90 percent do not have the solutions to protect the water supply and drainage system. Especially, 92 percent of businesses have been found as having not reported their damages to competent agencies.

The survey has also found that 46 percent of businesses 46% of businesses are interested in disasters but have no plans to prevent and respond to natural disasters; 43% of businesses have no plans to assign tasks in case of emergency.

According to Nguyen Dien, Deputy Director of VCCI in Da Nang City, the lack of the plan to respond to natural disasters is the reason which makes the turnover of businesses decrease, badly affect the production plan and lead to many other consequences.

Especially, businesses do not think that they need to report the toll to competent agencies. If the businesses take insurance policies for disaster risks, insurance companies will not have the basic figures to calculate the compensation level.

A research conducted recently by the Asian natural calamity fund in Vietnam pointed out that while businesses prove to be very active in giving donation to natural calamity stricken areas, they themselves do not think of taking measures to prevent and protect themselves to ease the damages caused by natural calamities.

Duong Cao Ky Quan from Victoria Hotel in Hoi An ancient town in Quang Nam province, said that the majority of businesses in the central region suffer losses in floods and storms. However, the preventive measures seem not to bring high effects, because this still much depends on the traffic system, electricity grid, the city’s water drainage system.

Economists have said that businesses should not “let the grass grow under their feet”. For example, if they anticipate that the floods would cause consequences to the material facilities, they should take initiative in removing the assets, which will much help minimize the losses.

Good preparing – they key to safety

VCCI has found out that the damages caused by natural calamities are considerably serious. 5.13 percent of businesses once suffered very severe damages, 29.91 percent suffered severe damages, while only 42.74 percent of businesses suffered a little.

Danapha, a pharmaceutical company in Da Nang, for example, lost 40 billion dong in the Xangsane in 2006, while Daehan 14 billion dong.

Meanwhile, the survey found out that 47 percent of businesses do not have detailed plans to protect their equipments, data and 57 percent of businesses do not take insurance policies. 33 percent of businesses reportedly have the plans to prevent natural calamities, but they are not financially capable enough to implement the plans.

Dien from VCCI Da Nang said that businesses, especially the ones in the central region, which usually bears typhoons and floods, need to be well prepared enough to protect themselves against natural calamities. “It would be better to spend one dong to prevent consequences than spending five dong to settle problems,” he said.

Source: TBKTSG