Vietnam Faces Typhoon Yagi Damage Worth 2 Trillion VND... "GDP Growth Rate Drops by 0.15%p"

Super Typhoon Yagi has caused approximately 2 trillion won in damages in Vietnam. Analysts also suggest that this damage could reduce this year's domestic gross product (GDP) growth rate by 0.15 percentage points more than expected.

[Image source=Yonhap News]

According to Bloomberg and local media VN Express on the 16th, the Vietnamese government reported that Yagi struck the northern region, causing about 40 trillion dong (2.172 trillion won) in damages.

This year’s GDP growth rate is expected by the government to decrease by 0.15 percentage points more than anticipated. In areas severely affected by the typhoon such as Haiphong Province, Quang Ninh Province, Thai Nguyen Province, and Lao Cai Province, the growth rate could decline by more than 0.5 percentage points.

By industry, the agriculture, forestry, and fisheries sectors are expected to suffer the most, with growth rates dropping by 0.33 percentage points.

Initially, Vietnam’s annual growth forecast for this year was expected to be around 6.8 to 7.0%.

Yagi made landfall in Vietnam on the 7th, causing numerous casualties due to floods and landslides. As of the previous day, the death toll stood at 281, with 67 people missing. Infrastructure including roads and bridges was heavily damaged, and power and communication outages disrupted operations at several companies.

Damage is also rapidly increasing in Myanmar.

Jo Min Tun, spokesperson for the military government, announced the previous day that 113 people have died and 64 are missing. Approximately 72,900 houses were damaged by floods, and about 320,000 displaced people are staying in shelters.

Due to the lack of telephone and internet connectivity, uncounted figures and damage in areas outside military government control suggest that the actual scale of casualties is likely much larger.

Before making landfall in Vietnam, Yagi struck the Philippines. Large-scale flooding also occurred in northern Thailand’s Chiang Mai and Chiang Rai regions.