Typhoon Yagi costs Vietnam $1.6 billion, may lower growth, planning ministry estimates

Typhoon Yagi costs Vietnam $1.6 billion, may lower growth, planning ministry estimates

Vietnam’s economic growth in 2024 may slow by 0.15% compared to the previous forecast due to the impacts of the typhoon, a report from the ministry said. It had previously forecast a 6.8%-7% expansion this year.

Among the hardest hit sectors are agriculture, forestry and fishery, where growth may decrease by 0.33%, the ministry said, whereas industry and construction may see a smaller impact of 5 basis points.

However, highly industrialised areas, such as the provinces of Thai Nguyen, Haiphong, may grow slower by 0.5% as they bore the brunt of the typhoon, the ministry said.

The typhoon, which made landfall on Sept. 7, killed at least 292 people and left 38 missing as of Monday morning, according to data from Vietnam’s disaster agency.

“GDP growth in the third quarter and fourth quarter could decrease by 0.35% and 0.22% respectively compared to the scenario without Typhoon Yagi,” according to the ministry report.

Floods have also inundated 190,000 hectares (469,500 acres) of rice fields, 48,000 hectares of cash crops such as corn and cassava and damaged nearly 232,000 houses in northern Vietnam, according to the disaster agency.

Haiphong City, home to several industrial parks, recorded about 11 trillion dong ($448.43 million) of losses and damage from the typhoon, the city said.

© Reuters. FILE PHOTO: People use ropes to remove fallen trees following the impact of Typhoon Yagi, Hai Phong, Vietnam, September 8, 2024. REUTERS/Minh Nguyen/File Photo

In a separate statement released by the government, Vietnam said it strived to control inflation and reach gross domestic product growth of about 7% this year despite the hit from Typhoon Yagi.

($1 = 24,530.0000 dong)

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