Typhoon Yagi Hits Vietnam with $1.6 Billion Cost, May Impact Growth
Vietnam: Typhoon Yagi, the strongest storm in Asia this year, has inflicted approximately $1.6 billion in damages on Vietnam, potentially reducing the country's economic growth, according to preliminary estimates from the Ministry of Investment. The ministry now expects Vietnam's 2024 growth rate to fall by 0.15% compared to earlier forecasts, which had projected an expansion of 6.8%-7%. The agriculture, forestry, and fishery sectors are among the hardest hit, with growth in these areas expected to decline by 0.33%, while the industrial and construction sectors may experience a smaller impact of 5 basis points.
Highly industrialized provinces such as Thai Nguyen and Haiphong are expected to see growth slow by 0.5%, as they were among the worst affected by the typhoon. Since Typhoon Yagi made landfall on September 7, it has claimed at least 292 lives and left 38 people missing, according to data from Vietnam's disaster agency. The storm also destroyed crops like corn and cassava and damaged nearly 232,000 homes in northern Vietnam.
Haiphong City, which hosts several industrial parks, reported losses of about 11 trillion dong ($448.43 million) due to the typhoon. In a separate statement, the Vietnamese government reaffirmed its commitment to controlling inflation and maintaining a GDP growth rate of around 7% for 2024, despite the impact of Typhoon Yagi.
Source: Ministry of Investment