Typhoon Yagi can reduce Vietnam GDP growth by 0.2-0.5 percentage points: Mitsubishi UFJ Financial Group
Super typhoon Yagi can reduce Vietnam’s GDP growth this year by 0.2-0.5 percentage points, according to a Monday commentary of Mitsubishi UFJ Financial Group (MUFG), among the biggest banking institutions in Japan.
MUFG noted that Yagi hit northern Vietnam, particularly the Red River Delta, with economic hubs of Hanoi capital city, Hai Phong city and provinces of Quang Ninh, Bac Ninh, Bac Giang, and Thai Nguyen. Those areas make up 38% of Vietnam’s GDP and 55% of the country’s export revenues.
Prime Minister Pham Minh Chinh cries twice during a cabinet meeting (left) and a live TV program when he talks about losses from super typhoon Yagi, September 15, 2024. Photos courtesy of the government's news portal and VTV.
MUFG estimated that resolving the disruptions caused by Yagi would take two-three months, possibly longer. The negative impacts to the country’s GDP growth can range between 0.16 and 0.45 percentage points, according to MUFG. This is similar to the Ministry of Planning and Investment’s calculation of 0.15 percentage points.
Nonetheless, in case the impacts linger beyond three months and spreads out further due to flooding, the impact could reach 0.9-1.5 percentage points, according to MUFG.
On Sunday, Minister of Planning and Investment Nguyen Chi Dung reported that typhoon Yagi can slow down Vietnam’s economic growth by 0.15 percentage points, versus the scenarios of no typhoon with GDP growth of 6.8-7%.
The worst impact is possible reduction of 0.33 percentage points against the agriculture-fisheries-forestry sector, 0.22 percentage points for the service sector, and 0.05 percentage points for industry-construction sector.
According to preliminary report, Yagi caused asset damage of VND40 trillion ($1.63 billion), including damages against 257,000 houses and 1,300 schools, 262,000 hectares of paddy rice and trees, 2,250 fisheries cages, 310,000 trees, and 2.3 million cattle-poultry heads.
As of early Monday morning, Vietnam recorded 330 victims of typhoon Yagi, including 292 deaths and 38 missing.
Vietnam’s GDP growth reached 6.93% in the second quarter and 6.42% in the first half of 2024, according to the General Statistics Office (GSO).
- Related News
- Read More
VinaCapital fully divests from Vietnam’s private hospital chain Tam Tri
The Vietnam Opportunity Fund (VOF), managed by VinaCapital, has announced its full divestment from local hospital chain Tam Tri Medical, according to a filing with the London Stock Exchange.
Finance - Tue, June 10, 2025 | 4:43 pm GMT+7
CapitaLand breaks ground on its first luxury low-rise project in northern Vietnam
Singapore's CapitaLand Development (CLD) has broken ground on The Fullton, a luxury low-rise residential development with a gross development value of approximately $800 million.
Real Estate - Tue, June 10, 2025 | 4:26 pm GMT+7
Vietnam’s major affordable housing developer Hoang Quan appoints new CEO
Hoang Quan Real Estate Consulting-Trading-Services JSC (HoSE: HQC), a major affordable housing developer in Vietnam, has appointed Nguyen Long Trieu as its new general director, effective from Monday.
Real Estate - Tue, June 10, 2025 | 4:00 pm GMT+7
US Cargill announces exit from aquafeed business in Vietnam
Cargill, one of the leading animal feed producers in the U.S., has withdrawn from the aquafeed business in Vietnam, said Maxime Hilbert, interim general manager for aqua nutrition at Cargill Thailand & Vietnam.
Industries - Tue, June 10, 2025 | 3:26 pm GMT+7
USD price likely to hit record high of VND26,300 in Q3, drop to VND26,100 in Q4: UOB
Singaporean bank UOB on Monday said its updated forecasts on the USD/VND exchange rate are VND26,300 per USD in Q3/2025; 26,100 in Q4/2025; 25,900 in Q1/2026; and 25,700 in Q2/2026.
Economy - Tue, June 10, 2025 | 2:38 pm GMT+7
Four pillars set stage for Vietnam private sector breakthrough: expert
The four resolutions recently issued by the Politburo, Vietnam's highest decision-making body, mark a critical turning point, opening up major opportunities for Vietnam’s private sector to thrive, said Tran Du Lich, former director of the Ho Chi Minh City Institute of Economics.
Economy - Tue, June 10, 2025 | 12:37 pm GMT+7
How Vietnam’s functional food market evolves
With the presence of major domestic and international brands, along with strong government efforts to dismantle counterfeit product rings, Vietnam's functional food market is expected to continue its upward trajectory in the coming time.
Economy - Tue, June 10, 2025 | 12:18 pm GMT+7
Visa introduces Click to Pay in Vietnam for online shopping experience 'transformation'
Visa has introduced Click to Pay with leading banks and payment facilitators in Vietnam - the first market in Southeast Asia to see the solution that aims to transform online shopping experience.
Finance - Tue, June 10, 2025 | 8:48 am GMT+7
Vietnamese banks leverage national data integration to reach customers
Banks in Vietnam are developing fully digital lending services, enabling customers to apply for and receive loans entirely through online platforms.
Banking - Mon, June 9, 2025 | 11:28 pm GMT+7
Vietnam’s garment-textile exports top $17 bln in five months
Vietnam’s garment and textile exports exceeded $17.58 billion in the first five months of 2025, up 9% year-on-year.
Companies - Mon, June 9, 2025 | 11:21 pm GMT+7
Vietnam's coastal hospitality real estate poised for a new wave of growth
As competition intensifies and the tourism sector rapidly evolves post-pandemic, hospitality real estate investors and hotel operators are adopting more innovative approaches to optimize operations and tap into new revenue streams, write Avison Young Vietnam analysts.
Consulting - Mon, June 9, 2025 | 11:01 pm GMT+7
Rules on private placement bond issuance should be tightened: Vietnam Finance Minister
Allowing only companies that have liabilities five times higher than their equity at maximum to issue bonds via private placement is a necessary move to mitigate risks and prevent abuse, said Finance Minister Nguyen Van Thang.
Finance - Mon, June 9, 2025 | 6:19 pm GMT+7
EV maker VinFast commits to purchasing all output for Vietnamese suppliers
Vietnamese electric vehicle maker VinFast has committed to purchasing all products for domestic suppliers that join its production chain.
Companies - Mon, June 9, 2025 | 5:21 pm GMT+7
Phat Dat affirms leadership role in southern Vietnam's property market following successful launch of La Pura project
The official launch of the La Pura project by Phat Dat Real Estate Development Corp on Sunday in the southern province of Binh Duong made a significant impact, with over 95% of the total inventory in the Zenia sub-zone successfully transacted.
Real Estate - Mon, June 9, 2025 | 4:07 pm GMT+7
Vietnam seeks Samsung partnership in AI-integrated chip design for data centers, telecom networks
Minister of Public Security Luong Tam Quang called on South Korean tech giant Samsung to strengthen its partnership with his ministry in developing Vietnam’s security industry.
Investing - Mon, June 9, 2025 | 3:13 pm GMT+7
Vingroup partners with e-commerce platform Shopee to develop logistics infrastructure
Vietnam’s leading multi-sector conglomerate Vingroup and Shopee, the country’s top e-commerce platform, on Friday signed an MoU to develop infrastructure for e-commerce fulfillment services, enhance digital connectivity between businesses and consumers, and build a sustainable digital ecosystem.
Companies - Mon, June 9, 2025 | 11:48 am GMT+7
