Typhoon Yagi devastates northern Vietnam with $3.31b in damages

Typhoon Yagi Asia’s most powerful storm has inflicted damages on northern Vietnam estimated at a staggering 81.5 trillion dong (approximately $3.31 billion). This figure, reported by state media on Saturday, is nearly double earlier assessments, reflecting the severe impact of the typhoon, which has left 299 people dead and 34 missing.

The storm wreaked havoc across key export-oriented industrial hubs, obliterating factories and facilities, flooding farmland, and damaging homes. A crucial bridge was also torn apart, significantly hampering transportation and recovery efforts. Agriculture Minister Le Minh Hoan highlighted the nature of the destruction, stating, “The total economic damage is initially estimated at over 81.5 trillion dong, with most damage triggered by landslides and flash floods.”

This revised estimate far surpasses the preliminary $1.6 billion projection made by the planning ministry earlier this month, a figure that posed a potential reduction of 0.15 percentage points to Vietnam’s economic growth forecast of 6.8% to 7% for the year. In light of the unfolding crisis, Hoan has urged local authorities to prioritize the resumption of production activities, ensure supply stability, and mitigate price increases, particularly in agriculture—an area severely impacted by the storm.

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The consequences of Typhoon Yagi extend beyond immediate damage; they are already being felt in the market. Live pig prices in Vietnam have surged in response to the flooding, which has disrupted several pig farms, according to reports from Reuters.

Compounding the challenges, S&P Global announced on Thursday that Vietnamese banks would likely face reduced profitability due to the debt relief measures imposed by the central bank in the wake of the disaster. As recovery efforts begin, the economic ramifications of Typhoon Yagi continue to unfold, revealing a crisis that will require significant resources and resilience to overcome.