Vietnam's Economic Growth Forecast for 2024 Drops Due to Typhoon Yagi Impact
HANOI (Multibagger) - Planning and Investment Minister Nguyen Chi Dung has stated that Vietnam's economic growth in 2024 may decrease by 0.15% compared to previous forecasts due to the devastating impact of Typhoon Yagi, the most powerful storm in Asia this year.
The typhoon, which hit Vietnam last Saturday, caused widespread destruction to infrastructure and factories, resulting in an estimated cost of 40 trillion dong ($1.63 billion), as reported by state-run Vietnam News Agency (VNA).
Minister Dung also mentioned that the growth rates for the last two quarters of the year are expected to slow down significantly, with GDP growth in the third quarter and fourth quarter potentially decreasing by 0.35% and 0.22% respectively compared to projections without the typhoon.
Previously, the ministry had forecasted a 7% economic expansion for Vietnam in 2024. However, the country is now facing the aftermath of Typhoon Yagi, which has claimed the lives of at least 281 people and left 67 missing. In addition, floods have damaged thousands of hectares of rice fields and cash crops, as well as hundreds of thousands of houses in northern Vietnam.
Haiphong City, a key industrial hub, reported losses and damages amounting to around 11 trillion dong ($448.43 million) due to the typhoon.
Despite the challenges posed by Typhoon Yagi, Vietnam remains committed to controlling inflation and aiming for a GDP growth of approximately 7% this year, according to a statement released by the government.
In conclusion, the devastating impact of Typhoon Yagi has not only caused loss of life and widespread damage in Vietnam but has also led to a downward revision in the country's economic growth forecast for 2024. Investors and individuals should closely monitor the situation in Vietnam and consider the potential implications on their investments and finances.