HANOI, Sept 15 (Askume) – Typhoon Yagi, the most powerful typhoon to hit Asia this year, has caused about $1.6 billion in damage to Vietnam and could significantly slow the country’s economic growth, according to preliminary estimates by Vietnam’s investment ministry.
A report by the department said Vietnam’s economic growth in 2024 could be 0.15% slower than previously estimated due to the impact of the storm. The company previously forecast economic growth of 6.8%-7% this year.
The ministry said the worst-hit sectors are agriculture, forestry and fisheries, whose growth rate could decline by 0.33%, while the impact on industry and construction could be 5 basis points less.
However, the ministry said economic growth could drop by 0.5% in highly industrialised regions such as Thai Nguyen province and Hai Phong city as these are the areas most affected by the typhoon.
As of Monday morning, the Sept. 7 typhoon had left at least 292 people dead and 38 missing, according to Vietnam’s disaster relief agency.
“Compared to the situation without Typhoon Yagi, GDP growth in the third and fourth quarters may decline by 0.35% and 0.22%, respectively,” the ministry report said.
According to disaster relief agencies, floods inundated 190,000 hectares (469,500 acres) of rice fields, 48,000 hectares of cash crops such as maize and cassava, and damaged about 232,000 houses in northern Vietnam.
Haiphong, which has several industrial parks, suffered nearly VND11 trillion ($448.43 million) in damages due to the storm, the city said.
In a separate statement issued by the government, Vietnam said it was trying to control inflation and achieve its gross domestic product growth target of about 7% this year despite being hit by Typhoon Yagi.
(1 USD = 24,530.0000 Dong)
