The Perfect Storm: How a Typhoon Wreaked Havoc and Blown Away $40,000 Billion Dong, Impacting the Annual GDP

The Ministry of Planning and Investment has reported to the Government on the damage caused by the third storm, as well as solutions to overcome the aftermath, restore production and business activities.

Storm No. 3 was the strongest storm in the East Sea in 30 years. The storm and its aftermath had a vast impact, affecting 26 provinces and cities in the entire North and Thanh Hoa province (accounting for over 41% of GDP and 40% of the country’s population). So far, there have been 353 deaths and missing persons, and about 1,900 injuries.

According to the Ministry of Planning and Investment, the initial estimate of property damage caused by Storm No. 3 is about VND 40 trillion. Approximately 257,000 houses, 1,300 schools, and numerous infrastructure works have collapsed or been damaged. There were also 305 dyke incidents, mainly on large dykes from grade III and above. In addition, over 260,000 hectares of rice, crops, and fruit trees were flooded and damaged, 2,250 fish farming cages were damaged or washed away, nearly 2.3 million cattle and poultry were killed, and almost 310,000 urban trees fell.

The growth of the last six months of the country and many localities is forecast to slow down. National GDP growth in the third quarter may decrease by 0.35%, and the fourth quarter by 0.22% compared to the scenario without Storm No. 3.

“For the whole year, GDP may decrease by 0.15% compared to the growth scenario of 6.8-7%, of which the agriculture, forestry, and fishery sector will decrease by 0.33%, industry and construction will decrease by 0.05%, and services will decrease by 0.22%. Local GRDP growth in Hai Phong, Quang Ninh, Thai Nguyen, and Lao Cai will decrease by over 0.5%,” the Ministry of Planning and Investment assessed.

Many roads were flooded and damaged, disrupting traffic, especially road and rail transport. Farms, rice and crop growers, livestock and fish farmers in most areas affected by Storm No. 3, including coastal, urban, peri-urban, rural, and mountainous areas, were among the hardest hit. They need significant resources and time to rebuild their herds, replant crops, and restart production, especially as the North is in the middle of the autumn-winter crop season and has not yet reached the harvest period.

In terms of tourism and accommodation, many establishments were damaged and had to close for repairs. As a result, the North will miss the international tourist season (from September this year to April 2025) and may not attract domestic visitors, especially in key tourist destinations such as Hanoi, Hai Phong, Quang Ninh, Lao Cai, and Ha Giang.

Industrial and construction enterprises were also impacted by the storm, mainly indirectly due to power outages, communication disruptions, and effects on their workers and their families.

The Ministry of Planning and Investment drew attention to social issues, especially in healthcare, education, the environment, rural and urban water supply, employment, and people’s lives. These areas need special attention, priority in resource allocation, and swift implementation to prevent the outbreak of diseases.

“There has been a lot of negative and inaccurate information, causing panic and fear among the people, affecting flood and storm prevention and damage recovery efforts. The security and social order situation has become more complex, with an increase in online scams,” the Ministry warned.

To promptly support people and businesses in restoring production and business activities, the Ministry of Planning and Investment proposed focusing on five groups of tasks and solutions. First and foremost, the people’s lives, safety, and health must be protected. Additionally, support should be provided to restore social activities and stabilize the lives of the people, especially in the areas most severely affected by floods, storms, inundation, and landslides.

The Ministry also suggested supporting production facilities, business households, cooperatives, and enterprises to quickly restore production chains, labor supply, and business activities. It is crucial to prepare for natural disasters, storms, floods, and landslides in the future and have mechanisms, policies, and solutions to reduce and simplify administrative procedures to implement support policies effectively.